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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication O n and After the Afternoon of July 30, 1929 R O LLA WELLS, Chairman and Federal Reserve Agent FEDERAL RESERVE U E chiefly to seasonal influences, business in this district receded slightly during the past thirty days as contrasted with the similar period immediately preceding. Taken as a whole, howrever, the general rate of activity in com merce and industry was measurably higher than at the same time during the past several years. P ro duction and distribution of merchandise continued on an unusually large scale and the more seasonable weather was reflected in increased sales in a num ber of lines handling goods for ordinary consump tion. This was true particularly of apparel, drugs and chemicals, electrical supplies and sporting goods. Retail trade generally was in considerable volume, but was relatively better in the urban cen ters than in the country and small towns, which lat ter fact was due in part to preoccupation of agricul turists with harvest and intensive field work. W hile purchasing by retail merchants is still chiefly on an immediate requirement basis, wholesalers, notably of dry goods, boots and shoes and hardware, report a larger volume of future orders than at the corres ponding period in 1928. D Manufacturing activity was at an unusually high rate for this time of year. Numerous plants which ordinarily close down for inventory and re pairs around July 1, remained in operation and many which did close temporarily, resumed pro duction after less than the customary period of idle ness. The iron and steel industry, which has been unusually active since the first of the year, receded slightly from the rate of the preceding month, but the slowing down was occasioned more by extreme high temperatures and necessity for repairing equip ment than econom ic causes. Building activities slackened, both as compared with the preceding month and a year ago, and production and distri bution of automobiles was also smaller. Activities at textile mills, lumber mills, quarries, clay products >nd glass plants, and furniture factories receded as compared with the preceding thirty days. Debits to checking accounts in June fell 6.0 per cent below C. M . STEW ART, Assistant Federal Reserve Agent BANK OF ST* J. V IO N PA PIN , Statistician LOUIS the May total, and were 1.8 per cent less than in June, 1928. A ccording to the Employment Service of the U. S. Department of Labor, there was an increase in employment in this district during June, mainly in the outdoor occupations, and among unskilled laborers. A surplus of common labor still exists, however, most noticeable in the large cities. Taken as a whole the thirty-day period was the most aus picious for agriculture of any experienced this sea son. Crops made good progress, and the winter wheat and oats harvest was completed under favor able conditions. O f equal importance to the farming community was the substantial advance in cereal prices which took place in late June and the first half of this month. In the bituminous coal trade conditions under went no marked change as contrasted with the pre ceding thirty days, but in most fields further slight improvement was in evidence and the undertone firmer. Due to reduced production of prepared sizes and the high rate of industrial activity, screenings maintained a firm position throughout the period. There was a greater disposition on the part of rail roads to store, and a large number of municipalities and industrial users were placing contracts for their future requirements. Operators in the W estern Kentucky field reported an increase in inquiries from general sources, with a number maintaining good operating schedules on the basis of lake con tracts. Demand for domestic coal during June was quiet, but quite marked improvement has developed since July 4. Prices generally were steady to higher, with the usual advance in the Illinois and Indiana fields taking place on July 1. The movement of coke and Arkansas anthracite was in considerable v ol ume. The movement to the Great Lakes continued steadily through the period and was at a slightly higher rate than at the corresponding time in 1928. For the country as a whole, total production of soft coal for the present calendar year to July 6, approxi mately 158 working days, was 260,628,000 tons, against 239,319,000 tons for the corresponding period in 1928, and 279,582,000 tons in 1927. The movement of freight by railroads operat ing in this district continued to run ahead of the volume during the same period in all preceding years. There were notable gains in loadings of grain and grain products, and in the merchandise and miscellaneous freight classification substantial in creases were recorded over the preceding year and 1927. For the country as a whole loadings of rev enue freight during the first 26 weeks this year, or to June 29, totaled 25,596,938 cars, against 24,461,773 cars for the corresponding period in 1928, and 25,521,040 cars in 1927. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, interchanged 242,703 loads in June, against 244,051 loads in May, and 216,072 loads in June, 1928. During the first nine days of July the interchange amounted to 66,811 loads, against 68,471 loads during the corresponding period in June, and 63,699 loads during the first nine days of July, 1928. Passenger traffic of the report ing lines in June decreased 3 per cent as compared with the same month in 1928. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in June was 104,300 tons, the largest on record for that particular month, and comparing with 123,850 tons in May, and 90,658 tons in June, 1928. Collections during the past thirty days devel oped some irregularity, though on the whole were well up to the high average of the preceding several months. Payments in the rural sections were in terfered with to some extent by the fact that farm ers were intensively employed with harvest and were unable to get to town. Some backwardness was noted in the coal mining areas. In the large cities important wholesale and manufacturing in terests reported payments in considerable volume, and larger than at the corresponding period last year. Absence of numerous customers on vacations affected collections of department stores and other retail establishments in the urban centers. Ques tionnaires addressed to representative interests in the several lines scattered through the district showed the following results: Excellent June, 1929..................... 2.9% May, 1929..................... 3.4 June, 1928..................... 1.3 Good 35.1% 32.0 26.3 Fair 41.8% 50.4 59.2 Poor 20.2% 14.2 13.2 Commercial failures in the Eighth Federal Re serve District in June, according to Dun's, num bered 98, involving liabilities of $1,894,983, against 107 defaults in May with liabilities of $1,215,307, and 105 failures for $962,860 in June, 1928. The average daily circulation in the United States in June was $4,687,000,000 against $4,684,000,000 in May and $4,736,000,000 in June, 1928. M AN U FACTU RIN G A N D W H O L E S A L E Automobiles — Combined passenger car, truck and taxicab production in the United States in June was 545,252, which compares with 603,696 in May and 392,076 in June, 1928. Distribution of automobiles in this district dur ing June aggregated less than in either May this year or in June, 1928. In both comparisons losses were quite generally distributed through all classes of makes, but were most pronounced in the field of medium-priced cars. Weather conditions were more favorable than earlier in the year, but dealers re ported a general disposition on the part of prospec tive purchasers to postpone commitments. This was true particularly in the country where farmers were busily engaged with harvests and uncertainty existed relative to the outcome of certain crops. Sales of cheap-priced cars were relatively well sus tained, and in the yearly comparison showed a sub stantial numerical gain. This was due partly to the fact that a leading producer of automobiles in this category was on a low production schedule at the corresponding time in 1928. Distributors of highpriced models reported rather spotted conditions, some reporting heavy sales, while results with others were below expectations. Demand for trucks continued active, with some improvement in sales of the heavier commercial vehicles. June sales of new passenger cars by 320 dealers scattered through the district were 3.7 per cent smaller than in May and 13.0 per cent less than in June, 1928. Stocks of new cars in dealers’ hands on July 1 were 7.3 per cent larger than on June 1, and 20.4 per cent larger than on July 1, 1928. Some betterment as com pared with the preceding thirty days was noted in the used car market. There was a decrease of 2.8 per cent in the number of salable secondhand cars on hand as compared with a month earlier, though the total was 14.3 per cent larger than on July 1, 1928. Business in parts and accessories was stimu lated by the tourist season and special sales cam paigns. June sales of the reporting dealers was 2.6 per cent larger than in May, and 0.9 per cent less than in June, 1928. Replacement purchasing of tires was considerably aided by the tourist trade, but dealers are still buying sparingly, and stocks con tinue large. According to dealers reporting on that item, sales of new passenger automobiles on the deferred payment plan in June constituted 55.0 per cent of their total sales, which contrasts with 53.1 per cent in May, and 51.2 per cent in June, 1928. Boots and Shoes — June sales of the five report ing interests were 24.8 per cent larger than for the same month in 1928, and 31.6 per cent smaller than the May total this year. The decrease in the monthto-month comparison was seasonal in character, and considerably smaller than for the same period in 1928 or 1927. Stocks on July 1 were 17.7 per cent larger than a month earlier, and 15.5 per cent small er than on July 1, 1928. Salesmen who departed for their territories about July 4 have been sending in a considerable volum e of orders, and report retail stocks generally light. There was no change in prices as compared with the preceding thirty days. Factory operation was at 95 to 98 per cent of capa city. Clothing — Purchasing of clothing for next fall has not opened up in the volume anticipated, but demand for seasonal apparel developed marked bet terment with the arrival of more typical summer weather, and some reordering was reported. D e mand for work clothes continues quiet, particularly in the larger centers of population. June sales of the reporting clothiers were 45.6 per cent smaller than for the same month in 1928, and 63.7 per cent below the May total this year. Drugs and Chemicals — Due chiefly to marked betterment in reordering of seasonal merchandise, June sales of the reporting firms showed a gain of 8.7 per cent over the same month in 1928, but the total was smaller by 4.1 per cent than in May this year. Stocks on July 1 were larger by 2.3 per cent and 0.7 per cent respectively, than thirty days and a year earlier. Demand for soda fountain equipment and supplies, and sundries was in considerable v ol ume. Dry Goods — June sales of the 8 reporting in terests were 7.4 per cent smaller than for the same month in 1928, and 17.9 per cent below the May total this year. Stocks on July 1 were 11.8 per cent larger than on June 1, and 18.7 per cent smaller than on July 1, 1928. Advance business is reported somewhat larger than a year ago, and except in cer tain staples, orders booked since July 1 have been in large volume. Uncertainty relative to prices has adversely affected purchasing of cotton goods and silks. Electrical Supplies— The arrival of more sea sonable weather substantially aided selling of elec tric fans, refrigerators and other seasonal com m odi ties. A s compared with a year ago, radio material sales slumped rather markedly, due to the fact that last season the demand was stimulated by the presi dential campaign and other matters of public inter ests to this territory. Demand for m otor materials 4olds up well, with sales well ahead of a year ago. Total sales in June by the reporting interests were 36.4 per cent larger than for the same month in 1928, and 25.8 per cent above the May total this year. Stocks on July 1 were 1.8 per cent and 4.5 per cent, respectively larger than thirty days and a year earlier. Flour — Production at the 12 leading mills of the district in June totaled 360,335 barrels, against 389,237 barrels in May and 314,474 barrels in June, 1928. Stocks of flour in St. Louis on July 1 were 1.8 per cent smaller than on June 1, and 7.5 per cent less than on July 1, 1928. The past thirty days con stituted a between-season period, and business was on a relatively small scale and chiefly on a necessity basis. Jobbers were disposed to hold off awaiting the new flour, and the bakery trade bought sparing ly. Prices were higher in sympathy with the upturn in cash wheat, but buyers were not follow ing the advance. Since the second week this month inquir ies have increased, but traders were apart on values and little new business was placed. Mills were asking firm prices, and offering of new flours were light. Mill operations were at from 50 to 55 per cent of capacity. Furniture — June sales of the 11 reporting in terests were 8.4 per cent smaller than for the same month in 1928, but 2.5 per cent larger than the May total this year. Stocks on July 1 were 3.8 per cent smaller than on June 1, and 11.3 per cent less than on July 1, 1928. Staple goods are reported relatively quiet, but specialties, including radio cabinets, porch furniture and hospital equipment, are being pur chased in considerable volume. Groceries — Unfavorable weather, with exces sive rains in many sections, served to hold down the volume of business in this classification. The in creased marketing of fresh fruits and vegetables lowered sales of canned and preserved products. Prices underwent no change w orthy of note as con trasted with the past thirty days. Am ong the sta ples, flour and sugar were higher and coffee lower. June sales of the 11 reporting interests were 3.5 per cent less than for the same month in 1928, and 5.6 per cent below the M ay total this year. Stocks on July 1 were 3.0 per cent and 13.8 per cent small er, respectively, than thirty days and a year earlier. Hardware — Reduced purchasing of merchan dise for consumption in the rural areas, lessened de mand for builders tools and hardware, and a gen eral disposition to fill only immediate requirements were the chief factors in a decrease in June sales of the 12 reporting interests of 4.3 per cent as com pared with the same month last year. The June total was 3.1 per cent smaller than that of the pre ceding month. Stocks on July 1 were 5.7 per cent larger than on that date in 1928, and 4.4 per cent less than on June 1 this year. Iron and Steel Products — The high mom en tum which marked the iron and steel industry in this district during the first half of the year has car ried into the third quarter. Activities at mills, foun dries, machine shops and other ferrous metal w ork ing plants during the past thirty days were at a considerably higher rate than the average at the same time during the past several years. Numerous establishments which ordinarily close down for in ventory and repairs about July 1 have continued steadily in operation, and many of those which did close, have resumed production. Shipments of fin ished and semi-finished products in June were large, and the average since July 1 is only slightly below the preceding month. Liquidation of unfin ished orders has proceded moderately, but less than the usual seasonal recession in demand is in evi dence. There has been some falling off in orders for automobile materials and demand from the building industry is less active than heretofore, but this has been offset by heavy requirements of other iron and steel users. Jobbing foundries, particularly those specializing in railroad castings, report orders substantially larger than a year ago. Manufactur ers of reinforcing concrete material report no di minution