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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District RELEASED FOR PUBLICATION ON THE AFTERNOON OF JULY 30, 1937 FEDERAL RESERVE District Summary Agriculture: Yield 1936 1923-36 Av. Estimated yield of 6 crops................. +55.4% + 3.7% June, 1937, comp, with Live Stock: May, 1937 June, 1936 Receipts at National Stock Yards.....—11.7% + 4.1% Shipments from aforesaid Yards.......—20.0 + 7.7 Production and Distribution: Sales by mfrs. and wholesalers........ +11.8 Department store sales.......................— 8.4 Car loadings......................................... — 5.9 Building and Construction: rji i . . 1 j" Number....— 3.5 Bldg.permits,incl.repairs | Cost Value construc. contracts awarded....+37.3 Miscellaneous: r . 1 r -1 SNumber.......... —21.4 Commercial failures \ Liabilities....... _ l9A Consumption of electricity................. + 5.8 Debits to individual accounts............ + 2.0 _ . + 26.8 + 9.3 — 0.6 + 30.5 +1278 — 30.0 — 33.3 _ 43.8 + 12.3 + 9.8 July 14,’ 37, comp, with Member Banks (24) : June 16,’ 37 July 15,’ 36 Gross deposits......................................+ 2.1% + 0.6% Loans.................................................... + 0.6 + 20.7 Investments.......................................... + 2.7 — 7.2 the effect of seasonal depressants, Eighth District business and industry during June and the first half of July continued the upward trends which have char acterized earlier months this year. In virtually all branches of activity investigated by this bank, nota ble increases were recorded over a year ago, and all similar periods since the predepression era. In many lines results achieved during the first half of the present year were the best recorded since the first six months of 1930, and in some instances reached new high levels for the period in which these records have been kept. During June the rate of industrial production as a whole remained approximately the same as in May, when allowance is made for season al influences, and there was also little variation in employment and payrolls in the principal industries. Distribution through retail channels decreased in less than the average seasonal amount from May to June, and the June volume was measurably larger than a year ago. These results were obtained in spite of the artificial stimulation to purchasing re sulting from the soldiers’ bonus payment in June, N o t w it h s t a n d in g BANK OF ST. LOUIS 1936. Wholesale distribution increased from May to June, with a number of lines showing contrasea sonal gains. With the exception of clothing, all lines showed substantial increases over a year ago. Production of bituminous coal in fields of this general area increased in June over May, and ton nage lifted was measurably greater than in June, 1936. Lumber production at mills of the district was well sustained during June, but, as was the case in May, output exceeded shipments and incoming new orders. Activities in the iron and steel indus try were at the highest rate for any like period since 1929. Steel mills and casting plants stepped up their operations during the last half of June in order to expedite deliveries on products urgently needed by customers. At mid-July the rate of operations at mills producing ingots was at 93 per cent of capac ity, the highest of the recovery period; comparing with 71 per cent a year earlier and approximately IS per cent in July, 1932. Estimated melt of pig iron and steel scrap in June was 3 per cent greater than in May and about one-iourth greater than in June, 1936. A sharp increase in output of electrical supply manufacturers in June over the preceding month reflected partly resumption of operations following strikes. Production of glass, fire clay proucts, cement explosives and other construction materials continued in considerable volume. Taken as a whole prospects in the district un derwent distinct improvement during June and the first half of July, and according to the U. S. Depart ment of Agriculture indications point to above average yields for a majority of the principal pro ductions. The indicated output of winter wheat declined between June 1 and July 1, but, withal, the yield will be much greater than in 1936 and the average during the preceding fourteen years. The condition of corn, cotton, tobacco and legumes as of July 1 was high, and for these crops the forecast is for considerably higher yields than a year ago. Generally cultivation has been intensive, and far mers are employing more fertilizers, insect poisons and modern farm equipment than in any recent season. Prices of farm products were maintained Page 1 at or about the high levels obtaining earlier in the year, and reports from practically all sections indi cate a higher morale in the agricultural community than has been the case in a number of years. The volume of retail trade in June, as reflected by sales of department stores in the principal cities, was 8.4 per cent less than in May and 9.3 per cent greater than in June, 1936; cumulative total for the first half of the year was 11.7 per cent in excess of that for the comparable period in 1936. Combined sales of all wholesaling and jobbing interests re porting to this bank in June were 11.8 per cent and 26.8 per cent larger, respectively, than a month and a year earlier and for the first six months the aggre gate was 26.5 per cent larger than during the first half of 1936. The dollar value of permits issued for new construction in the principal cities in June was 60.5 per cent larger than in May and 161.1 per cent more than the June, 1936, total; for the first half of 1937 the cumulative total exceeded that of the like period a year