The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF ST. LOUIS
MONTHLY REVIEW
O F BU SIN ESS CONDITIONS
IN FEDERAL RESERVE DISTRICT N o. 8
Released for Publication On and After the Afternoon of July 31, 1924.
W I L L I A M M cC. M A R T IN
CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT
I N a m ajority o f lines investigated, sales during June
developed further declines as compared with the
corresponding period a year ago. The general dis
position then was to purchase with caution and con
servatism and for well defined needs. The more favor
able agricultural aspect during the past three weeks,
however, is being reflected in renewed interest in goods
for future delivery, and accelerated buying both at
wholesale and retail. Production in basic industries
and most subsidiary lines is being brought down to
square more nearly with current consumption, and in
some instances output has fallen slightly below the
level of consumption. A s a result of these m ovements
stocks generally are light and in unusually strong
position. By dint of special sales and price reductions
there has been a more or less thorough clearing out
o f merchandise, the m ovem ent of which had been
hindered by unseasonable weather or other causes, so
that the stocks remaining consist o f readily salable
assortments and closely represent existing market
values.
Since the first of July there has been a marked
change for the better in weather conditions through
out the district, and this has resulted in a considera
ble improvement in crop prospects and sentiment in
the farming communities and through the business
structure generally. Another favorable factor has been
the sharp advance in cereal values, notably wheat and
corn. Retail trade has picked up somewhat in the last
three wreeks, and reports of wholesalers indicate a bet
ter tone in their business. A ccording to reporting dry
goods, boot and shoe, hardware and clothing interests,
advance orders booked during the second and third
weeks of July were larger than the total for the four
weeks immediately preceding.
T he slow ing down in manufacturing activities is
reflected in some increase in unemployment in the
large industrial centers, and this has been emphasized
by the usual mid-year closings of plants for repairs
and inventorying. A large part o f the surplus of com
mon labor, however, has been absorbed by harvest
and road building operations. The demand for thresh
ing hands in the W est and Southwest is being strongly
felt, and has resulted in a large exodus of idle workers
from the cities and coal, lead and zinc mining districts.
A ccordin g to the employment service o f the U. S.
Department of Labor, employment in meat packing,
flour milling and public improvements maintained
about the same rate of activity as during the preced
ing thirty days, but was slightly less than a year ago,
and there is a surplus o f skilled workers in the larger
cities. Railroad shops continue on a part time em ploy
ment basis, and there have been heavy releases of
both skilled and com m on labor in the iron and steel,
automotive, and brick and cement industries. There
are some scattered reports of lowered wages, but no
general scale reductions.
The outstanding feature in the agricultural situa
tion was the sharp upturn in grain prices. P oor pros
pects during the early grow ing season, coupled with
the Government’s reduced estimates of yields of wheat
and corn contained in its report on conditions as of
July 1, created an active buying movement in these
cereals. In the St. Louis market July corn advanced
from 8 1 ^ c on June 16 to $1.11
on July 15, while
cash corn moved upwrard from 8 6 ^ c to $1.14. B e
tween the same dates July wheat advanced from $1.12
per bushel to $1.19j4, and No. 2 winter wheat in the
cash market rose from $1.18 to $1.34. The closing
price of cash wheat on July 15 was 33c to 34c higher
than on the corresponding date last year, and that
of cash corn 27c to 28c higher. Since the middle of
July the advance in wheat and corn has been carried
considerably further. M iddling cotton ranged from
2 8 % c to 30c per pound, the high figure of the range
being recorded on June 16 and the low point on
July 15.
Live stock prices declined during the latter part
of June, being affected by the radical slump in the
fresh meat trade. Fat steers fell to new low price
levels for the year and hog values fell to a parity
with last December, while fat lamb and sheep prices
were reduced to those wrhich prevailed at the first of
the year. D uring early July some of the losses were
recovered, the strengthening influence being the rise
in corn. The movement of farm products to market
was maintained at a high rate, arrivals of many of the
leading products being in excess of the same period
last year. Shipments of garden truck and fruits were
unusually large, and represented in part the delayed
movement occasioned by lateness of the season.
Continued apathy and a further decline in prices
featured the fuel situation in this district. Curtailed
industrial activity is reflecting a falling off in the
demand for steaming coal, and screenings in the Illi
nois field reached a new low level on the downward
movement.
Ordering by dealers is considerably
below normal for this time of year, and they explain
their unwillingness to purchase by the fact that house
holders are unusually slow in filling their fall and
winter requirements. The tonnage of threshing coal
thus far this year has been so small as not to consti
tute a factor in the situation. Gas engines are largely
supplanting steam as m otive pow er for threshing
machines. In the immediate past some slight im prove
ment is reported in the Kentucky fields, and strip
mines in Illinois, which are meeting the low prices
of the Kentucky operators, are getting good running
time. Production of bituminous coal for the country
as a whole showed a further decline. In virtually all
fields the decrease is largely accounted for by lack of
orders, other causes being negligible. Total produc
tion of soft coal during the first 158 w orking days of
the calendar year, or to July 5, was 231,971,000 tons,
which compares with 279,553,000 tons for the corres
ponding period in 1923, 196,706,000 tons in 1922 and
291,509,000 tons in 1918. Similar conditions of dullness
obtain in coke. Ordering o f dom estic sizes is back
ward, and consumption o f metallurgical coke has
decreased sharply with the blow ing out o f numerous
blast furnaces and reduced operations at mills and
foundries.
Traffic o f railroads operating in this district during
June, while still of large volum e as contrasted with
previous years, was smaller than for the correspond
ing month in 1923. T otal loadings o f revenue freight
for the country as a whole during the four weeks of
June totaled 3,625,472 cars against 4,074,603 cars for
the corresponding month in 1923 and 3,414,031 cars for
the same period in 1922. T he week ending June 28
showed a slight gain over its predecessor, the increase
being in the grain, coal, ore, and miscellaneous classi
fications. Extensive preparations have been made by
Southwestern roads for handling the grain crops, the
movement of which is already under way. T he T er
minal Railway Association o f St. Louis, which handles
the interchange o f 28 connecting carriers, interchanged
175,492 loads in June, against 199,572 loads in M ay
and 187,035 loads in June, 1923. For the first nine
days o f July 48,868 loads were interchanged, against
52,613 loads* for the corresponding period in June and
51,472 loads in July, 1923. Passenger traffic of report
ing roads decreased 8 per cent under June last year.