in the demand for their wares, and sheet mills were operating at or near capacity. Demand for road building materials continues active, and in the immediate past fabricators of structural steel have received a large number of small orders, though few large awards have been made. Jobbers report some slow ing down in the general call for their commodities, particularly goods for consum p tion in the rural areas. W ire fencing, roofing, and certain tubular goods are quiet. Prices of finished materials were in the main steady, though conces sions under current quotations were reported on certain wire products, sheets and galvanized wares. Tin plate receded seasonally in demand, but with the improved outlook for certain fruit and vegeta ble crops, packers in some instances have increased their original commitments. Manufacturers of farm implements and stoves report sales during the first half of the year considerably larger than during the first six months of 1928. There was a rather sharp drop in the price of pig iron, which fact, coupled with uncertainty in the southern rate situation, had a tendency to curtail buying. Purchasing for third quarter requirements is smaller in the aggregate than at any similar period during the past decade. Prices of scrap iron and steel declined slightly. P ro duction of pig iron for the country as a whole in June totaled 3,715,583 tons, a record for that month, and comparing with 3,898,344 tons in M ay and 3,082,340 tons in June, 1928. Steel ingot production in the United States in June totaled 4,881,370 tons, against 5,273,167 tons in May, and 3,743,903 tons in June, 1928. R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statement showing activity at department stores in leading cities of the district: __ Net sales comparison Stocks on hand Stock turnover June, 1929 6 months ending June 30, 1929 Jan. 1, to June 30, 1929 to comp, to June 30, comp, to June, 1928 same period 1928 June 30, 1928 1929 1928 — + 3.2% 1.22 1.18 — 3.2% Evansville .... . 1.8% —- 1.5 — 8.0 1.24 Little R ock.... •+ 0.1 1.13 0.0 1.58 1.50 2.1 Louisville ....... — 10.7 1.51 — 3.7 — 7.0 1.56 .+ 2.4 1.33 1.27 + 7.6 — 1.4 . + 6.9 2.00 1.84 2.2 + 2.3 — 1.1 .+ .80 — 6.2 .71 Springfield, M o .+ 0.3 — 5.5 1.76 1.64 8th District.... ■+ 1.6 + 0.8 — 4.1 Net sales comparison Stocks on hand June, 1929 comp, to June, 1929 comp, to June, 1928 May, 1929 June, 1928 May, 1929 Men’ s furnishings........... + 9.2% — 5.0% 1.8*? + 22.5 % 2.6 — 9.6 — 6.0 Boots and shoes............. 4- 8.0 Department Store Sales by Departments — As reported by the principal department stores in Little Rock, Louisville, Memphis, and St. Louis. Percentage increase or decrease June, 1929 compared to June, 1928 Net sales Stocks on hand for month at end of month Piece goods....................................... — 8.5% — 2.7°/ Ready-to-wear accessories............... — 1.4 — 6.1 Women and misses’ ready-to-wear— 7.7 + 7.7 — 8.3 Men’s and boys’ wear..................... +11.1 — 7.8 Home furnishings............................. — 6.0 CONSUM PTION OF E LE C TR IC IT Y Public utilities companies in the five largest cities of the district reported consumption of elec tric current in June by selected industrial customers as being 0.2 per cent less than in May, and 17.4 per cent greater than in June, 1928. In the month-tomonth comparison the decrease is seasonal in char acter, but smaller than the average during the past five years. Increases in the yearly comparison were well distributed, but especially heavy in the case of ice plants, railroad shops and flour mills. D e creases were shown by some foundries and brick plants. Detailed figures follow : Customers Evansville .... 40 Little Rock.. 35 Louisville ... 89 Memphis .... 31 St. Louis..... 133 May, June, 1929 June, 1929 comp, to 1929 K .W .H . *K .W .H . May, 1929 1,902 — 4.0% 1,826 2,343 1,826 +28.3 7,596 7,623 — 0.3 1,320 1,688 — 21.8 22,486 22,615 — 0.6 35,571 Total ....... 328 *In thousands (000 omitted.) 35,654 — 0.2 June, 1928 *K .W .H . 1,497 1,912 6,111 1,142 19,629 30,291 June, 1929 comp, to June, 1928 + 22.0 % +22.5 +24.3 + 15.6 + 14.6 + 17.4 BU ILD IN G In point of dollar value, permits issued for new construction in the five largest cities of the district in June were 16.8 per cent larger than in May, but 20.0 per cent smaller than the June, 1928, total. A ccording to statistics compiled by the F. W . D odge Corporation, constructions contracts let in the Eighth Federal Reserve District in June tota’ ^ i $41,847,546, against $41,019,755 in May, and $44,1... 793 in June, 1928. Production of portland cement for the country as a whole in June totaled 16,775,000 barrels, against 16,151,000 barrels in May and 17,497,000 barrels in June, 1928. New Construction *Cost Permits 1929 1928 1928 1929 $ 713 $ 357 538 Evansville .. 381 785 464 64 Little Rock 38 1,699 1,814 183 Louisville .. 149 530 1,103 Memphis ... 350 298 3,633 694 1,768 St. Louis.... 598 $5,174 $7,692 June totals 1,516 1,777 4,428 6,712 May totals 1,592 2,040 April totals 1,894 1,996 6,874 7,725 *ln thousands of dollars (000 omitted). Repairs, etc. *Cost Permits 1929 1928 1929 1928 92 $ 18 $ 46 54 66 96 47 64 63 188 86 135 58 132 16 218 390 402 426 381 643 617 727 832 1,051 991 $ 650 $853 771 1,010 700 839 PO STAL RECEIPTS Returns from the five largest cities of th f dis trict show a decrease in postal receipts for the second quarter of the year of 1.4 per cent as com pared with the corresponding period in 1928, and of 4.2 per cent under the first three months of this year. Detailed figures fo llo w : June 30, 1929 $ 161,000 Evansville .... 