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MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
Released for Publication On and After the Afternoon of July 31,1935
JOHN S. W O O D ,
Chairman and Federal Reserve Agent

FEDERAL

WORKING CAPITAL LOANS
Supplemental information regarding loans and commitments under
Section 13b of the Federal Reserve A ct, which authorizes the Reserve banks
to aid in Providing working capital for established industrial or commer­
cial businesses for periods of not exceeding five years:

An Actual Case
In a medium-sized town in this district, a manu­
facturing concern, employing between 200 and 300
people, needed a substantial loan for a relatively long
period in order to carry on. The desired maturity was
not acceptable to the banks in its community, so the
company consulted the Federal Reserve Bank of
St. Louis.
Upon investigation, we found that the company
had sufficient orders on hand from reputable custom­
ers to warrant the loan. W e then suggested to the
company that it again contact a commercial bank with
the view of having it consider the application in con­
nection with Section 13b.
After going into the case thoroughly, the bank
satisfied itself that a sound loan could be made. It
would have a reasonable maturity, and be secured by
real estate, plant, equipment, and contracts. The bank
offered to make the entire advance if we would issue
a commitment, wherein we would agree to take over
the loan at any time during the life of the commitment
and assume an agreed percentage of the risk.
Our Industrial Advisory Committee and Discount
Committee approved the application, and we gave the
bank a commitment on the basis mentioned, charging
the current rate of 1/2% flat for six months. The
original commitment on this loan expired recently and
was renewed.
A late statement submitted by the company
shows that the loan has enabled it to go ahead with
its production program, resulting in a profit for the
past six months, whereas it had been operating at a
loss. The arrangement furnished the bank a sound
earning asset, improved the status of the company,
permitted continued employment, and helped the
general situation.

Accommodations Extended
Assistance has been rendered to various whole­
salers and retailers, as well as to manufacturers and
other producers.
In addition to commitments, this bank has made
some direct loans when it has appeared that the requi­
site financial assistance could not be obtained on a
reasonable basis from the usual sources.
The commitments outstanding and the working
capital loans held by the Federal Reserve Bank of
St. Louis, as well as the rates thereon, are given on
page 7 of this Review.
Additional information will be furnished gladly
on request.




C. M . STEW A R T,
Secretary and A«s’ t Federal Reserve A gent

RESERVE

BANK

OF

ST.

J. V IO N PAPIN,
Statistician

LOUIS

E N ERA L business in the Eighth District
during June and the first half of July devel­
oped some spottiness and irregularity, but
taking into consiseration the usual seasonal factors,
unfavorable weather throughout June and more or
less serious flood conditions, the exhibit as a whole
was decidedly good. Purchasing of commodities by
merchants, both wholesale and retail, is on a more
conservative scale than earlier in the year, this atti­
tude being attributable to price uncertainties inci­
dent to abolishment of the NRA codes and the out­
come of crops. Potential demand for goods of all
descriptions, but more particularly consumer goods,
continues in considerable volume, and apparently
purchasing power exists for filling requirements.
In wholesaling and jobbing lines, where June sales
fell below those of the same month last year, the
decreases were mainly in advance business. Orders
for prompt shipment in June compared favorably
with the preceding several months and the like
period in 1934. Employment and payrolls of repre­
sentative industries in the district declined in some­
what less than the usual seasonal amount during
June. This was due partly to the well sustained
activities at certain plants in the iron and steel
category, notably farm implements, stoves and heat­
ing apparatus and household appliances, also to
producers of building materials. Manufacturers of
electrical supplies in June maintained the steady
improvement noted during each preceding month
this year.

G

O f the wholesaling and jobbing lines investi­
gated by this bank, increases in June over a year
ago were recorded by boots and shoes, clothing,
electrical supplies, furniture, groceries and farm
implements. W ith the exception of electrical sup­
plies, all these lines showed decreases under the
May volume, but aside from dry goods, and boots
and shoes, the decreases were smaller than the
average during the past decade. Retail sales of
automobiles in June fell below the May total, but
were about one-fourth greater than for the same
month in 1934. Production of bituminous coal in all
Page 1