ago by 28 per cent. The dollar value of construction contracts let in the Eighth District in June was 37.3 per cent greater than in May and 30 per cent less than in June, 1936; aggregate for the first half of this year was 2.6 per cent less than that for the same interval in 1936. According to reports of officials of railroads operating in this district, the volume of freight han dled during June and the first week of July exceeded that of any similar period since 1930. As contrasted with a year ago, the most outstanding increase was in the miscellaneous freight classification, with ore and coal next in order. A considerable part of the upturn in total loadings since the third week in June was accounted for by the sharp gain in the move ment of grain. The heaviest vacation travel in a number of years was accountable for continued notable increase of passenger traffic of the reporting lines. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in June was 13.1 per cent smaller than in May and virtually un changed as compared with June, 1936. While collections as a whole are satisfactory, reports covering the past thirty days disclose some spottiness, both with reference to localities and the several industries. Questionnaires addressed to representative interests in the various lines scat tered through the district show the following re sults : Excellent June, 1937................... 3.7% May, 1937................... 5.5 June, 1936................... 3.8 Page 2 Good 51.3% 50.0 56.0 Fair 23.5% 36.5 37.5 Poor 11.5% 8.0 2.7 Commercial failures in the Eighth Federal Re serve District in June, according to Dun and Bradstreet, numbered 22 involving liabilities of $249,000, against 28 insolvencies in May with liabilities of $309,000 and 33 defaults for a total of $443,000 in June, 1936. ______Detailed Survey_____ M ANUFACTURING AND W H O LESALIN G Lines of Commodities Boots and Shoes......... Drugs and Chemicals.. Dry Goods................... Electrical Supplies...... Furniture..................... Groceries...................... Hardware..................... Net Sales June, 1937 6 months 1937 compared with comp, with same May, ’ 37 June, ’ 36 period 1936 + 19.3% + 37.3 % + 38.7 % 4- 2.0 + 11.7 + 11.0 4-11.6 + 23.8 + 12.8 +32.3 +43.9 4- 3.4 — 7.5 + 4.8 + 35.6 — 0.3 + 3.8 + 10.4 + 6.9 +22.6 + 25.4 All above lines......... 4-11.8 +26.8 +26.5 Stocks June 30, 1937 comp, with June 30, 1936 + 3.1% +24.6 +62.7 +42.2 + 18.1 + 17.9 + 43.5 + 39.3 Automobiles — Combined passenger car, truck and taxicab production in the United States in June was 497,298 against 516,899 in May and 452,968 in June, 1936. Boots and Shoes — The increase from May to June in sales of the reporting firms was contraseasonal in character, and the June total was the largest for the month since these records began in 1924. Bet terment in both the month-to-month and yearly comparisons was spread through all lines, but most pronounced in sport shoes and styled goods. Pro duction in June was approximately 11 per cent greater than in the preceding month. Clothing — June sales of the reporting clothiers were 5.7 per cent and 8 per cent smaller, respec tively, than a month and a year earlier. Inventories expanded further during June and on July 1 were 40 per cent larger than a month earlier and 9 per cent in excess of the total on July 1, 1936. More season able weather since the last week of June has resulted in an active movement of summer apparel through retail channels and a fair volume of reordering of this class of goods. Dry Goods — Sales of the reporting firms in June were the largest for that particular month since 1929. A considerable part of the increase over a year ago was represented by advance business, ordering by both country and city retailers for late summer and fall delivery having been on a larger scale than during the preceding several seasons. Reflecting the easier trend in certain raw materials, price trends were slightly low er/ Electrical Supplies — Improvement in business in this classification, which has been in effect for the past two years, continued through June and the first half of July. Sales of the reporting interests in June were the largest for the month since these records commenced in 1924. Furniture — The decrease in sales of the re porting firms from May to June was of about the usual seasonal proportions. As in the case of other lines investigated, however, the June total was the largest for the month since the predepression era. Reports covering the first half of July indicate a pick-up in orders, a considerable part of which were booked at the American Furniture Mart at Chicago. Prices were unchanged during the past thirty days, but remained substantially higher than a year ago. Groceries — Increase in sales of the reporting firms in June over a year earlier reflect principally heavier buying in the country, based on the promis ing outlook for all major crops. The heavy move ment of early fruits and vegetables tended to hold down sales of canned goods, and on certain lines ol packed vegetables prices were easier. Hardware — June sales of the reporting firms were the largest for the month since 1930, and for the twelfth consecutive month exceeded the volume for the corresponding period a year earlier. Im proved crop prospects were reflected in a stimulated movement of commodities consumed chiefly in the rural areas. Builders’ tools, hardware and kindred lines were reported moving in considerable volume. Sales of sporting goods and outing supplies so far this season were the largest in recent years. Iron and Steel Products — Except where af fected by strikes and seasonal influences, activities in the iron and steel industry in this district during June