208,000 Little Rock.... Louisville ...... ,, , 695,000 Memphis ...... , , 613,000 3,066,000 St. Louis......... Total...............$4,743,000 For Quarter Ending June 30, Mar. 31, 1928 1929 $ 173,000 $ 163,000 220,000 244.000 715.000 724.000 620.000 672.000 3,082,000 3,147,000 $4,950,000 $4,810,000 June 30, 1929 comp, to June 30, 1928 — 7.0% — 5.5 — 2.9 — 1.2 — 0.6 — 1.4 AG RICU LTU R E H igh temperatures, accompanied by ample pre cipitation during most of June and the first half of July, were generally favorable for grow ing crops in this district. Prospects as a whole on July 1 were more favorable than a month earlier, and further betterment in corn, tobacco, rice, legumes, potatoes and some other less important products has taken place since that date. A considerable part of the backwardness occasioned by the late and unfavora ble spring has been made up, and while virtually all crops are still behind the seasonal schedule, there remains ample time before harvest to permit of average yields, barring, always, the contingency of unusually early frost dates. Farmers have taken advantage of all auspicious weather for intense field work, and except in areas directly affected by flood conditions, cultivation has made good progress. Fields are mainly clean, and stands in many areas are better than was thought could be the case six weeks or tw o months ago. Generally through the south, but particularly in Kentucky and Mississippi, the condition of all crops is high. Those crops which have matured, show for the most part, better yields than the aver age. The season has been favorable for production of hay and other feeds, and for pasturage. This has proved beneficial to the live stock and dairying industries, which are almost universally reported in good condition. Live stock values have been well sustained, a new high price for the year on hogs being established in the St. Louis market during the second week of July. Due to heavy rains and floods, considerable acreage in rich bottom lands along the Mississippi River and its tributaries, hitherto plant ed to corn and cotton, will not be seeded in any crop this year. The outlook for fruits and vegeta bles varies considerably, both with reference to the several varieties and different localities. The aver age composit condition of all crops in states of the district on July 1, according to the U. S. Depart ment of Agriculture was 96.7 per cent of the aver age on that date during the past ten years which compares with 88.1 per cent on the same date last year. ' Winter Wheat — Production of winter wheat in the Eighth District, based on the July 1 condi tion, is estimated by the Department of Agriculture at 50,203,000 bushels, as compared with 29,975,000 bushels harvested in 1928. Harvesting of the crop has been virtually completed, and generally in good condition, though there were numerous reports of damage from wind and rain, most frequent in M is souri, Indiana and Illinois. Quality varies consider ably, and in many counties reflects injury from rust, hessian fly, black scab and other causes. Due prin cipally to unfavorable weather in the American and Canadian northwest, wheat values have advanced sharply in the immediate past, the September op tion in the St. Louis market advancing from $1.08 per bushel on June 17 to $1.40j4 on July 15. Corn — Corn prospects are extremely irregular, and generally the crop is from a week to four weeks behind the usual seasonal schedule. The wet, cold spring was accountable for planting being extended over a long period, and in many of the most pro ductive areas seed bed preparation was unsatisfac tory and numerous fields continue cloddy and in inferior tilth. There has been marked improvement in the recent past, but favorable conditions with late frost must follow to mature late seeded fields. Prices have advanced sharply during the past* thir ty days, with both spot grain and the futures shar ing in the upturn. Based on the July 1 condition, the 1929 yield in this district is estimated by the Department of Agriculture at 323,379,000 bushels which compares with 358,882,000 bushels harvested in 1928. Oats — Production of oats in the Eighth D is trict, based on the July 1 condition, is estimated at 51,749,000 bushels, against 66,278,000 bushels har vested in 1928. Fruits and Vegetables — W ith the exception of apples, indications are for larger tree fruit crops in this district than in 1928. W hile the apple bloom was very promising, the set was disappointing and an unusually heavy drop, due to unfavorable weath er and blight, substantially lowered prospects. In the case of all fruits, frequent rains interfered with spraying, and wind and hail storms wrought con siderable local damage. In states lying entirely or partly within the Eighth District, the yield of ap ples this year is estimated at 19,064,000 bushels, of which 2,285,000 barrels represent commercial crop, against 25,010,000 bushels, with 2,544,000 barrels commercial crop, harvested in 1928, and a 5-year average of 24,306,000 bushels, with 2,666,000 barrels commercial crop. Indications are for a fair peach crop, particularly in the Missouri and Arkansas Ozark region, where many new orchards are com ing into bearing. The