fields of the district during June exceeded that of
May and June, 1934. Industrial consumption of
electric power in the principal cities declined moder­
ately from May to June, but was larger than in
June a year ago. The improvement in residential
construction in the district continued during June,
and the general trend of real estate values, both in
the country and large urban centers, was toward
higher levels.
Despite the unusually heavy precipitation dur­
ing the spring and continuing through June, crop
prospects in the Eighth District are considerably
better than a year ago, and in the case of certain
productions compares favorably with the average
in recent seasons. The more auspicious weather
since the last week of June has permitted of inten­
sive cultivation, and the recovery of ground lost
because of earlier delays. Belated winter wheat
harvest has been pushed forward rapidly and plant­
ing of corn, tobacco and other spring crops com­
pleted. Prices of farm products continue to show
substantial increases over a year and two years
earlier. This fact, coupled with indicated heavy crop
yields, and rental and benefit payments received
from the Government, have made for increased pur­
chasing power and optimism in the farming com­
munity.
June retail trade in the Eighth District, as re­
flected by department store sales in the principal
cities, was 7.6 per cent less than in May, but 3.1
per cent greater than in June, 1934; cumulative
total for the first half of this year fell 1.2 per cent
below that of the comparable period a year ago.
Combined sales of all w holesaling and jobbing in­
terests reporting to this bank in June were 0.9 per
cent greater and 34.7 per cent smaller, respectively,
than a month and a year earlier; for the first six
months this year the cumulative total was 2.3 per
cent less than for the first half of 1934. The dollar
value of permits issued for new construction in the
five largest cities of the district in June was slightly
greater than in May, and exceeded the June, 1934,
aggregate by 146.2 per cent; for the first six months
the cumulative total was 60.8 per cent greater than
for the first half of 1934. Debits to individual ac­
counts in June were 6 per cent and 15 per cent
larger, respectively, than a month and a year earlier,
and cumulative total for the first half of 1935 ex­
ceeded that for the same period in 1934 by 10 per
cent.
According to officials of railroads operating in
this district, freight traffic handled during late June
and early July showed more than the usual seasonal
decrease, which was ascribed to the belated move­
ment of grains and other farm products, including
Page 2




livestock. There was a sharp tapering off in the
movement of coal and coke, owing mainly to smaller
orders by industrial consumers, as fear of a strike of
miners in the bituminous fields was lessened. For
the country as a whole, loadings of revenue freight
for the first 27 weeks this year, or to July 6, totaled
15,648,478 cars, against 15,957,364 cars for the cor­
responding period in 1934 and 13,887,810 cars in
1933. The Terminal Railway Association, which
handles interchanges for 28 connecting lines, inter­
changed 77,999 loads in June, which compares with
73,378 loads in May and 78,468 loads in June, 1934.
During the first nine days of July the interchange
amounted to 19,918 loads, as against 22,336 loads
during the same period in June and 19,993 loads
during the first nine days of July, 1934. Passenger
traffic of the reporting lines in June was 2.5 per cent
greater than for the same month a year ago. Esti­
mated traffic of the Federal Barge Line between
St. Louis and New Orleans in June was 129,900
tons, against 151,530 tons in May and 100,374 tons
in June, 1934.
Collections generally through the district dur­
ing the past thirty days maintained the high rate
noted earlier in the year. Questionnaires addressed
to representative interests in the several lines scat­
tered through the district showed the following
results:
Excellent

June, 1935................... 4.3%
May, 1935................... 6.3
June, 1934................... 4.3

Good

Fair

40.0%
41.0
38.4

51.9%
44.4
49.4

P oor

3.8%
8.3
7.9

Commercial failures in the Eighth Federal Re­
serve District in June, according to Dun and Brad­
street, numbered 29, involving liabilities of $224,216
against 45 failures in May with liabilities of
$272,085, and 22 defaults for a total of $221,277 in
June, 1934.
M AN U FACTU RIN G AN D W H O L E S A L IN G
N E T S A L E S C O M P A R IS O N
C O M M O D IT Y

6 months ending
June, 1935
June 30, 1935
com pared to
com p, to 1934
June ’ 34 M ay ’ 35
Boots and Shoes.......... + 11.5% — 52.3%
+ 0.1%
D rugs and Chemicals.. — 1.3
— 5.0
— 2.5
— 15.0
— 16.1
— 22.7
Electrical Supplies___ + 24.3
+ 16.0
+ 1.4
+ 2 4 .6
+ 47.3
— 11.3
+ 5.4
+ 1.6
— 8.9
+ 4.4
— 7.5
— 16.4
+

0.9

— 34.7

— 2.3

STOCKS
ON H AND
June 30, 1935
compared to
June 30, 1934
+ 36.4%
+ 46.8
— 12.7
+ 11.2
— 11.0
+ 6.6
— 12.4
+

L7

Boots and Shoes — The decrease in sales of the
reporting firms from May to June is explained by
the unusually heavy volume of May, for which
period an increase of more than 61 per cent over
April was recorded. The increase in inventories
was seasonal in character, and represents accumu­
lation of goods for fall distribution. Salesmen who