and the first half of July were maintained at, or about the high rate which has prevailed during earlier months this year. Closing of plants for sum mer vacations, inventory, repairs, etc., were of con siderably shorter duration than in the past, and in a number of instances operations have been carried forward without interruption. Manufacturers of farm implements and tractors still have heavy back logs and are under strong pressure for shipments by customers throughout the middle west and south. Stove foundries, which ordinarily close for two or three weeks, beginnig July 4, have been operating continuously on a five-day per week summer sched ule. There has been some recession in new purchas ing of rolled materials, notably sheets, plates and bars, but mills are still several weeks in arrears on deliveries of certain products. The unusually fav orable prospects for vegetables and fruits for can ning are reflected in a substantial volume of reor dering of tin plate. The movement of galvanized sheets is reported the heaviest for this season in a number of years. Steel casting plants stepped up their operations at mid-June principally to accom modate additional business placed by the railroads. Steel ingot production by mills in this area during the past five weeks has been at 93 per cent of capac ity, the highest attained during the recovery period. June sales of iron and steel warehouse interests fell slightly below those of the preceding month, but were approximately 15 per cent in excess of the June, 1936, total. Jobbing foundries report the place ment of a fair volue of new orders, mainly for mis cellaneous castings. June shipments of pig iron to district melters were about on a parity with the May volume, but approximately one-fourth larger than in June last year. Owing to strikes at fabricating yards, shipments of structural steel during June were the smallest for any month this year. Settle ment of these strikes in early July has been reflected in heavy requests to expedite delayed deliveries. Prices of finished materials were unchanged. Scrap iron and steel prices, which had declined sharply during May and June, turned upward during the first half of July, reflecting settlement of strikes at eastern mills and a reduction in available supplies. For the entire country, production of pig iron in June, according to the magazine “ Steer’, totaled 3,114,658 tons, the smallest with the exception of February since November, 1936, and comparing with 3,545,180 tons in May and 2,596,528 tons in June, 1936. Steel ingot production in the United States in June amounted to 3,899,190 tons, against 4,767,269 tons in May and 3,640,672 tons in June, 1936. The decrease in both pig iron and ingot pro duction was attributable directly to strikes at plants of independent steel makers starting in May and continuing through June. MINING Bituminous coal production during June and the first two weeks in July was higher than a year earlier, but the increase was considerably less than in February and March. Industrial demand contin ued higher than usual at this season, and contract ing by public institutions and other consumers for their winter supplies started earlier this year than is ordinarily the case. At mines in this general area during June output of soft coal was 0.2 per cent and 2.4 per cent greater, respectively, than a month and a year earlier. For the first half of the year cumu lative tonnage was 3.8 per cent in excess of that for the comparable period in 1936. United States pro duction of bituminous coal in June was estimated at 31,560,000 tons, which compares with 29,980,000 tons in May and 29,217,000 tons in June, 1936. For the year to July 1, cumulative output was 221,915,000 tons, as against 200,831,000 tons for the same period a year ago. At Illinois mines in June 2,492,189 tons were lifted, which compares with 2,067,090 Page 3 tons in May and 2,587,551 tons in June, 1936. There were 106 mines in operation in June and 27,527 men on payrolls, against 102 active mines and 26,613 operatives during the preceding month. R E TA IL TR A D E Department Stores — The condition of retail trade is reflected in the following comparative state ments showing activities in the leading cities of the district: S to c k s _____N et Sales_____________ on Hand June, 1937 6 mos. 1937 June 30,’ 37 compared with to same comp, with May 1937 June 1936 period ’ 36 June 30/36 El Dorado, Ark......... — 19.4% -f- 9.6% + 9 . 1 % + 5.9% Ft. Smith, Ark......... — 23.6 + 6.4 + 5.6 +16.1 Little Rock, Ark....... — 22.3 — 0.1 + 7.6 + 22.6 + 13.9 + 11.5 + 18.4 Louisville, K y........... — 10.4 Memphis, Tenn......... — 13.8 + 5.4 +11.9 +22.2 — 9.0 + 10.6 + 14.4 Pine Bluff, Ark......... — 32.1 St. Louis, M o........... — 3.9 + 10.7 + 12.6 +18.8 Springfield, M o......... — 13.4 + 8.1 +11.0 + 22.8 All Other Cities......... — 9.0 + 5.2 + 5.1 + 12.4 8th F. R. District.... — 8.4 + 9.3 + 11.7 + 19.4 S toc k Turnover Jan. 1, to June 30. 1937 1936 1.47 1.38 1.25 1.29 1.32 1.45 2.03 2.12 1.55 1.58 1.74 1.91 1.95 2.03 1.24 1.34 1.53 1.55 1.81 1.89 Percentage of collections in June to accounts and notes receivable first day of June, 1937, by cities : Installment Excl. Instal. Accounts Accounts El Dorado... .“ 67.3% ' .... ......36.7 Fort Smith.. Little Rock. ...... 12.8 ..... ..... 33.2 Louisville ......... 10.3 ..... ......52.1 Memphis .... ...... 24.5 .... ......41.7 Installment Excl. Instal. Accounts Accounts Pine Bluff. ........... %. ............30.3% Springfield .................... ...........28.4 St. Louis........... 18.4 ...........56.2 Other Cities.....15.4 ...........40.3 8th F. R. Dist..l6.6 ........... 