Tonnage m oved by the Mississippi River section of
the Federal barge line between St. Louis and New
Orleans during June amounted to 81,500 tons, which
compares with 68,600 tons in M ay and 69,900 tons in
June, 1923.
Collections during June, while less satisfactory
than during the same month in 1923, showed slight
improvement over the M ay record. W holesalers in
the large centers report that they are being paid
promptly with more of their customers taking advant
age o f discounts offered for cash. Cessation of the
recent heavy rains has had a tendency to increase co l
lection efficiency in rural sections. Some backward
spots are still noted, particularly in the coal fields,
where requests for extensions are more numerous.
Retailers in the large cities report the usual backward
ness in payments occasioned by persons being away
on vacations, but generally their customers are meet
ing bills promptly. Replies to 406 questionnaires ad
dressed to representative interests in various lines
throughout the district show the follow ing results:
Excellent
Good
Fair
Poor
28.4%
58.4%
12.3%
June, 1924....... 0.9%
May, 1924....... 2.7
23.2
58.9
15.2
June, 1923....... 1.0
42.0
54.0
3.0
Commercial failures in the Eighth Federal Reserve
District during June, according to D un’s, numbered
81, involving liabilities o f $975,155, against 62 defaults
during May with indebtedness of $174,163 and 68 fail
ures for $2,450,239 in June, 1923.
The per capita circulation of the United States
on July 1 was $42.20 against $42.78 on June 1 and
$42.51 on July 1, 1923.
M A N U F A C T U R IN G A N D W H O L E S A L E
Autom obiles
Production of automobiles and trucks for the
country as a whole sustained another sharp decrease
during June, the loss compared with the preceding
month being 21.4 per cent, while a loss of 35 per cent
was recorded under June, 1923. Companies reporting
direct or through the Autom obile Chamber of C om
merce built 217,845 passenger cars in June, against
279,385 in May, and 337,048 in June, 1923. T he output
of trucks in June was 27,040 against 32,326 in M ay and
39,945 in June, 1923. The total number of passenger
cars and trucks manufactured during the first half
o f 1924 was 1,992,030 against 2,035,313 for the first
six months of 1923. W arm er weather and the termina
tion of the long protracted spell of heavy rains had a
stimulating effect on distribution o f passenger cars
during the period under review. June sales of 230
dealers scattered through the district were 7.5 per
cent larger than for the same month in 1923, and 4 per
cent in excess of the M ay total this year. M uch of
the improvement noted was in the country, and the
comment was also made that standard makes were
relatively much more active than the less well known
cars. Stocks of new cars, with but few exceptions
were reported about normal for this time of year, the
total having been materially reduced since April. The
intensive campaign to sell accessories has met with
satisfactory results, business in June show ing a good
gain over the same month last year. N o change from
recent dull conditions occurred in the tire market.
Stocks continue excessive and recent reductions in
price have failed to stimulate purchasing. The used
car market improved slightly during June, with stocks
generally normal, and in some instances smaller than
at this time last year.
B oots and Shoes
June sales of the 11 reporting interests were 4.3
per cent larger than for the same month in 1923, but
16.9 per cent under the May total this year. The
decrease from M ay to June is largely accounted for
by seasonal considerations. Ordering for immediate
shipment is holding up in good shape, and the past
three weeks have been marked by a decided im prove
ment in future buying. Comment is made upon the
active demand for sport shoes, and sales o f w om en’s
and children’s shoes continue more satisfactory than
of men’s wear. Prices of finished goods underwent
no change worthy of note. Factory operation was at
approximately 74 per cent of capacity. The total num
ber of pairs of shoes manufactured in this district
during June was 3.3 per cent in excess of the output
during the preceding month, but for the country as a
whole June production was 7.9 per cent under the
May total.
Clothing
Nothing during last thirty days indicates any
change in fundamental conditions obtaining in this
line, and midsummer dullness prevails, inasmuch as
fall buyers have not yet entered the market. There
is continued apathy in the matter of forward com m it
ments, and the absence of burdensome stocks is a
decidedly favorable factor. Forward orders on the
books of reporting firms are about 30 per cent less
than at this time last year. Sport clothes constitute
the outstanding feature of the list, though the sporadic
hot spells during the past month stimulated demand
for summer suitings. Prices are spotty. Sales of men’s
hats underwent a decided improvement during June,
due largely to more seasonable weather. June sales
of 11 reporting clothing interests were 17.2 per cent
under those of the same month a year ago and 1.9
per cent less than the May, 1924 total.
Drugs and Chemicals
Sales of the 11 reporting interests during June
were 9.1 per cent under those of the same month in
1923, and 6.8 per cent under the M ay total this year.
Buying by retail druggists is along extremely conserv
ative lines, the average size of orders being the small
est in a number of years. In the drug and fine chem
ical market com petition is keen, and prices definitely
in favor of buyers. O f 34 changes during June
21 were downward revisions and 13 advances.
Since the last week o f June marked betterment has
taken place in sales of soda fountain supplies, and the
volum e in this department for the first half of July
is close to the high record of the corresponding period
last year. A further slump in the movement of heavy
chemicals and crude drugs to manufacturers was noted.
D ry G oods
W hile the volum e of business in this classification
continues under that of a year ago, the past tw o weeks
have developed more optimism, and inquiries for goods
for future delivery are more numerous. Country mer
chants appeared in large numbers for the opening of
the market season in the chief wholesale centers, and
their buying reflected larger and more diversified
demands. There has been some reordering of summer
merchandise, and the volum e of small orders for
prom pt shipment is holding up well. A feature has
been the large number of requests by retailers for
goods to dispose of in special sales. Prices generally
showed no notable change during the period under
review. Brown sheetings and print cloths were a
shade lower, but silk mixtures, which have improved
in demand, were steady at the recent decline. U ncer
tainty relative to the raw cotton market is making
for hesitation in commitments on cotton goods. June
sales of the 11 reporting interests were 29.7 per cent
under those o f the same month in 1923, and 2.7 per
cent under the M ay total this year. Orders booked
by a number o f important interests during the first
tw o weeks o f July were about on a parity with the
corresponding period last year.