departed for their several territories on or about
July 1 report purchasing on a larger scale than a
year ago, particularly in the rural areas.
Clothing — Unfavorable weather during June
militated against the movement of seasonal apparel.
Since July 1, however, the arrival of warm weather
has stimulated business at retail, which in turn has
been reflected in greater activity through whole­
sale and jobbing channels. June sales of the report­
ing clothiers were 35 per cent and 20 per cent
smaller respectively, than a month and a year
earlier. Stocks on July 1 were 17 per cent larger
than on June 1, but smaller by 21 per cent than a
year ago.
Drugs and Chemicals — Sales of seasonal mer­
chandise, including soda fountain supplies, in June
were restricted by the unusually cool wet weather.
There was also a further recession in demand for
heavy drugs and chemicals by the general manufac­
turing trade. Decreases in these lines were partly
offset by unusually heavy sales of fertilizers, insec­
ticides and certain specialties.
Dry Goods — The larger than seasonal declines
in sales of the reporting firms were accounted for
by lack of future buying, which in turn is ascribed
to price uncertainties. Orders for fall distribution
were reported in measurably smaller volume than
a year and two years earlier. Reports covering the
first half of July indicate decreases from the same
period in 1934 about equal to those recorded in June.
Electrical Supplies—J une sales were the largest
for the month since these records began in 1924.
Increases were general through all lines, but most
notable in household appliances, building installa­
tions and small motors. The betterment has contin­
ued since July 1, according to preliminary reports,
with the fan business being greatly stimulated by
warmer weather.
Flour — Production at the twelve leading mills
of the district in June totaled 169,519 barrels,
against 185,595 barrels in May and 229,189 barrels
in June, 1934. The past thirty days constituted a
between-season period, and business was on a
relatively small scale, purchasing being mainly on
a hand-to-mouth basis. Prices followed closely fluc­
tuations in cash wheat, advancing slightly in early
July. Mill operations were at from 43 to 48 per cent
of capacity.
Furniture — June sales of the reporting inter­
ests represented the largest total for any June since
1929. In the aggregate, the greater part of the in­
crease was in household furniture, purchasing of
which was on a more active scale than in a number




of years. Further betterment was also noted in
purchasing of office furniture and equipment. Manu­
facturers in this district report a satisfactory volume
of business booked at the Chicago and Grand Rapids
exhibitions.
Groceries — While purchasing in this classifi­
cation was largely on a necessity basis, there was
a moderate expansion in June sales of the reporting
interests over the same period a year ago. The
decline in June sales was accounted for mainly by
unfavorable weather and floods. The heavy move­
ment and high quality of early fruits and vegetables
have tended to hold down sales of canned foods and
prepared foods, though serving to stimulate buying
of preserving supplies.
Hardware — Purchasing was chiefly on a handto-mouth basis, with future business on books of
the reporting firms in smaller volume than at the
corresponding periods in 1934 and 1933. Some im­
provement in seasonal merchandise has taken place
since the middle of June, and sales of sporting
goods, tourists’ supplies and kindred lines during
the first half of July were in larger volume than
earlier in the season.
Iron and Steel Products — Production and pur­
chasing of iron and steel commodities in this dis­
trict during the past thirty days showed consider­
ably less than the ordinary seasonal contraction.
Activities at foundries, mills, machine and specialty
shops as a whole fell below the similar period im­
mediately preceding, but were at a slightly higher
rate than at the corresponding time a year and two
years earlier. A number of plants which usually
close for inventorying and repairs about July 1 have
remained on full or part time operations through
the first half of the month. Among these were
tractor and farm implement plants, which have been
working practically without interruption. Stove
and range manufacturers have reduced their opera­
tions to a lesser extent than is ordinarily the case
at mid-summer. The rate of operations at steel mills
declined more noticeably than was the case at the
gray iron and malleable plants. The outlet for a
variety of iron and steel goods through the build­
ing industry held its recent gains. Fabricators of
structural steel reported the placement of a fair
volume of orders, and operations at fabricating
plants in the second week of July were at 35 per
cent of capacity as contrasted with 30 per cent thirty
days earlier. Demand for sheets, bars, strip and
other flat rolled products was somewhat spotty,
with miscellaneous requirements accounting for the
major part of the tonnage taken. Purchasing by
the railroads, petroleum industry and other usually
Page 3

large consumers failed to develop betterment. June
shipments of pig iron to melters in the district
were slightly larger than in May, though falling
below the April total. The aggregate movement
for the first six months this year, according to blast
furnace interests purveying to this area, was the
largest for any comparable period since 1930. Quiet­
ness prevailed in the market for scrap iron and steel,
but prices were steady, due to small offerings. Deal­
ers* stocks of scrap as of July 15 were 30 to 40 per
cent less than a year ago, and in a number of in­
stances the smallest in a decade. For the country
as a whole, production of pig iron in June, accord­
ing to the Magazine “ Steel” totaled 1,558,463 tons,
against 1,735,577 tons in May and 1,936,897 tons in
June, 1934. Steel ingot production in the United
States in June amounted to 2,230,893 tons, which
compares with 2,635,857 tons in May and 3,059,483
tons in June, 1934.
RETAIL TRADE
The condition of retail trade is reflected in the
following comparative statements showing activi­
ties in the leading cities of the district:
Department Stores
Stocks
Stock
Net Sales Comparison
on Hand Turnover
6 mo. ended
June, 1935
June 30,’ 35 June 30/35 Jan. 1, to
compared to
to same comp, to
June,30,
June 1934 May 1935 period *34 June 30/34 1935 1934
El Dorado, Ark........ — 4.1%
Evansville, Ind......... — 19.7
Fort Smith, Ark....... — 1.1
Little Rock, Ark....... + 2.7
Louisville, K y........... — 3.1
Memphis, Tenn......... + 10.4
St. Louis, M o........... + 3.0
Springfield, M o......... + 7.1
All Other Cities....... + 6.0
oi l
t?
r>
i
i
8th F. R. District.... + o 3.1