49.7 Specialty Stores — June results in men’s fur nishings and boot and shoe lines are shown in the following table: Stocks Stock Net Sales__________ on Hand Turnover June, 1937 6 mos. 1937 June 30,’ 37 Jan. 1, to compared with to same comp with June 30, May 1937 June 1936 period ’ 36 June 30,’ 36 1937 1936 Men's Furnishings....— 4.3% ' + 8.1 % + 7.3% ' + 1 4 . 4 % '1.32 1.32 Boots and Shoes....... — 13.2 +19.0 + 16.6 +10.7 3.52 3.49 Percentage of collections in June to accounts and notes receivable first day of June, 1937: Men’s Furnishings........... 33.6% Boots and Shoes............................41.1% AGRICULTURE With some exceptions, both with reference to different localities and the several productions, weather conditions during June and the first two weeks of July were auspicious for growth, develop ment and maturity of Eighth District crops. A c cording to reports of the U. S. Department of Agri culture, agricultural departments of the different states and information available from other sources, production of the principal crops promises to be measurably above that in recent drouth years, also greater than average during the 5-year (1928-1932) period preceding. Heavy rainfall in early June was followed by days of sunshine which permitted farm ers to catch up on delayed planting and cultivation of corn, legumes and other late crops. At mid-July generally through the area, farm work was up to the usual seasonal schedule. Threshing of wheat made rapid progress, with quality and yields show Page 4 ing wide variation. Marked improvement in pas tures was noted, and indications are for a hay crop well above a year ago and slightly larger than the 5-year average. Fruit and vegetable crops showed little change between June 1 and July 1, and pros pects for most species are the best in recent years. The supply of farm labor was reported by the U. S. Bureau of Agricultural Economics as 82.4 per cent of normal, compared with 87.2 per cent on April 1. The wage index on July 1 was 15 points up from a year earlier. Generally through the district more extensive use of tractors and combines was reported than in any preceding year. Prices of farm products advanced in late June and as of July 10 the farm products group of the Bureau of Labor Statistics Price Index stood at 90.5 per cent of the 1926 aver age, an increase of 1.8 per cent over the preceding week and comparing with 88.0 per cent on June 12, 82.5 per cent on July 13, 1936, 77.7 per cent on July 13, 1935 and 61.1 per cent on July 15, 1933. Combined receipts from the sale of the principal farm products and Government payments to farmers in states partly or entirely within the Eighth Fed eral Reserve District during the periods JanuaryMay 1935, 1936, 1937 and during May 1936 and 1937, are given in the following table: (In thousands January-May of dollars) 1935 1936 1937 Indiana ................. $ 94,715 $ 98,789$119,062 Illinois ................. 157,002 166,614 194,767 Missouri ................ 86,680 86,347 89,286 Kentucky ............. 60,499 42,741 75,619 Tennessee ............. 40,669 34,939 51,901 Mississippi ........... 29,394 26,606 49,094 Arkansas ............... 33,878 22,851 41,924 Totals............... 621,653 478,887 502,837 May 1936 $ 22,900 37,192 20,845 6,691 6,844 5,567 5,257 108,458 1937 $ 22,872 37,838 19,987 7,226 7,024 5,832 7,679 105,296 Corn — Production of corn in the Eighth Dis trict proper is estimated by the U. S. Department of Agriculture in its report based on conditions as of July 1 at 342,550,000 bushels, which compares with 202.726.000 bushels harvested in 1936 and the 14year (1923-1936) average of 327,361,000 bushels. Generally the condition of the growing crop is above average, with fields well cultivated and clean. Re serve stock on farms are the smallest of record, the estimate for states of this district as of July 1 being only 65,205,000 bushels, against 131,239,000 bushels a year earlier and the 5-year July 1 average of 136.749.000 bushels. Cotton — The U. S. Department of Agriculture in its report as of July 1, estimates the combined area of cotton under cultivation in states including the Eighth District at 7,910,000 acres, an increase of 885,000 acres, or 12.6 per cent over the acreage under cultivation on the same date in 1936, and com paring with the 5-year (1928-1932) July 1 average of 8,933,000 acres. Weather conditions during most of June and early July were almost ideal for progress of the crop. For the most part the plant is hardy, growing naturally and fruiting is earlier than nor mal, and in this respect is generally prolific. Back wardness in cultivation earlier in the season, caused by liberal precipitation, has been made up. Accord ing to the National Fertilizer Association, sales of fertilizer tags for the 12-month period, July-June, were 37.7 per cent and 65.7 per cent larger, respec tively, than in the corresponding periods a year and two years earlier. Responding to favorable crop prospects and lessened demand, the price of raw cotton declined at mid-June to the lowest point in nearly twelve months. A moderate recovery took place during early July. In the St. Louis market the middling grade ranged from 11.90c per pound to 12.75c between June 15 and July 15, closing at 12.50c on the latest date,which compares with 12.00c on June 15 and 13.30c on July 15, 1936. At Arkansas and Missouri compresses combined receipts from August 1, 1936, to July 18, 1937, totaled 1,355,326 bales, as against 1,001,079 bales for the correspond ing period a year earlier. Stocks on hand as of July 18 amounted to 157,609 bales as compared with 278,123 bales on the corresponding date in 1936. Fruits and Vegetables — Prospects in most of the principal growing sections of the district are reported good to excellent. Prospective production