Electrical Supplies
T he decrease in building activity, unseasonably
cool weather and uncertainty relative to prices are
given am ong reasons for a loss in June sales by the 12
reporting interests of 17.2 per cent as compared with
the same month in 1923. Sales of electric fans and
fan m otors have been held down by cool weather, but
business in the general line of m otors is fairly steady.
There has been a rather sharp falling off in electrical
installations, and all sorts of supplies for coal mines
are reported inactive. T h e trend of prices is lower,
with specific reductions on bare and insulated copper
wire, pole line hardware, mazda lamps and some
specialties.
Fire Clay Products
Unsettled conditions in the oil fields and the sharp
reduction of operations at blast furnaces and foundries
were factors in a slow ing down in this industry.
Maintenance of the recent high rate of production in
the cement industry has resulted in an active demand
from that quarter, while extensive municipal opera
tions have aided the movem ent o f vitrified products.
Total production, however, is at only about 60 per
cent of capacity. There has been a reduction of $2
per thousand on 9-inch straights in the three standard
grades, and proportionate downward revisions on
shapes and hollow tile. June sales o f the 5 reporting
interests were 19 per cent under those of the same
month last year, but 1.5 per cent in excess of the May,
1924 total.
Flour
^Production of the 11 leading mills of the district
during June was 277,560 barrels, which compares with
322,106 barrels in May and 286,463 barrels in June,
1923. In point of new business booked, particularly in
car lots, the past thirty days have been marked by
continued dullness. Shipping directions from the
domestic trade on flour previously purchased, how
ever, were good, and some inquiry from abroad for
clear flours was noted. Since July 1 prices have stif
fened, in sympathy with the upturn in wheat, but
flour buyers are not disposed to follow the advance,
and are holding off or purchasing on a hand to mouth
basis. W ith but few exceptions millers are refraining
from quoting prices on new wheat flour. Mill opera
tion was at 63 per cent of capacity.
Furniture
Sales of the 28 reporting interests during June
were 34.2 per cent less than for the same month in
1923, and 7.1 per cent below the total of M ay this
year. Buying by dealers is slow, and chiefly of goods
to fill in with, stock orders being unusually light,
even for this season. Sharp curtailment of production
was reported, a number of factories operating only
tw o days per week. Prices on new goods displayed at
the special trade periods at Chicago, Grand Rapids
and St. Louis, averaged about 5 per cent lower than
levels in the immediate past. Manufacturers say their
customers are pressing for reductions, which they are
unable to grant under present conditions of material
and labor costs.
Groceries
The lateness of most garden vegetables has con
tributed to the demand for canned goods, and this
situation has been further stimulated by the fact
that little or none of this year’s canned goods have
as yet made their appearance on the market. T he
continuance of the Brazilian export limitation has lent
a firmness to all grades of coffee, which has moved
into consumers’ hands in good volume. Sugar, after
a flurry of strength during the first week of July, has
turned dull again at prices only slightly above the
low for the year. Stocks in retailers’ hands are close
to normal. Candy is seasonably dull. June sales of
23 reporting interests were 1.6 per cent under those
of the same month a year ago and 4.3 per cent under
the May, 1924 total.
Hardware
Aside from slight improvement in the country,
where the better crop outlook and upturn in cereal
prices have served to stimulate buying, conditions in
this line showed little change from the preceding
thirty days. A further recession was noted in the
demand for builders’ tools and hardware, but sales
of seasonal goods in the country, such as hand imple
ments, harness, wire netting and spraying apparatus,
were in somewhat better volume. Generally through
the line price changes were nominal, but mainly in
the direction of lower levels. June sales of the 12
reporting interests were 10.9 per cent under those
of the same month in 1923, and 8.7 per cent under the
M ay total this year.
Iron and Steel Products
Buyers of both raw and finished materials con
tinue to exhibit a hesitating attitude in the matter of
filling their requirements.
Further curtailment of
activities at mills, foundries and machine shops was
reported, and since the first of this month there have
been numerous closings o f important manufactories
for repairs and inventory taking. There was a further
decline in production of pig iron and steel ingots.
Total output of pig iron for the country during June
was the smallest for any single month since August,
1922. On an average daily basis, ingot production in
June fell 15.5 per cent below May, bringing the total
loss from the high point in March to 40.89 per cent.
The slow ing d o w n ' in operations was accompanied
by additional price reductions, am ong the com m odi
ties affected being pig iron, plates, shapes and bars,
certain wire products and track materials. No. 2
Southern iron, 1.75 to 2.25 per cent silicon, declined to
$18 per ton, furnace, while Northern iron o f the same
analysis dropped to $19 per ton. The leading pro
ducer o f the district reduced its minimum price from
$22.50 to $20, f. o. b. Granite City, Illinois. T he demand
for structural steel showed a falling off, and that sec
tion o f the industry was marked by scarcity of large
awards. Buying by automobile manufacturers con
tinued the decline of recent months, and there were
numerous requests for delay in shipments of quotas
due on earlier contracts. The demand for all sorts of
iron and steel supplies from the oil fields is holding
up well, and during the period under review was one
of the market’s most active features. F or the most
part railroads continue to postpone buying or carrying
out improvement programs, their takings being confined to absolute requirements. W arehousem en report
lack of interest on the part of their customers. In the
immediate past some improvement has developed in
the farm implement trade, but stove manufacturers
report no change in the dull conditions which have
featured their business for the past several months.
June sales o f stove manufacturers, 7 reporting, were
11.8 per cent under the same month in 1923, but 4.3
per cent larger than the May total this year; railway
supplies, 5 reporting, decreased 57.7 per cent under
the same month in 1923 and 8 per cent under the
preceding month this year; farm implements, 6 report
ing, decreased 38.4 per cent under June, 1923, and 3 5
per cent under the May, 1924, total; job foundries, 5
reporting, decreased 23.5 per cent under June, 1923,
and were 17 per cent below the M ay total this year *
manufacturers o f boilers, stacks, elevators, radiators,’
wire rope and miscellaneous products, 14 reporting’
decreased 19 per cent under June, 1923, and 6.2 per
cent under the preceding month this year.