— 20. 1%
— 5.9
— 13.5
— 12.3
— 8.5
— 13.4
— 5.2
— 6.8
— 2.4
r
— 7.6

+4.7%
— 18.0
+ 0.8
— 3.5
+ 1.5
— 0.5
— 1.7
+ 1.8
+ 4.3
— 1 ^
1.2

+6.5%
— 23.2
— 5.4
— 7.7
+ 3.7
+ 4.2
— 6.4
— 19.5
+ 5.1
a o
— 4.2

1.34
1.10
1.13
1.16
1.85
1.43
1.89
1.17
1.49
1 n ri
1.70

1.31
.96
1.10
1.16
1.84
1.53
1.81
.95
1.42
1 £L*
1.66l

Percentage of collections in June to accounts
and notes receivable first day of June, 1935.
P E R C E N T A G E O F C O L L E C T IO N S B Y C IT IE S
El Dorado, Ark.................. 48.1%
Memphis, Tenn................... 42.3%
Fort Smith, Ark................. 35.9
Springfield, M o................... 25.1
Little Rock, Ark................ 33.4
St. Louis, M o..................... 54.9
Louisville, K y.......................50.4
All Other Cities................... 35.8
8th F. R. District....................... 48.7%

Retail Stores
Stocks
Stock
_____ Net Sales Comparison
on Hand Turnover
6 mo. ended
June, 1935
June 30/35 June 30/35 Jan. 1, to
compared to
to same comp, to
June,30,
June 1934 May 1935 period *34 June 30/34 1935 1934
Men’ s
Furnishings .......... — 6.5%
Boots and
Shoes ......................+ 3.1

+5.1%

— 1.8%

— 8.2%

1.27

1.23

— 15.8

+

— 2.1

2.22

2.56

4.1

AUTOMOBILES
Combined passenger car, truck and taxicab pro­
duction in the United States in June, was 361,320
against 364,727 (revised figure) in May, and 308,051
(revised figure) in June, 1934.
Volume of distribution of new automobiles in
the Eighth District during June, according to deal­
ers reporting to this bank, continued in measurably
larger volume than a year ago, and declined in
Page 4




somewhat less than the usual seasonal amount from
May. The market for used ears was relatively more
satisfactory than that for new vehicles, sales of
secondhand cars showing increases in both compari­
sons. Demand for trucks developed decided declin­
ing tendencies, June sales being 14 and 11 per cent
smaller, respectively, than a month and a year earli­
er. Business in parts and accessories was stimulated
by the touring season.
June sales of new passenger cars by the report­
ing dealers were 5 per cent smaller than in May, but
about one-fourth greater than the June, 1934, total.
Stocks on dealers’ floors as of July 1 were 5.5 per
cent larger than on June 1, and 12 per cent less than
on July 1, 1934. Sales of used cars in June were
about one-third larger than a year ago and 8 per
cent greater than in May this year. Stocks of sala­
ble secondhand cars declined slightly between June
1 and July 1, and on the latest date were 55.5 per
cent larger than a year earlier. The ratio of deferred
payment sales to total sales, in June, according to
dealers, reporting on that item, was 46 per cent,
against 43 per cent in May and 47 per cent in
June, 1934.
CONSUMPTION OF ELECTRICITY
Public utilities companies in the five largest
cities of the district report consumption of electric
current by selected industrial customers in June as
being 3.7 per cent smaller than in May, and 1.2 per
cent more than in June, 1934. Detailed figures follow :
No. of
June,
May,
June, 1935
Custom­
1935
comp, to
1935
ers
*K .W .H . *K .W .H . May, 1935
Evansville .... 40
2,544
2,958
— 14.0%
Little Rock.. 35
1,894
1,710
+ 10.8
7,679
7,745
Louisville .... 82**
— 0.9
1,554
1,549
+ 0.3
St. Louis..... 196** 18,977
19,946** — 4.9
Totals..... 384** 32,648
#In thousands (000 omitted).
**Revised figures.