of apples is the largest since 1931. In states includ ing the Eighth District the apple crop is estimated by the U. S. Department of Agriculture in its July 1 report at 23,667,000 bushels, as against 5,590,000 bushels produced in 1936 and the 5-year (1928-1932) average of 15,199,000 bushels. In these states the peach crop is forecast at 9,438,000 bushels, which compares with 3,422,000 bushels in 1936 and the 5-year average of 7,265,000 bushels; pears, 3,120,000 bushels, against 1,352,000 bushels in 1936 and the 5-year average of 1,870,000 bushels. Sweet potatoes are also expected to yield above last year and the average, the forecast being for 19,042,000 bushels, against 15,031,000 bushels in 1936 and the 5-year average of 17,483,000 bushels. The acreage planted to white potatoes this year was virtually unchanged from its predecessor. On a basis of the July 1 con dition the potato yield in the district proper is esti mated at 12,843,000 bushels, which compares with 8,333,000 bushels in 1936 and the 14-year average of 13,562,000 bushels. Livestock — Further improvement was noted in the condition of livestock during the past thirty days, the betterment being attributed to abundant pasturage and favorable weather conditions. Pro duction of tame hay in the district is forecast at 5.984.000 tons, against 4,447,000 tons in 1936 and the 14-year (1923-1936) average of 6,509,000 tons. The movement of cattle and calves to market was stimu lated by higher prices, receipts during June exceed ing those of the preceding month and the June. 1936, total. Receipts of hogs in June were smaller in both comparisons. Milk production resumed about the usual nor mal seasonal trend during June this year, following the unusually rapid increase in April and May. On July 1 in states of this district milk production per cow was 6.5 per cent less than on June 1, 10.3 per cent greater than on July 1, 1936, and 2.3 per cent less than the 10~year (1925-1934) July 1 average. Receipts and shipments at St. Louis as reported by the National Stock Yards were as follows: Receipts_______ ______ Shipments________ June, May, June, June, May, June, 1937 1937 1936 1937 1937 1936 Cattle and Calves.... Il35,395 131,894 123,989 86,738 83,580 75,982 Hogs .......................... 134,141 145,880 154,651 80,292 89,944 98,543 Horses and Mules...... 2,618 3,077 3,3202,842 2,868 2,823 46,854 97,882 23,962 Sheep ......................... 141,554 187,937 115,417 Totals.......................413,708 468,788 397,377 216,726 274,274 201,310 Oats — Based on July 1 conditions, the U. S. Department of Agriculture estimates the oats crop in the Eighth District proper at 46,319,000 bushels, which compares with 38,026,000 bushels harvested in 1936, and the 14-year (1923-1936) average of 49.462.000 bushels. In states including the Eighth District stocks on farms on July 1 totaled 15,161,000 bushels, the smallest in recent years and comparing with 29,889,000 bushels a year earlier and the 5-year (1928-1932) average of 24,260,000 bushels. Tobacco — Generally favorable conditions pre vailed during June and early July in all tobacco growing districts. While growth of the crop is irregular, due to rather extensive replanting, plants appear healthy and of good color. Fields have been thoroughly cultivated, and with occasional rains, prospects as of mid-July are reported the best in a number of years. Eighth District production of all types is estimated by the U. S. Department of Agri culture at 279,823,000 pounds, against 176,784,000 pounds harvested in 1936 and average output during the preceding 14 years of 287,796,000 pounds. Winter Wheat — Prospects for winter wheat in this area declined rather sharply during June, the loss being caused by black stem rust, heavy rains, hail, and insect pests. In spite of this deteri oration, however, the crop will be measurably larger than in 1936 and the average in recent years. Har vesting and threshing the crop has made rapid progress, and initial returns disclose broad varia tions in quantity and quality. Eighth District pro duction is estimated by the U. S. Department of Page 5 Agriculture, in its report based on July 1 conditions, at 75,631,000 bushels, against 60,630,000 bushels harvested in 1936 and the 14-year (1923-1936) aver age of 50,993,000 bushels. Wheat stocks on farms in states of the district on July 1 were 39 per cent smaller than a year ago and 36.4 per cent under the 5-year (1928-1932) average. Range of prices in the St. Louis market be tween June 15, 1937, and July 15, 1937, with closing quotations on the latter date and on July 15, 1936, follow s: Wheat July .. Sept. ................... “ 1.2656 Dec. ............. “ 1.28*6 1.31 No. 2 red winter “ No. 2 hard “ “ 1.2954 Corn July ................... “ 1.30 Sept. ................... “ 1.22*6 Dec. ................... “ .8554 No. 2 Mixed .... “ 1.2754 No. 2 White .... “ 1.3054 Oats *July ................... “ .44J4 *Sept. ................... “ .39 J4 *Dec. ,.................. “ .41** No. 2 White .... “ .54 Flour Soft P atent........ per bbl. 6.55 Spring “ ........ “ 8.70 Middling Cotton...per lb. .1275 Hogs on hoof....... per cwt.13.00 *Nominal quotations. Close July 15, 1937 July 15, 1936 Low $ 1.065$ 1.09 1.21 1.23 1.24 1.24 1.26 1.27 1.26 1.1454 .94 .74*6 1.15 1.21 54 1.28*4 1.1354 .805* 1.2754 1.3054 .85 .82?