Lumber
July has witnessed quite an improvement in mar
ket tone, resulting more from balancing production
with orders and from brighter outlook for farm trade
than from gains in the demand. There has been some
increase in buying and still more in inquiry, but it
is the prospect for fall, mainly, that accounts for the
better and more confident feeling which is becom ing
wide-spread. Prices are now fairly steady at present
low levels. Transit cars under or threatened with
demurrage and occasional cars or lots offered under
financial pressure constitute the sum of the market’s
real weakness. Mixed cars are rather inclined toward
minor advances, and many pine mills are asking som e
what better prices on descriptions of stock in which
their holdings are light. Retailers in the district appear
to be gradually taking on more new lumber, without
doing any actual stock buying as yet. The factory
trade is buying only for immediate needs, particularly
the automotive and furniture industries.
Consumption of Electricity
In contrast to the slight upturn noted last month,
reporting centers indicate decided irregularity, with
gains and declines exactly balancing in number in the
five cities. It is also noted that in some sections of
the district certain lines are using heavier loads, while
elsewhere the same industries are reducing the wattage
taken. General upward trends are noted by ice manu
facturers, cold storage concerns, packing plants and
cable manufacturers, while losses are recorded by steel
plants, automobile manufacturers and cement and
railroad equipment companies.
Detailed figures fo llo w :
No. of
June,
May,
June, 1924
June,
June, 1924
custom*
1924
1924
comp, to
1923
comp, to
ers
*K.W.H„ *K.W.H„ May, 1924 *K.W.H. June, 1923
Evansville ...........40
9 ^ 8 ^ 1,058
— 9.5%
1,212
— 21.0%
Little Rock.........11
845
692
+22.1
793
+ 6.6
Louisville ...........67
4,123
4,244
— 2.9
3,990
+ 3.3
1,1001,450
— 24.1
931
+18.2
Memphis ............ 31
St. Louis ...........77
13,007
12,948
+ 0.5
13,781
— 5.6
Totals.......... 226
20,033
*In thousands (000 omitted).
20,392
— 1.8
20,707
— 3.3
The follow ing figures, compiled by the Depart
ment o f Interior, give kilowatt production for both
lighting and industrial purposes for the entire cou n try :
By water power
By fuels
May, 1924................................1,948,108,000
2,848,804,000
April, 1924................................1,849,312,000
2,889,434,000
May, 1923................................1,901,400,000
2,729,073,000
Totals
4,796,912,000
4,738,746,000
4,630,473,000
R E T A IL
Clearance sales, more seasonable weather and
increasing optimism in rural districts has lent a
decided stimulus to retail trade during the past three
weeks. Sales of most reporting groups are, of course,
still behind those of the first seven months of 1923,
but buying that has been in abeyance for the last few
months is now making itself felt. H ot weather has
prompted buying of all lightweight suitings and there
has been a gratifying movement of men’s straw hats.
Fancy summer yard goods are in normal demand and
there have been large retail sales of cosmetics. A
relative improvement is noted in jew elry, with sales
of reporting firms for the year to date approximating
those of the same period in 1923. Sporting goods are
spotty, with sustained demand for g olf and baseball
supplies, but a retarded movement of tennis, fishing
and camping supplies, the relative quietude in the
latter group being traceable to the abnormally heavy
rains of June. Convention broadcasting brought an
unprecedented movement of radio supplies, with June
sales of reporting firms 60 per cent above those of the
same period in 1923. Demand for electric fans, hand
implements and garden hose has been slow, but lawn
mowers, builders’ hardware and the general line of
shelf goods have moved briskly. Shoes are dull.
June sales of 3 interests operating 1,576 chain
grocery stores in this district were 0.4 per cent in
excess of those of June, 1923, but sales per store were
less than a year ago. The number o f stores operated
was slightly greater than during the same period in
1923. A lthough the 21 reporting department stores
of the district report a 9.1 per cent loss during June
as compared with June, 1923, July sales to date have
been more encouraging.
Detailed department store figures fo llo w :
Annual rate of
Net sales comparisons
Stocks on hand stock turnover
June, 1924 Six months ending June 30, 1924 For 6 months
comp, to
June 30, 1924, to
comp, to
ending
June, 1923 same period, 1923 June 30, 1923 June 30, 1924
Evansville .........— 6.9%
— 4.0%
— 6.9%
1.93
Little Rock.........— 12.0
— 1.3
+ 3.3
2.22
Louisville ...........— 4.5
— 1.1
+• 5.6
2.84
Memphis .........— 10.2
— 5.4
— 2.4
2.34
Quincy ...............— 11.6
— 4.2
— 2.3
2.24
St. Louis.............— 9.5
— 2.1
+ 5 .0
2.92
8th District.........— 9.1
— 2.4
+ 3.4
2.67
Entire U. S........— 6.1
+ 1.3
+ 3.1
3.02
A G R IC U L T U R E
Taken as a w hole agricultural prospects in this
district showed improvement during the period under
review. M ost o f the betterment, however, came dur
ing the closing days o f June and the first tw o weeks
of July, when the end of the long spell of heavy and
continuous rains and the arrival of seasonal tempera
tures gave impetus to the grow th and development
of crops and permitted farmers to cultivate their
fields. Since the return of more favorable weather all
sorts o f farm operations have been aggressively
pushed. Fields which three or four weeks back
seemed hopelessly encumbered with weeds and grass
have been cleaned up. Delayed spraying in orchards
and vegetable and fruit plantations has been accom
plished and the wheat harvest and haying have pro
ceeded at a satisfactory pace. Generally the outlook
for production is good, and latest reports from vir
tually all sections reflect more optimism than at any
time since the cropping season opened.
Corn got off with one of the poorest starts on
record, and the July 1 condition for the country as a
whole, according to the U. S. Department of Agricul
ture, was only 72 per cent, the lowest ever recorded
for that date. The low condition was due to the fact
that an unusually cool M ay was follow ed during June
by excessive rainfall. In all states o f the district the
crop is late, and m ore replanting than ever before was
required. In some sections, particularly in the river
bottom s, the soil was too soaked to permit of seeding
until too late, and much o f this land will in all likeli
hood remain idle. In Illinois, the m ost important
corn producing state of the district, the indicated yield
is 248,276,000 bushels, against 337,312,000 bushels last
year and a five year average (1918-1822) o f 317,273,000
bushels.