33,908**

— 3.7

June, June, 1935
comp, to
1934
*K .W .H . June, 1934
2,535** + 0.4%
1,933
— 2.0
7,318** + 4.9
1,588
— 2.1
18,892** + 0.4
32,266**

+

1.2

POSTAL RECEIPTS
Returns from the five largest cities of the dis­
trict show an increase of 8.5 per cent in combined
postal receipts for the second quarter of this year,
over the corresponding period in 1934, and an in­
crease of 2.7 per cent as compared with the first
three months this year. Detailed figures follow :
For Quarter Ended
1935
June 30,
Mar. 31,
Dec. 31,
June 30, comp, to
1935
1935
19341934
June, 1934
Evansville ....... $ 141,852 $ 143,020 $ 142,938 $ 133,937 + 5.9%
Little Rock.......
172,805
186,668
184,394
160,085 + 7.9
Louisville ........
669,314
648,588
665,248
598,983 +11.7
Memphis .........
514,179
535,118
596,177
461,360 + 11.4
St. Louis.......... 2,477,195
2,357,124
2,695,692
2,311,177 + 7.2
Totals.......... 3,975,345

3,870,518

4,284,449

3,665,542

+ 8.5

LIFE INSURANCE
Sales of new, paid-for, ordinary life insurance
including the Eighth District during June, the pre­
ceding month, and a year ago, together with the
cumulative totals for the first six months this year

and the comparable period in 1934 are shown in the
following table:
(In thousands
June,
May,
June,
Jan.-June, Inc.,
of dollars)
1935
1935
1934
1935
1934
Arkansas......... $2,420 $ 2,573 $ 2,711
$ 17,149 $ 17,361
Illinois.............
40,192
40,539
45,214
274,252 275,799
Indiana............
10,845
11,003
11,430
70,643
66,702
Kentucky........
5,074
5,455
4,932
33,732
31,703
Mississippi......
2,296
2,188
3,060
13,700
15,055
14,641
15,396
17,953
98,120 109,888
Missouri..........
Tennessee.......
5,066
5,627
6,478
35,312
36,642
Totals..........
United States..

80,524
490,268

82,781
500,380

Cumul.
change
— 1.2 %
— 0.5
- f 5.9
+ 6.4
— 9.0
— 10.7
— 3.6

91,778 542,898
553,150 — 1.9
556,379 3,255,494 3,240,360 - f 0.5

BUILDING
The dollar value of permits issued for new con­
struction in the five largest cities of the district in
June was .2 per cent larger than in May, and 146.2
per cent more than the June, 1934, total. Production
of portland cement for the country as a whole in
June totaled 8,730,000 barrels, against 8,813,000 bar­
rels in June, 1934. Building figures for June, follow :
New construction_____
Permits
*£ost
1935
1934
1935
1934
Evansville
26
9
$ 39 $ 27
Little Rock
20
10
45
5
Louisville .. 82
39
219
96
Memphis ... 128
118
114
68
St. Louis.... 285
131
489
172
June Totals 541
307
May
“
519
362
April
“
529
378
#In thousands (000 omitted).

906
904
957

368
512
1,585

______ Repairs, etc.
Permits
*Cost
1935
1934
1935 1934
73
166
$ 25 $ 32
124
92
45
15
97
40
31
85
202
113
86
50
201
120
181
82
677
725
745

657
790
761

316
340
317

210
386
323

AGRICULTURE
Excessive rainfall continued generally through
the Eighth District during June, causing a further
delay in planting of spring crops and seriously in­
terfering with cultivating the soil. In many local­
ities the season to July 1 witnessed the heaviest
precipitation in recent years. Floods in the bottom
lands along the Mississippi River and its tributaries
did considerable damage; due to the lateness of the
season much of this rich land will not be workable
this year. Conditions were unfavorable for cotton
and corn; in both crops, weeds and grass made
headway. The moisture, however, was beneficial
for hay and pastures, and on the whole according
to the U. S. Department of Agriculture and the
agricultural departments of the several states, it is
evident that the effects of the 1934 drouth are grad­
ually disappearing. Subsoil moisture has been
largely restored over considerable areas where
shortage last spring threatened all crops. Delayed
wheat harvest has been pushed forward rapidly,
and numerous corn, tobacco, and 'cotton fields, ex­
cept in the flooded areas, have been cleaned up.
While still below the 12-year (1923-1934) average,
July 1 prospects for all the principal crops of the
district are for larger yields than in 1934. Prices
of farm products continue to show substantial in­
creases over both 1934 and 1933. Typical of the
district as a whole, are conditions in Missouri as
developed by a survey for June, made by the U. S.