estimated yield of peaches in states of the district is 10,845,000 bushels, against 9.758.000 bushels in 1928, and 7,111,000 bushels, the 5-year average. Indications in these states are for an output of 1,803,000 bushels of pears, against 1.666.000 bushels in 1928, and a 5-year average of 1.628.000 bushels. The July 1 condition of grapes was generally high, and with the com ing into bear ing of many new vineyards, this year’s production in the district will probably exceed the record output of 1928. Plums were an unusually heavy crop this year, and cane fruits, cultivated and wild, yielded heavily generally through the district. Based on the July 1 condition, the Department of Agriculture estimates the output of white potatoes in the Eighth District at 13,167,000 bushels, against 19,510,000 bushels harvested in 1928. The decrease is due to unfavorable conditions during the seeding period, and rot caused by excessive moisture. In states of the district the sweet potatoe crop is estimated at 16.702.000 bushels, against 16,088,000 bushels in 1928, and a 5-year average of 18,004,000 bushels. Throughout the present season, virtually all garden crops have shown poor prospects. Live Stock — Generally through the district live stock are thriving on good pasturage and abun dant feed supplies. Shipments o f meat animals to market have been on a considerable scale, raisers being attracted by relatively high prices of hogs, sheep and cattle. H ay crops turned out well, total yield of tame hay in the Eighth District being esti mated by the Department of Agriculture, based on the July 1 condition, at 8,851,000 tons, against 7,573,000 tons produced in 1928. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as fo llo w s: Receipts June, May, June, 1929 1929 1928 Cattle and calves..... 89,230' 92,695 94,417 Hogs ......................... 308,173 340,215 280,737 Horses and mules..... 1,728 1,731 2,455 Sheep ......................... 70,917 42,288 86,585 Shipments June, May, June, 1929 1929 1928 59,25849,199r 65,644 211,731242,053 206,633 1,217 1,740 1,559 15,633 16,146 22,555 Cotton — A ccordin g to the July 1 report of the U. S. Department of Agriculture, area planted to cotton in all states of this district is greater than in 1928. Combined acreage in Missouri, Tennessee, Mississippi and Arkansas this year is placed at 9,926,000 acres, against 9,479,000 acres in 1928. The past thirty days have been in the main favorable for growth, fruition, germination and cultivation of the crop. Generally cotton is up to a good stand, and fields are clean of weeds. The crop is still late, but nearer to the seasonal schedule than thirty days earlier. Business in spot cotton was in small v ol ume and without significant trend. Stocks of old cotton have been reduced to a low point, the total in Arkansas warehouses on July 12 being only 33,120 bales, against 58,133 bales on the correspond ing date in 1928. Prices moved in a narrow range, the middling grade in the St. Louis market fluctuat ing between 17 y2 and 18c in the period from June 15 to July 15. Rice — Based on the July 1 condition, combined production of rice in Missouri and Arkansas is esti mated by the Department of Agriculture at 6,980,000 bushels, against 8,108,000 bushels harvested in 1928, and a 5-year average of 7,877,000 bushels. The acreage in these states was considerably lower than a year ago, the principal reasons for which being the low prices realized on last year’s crop, and un favorable conditions this spring. Tobacco — The area planted to tobacco in the chief producing states of the Eighth District this year is considerably larger than in 1928, and based on the July 1 condition the Department of Agriculture forecasts the combined yield in Missouri, Indiana, Kentucky and Tennessee at 521,819,000 pounds, against 397,059,000 pounds harvested in 1928, and a 5-year average of 485,343,000 pounds. Significant increases were made in plantings of air-cured and fire-cured types, while flue-cured types represent ing 57 per cent of the total, remain practically un changed. Burley, which brought high prices last season, increased in acreage. Other air-cured types which show increases are one-sucker and Green River. Fire-cured types as a rule have been in creased, Paducah and Mayfield by 31 per cent and Clarksville-Hopkinsville by 10 per cent, over 1928. During the past thirty days the crop has made con siderable growth and is generality in good condi tion. W eather has been in the main favorable for cultivation, and earliest planted fields have received their final plowing. Except where some replanting has been necessary, due to excessive moisture or cut worms, the crop is even and stand almost per fect. Commodity Prices — Range of prices in the St. Louis market between June 17, 1929 and July 15, 1929 with closing quotations on the latter date and on July 15, 1928: Close Wheat High -Low July 15, 1929 July 15, 1928 July ................... per bu.