* .77*6 .92 1.00 .3954 .3 4 ^ .36** .4954 .42*6 .37*4 .3954 .4854 .37% 5.65 7.35 .1190 9.00 5.90@ 6.40 7.35@ 8.70 .1250 9.50@ 12.65 $ 1.03*$ 1.05 1.06 1.0954 1.1054 .4054 4.75 @ 5.15 8.00 @ 8.20 13.30 7.50@ 10.40 TRAN SPORTATION The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, interchanged 90,918 loads during June, as against 96,646 loads in May and 91,445 loads in June, 1936. During the first nine days of July the interchange amounted to 26,322 loads, which compares with 25,526 loads during the like interval in June and 26,289 loads during the first nine days of July, 1936. Reflecting heavy vacation travel, passenger traffic of the reporting roads in June recorded an increase of 5 per cent in the number of tickets sold and of 9 per cent in revenue as compared with the same month a year ago. For the entire country, loadings of revenue freight for the first 27 weeks this year, or to July 3, totaled 19,734,274 loads, against 17,233,497 loads for the corresponding period in 1936 and 15,631,855 loads in 1935. Estimated ton nage of the Federal Barge Line between St. Louis and New Orleans in June was 155,400 tons, against 176,800 tons in May and 155,365 tons in June, 1936; cumulative tonnage for the first half of this year was 802,780 tons, a decrease of 76,780 tons or 8.7 per cent under the first six months of 1936. CONSUM PTION OF ELECTRICITY Public utilities companies in six large cities of the district report consumption of electric current by selected industrial customers in June as being 5.8 Page 6 (K .W .H . No. of June, inthous.) Custom1937 ers K .W .H . Evansville..... 40 3,648 Little Rock.. 35 2,341 10,462 Louisville .... 82 Memphis ..... 31 2,136 Pine Bluff.... 20 659 St. Louis..... 188 26,017 Totals......... 396 COM M ODITY PRICES High per cent greater than in May and 12.3 per cent more than in June, 1936. Detailed figures follow : 45,263 May, 1937 K .W .H . 3,612 1,890 9,914 2,254 932 24,183 June 1937 comp, with May 1937 + 1.0% +23.9 + 5.5 — 5.2 — 29.3 + 7.6 42,785 + 5.8 June, June 1937 1936 comp, with K .W .H . June 1936 2,882 + 26.6 % 1,996 +17.3 8,981 +16.5 2,000 + 6.8 474 +39.0 23,967 + 8.6 40,300 +12.3 BUILDING The dollar value of permits issued for new con struction in the five largest cities of the district in June was 60.5 per cent larger than in May and 161.1 per cent more than the June, 1936, total. According to statistics compiled by the F. W . Dodge Corpora tion, construction contracts let in the Eighth Fed eral Reserve District in June amounted to $18,309,600 which compares with $13,332,900 in May and $26,154,019 in June, 1936. Building figures for June follow : (Cost in ________ New construction Cost Permits thousands) 1937 1937 1936 1936 Evansville.... 43 49' $ 364 $ 92 Little Rock 21 22 78 70 82 589 190 Louisville.... 129 247 183 1,254 376 206 702 St. Louis.... 330 416 June Totals 770 May “ 681 April “ 861 542 601 695 2,987 1,861 2,167 1,144 1,652 2.420 _______ Repairs, etc. Permits Cost 1937 1937 1936 1936 199 106 $ 47 $ 59 114 95 47 43 79 74 61 23 201 175 73 107 222 206 223 291 815 962 900 673 682 681 549 1,403 534 408 276 304 PO STAL RECEIPTS Returns from the five largest cities show an in crease of 5.0 per cent in combined postal receipts for the second quarter of this year over the correspond ing period in 1936, and an increase of 2.3 per cent as compared with the first three months this year. Detailed figures follow : Quarter Ending June 30, 1937 Evansville, Ind..... $ 177,118 Little Rock, Ark.... 196,200 Louisville, K y....... 739,066 645,187 Memphis, Tenn.... St. Louis, M o....... 2,621,121 Totals............... 4,378,692 Mar. 31,June 30, Comp. 1937 1936 $ 147,364 $ 155,946 209,729 192,596 661,208 681,523 658,025 551,163 2,603,591 2,588,927 4,279,917 4,170,155 2nd Qrs. 1937-1936 + 13.6 % + 1.9 + 8.4 +17.1 + 1.2 + 5.0 LIFE INSURANCE Sales of new, paid-for, ordinary life insurance in states including the Eighth District during June the preceding month, and a year ago, together with the cumulative totals for the first six months this year and the comparable period in 1936 are shown in the following table: (In thousands June, May, June, Cumulative Totals of dollars) 1937 1937 1936 1937 1936 Arkansas.......... $4,361 $ 4,175 $ 3,946 $ 24,071 $ 22,599 Illinois.............. 49,945 48,865 48,652 307,432 281,340 Indiana............ 15,558 15,351 15,112 88,758 82,724 Kentucky......... 7,159 6,934 6,746 37,829 38,681 Mississippi....... 3,746 4,081 3,612 22,178 18,526 Missouri........... 22,716 19,498 20,632 120,185 111,693 Tennessee........ 8,483 8,547 7,996 51,503 44,975 Cumul. change + 6.5% + 9.3 + 7.3 — 2.2 + 19.7 + 7.6 +14.5 Totals........... 111,968 107,451 106,695 651,956 600,538 + 8.6 United States... 645*,995 630,690 631,980 3,816,351 3,550,109 + 7.5 N ote: Figures have been revised to represent all insurance compa nies in the TJ. S. Previous figures were for 54 companies which repre sented 85% of insurance companies in U. S. MONEY AND BANKING The past thirty days have been marked by a noticeable expansion in demand for credit at com mercial banks, both in the large cities and country. The increase in borrowings was most pronounced during the second and third week of July. Com mercial and industrial interests were in many in stances increasing their commitments to take care of purchases of goods for fall distribution. The in creased credit requirements were reflected dn a slightly firmer tone in rates. Country banks gen erally, but more particularly in the wheat and cotton areas, report a sharp expansion in inquiries for funds. Reflecting the largest wheat crop in recent years and the advance in prices of that grain, grain handling and flour milling interests have heavily in creased their borrowings since July 1, and the total of such loans is reported measurably larger than at the corresponding time a year earlier. Demand for building loans continues active. Member Banks — Between June 16 and July 14, loans of reporting member banks in principal cities advanced 0.6 per cent, the gain being chiefly in the category of “ loans to others” which reflects borrow ing by commercial, industrial and agricultural inter ests. Gross deposits also moved upward during the four week period and were about on a parity with those on the final report date in April. There was an increase of 2.7 per cent in total investments since June 16, 1937, the increase being largely in holdings of U. S. Government securities. Statements of the principal resource and liabili ty items of reporting member banks follow : (F or 24 banks— in thousands of dollars) July 14, 1937 J.une 16, 1937 $283,321 July 15, 1936 $236,151 L oans— total ............................................................