Division of Crop and Livestock Estimates, which
shows for 47 series of quotations 40 products higher,
only 6 less and one product the same as a year ago.
Corn, with a state average of 94c per bushel, against
55c last year, was 70.9 per cent higher. Wheat was
85c per bushel, against 83c for the June average.
Hogs averaged $8.75 per hundred weight against
$3.50 last year, or an increase of 150 per cent. Beef
cattle was $7.80 per hundred weight against $5.00
in 1934, a gain of 56 per cent. Cows were $44.00 per
head against $25.00 last year, or 76 per cent higher.
Mules and horses show advancing prices.
Corn — Production of corn in the Eighth Dis­
trict, based on the July 1 condition, is estimated by
the U. S. Department of Agriculture at 237,897,000
bushels, which compares with 167,923,000 bushels
harvested in 1934, and the 12-year average (19231934) of 333,142,000 bushels. In Missouri, Illinois,
Indiana and Arkansas considerable acreage intended
for corn had not been planted at the middle of July
because of weather interference. In Missouri as of
July 6, less than three-fourths of the acreage had
been planted, while normally the full acreage is
planted by June 1. In that state the July 1 condi­
tion of corn, at 46 per cent of normal, was the low­
est for the date since the Crop Reporting Service
was started in 1866 and compares with 75 per cent
a year ago.
Cotton — Despite abandonment from floods and
other causes, there was an increase of 6 per cent
over a year ago in the acreage of cotton under cul­
tivation in states of the Eighth District on July 1.
The Crop Reporting Board of the U. S. Department
of Agriculture in its report as of that date estimates
the combined acreage in Mississippi, Missouri, Ar­
kansas and Tennessee at 6,114,000 acres, which
compares with 5,767,000 acres for these states last
year. Taken as a whole, June weather was unfavor­
able for progress of the crop. Since the end of June,
however, there has been a marked change for the
better in meteorological conditions and considerable
progress has been made in clearing up of fields and
replanting in sections where flood waters have re­
ceded. It appears that early reports of flood damage
were somewhat exaggerated. Latest reports re­
ceived by the Arkansas Cotton Trade Association
indicate that 50 per cent or more of Arkansas River
bottom over-flow cotton will be saved. Boll weevils
have appeared, and in many sections farmers are
planning intensive poisoning programs. In the St.
Louis market the middling grade ranged from 11.50c
to 11.85c per pound between June 16 and July 15,
closing at 11.65c on the latest date, which compares
with 11.55c on June 16, and 12.70c on July 16, 1934.
Page 5

Receipts at Arkansas and Missouri compresses from
August 1, 1934, to June 28, 1935, totaled 964,513
bales, against 1,146,885 bales for the corresponding
period a year earlier. Stocks on hand as of June 28,
totaled 524,189 bales against 326,545 bales on the
same date in 1934.
Fruits and Vegetables — Prospects for fruits
and vegetables generally through this district were
well maintained during June, and on July 1 were
more favorable than on any similar date in a
number of years. The U. S. Department of Agri­
culture in its report as of July 1 estimates the yield
of apples in states including the Eighth District at
18.614.000 bushels, which compares with the small
crop of 9,519,000 bushels in 1934 and the 5-year
average (1928-1932) of 14,937,000 bushels; peaches,
10.146.000 bushels, against 6,576,000 bushels har­
vested in 1934 and the 5-year average of 7,056,000
bushels; grapes 38,529 tons, the largest of record,
and comparing with 35,101 tons in 1934 and the
5-year average of 32,065 tons; sweet potatoes,
18.257.000 bushels, against 18,692,000 bushels in
1934 and the 5-year average of 16,456,000 bushels.
In the district proper the yield of white potatoes
is estimated at 13,219,000 bushels, against 9,681,000
bushels produced in 1934 and the 12-year average
(1923-1934) of 13,609,000 bushels. Acreage seeded
to peanuts in 1935 is placed at 81,000 acres, a de­
crease of 5.8 per cent under a year ago.
Live Stock — Generally through the district the
condition of live stock improved further during June
and early July, being assisted by betterment in pas­
tures and more seasonable temperatures. Accord­
ing to the U. S. Department of Agriculture, total
milk production on July 1 reached record high levels
for that season of the year. In states entirely or
partly within the Eighth District, production per
cow on that date was 9.8 per cent higher than a
year earlier. Egg production, per hen, was also
higher on July 1 than a year ago.
Receipts and shipments at St. Louis as reported
by the National Stocks Yards were as follows:
R e c eip ts
J u n e,
1935
C attle
H ogs
H orses
Sheep

M ay,
19 35

S hip m ents
June,
1934

and C a lv e s ......1 1 5 ,6 1 3 110,91 1 1 1 3 ,8 8 4
..................................1 3 4 ,9 1 5 1 6 5 ,9 0 3
2 3 5 ,9 6 6
and M u le s .......
4 ,0 3 4
4 ,2 6 5 3 ,3 5 4
.................................. 8 2 ,6 7 3
7 1 ,9 8 5
8 5 ,8 8 9

Jun e,
1935
7 4 ,6 7 9
82 ,901
3 ,8 7 3
1 6 ,676

M ay,
1935

J un e,
19 34

6 7 ,8 3 1
5 2 ,7 6 2
1 1 6,30 0 1 4 0 ,0 5 2
4 ,1 9 8
3 ,5 4 7
1 3 ,90 6
1 6 ,02 5

Prospects for feed crops show marked improve­
ment over the poor conditions last year, occasioned
by the drouth. In states including the Eighth Dis­
trict tame hay production is estimated by the U. S.
Department of Agriculture in its July 1 report at
5.931.000 tons, which compares with 4,151,000 tons
produced in 1934, and the 12-year average (19231934) of 6,609,000 tons.
Page 6