$1.36 $1 .03#$1.35# @$1.36 $1.30 Sept...................... “ 1.40 1.08 1.40# 1.31 Dec....................... “ 1.46J4 1.13# 1.46# 1.34# No. 2 red winter “ 1.42 1.17 1.41 @ 1.42 $1.49 @ 1.50 No. 2 hard.... . “ 1.37*4 1.08 1.34 @ 1.37# 1.33 @ 1.34 Corn July ................... “ .99 .9 2 # .98 @ .99 1.04 @ 1.06 Sept...................... “ 1.04 .9IH 1.04 .96%. Dec....................... “ .98 89 H -98 .80*i 1.02 .92 1.01# @ 1.02 1.05 No. 2 mixed....... “ No. 2 white....... “ 1.04.9 4 # 1 .0 3 # @ 1.04 1 .0 7 # @ 1.08 Oats No. 2 white....... “ .46 .51 .5 0 # @ .51 .64 @ .66 Flour Soft patent....... per bbl. 7.50 6.00 7.00 @ 7.50 7.50 @ 8.00 Spring patent.... “ 8.00 5.90 7.75 @ 8.00 6.70 @ 6.85 Middling cotton....per lb. .18 .1 7 # .1 7 # .21# Hogs on hoof....... per cwt.12.40 9.50 10.25 @12.40 9.75 @11.60 June 19, 1929 and July 17, 1929 and on the latter date were 5.4 per cent smaller than on July 18, 1928. Composite statement follow s : *July 17, 1929 Number of banks reporting........... t25 Loans and discounts (incl. rediscounts) Secured by U. S. Govt, obligations and other stocks and bonds....$233,538 All other loans and discounts.... 282,059 *J,une 19, 1929 $232,118 285,612 $223,385 288,593(1) Total loans and discounts............. $515,597 Investments U. S. Government securities.... 57,691 Other securities........................... 110,938 $517,730 $511,978(1) 59,960 112,409 75,617 139,282 Total investments............................ $168,629 Reserve balance with F. R. bank 43,628 Cash in vault..................................... 6,890 Deposits Net demand deposits................... 362,315 Time deposits................................ 221,589 Government deposits................... 4,345 $172,369 42,181 6,359 $214,899 44,003 7,179 366,399 375,476 242,664 T27 *July 18, 1928 29 227,193 F IN A N C IA L 3,546 6,694 The banking situation in this district during the Total deposits................................... $588,249 $600,286 $621,686 Bills payable and rediscounts with past thirty days was marked by continued active Federal Reserve Bank............... 39,127 28,389 43,547 *In thousands (000 omitted). demand for credit for general commercial, industrial tDecrease due to consolidation. These 25 banks are located in St. Louis, Louisville, Memphis, Little Rock, and Evansville, and their resources and agricultural purposes. In numerous important represent 53.1 per cent of all the resources of member banks in this district. instances, merchants and manufacturers augmented (l)Figures for 1928 include acceptances of other banks and bills of ex change sold with endorsement, while figures for 1929 exclude same. their borrowings in order to take care of purchases of goods for fall distribution. Leading banks in the Debits to Individual Accounts — The follow ing main centers reported good routine liquidation on table gives the total debits charged by banks to the part of mercantile customers, but the volume checking accounts, saving accounts, certificates of of new commitments more than offset the amount deposit accounts and trust accounts of individuals, of loans paid up. These banks have considerably firms, corporations and U. S. Government in leadreduced their balances with eastern correspondents ing cities of the district. Charges to accounts of in order to accommodate demands in their own banks are not included. territory. *June, *May, *June, June 1929 comp, to 1929 1929 1928 May 1929 June 1928 There was an increase in the call for funds to East St. Louis & Natl. Stock Yards, 111..$ 72,849 $ 70,770 $ 69,625 + 2.9% + 4.6% finance the winter wheat crop and other agricultural El Dorado, Ark.... 6,904 8,401 10,659 — 17.8 — 35.2 Evansville, Ind.... 36,621 37,220 operations. Due to the relatively large carryover 52,815 — 30.7 — 1.6 Fort Smith, Ark... 11,723 12,720 13,234 — 11.4 — 7.8 of wheat and flour from last season, requirements Greenville, Miss.... 3,507 3,355 — 4.9 + 4.5 3,687 Helena, Ark.......... 4,184 4,345 3,171 — 3.7 + 31.9 of grain handlers and flour milling interests have Little Rock, Ark.. 69,252 77,515 73,129 — 10.7 — 5.3 Louisville, K y....... 210,959 213,355 226,894 — 1.1 — 7.0 averaged higher than at this period during the past Memphis, Tenn.... 147,137 155,679 140,486 — 5.4 + 4.7 Owensboro, K y.... 5,993 6,001 5,854 — 0.1 + 2.4 several years. High prices o f cattle, hogs and sheep Pine Bluff, Ark , , 9,280 10,731 9,595 — 13.5 — 3.3 Quincy, 111............ 13,388 13,430 13,768 — 0.3 — 2.8 have resulted in liberal marketing of these animals, St. Louis, M o....... 898,831 791,230 898,011 -f 13.6 + 0.1 Sedalia, M o........... 4,944 4,793 4,713 + 3.2 + 4.9 with good liquidation of loans based thereon. De Springfield, M o.... 17,438 16,614 17,383 + 5.0 + 0.3 **Texarkana, mand for funds for conditioning live stock for mar Ark.-Tex.... 16,690 16,570 15,084 + 0.7 + 10.6 ket, however, continues active. Country banks gen Totals..... $1,529,700 $1,443,575 $1,557,262 + 6.0 — 1.8 *In thousands (000 omitted). erally through the district have increased their bor rowings from city correspondents. Federal Reserve Operations — During June the The trend of interest rates was again higher. Federal Reserve Bank of St. Louis discounted for W hile the quotable' range was unchanged as con 241 member banks, against 234 in May and 193 in trasted with the preceding thirty days, a higher June, 1928. The discount rate remained unchanged percentage of the loans made were at the major at 5 per cent. Changes in the principal assets and figure of the spread. A t St. Louis banks, current liabilities of the institution as compared with the rates were as follow s: Prime commercial loans, preceding month and a year ago appear in the fol 5% to 6Yz per ce n t; collateral loans, 6 to 7 per cen t; lowing table: loans secured by warehouse receipts, 5^4 to 6% per *July 19, *June 19, *July 19, 1929 1929 1928 cent; interbank loans, 5 ^ to per cent and cattle Bills discoun .