$285,135 Commercial, industrial, and agricultural: * 42,571 O n securities.................................................... 45,018 * 120,646 Otherwise secured and unsecured............ 119,256 * 10,909 Open market paper........................................... 10,797 7,293 6,064 Loans to brokers and dealers......................... 6,212 * 12,551 O ther loans for purch. or carry, securities 12,640 44,938 42,777 Real estate loans.................................................. 45,411 7,335 8,393 Loans to banks.................................................... 8,184 O ther loans: * 12,276 O n securities.................................................... 11,938 * 24,973 Otherwise secured and unsecured............ 25,679 394,919 357,154 Investm ents— total ............................................... 366,638 225,525 205,388 U. S. G ov’ t obligations.................................... 212,695 57,239 48,826 Obligations guaranteed by U. S. G ov’ t...... 50,882 112,155 102,940 O ther securities.................................................... 103,061 886,227 873,072 Gross deposits.......................................................... 891,502 702,379 688,896 Dem and deposits.................................................. 701,615 183,848 184,176 Tim e deposits...................................................... 189,887 1,000 B orrow ings ............................................... ................................ * Comparable f guresi not available. Borrow Gross (B y cities, N um ber Loans and Investm ents ings Deposits July 14, 1937) Banks Discounts in Securities $557,410 $248,124 $161,689 St. L ouis....................... 9 35,397 57,890 Louisville ................... 5 52,957 41,292 Memphis .................... 3 13,472 10,840 Little Rock................. 4 16,688 13,424 Evansville .................. 3 The resources of these reporting member banks mately 63.6% of the resources of all member banks in 130,482 126,990 35,923 40,697 comprise approxi this district. Aggregate amount of savings deposits held by selected member banks on July 7 was 5.9 per cent greater than on the corresponding date a year earlier. At downtown St. Louis banks rates charged as of the week ending July 15 were as follows: Cus tomers’ prime commercial paper, \y2 to 6 per cent; collateral loans, 2 to 6 per cent; interbank loans, 3 to 4 per cent; loans secured by warehouse receipts, 2 to 5 per cent and cattle loans, 4 to 6 per cent. Federal Reserve Operations — Changes in the principal assets and liabilities of this bank appear in the following table: July 17, (In thousands of dollars) 1937 Industrial advances under Sec. 13b.. 323 Other advances and rediscounts.. 199 Bills bought (including participations).. 86 U. S. securities............................................ 111,385 June 17, 1937 $ 327 152 88 111,385 July 17, 1936 $ 550 45 87 129,927 111,993 111,952 130,609 Total reserves ............................................ 298,352 Total deposits ........................................... 225,339 F. R. Notes in circulation....................... 179,618 309,621 236,799 178,114 254,370 203,675 172,911 Total earning assets............... .............. Industrial commitments under Sec. 13b.. 1,045 1,145 1,817 Ratio of reserve to deposit and F. R. Note liabilities..................... 73.7% 74.6% 67.5% Following is a complete schedule of rates of this bank for accommodations under the Federal Re serve A ct: (1) Rediscounts and advances to member banks, under Section 13 and 13a................................ .............................2 % per annum (2) Advances to member banks, under Section 10b........... 2J^% per annum (3) Rediscounts, purchases, and advances to member banks, nonmember banks and other financing insti tutions, under Section 13b: (a) On portion for which financing institution is obligated............................................................. 3 54% per annum (b) On remaining portion........................................... 4 % per annum (4) Commitments not exceeding six months to member banks, nonmember banks and other financing insti tutions, to rediscount, purchase, or make advances, under Section 13b............................................................... Vz% flat (5) Advances to established industrial or commercial f 4 % to businesses, under Section 13b..................................... ( 5 Y* % per annum (6) Advances to individuals, firms and corporations, including nonmember banks, secured by direct obli gations of the United States, under Section 13........... 4 % per annum Debits to Individual Accounts — The following comparative table of debits to individual accounts reflects spending trends in this district: June, 1936 June, 1937, comp, with May, 1937 June, 1936 (In thousands June, of dollars) 1937 East St. Louis and Natl. Stock Yards, 111,..$ 36,012 El Dorado, Ark.... 5,163 Evansville, Ind...,,. 34,698 Fort Smith, Ark..... 10,637 4,261 Greenville, Miss.. .. 1,677 Helena, Ark........ Little Rock, Ark.,.. 37,509 Louisville, K y..... ... 187,279 Memphis, Tenn...,.. 