Tobacco — As of June 20, the situation with
respect to the tobacco crop in this district was re­
garded as critical because of continued heavy rains.
However, hot, dry weather during the final days of
June and the first half of July permitted of inten­
sive cultivation; general improvement in prospects
lias taken place. Reports received by county agents,
marketing associations, etc., indicate that full in­
tended acreage of all types of tobacco had been
planted by the second week of July. Exceptionally
few complaints of damage from insect pests and
hail have been received. In the one sucker and air
cured districts, numerous fields which had been
considered seriously damaged by the excessive pre­
cipitation have been recovered with relatively
small loss. In the dark fired area, tributary to
Clarksville, Springfield and B opkinsville, the crop
is in good condition. In the western fired district,
certain low lands or basins that were flooded show’
losses, but not to the extent expected. The acreage
of burley tobacco is not materially changed from
that harvested last year. Based on conditions as of
July 1, the U. S. Department of Agriculture esti­
mates production of all types of tobacco in the
Eighth District at 213,295,000 pounds, as against
206,861,000 pounds harvested in 1934 and the 12-year
average (1923-1934) of 296,688,000 pounds.
CO M M OD ITY PRICES
Range of prices in the St. Louis market between
June 15, 1935 and July 15, 1935, with closing quota­
tions on the latest date and on July 16, 1934, follow :
C lose
H ig h

Low

W h eat
July ....................... ..per bu.,$ .8 5 * 4 $ .76J4
....
“
.8 6 V2
.767/8
* D e c ........................... ....
“
.8 8 ^
.7 9 /s
N o . 2 red w inter
“
.92 ^
.8 4
N o . 2 hard
“
.9 6
.8 6
C orn
J u ly ..................... ....
“
.8 4 /&
.80 54
....
“
.7 9 /s
.74 54
* D e c ........................... ...
.6 2 * 6
"
. 7 0 /s
.85
* N o . 2 m ix e d ... .
“
.8 8 /
.93
.86
* N o . 2 w h ite ..
O a ts
“
.4 4
N o . 2 w h ite ... ,.
.3 5 5 4
I'lo u r
5.4 0
S o ft p a te n t....... ....p e r b b l. 6 .3 0
6 .8 5
7.4 0
S p rin g
“
.....
.1 1 5 0
.1 1 8 5
M id d lin g C otton . ..per lb.
6 .5 0
H o g s on h o o f.... ..per c w t.1 0 .2 5
*N o m in a l q u otation s.

July 15, 1935
$

.S 4 /2 @

.81
.8 1 * 6
8 2 7/s
.85
.89
.8 4 ^
.767/*
.6 4 7/s
.8 8
•9 0 * 4

July 16, 19 34
$

.9 6 /
.9 7 %
. 9 9 /s
.9 5 /@
.9 7 /
1.01

.6 1 /@

.4 6 /

.3 5 /
5 .7 0
7 .2 5
6 .5 0

@
@

6 .1 0
7 .4 0
.1 1 6 5
@ 1 0 .1 5

■6 0 / s
.6 l / s
.6 3 /
.6 3 /
.6 6

6 .5 0
6 .7 5
3 .0 0

@ 6 .8 5
@ 7 .1 5
.1 2 7 0
@ 4 .9 0

Winter Wheat— Belated harvesting and thresh­
ing of the winter wheat crop have progressed rapid­
ly under the improved weather conditions since
July 1. Early threshing returns and receipts at
primary markets are developing considerable varia­
tion in quality. The crop as a whole, but particu­
larly in Missouri, Illinois and Indiana, was handi­
capped by too much rain, standing water on low
ground, rust infection and lodging. Withal the July
1 estimate of production in the Eighth District is
for 49,130,000 bushels against 47,197,000 bushels

harvested in 1934 and the 12-year average of
-19,938,000 bushels.
FIN AN CIAL
Demand for credit from all the principal groups
of borrowers in the Eighth District showed further
recessionary tendencies during the past thirty days.
Needs of merchants and manufacturers for funds to
purchase and prepare goods for fall and winter dis­
tribution were in less than the usual seasonal vol­
ume. Due to lateness of the wheat harvest, require­
ments of grain handling and flour milling interests
were less in evidence than at this time a year and
two years earlier. Borrowings of country banks from
their city correspondents were negligible. Reflect­
ing these conditions, interest and discount rates
continued at the extremely low levels of recent
months. Downtown banks in St. Louis reduced the
rate paid on savings deposits from 2 to \y2 per cent,
effective August 1, and similar action was under
consideration by banks in other sections of the
district.
Member Banks — Total loans and investments
of the reporting member banks in the principal
cities decreased 3.1 per cent between June 12 and
July 10, and on the latest date were slightly larger
than a year earlier, fioth time and demand deposits
increased, and at 597 million dollars on July 10,
were 10 per cent in excess of the total on the corre­
sponding date in 1934. Reserve balances increased
sharply during the period, the total on July 10 being
50 per cent greater than at the same time a year ago.
A composite statement of the principal resource
and liability items of the reporting member banks
is given in the following comparative table:
( I n thou san d s of d ollars)

J uly 10,
1935

June 12,
1935

L o a n s and d iscou nts (in cl. red isc ou n ts)
S ecu red by U . S. G o v t, ob ligation s
and o th er stock s and b o n d s....$ 5 5 ,6 7 2
A ll other loans and d isco u n ts.... 1 4 0 ,1 6 9

J u ly 11,
19 34

$ 5 6 ,9 5 4
1 5 0 ,4 3 2

$ 7 3 ,2 5 1
12 9 ,2 8 5

T o t a l loan s and d isco u n ts....................