$58,165 $46,692 $61,758 loans, 6 to 7 per cent. Bills bought.. 187 448 147 . 13,625 11,625 7,125 Condition of Banks — Loans and discounts of .$71,977 $58,765 $69,030 the reporting member banks on July 17, 1929 show . 61,193 57,132 57,425 . 76,337 78,106 80,564 ed a decrease of 0.4 per cent as contrasted with June Ratio of reserve to deposits and F. R. Note Liabilities. . 53.5% 64.6% 55.6% 19, 1929. Deposits decreased 2.0 per cent between *In thousands (000 omitted). (Compiled July 20, 1929) BUSINESS CONDITIONS IN T H E U N ITED STATES Output of manufactures continued in large volume in June while mineral production declined. There was a rise in the general level of commodity prices, reflecting chiefly an advance in agricultural commodities. PRODUCTION — Activity of manufacturing estab lishments continued at a high rate in June. Output of automobiles and of iron and steel showed a seasonal decline, smaller than is usual from M ay to June. Silk mill activity increased and there was a growth in the daily average pro duction of cement, leather, and shoes. Production of copper Index numbers of production of manufactures and minerals, adjusted for seasonal variations (1923-25 average= 100). Latest figures, June: Manufactures, 127; Minerals, 113. at smelters and refineries decreased sharply, and output of cotton and wool textiles was also reduced, although produc tion in all of these industries continued larger than in other recent years. The volume of factory employment and pay rolls in June showed a small seasonal decline from May, but, as in earlier months, was substantially larger than in 1928. Output of mines was generally smaller in June than in May, reflecting declines in the production of coal, copper, and other nonferrous metals. Output of petroleum, however, increased to a new high level. Reports for the first half of July indicate some further reduction in output of cotton textiles, iron and steel, lumber and coal. Volume of con struction contracts awarded decreased further in June and for the first half year awards were 12 per cent less than in b illio n s o f d o l la r s years however, loadings continued to show an increase. Sales of department stores in June, as in earlier months, were larger than in the same month in 1928. PRICES — W holesale prices, according to the Bureau of Labor Statistics index, advanced from May to June on the average, somewhat less than they had declined during the preceding month. Farm products, particularly grains, cattle, beef, and hides, showed marked advances. Prices of mineral products and their manufactures also averaged Index of United States Bureau of Labor Statistics (1926=100, base adopted by Bureau). Latest figure, June, 96.4. creases in petroleum and gasoline. Prices of leading im ports, rubber, sugar, silk and coffee showed a decline for the month as a whole. During the first two weeks of July wheat and corn continued to move sharply upward, while hides declined slightly in price. H o g prices increased and prices of rubber and tin, which began to advance in the mid dle of June, continue to rise. BANK CREDIT — During the first half of July the volume of credit extended by member banks in leading cities declined somewhat, following a rapid increase in June. On July 17 loans and investments of these banks were about $400,000,000 above the level at the end of May. The in crease reflected chiefly rapid growth in loans to brokers and dealers in securities and also some further increase in commercial loans. The banks’ holdings of investments con- b illio n s o f d o l l a r s Monthly averages of weekly figures for reporting member banks in lead ing cities. Latest figures are averages of first three weeks in July. Monthly averages of daily figures. Latest figures are averages of first 21 days in July. the same period in 1928, reflecting chiefly a substantial de cline in residential building. During the first three weeks of July contracts awarded were larger than in the same period a year ago. AGRICULTURE — Department of Agriculture esti mates, based on July first crop conditions report, indicate a wheat crop of 834,000,000 bushels, about 8 per cent smaller than last year, but larger than average production in pre ceding five years. The acreage of cotton in cultivation on July first was estimated at 48,457,000 acres, 3 per cent more than a year ago. DISTRIBU TIO N — During the month of June freight car loadings were slightly smaller than in May as a result of decreases in loadings of most classes of freight, except grain products and ores. In comparison with other recent tinued to decline and were on July 17 about $700,000,000 below the middle of last year. The total volume of reserve bank credit outstanding showed an increase of about $120,000,000 during the four weeks ending July 17, the in crease being in discounts for member banks. Demand for additional reserve bank credit arose chiefly out of a con siderable increase in the volume of money in circulation which accompanied the issuance of the new small-size cur rency. There was also some increase in reserve balances of member banks accompanying the growth in their loans and consequently in their deposits. Open-market rates on 90-day bankers acceptances declined from 5 l/ 2 to per cent between the latter part of June and the middle of July, while rates on prime commercial paper remained un changed.
@FedFRASER