113,073 5,691 Owensboro, Ky..., 8,628 Pine Bluff, Ark..., 9,277 Quincy, 111............,. St. Louis, M o......, 670,660 2,043 Sedalia, M o......... ... 16,187 Springfield, Mo... 7,339 *Texarkana, Ark. .. $ 32,829 4,579 32,515 11,321 4,672 1,689 35,792 170,158 112,333 5,652 7,847 8,704 672,940 2,024 16,789 8,056 $ 31,959 3,910 27,859 10,547 4,129 1,305 32,413 160,428 109,244 4,986 7,502 7,976 622,443 2,035 14,318 6,732 + 9.7% + 12.8 + 6.7 — 6.0 — 8.8 — 0.7 + 4.8 + 10.1 + 0.7 + 0.7 + 10.0 + 6.6 — 0.3 + 0.9 — 3.6 — 8.9 + 12.7% +32.0 +24.5 + 0.9 + 3.2 +28.5 + 15.7 + 16.7 + 3.5 + 14.1 + 15.0 + 16.3 + 7.7 + 0.4 + 13.1 + 9.0 1,150,134 1,127,900 1,047,786 + + 9.8 May, 1937 2.0 •Includes one bank in Texarkana, Texas, not in Eighth District. Note — Above figures include total debits charged by banks to check ing accounts, savings accounts, certificate of deposit accounts, and trust accounts of individuals, firms, corporations and U. S. Government. Charges to accounts of banks, debits in settlement of clearing house balances, payments of cashiers checks, charges to expense and miscel laneous accounts, corrections and similar charges, are not included. (Completed July 22, 1937) Page 7 N A T IO N A L SU M M ARY O F BUSINESS C O N D ITIO N S BY BOA R D OF GOV E R N O R S OF F E D E R A L R E S E R V E SYSTEM Activity in most manufacturing industries and at mines con tinued in June at the May levels, with allowance for seasonal influences, but the total output was decreased by labor difficulties in steel mills. In July, production at these mills increased. Production and Employment — Volume of industrial output, as measured by the Board’s seasonally adjusted index, was 115 per cent of the 1923-1925 average in June as compared with 118 per cent maintained in the preceding three months. The decrease was largely accounted for by the decline in steel production. Auto mobile production declined seasonally and lumber output showed little change. There was considerable reduction in activity at shoe seasonal decline and there was little change in mail-order busi ness. Sales at variety stores increased somewhat. Department store trade in the midwestern industrial area in June and in the first half of the year showed larger increases over a year ago than did sales in other parts of the country. Freight-car loadings de clined somewhat further in June, reflecting largely a decrease in shipments of miscellaneous freight. Wholesale Commodity Prices—The general level of wholesale commodity prices, which had declined gradually from the begin ning of April to the middle of June, advanced somewhat after that time. Prices of hogs and pork rose considerably and grain WHOLESALE PRICES Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average = 100. By months, January, 1929, through June, 1937. Latest figure 115. Index compiled by the United States Bureau of Labor Statistics, 1926 = 100. By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending July 17; all commodities 87.8. factories and at sugar refineries, while textile production was close to the level of other recent months. At mines output con tinued in about the same volume as in May. Value of construction contracts awarded, which had declined in May, increased considerably in June, according to figures of the F. W. Dodge Corporation. There was marked rise in contracts for public projects, and awards for private building increased somewhat, reflecting chiefly a larger volume of contracts for fac tories and apartments. Factory employment and payrolls declined more than seasonally from the middle of May to the middle of June, largely as result of strikes in the iron and steel industry. In most other manufacturing industries also in nonmanufacturing lines changes in employment were chiefly of a seasonal nature. prices advanced during most of the period. Steel scrap prices increased sharply and prices of tin, zinc, and hides also advanced, while cotton goods and rubber continued downward. In the past week prices for grains declined and cotton prices also moved lower. Bank Credit— In the four-week period ending July 21 the volume of excess reserves of member banks increased from $810,000,000 to $870,000,000, owing principally to a decline in the amount of required reserves resulting from a decrease in deposits at member banks in leading cities. Commercial loans of reporting member banks continued to increase both in New York City and in other leading cities during the five weeks ending July 21. There was a substantial decline in adjusted demand deposits, mostly at Indexes of value of sales, 1923-1925 a v e r a g e s 100. By months, January, 1929, through June, 1937. Latest figures June, adjusted 93, unadjusted 89. Agriculture — The July 1 cotton report of the Department of Agriculture showed an acreage of 34,192,000, which is larger than in any year since 1933, but considerably smaller than the average of 41,424,000 acres for the five years 1928-1932. Reports on other major crops indicate larger production than last season and about equal to the average for 1928-1932. Distribution — Distribution of commodities to consumers was maintained in June at the level of other recent months, with allow ance for seasonal influences. Department store sales showed a Page 8 New York City banks. This decline corresponded to decreases in holdings of United States Government obligations, following increases at the time of new Treasury note issues at the middle of June, and in holdings of other securities. Loans to brokers and dealers in securities, which increased in June, declined during the first three weeks of July. Money Rates— Open-market rates on Treasury bills and yields on Treasury notes and bonds declined in July to the lowest levels since March.
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