M issouri’s estimated yield is 142,480,000
bushels ,against 196,860,000 bushels in 1923. The
yield for the entire district is estimated at 394,972,000
bushels against 403,090,000 bushels harvested last year.
W heat — Oats — Corn
The U. S. Dept, of Agriculture, in its report as of
July 1, 1924, gives condition o f winter wheat, oats
and corn in states o f the Eighth Federal Reserve Dis
trict as follow s:
W IN T E R W H E A T
♦Production
Farm price
Condition
Forecast 1924
Harvested
per bu.
J.uly 1
from condition
5-yr. av.
June 15
1924 10-yr. July 1
June 1
1923
1918-22
1924 1923
_____
___ av.
______ ____
% %
Bu.
Bu.
Bu.
Bu. cents cents
Illinois .....66 80
33,931
33,368
60,534
51,377
100
105
Indiana .....80 79
28,044
26,567
34,188
33,707
100
112
Kentucky ..68 83
3,984
3,773
7,688
8,320
110
126
Missouri ....68 78
23,214
21,808
37,882
45,106
100
104
U.S.Total ..77.9 80.9 542.551
509,319
572,340624,653
.....................
OATS
Illinois .....89
83
156,601
142,524
Indiana ......89
81
63,154
59,207
Missouri ....8381
40,318
32,941
U.S.Total 86.9 84.7 1,356,338 1,231,728
135,100
48,692
34,500
146,005
59,088
42,189
44
45
54
42
44
51
1,299,823 1,302,516 46.8 43.7
CORN
♦Production
Farm price
Average 1924 Condition 'Forecast ’24
Harvested per bu.
% of
July 1 from cond.
5-yr. av. June 15
1923 Acres 1924 10-yr. July 1
1923
1918-22 1924 1923
.
_
_
av.
_ _
______ _
_ _
% %
Bu.
Bu.
Bu. cents cents
Illinois .......102
9,175 66 86
248,276 337,312 317,273 76
77
Indiana ....... 92
4,603 61 85
123,545 192,616 177.513 72
80
Kentucky ..... 96
2,960 78 87
72,727
87,866
89,159 100 101
Missouri .....103
6,759 62 84
142,480 196,860 173,702 85
90
Tennessee ....105
3,169 81 85
77,007
73,941
83,241 104 106
U. S. Total....l01.4 105,604 72.0 85.0 2,515,385 3,046,387 2,899,428 80.8 85.8
*In thousands (000 omitted).
W inter wheat prospects for the country improved
during June, the indicated yield o f 542,551,000 bushels
on July 1 being larger by 33,232,000 bushels than the
indicated outturn on June 1. June weather was in the
main favorable for maturing the crop; and comments
relative to the quality of the crop are generally favor
able. The grain is well filled out, with weight and
milling quality good. Cutting has been completed,
and threshing is well under w ay in the southern tiers
of the district and rapidly m oving northward. There
are some complaints o f w et harvest, and the crop is
generally late. The estimated outturn of all wheat
for this district is 50,879,000 bushels, against 83,426,000
bushels, the final estimate for 1923.
Due to the cool, w et weather in May, hay crops
were slow in starting, but with warmer weather there
has been substantial improvement in prospects, and
in many important producing areas the condition is
above the average. Haying, however, was delayed seri
ously and in some localities rains made saving the
crop difficult. Oats promise a heavier yield than last
year, the estimated production for this district being
59.416.000 bushels, against 52,072,000 bushels in 1923.
The planting of forage crops in the South is nearing
completion. Pastures generally are in excellent shape,
the average condition on July 1 for Illinois, for in
stance, being 94 per cent. Reports relative to live stock
indicate a generally healthy condition am ong herds,
but fewer animals, particularly hogs, than last year.
The decrease in the number of hogs in important pro
ducing sections is ascribed chiefly to the continued
adverse corn-hog ratio.
The acreage planted to potatoes shows no material
variation as contrasted with last year, but conditions
are spotted, and the indicated output for this district
is estimated at only 16,342,000 bushels, against
18.223.000 bushels harvested in 1923. The area seeded
to sweet potatoes shows a slight reduction from last
year, due mainly to unfavorable weather conditions,
and in some localities to scarcity of labor and shortage
of slips caused by potatoes rotting in the bed.
Planting of rice is entirely completed and condi
tions of the crop exceptionally good. The general crop
is from tw o to three weeks ahead of the 10-year aver
age, and the acreage and prospective yield both larger
than a year ago. Virtually all the rice has been
flooded the first time, and a good portion has received
a second flooding. There are scattered complaints
of water maggots, but nothing of a serious character.
The stock of old rice is small, and it is expected that
it will be moved by the first week of August. The
demand continues active, with prices steady to strong.
M ost recent reports indicate that the acreage of
tobacco planted in this district will be under that of
last year. In the burley tobacco district acreage is
approximately 92 per cent of last year’s planting, and
percentages of the 1923 acreage in the dark districts
are about as fo llo w s : Green river and stemming, 85
per cent; W estern district, 83 per cent; one sucker,
75 per cent and dark fired, 95 per cent. W hile quite
late the crop has made favorable progress, especially
during the past three weeks. A s a whole fields are in
fair state of cultivation, though in the lowlands where
moisture has interfered with cultivation, weeds and
grass have made headway. A ll desirable old tobacco
being offered is m oving at good prices.
The past several weeks have been generally fav
orable for growth and developm ent of the cotton crop.
According to the U. S. Department of Agriculture the
outlook is more hopeful than at this time last year.
The season is still late, but comparatively not nearly
as late as a month ago, there having been some “ catch
ing up.” The crop is grow ing well, has good color
and is well cultivated, except where there has been
excessive rain. The stand is about average, but some
what ragged on account of replanting. Boll weevils
are less numerous in this district than at the corres
ponding time in 1923. The area of cotton for the
country as a whole on June 25 was estimated at
40,403,000 acres, or 4.4 per cent above last year.
Cotton
The condition of cotton in states of the Eighth
Federal Reserve District and the United States is
given by the Department of Agriculture as follow s:
Area
June 25, 1924
Change between
Preliminary estimate
Condition
May 25 and
% compared
June 25
June 25
with 1923
Acres " 1924 1923 10-yr,av. 1924 10-yr. av.
3,058,000
68
66
77
-4-10%
4-3%
Arkansas .....98
Mississippi ........... 96
3,256,000
74
67
75
4- 5
0
Missouri .............. 115
453,000
60
62
79
+ 8
+2
Tennessee ............ 97
1,184,000
67
67
77
+13
+2
U. S. Total.........104.4 40.403,000
71.2 69.9 74.8
+ 5.6
+ 2.0
Live Stock M ovem ent
Receipts and shipments at St. Louis, as reported
by the National Stock Yards, were as follow s:
June
1924
Cattle and Calves................... ...103J
§ ° £ s .....••••••• ........................ 361
Horses and Mules.................... 2
Sheep ......................................... 76
*In thousands (000 omitted).
♦Receipts
May
June
1924
1923
""ToF " T T
392
349
2
2
33
92
June
1924
"~62
222
2
15
^Shipments
May June
1924 1923
"“ {TT ~S7
280
197
2
9
25
Receipts and shipments at St. Louis, as reported
by the Merchants’ Exchange, were as follow s:
1?24
Beef, lbs.....................
62
Com, bu...................... 2,834
|L1.°ur’ |£ls.................. . i04
? |S’ ii! .................... 6,793
Lard, lbs...................... 5,181
Lead pigs....................
240
Lumber, cars..............
18
g atf> b.u........................ 3,018
£°£k, lbf*..................... 21,276
Wheat, bu................... 1,732
Zmc slabs...................
182
In thousands (000 omitted).
1924
.........
3,077
399
6,512
5,718
255
21
3,420
22,322
1,731
260
* Shipments
June
May
1924
1924
21,824
20,405
2,195
1,858
384
426
6,706
8,853
11,398
12,743
156
195
June
1923
22,863
1,703
465
5,342
12,576
108
2,7482,656
2,545
22,185
29,351
27,681
1,6071,527
1,471
302
213
293
2,314
31,165
1,733
281
3mTe
1923
47
2,344
356
4,149
6,479
203
21
11
14
14
Com m odity Prices
Range of prices in the St. Louis market between
June 14, 1924, and July 15, 1924, with closing quota
tions on the latter date, and on July 14, 1923:
Close
Wheat ...................... per bu. High
Low July 15, 1924 July
14, 1923
July ....................... “
$1.2054 $1.0954
$1.1954
$ .95*6
September ........... “
1.23^
1.11$$
1.2054
.96
December ............. «
1.26%
1.1454
1.23K
.99^
No. 2 red winter.. “
1.34
1.16
$1.30 @ 1.34 $ .97
@ 1.00
No. 2 hard.......... “
1.21
1.12
1.21
.96
@ .98
Corn
luly •••••................. ;; h j j s
.s ik
1 .11 %
.85^
September ........... “
1.07
.81
1.02H
-™%
December ............. “
.87% .74
.85*6
-6254
No. 2 ... .............. “
1.1454
.8654
1.14
.87
No. 2 white........... “
1.17
.8754
1.16 @ 1.17
-8»H @ .89
Oats
....•••.•.............. “
-57
.4 75/5
.56
.39 %
No. 2 white...........
.60
.52
.59
A\% @ .42
Flour
Soft patent...........per bbl. 7.00
5.25
6.00 @ 7.00
5.00 @ 6.00
Patent....... “
7.50
6.50
7.00 @ 7.50
5.75 @ 6.20
Middling cotton.......per lb.
.30
.2854
.2854
.2754
Hogs on hoof.........per cwt. 7.65
5.00
5.00 @ 7.65
6.50 @ 7.65
B U IL D IN G
In point o f dollar value building permits issued
in the five leading cities of the district in June showed
a rather sharp decrease under the preceding month,
also under June last year, and represented the smallest
New Construction
Permits
*Cost
1924
1923
1924
1923
Evansville ..... I T T
"144*
$ 178
$ 262
403
247
Little Rock..... 99
106
1,137
731
273
Louisville .,. . 353
382
1,245
1,479
Memphis ....
2,582
.. 867
879
1,981
1,784
$4,944
$5,301
June totals....1,881
7,679
7,383
2,234
May totals.....2,013
7,512
April totals....2,429
2,139
9,502
*In thousands of dollars (000 omitted).
Repairs, etc.
* Cost
Permits
1923
1924 1923 1924
$ 13
72
$ 44
" tT
30
75
144
88
15
132
148
37
38
60
112
164
324
611
663
596
963 1,139
1,231 1,283
1,463 1,210
$760
1,031
669
$582
728
855
F IN A N C IA L
2
Com m odity M ovem ent
*Receipts
total since last October. Generally building operations
showed a falling off, due to a disposition to postpone
new enterprises and the fact that much work com
menced earlier in the year has been completed. In
the June lists residential building continued to make
a relatively good showing, but there was a noticeable
decrease in the number of permits for industrial
structures. The demand for building materials in the
country showed the usual seasonal decline, due to
the fact that farmers are preoccupied with harvesting.
There was no change w orthy of note in material prices,
but the trend continues easier. Im proved weather since
the end of June has permitted of increased activities
in highway construction. Production of portland
cement for the country as a whole during June totaled
13.538.000 barrels, against 13,777,000 in M ay and
12.382.000 barrels in June, 1923.
Building figures for June fo llo w :
The chief features of the financial and banking
situation in this district during the past thirty days
were reduced credit demand from commercial and
industrial sources, over-abundant funds in the larger
cities, and lower interest rates. Apathy on the part
of mercantile borrowers was offset in some degree
by increasing demands for funds to finance agricul
tural operations. In the cotton producing sections
the inquiry for credits was considerably better than
heretofore, a number of financial institutions in that
region finding it necessary to extend their lines to
borrowers during the past several weeks. Require
ments in the grain sections are also increasing with
the progress of the wheat harvest, and borrow ing by
millers, elevator interests and grain shippers has in
creased. The demand from live stock raisers is holding
up well, but recent heavy shipments of cattle and hogs
to market have resulted in considerable liquidation,
leaving this general class of loans about at the same
level as at the end of the preceding thirty days. A
fair volum e of liquidation is reported in the tobacco
district, and extensive payments have been made in
sections where early fruits and vegetables are im por
tant crops. Deposits of reporting member banks are
holding up well, and a number of banks with surplus
funds have turned to the investment market to find
employment for them. Loans to member banks by the
Federal reserve bank showed a further sharp decrease,
and recorded a new low point for the year. Between
June 16 and July 15 accom m odations granted to mem
ber banks by this institution decreased $2,240,035 and
there was a decrease of $2,420,000 in Federal reserve
note circulation.
Commercial Paper
May sales of reporting brokerage interests were
12.5 per cent larger than for the corresponding month
in 1923, and 8.3 per cent larger than the M ay total
this year. The demand from city banks was reported
good, but due to the depressed interest rates and the
fact that they are finding local outlet for their funds,
country banks purchased sparingly. General condi
tions considered, offerings are holding up fairly well
from all classes of borrowers. Rates were again lower,
ranging from Zl/2 to 4 per cent, with an occasional
choice name selling at 3J4 per cent. This compares
with 4 to 4 y2 per cent, the range prevailing during the
preceding thirty days.
Savings Deposits
No. of
banks
reporting
Evansville .... 4
Little Rock .. 5
Louisville .... 7
Memphis ...... 4
St. Louis.......12
*Amount of savings deposits
July 2,
June 11,
July 3,
1924
1924
1923
9,090
9,590
$ 9,243
7,915
7,670
7,484
26,627
23,839
26,806
17,899
19,322
16,072
76,374
72,922
76,866
Totals.......32
$138,550
*In thousands (000 omitted).
$139,262
July 1924 July 1924
comp, to comp, to
June 1924 July 1923
+ 1.7% ' — 3.6%
+ 3.2
+ 5.8
— 0.7
-f-11.7
— 7.4
+ 11.4
+ 5.4
0.6
$129,907
+
— 0.5
+ 6.7
Postal Receipts
*For quarter ended
June 30, Mar. 31, Dec. 31,
1924
1924
1923
Evansville ..........................$ 143
$ 146"
$ 145 ’
Little Rock........................
187
203
208
Louisville ..........................
630
644
680
Memphis .............. ............. 444
426
476
St. Louis............................ 2,836
2,915
3,244
Totals ................................$4,240
*In thousands (000 omitted).
$4,334
$4,753
June 30,
1923
$ 140
187
569
435
2,694
$4,025
June 1924
comp, to
June 1923
+ 2.1%
0.0
+ 10.7
+
2.1
+ 5.3
+ 5.3
$ 37,038
7,263
25,084
9,601
3,114
3,525
49,014
140,057
103,277
4,975
9,868
647,761
3,989
6,946
Totals...................... $1,014,601 $1,051,512
*In thousands (000 omitted).
$ 40,889
10,627
31,339
9,351
2,845
3,545
44,035
157,197
104,155
5,162
9,735
612,203
"n ;S 62
............
— 5.6%
— 3.1
+ 13.0
— 5.6
— 4.9
+ 2.8
+ 1.9
+ 13.6
— 1.0
+ 2.5
— 0.4
— 9.2
— 4.7
+ 53.0
3.5
— 14.5%
— 33.8
— 9.5
— 3.1
+ 4.1
+ 2.2
+ 13.4
+ 1.2
— 1.8
— 1.2
+ 0.9
— 3.9
— 10.3
The follow ing statement shows principal resources
and liabilities o f reporting member banks in Evans
ville, Little R ock, Louisville, Memphis, and St. L ouis:
Loans and discounts (incl. rediscounts)
Secured by U. S. Gov’t, obligations....
Secured by other stocks and bonds.....
Other
*July 9,
1924
, t34
*June 11, *July 11,
1924
1923
t34
36
.$ 8,277
. 142,915
, 309,040
$ 8,168
145,625
304,145
$ 11,329
137,001
298,618
.$460,232
$457,938
$446,948
. 14,809
. 23,091
. 3,689
. 15,087
1,380
. 91,993
14,309
22,805
5,049
13,763
1,865
92,023
15,335
23,184
9,373
24,764
6,406
87,875
.$150,049
. 45,834
. 7,569
. 363,252
. 197,826
.
2,467
$149,814
39,937
7,504
355,464
197,049
1,849
$166,937
39,832
8,464
351,199
182,469
7,205
Government deposits....................................
Bills payable and rediscounts with
Federal reserve bank
1,114
Secured by U. S. Gov’t, obligations..
242
11,627
All other.................................................
3,847
.
2,796
14,995
*In thousands (000 omitted).
tDecrease due to consolidation. Total resources of these 34 banks comprise
approximately 54 per cent of the resources of all member banks in the district.
*July 16,
1924
Gold with Federal Reserve Agent............... . $ 61,589
Gold redemption fund with U. S. Treasury....
1,440
*June 18, *July 18,
1924
1923
$ 63,118 $ 51,708
2,084
4,226
Gold held exclusively against F. R. notes..$ 63,029
Gold settlement fund with F. R. Board......... 30,424
Gold and gold certificates held......................
8,261
$ 65,202
29,304
7,780
$ 55,934
19,810
3,818
Total gold reserves....................................... $101,714
Reserves other than gold.................................. 10,684
$102,286
11,924
$ 79,562
13,660
Total reserves.............. .................................. $112,398
Non-reserve cash................................................. . 4,332
Bills discounted :
Secured by U. S. Government obligations..
3,887
Other bills discounted...................................... 15,277
$114,210
4,164
$ 93,222
6,346
5,198
17,717
17,910
28,327
Total bills discounted......................................$ 19,164
$ 22,915
Bills bought in open market..............................
224
1,196
U. S. Government securities:
Bonds ...............................................................................................
Treasury notes...............................................
8,527
6,303
Certificates of indebtedness..........................
1,792
1,701
$ 46,237
3,446
Total U. S. Government securities.........$ 10,319
Total earning assets.............. .....................$ 29,707
Uncollected items...............................................
32,908
Bank premises............................................. .......
2,116
All other resources...........................................
140
RESOURCES...................... ..... $181,601
$ 8,004
$ 32,115
33,495
1,994
139
$186,117
6,150
1,101
.............
$
7,251
$ 56,934
36,040
1,031
146
$193,719
F. R. Notes in actual circulation.................... $ 60,430
Deposits:
Member banks-reserve account.................... 70,741
U. S. Government.........................................
2,170
Other deposits.......................... .....................
422
$ 62,225
$ 73,244
73,411
1,234
381
66,648
3,327
712
Total deposits....................................... ..... $ 73,333
Deferred availability items................................
32,209
Capital paid in...................................................
5,064
Surplus ................................................................
10,072
493
All other liabilities...........................................
$ 75,026
33,029
5,072
10,072
693
$ 70,687
34,153
4,951
9,665
1,019
TOTAL L IA B IL IT IE S ..........................$181,601
MEMO—Contingent liability on bills
purchased for foreign correspondents.........
1,882
Ratio of total reserves to deposit and
F. R. Note liabilities combined.................... 84.0%
*In thousands (000 omitted).
$186,117
$193,719
1,906
1,612
83.2%
64.8%
C O S T O F L IV IN G
— 2.7
Condition of Banks
Total investments............ .
Reserve balance with F.
Cash in vault...................
RESOURCES
LIABILITIES
*For four weeks ending
July 1924
July 16,
/une 18, July 18, comp, to comp, to
1924
1924
1923
June 1924 July 1923
Investments
U. S. PreLiberty b<
Treasury 1
During June the Federal Reserve Bank of St.
Louis discounted for 260 of its 631 member banks,
which compares with 268 of its 633 member banks
accommodated in May. The discount rate of this
bank remains unchanged at 4 per cent.
Comparative statement of this bank fo llo w s :
TOTAL
Debits to Individual Accounts
E. St. Louis and
Nat’l. Stock Yards, 111..$ 34,971
El Dorado, Ark.............
7,037
Evansville, Ind............... 28,356
Fort Smith, Ark.............
9,059
Greenville, Miss..........
2,962
Helena, Ark....................
3,623
Little Rock, Ark........... 49,924
Louisville, Ky.............
159,035
Memphis, Tenn.............. 102,243
Owensboro, Ky.............
5,099
Quincy, 111......................
9,825
St. Louis, Mo................ 588,037
Sedalia, Mo............... .
3,800
Springfield, Mo.............. 10,630
Federal Reserve Operations
Slight changes in the retail cost of food and cloth
ing caused an increase of two-tenths of one per cent
in the cost of living in the United States between May
15 and June 15, 1924, according to the National Indus
trial Conference Board. Between July, 1920, when the
peak of the rise in the cost of living since 1914 was
reached, and June, 1924, the cost o f living decreased
20.9 per cent. T he increase since July, 1914 was 61.7
per cent.
The follow ing table shows detailed changes:
Relative
Percentage of increase Percentage of decrease
in the cost of living in the cost of living
impor
above average prices
on June 15, 1924,
tance
in July, 1914 to------ from average prices in
Item
in
June,
May,
family
May,
July,
July,
1924
1920
1924
budget
1920
1924
41
42
35.2
119
0.7**
Food* ........................43.1
17.1**
0.0
85
Shelter ......................17.7
68
85
74
34.6
0.9
166
76
Clothing .................... 13.2
65
0.6
0.0
66
65
Fuel and light........... 5.6
0.0
(92)
(77)
(7.8)
(77)
(Fuel) .................. (3.7)
(23.4)
0.0
(42)
(15)
(42)
(Light) ................ (1.9)
5.9
0.0
85
74
74
Sundries .................. 20.4
Weighted average
20.9
61.7
0.2*
104.5
61.4
of all items.........100.0
*Food price changes are from the United States Bureau of Labor Statistics.
**Increase.
The purchasing value of the dollar, based on the
cost of living in June, 1924, was 61.8 cents as con
trasted with one dollar in July, 1914.
(Compiled July 25, 1924)
B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S
Prices
Production
The Federal Reserve Board's index of production in basic
industries, adjusted to allow for seasonal variation, declined
about 9 per cent in June to a point 22 per cent below the level
of the first two months of the year. Iron and steel and cotton
manufacturing industries continued to show curtailment of
activity, and decreases were general in other industries.
Latest figure, June=94.
Factory employment decreased 3 per cent in June, the
metal, automobile, textile and leather industries reporting
the largest reductions in force. Value of building contracts
awarded in June was 8 per cent smaller than in May, though
4 per cent larger than in June of last year.
Condition of the corn crop on July 1, as reported by the
Department of Agriculture was the lowest on record for that
date and indicated a probable yield of about 500,000,000 bushels
less than last year. Condition of the cotton crop was recorded
less satisfactory than a month earlier, while forecasts for
wheat and oats were larger than in June.
Trade
Railroad shipments decreased in June and were about 15
per cent less than a year ago, owing to smaller loadings of
all classes of freight except grain and livestock.
Wholesale trade showed a further slight decline in June
and was 11 per cent smaller than a year ago. Sales of hard
ware, drugs, shoes and drygoods decreased, while sales of
groceries and meat increased slightly.
Sales of department stores and chain stores showed more
than the usual seasonal decrease during June and were smaller
than last year. Mail order sales in June showed less than
the usual seasonal decline and were larger than a year ago.
Department stores further reduced their stocks of merchan
dise and slightly increased their outstanding orders.
Wholesale prices, as measured by the index of the Bureau
of Labor Statistics, declined more than 1 per cent in June to
a level 5 per cent below the high point for this year. Prices
of all groups of commodities except clothing showed declines
and decreases were particularly large for building materials.
During the first three weeks of July quotations on wheat,
Latest figure, June=145.
corn and hogs advanced sharply, while prices of sugar, cotton
goods and iron and steel products were lower.
Bank Credits
Commercial loans at member banks in leading cities dur
ing June and the first two weeks of July remained at a rela
tively constant level, considerably below the peak reached
in April, while investment holdings and loans secured by
stocks and bonds increased rapidly and carried total loans
and investments to the high point for the year. Demand
deposits, owing partly to the growth of bankers’ balances at
financial centers, advanced to a record level.
At the Federal reserve banks there was continued decline
in discounts and an increase in purchases of government securi
ties in the open market. As a consequence, total earning
assets in the middle of July were only slightly less than at
the beginning of June.
Member bank reserve balances increased rapidly, reflect
ing a return flow of currency from circulation and further
imports of gold. Total deposits at the reserve banks on July
16 were larger than at any time since the organization of the
System.
Money rates in July were comparatively steady but con
tinued to show a somewhat easier tendency.
Discount rates at the Federal Reserve Banks of Kansas
city and Dallas were reduced during July from 4^ to 4 per
cent.
@FedFRASER