1 9 5 ,8 4 1

2 0 7 ,3 8 6

2 0 2 ,5 3 6

In v e s tm e n ts
U . S. G o v ’ t sec u rities...........
O th e r
sec u rities........................

2 0 2 ,6 3 8
1 3 2 ,9 5 1

2 1 4 ,1 5 9
1 2 6 ,8 4 0

2 2 3 ,9 2 0
1 0 2 ,5 4 0

T o ta l

3 3 5 ,5 8 9

3 4 0 ,9 9 9

3 2 6 ,4 6 0

1 0 4 ,8 2 5
9 ,5 1 2

9 2 ,5 5 0
9 ,0 1 8

6 9 ,9 0 7
8 ,0 3 5

4 2 0 ,5 9 3
1 6 9 ,1 5 9
7,0 2 1

4 1 9 ,0 8 0
1 6 7 ,7 0 6
15 ,1 5 9

3 4 2 ,1 5 9
1 6 4 ,7 2 7
3 5 ,3 8 5

d e p o sits............................................... 5 9 6 .7 7 3

6 0 1 ,9 4 5

5 4 2 ,2 7 1

in v e stm e n ts .......................................

C ash in v a u lt..
D e p o sits

T o ta l

B ills p ayab le and red iscou n ts w ith
F e d e ra l R e se r v e B a n k ........
N u m ber

of ban k s r e p o r tin g ...............

19

T h e to ta l resou rces of these b ank s
of all m e m b er b ank s in this d istrict.

com p rise

19

19

ap p ro x im a tely

Federal Reserve Operations — There was a
further sharp increase in deposits of the Federal
Reserve Bank between June 18 and July 18, reflect­
ing the rise in member banks’ reserve accounts.
Volume of reserve credit outstanding during the
period showed little change, but continued substan­
tially greater than a year ago.
Changes in the principal assets and liabilities
of the Federal Reserve Bank of St. Louis appear in
the following table:
J u V 18,
1935

( I n thousands of d ollars)

.$
47 2
O th e r advances and red isc ou n ts....
4
B ills b ou gh t (in clu d in g p a r tic ip a tio n s)..
80
U . S. Secu rities..........................................
. 1 0 8 ,2 0 0
T o ta l

earning

Tune 18,
1935
$

518
64
81
1 0 8 ,2 0 0

Ju ly 18,
19 34
$ .................
172
121
9 3 ,2 0 0

. 1 0 8 ,7 5 6

F.
In d u strial c om m itm e n ts under

S ec.

1 0 8 ,8 6 3

9 3 ,4 9 3

, 2 0 8 ,6 2 2
. 1 6 8 ,9 0 9
1 4 0 ,9 2 9

1 8 6 ,8 0 4
1 5 0 ,4 8 1
1 3 8 ,9 8 5

1 7 1 ,2 5 6
1 2 5 ,2 6 8
1 3 2 ,9 3 6

13b)

1,9 0 9

1 ,7 9 4

R a tio of reserves to d ep osit and
.

6 7 .3 %

6 4 .5 %

6 6 .3 %

Rates charged by this bank remain unchanged
as follow s:
2 per cent on ad vances to m e m b e r b ank s on eligible paper
a n d /o r collateral, w h eth er red iscou n ts or m e m b er b ank p ro m is­
sory notes, under Section s 13 and 13a.
4 Yz per cent on ad vances to b ank s and other financing in sti­
tutions on ob ligation s of establish ed industrial or c om m ercial
busin esses, for w o r k in g capital, u nd er S ection 13b.
y.z per cen t fiat for c o m m itm e n ts r o t ex ce ed in g six m on th s
on ob ligations of estab lish ed in du strial or com m ercial b u sin esses,
for w ork ing capital, u n d er S ec tio n 13b.

5V2 per cen t on d irect a d van ces to establish ed industrial or
c om m ercial b u sin esses, for w o r k in g capital, under S ection 13b.
4 per cent on direct ad van ces to in divid u als, firm s or c o r­
porations (in c lu d in g n o n m e m b e r b a n k s ), secured by direct o b li­
gation s of the U n ite d S ta te s, u nd er S ection 13.
5 72 per cen t on direct ad vances to in dividu als, partn ersh ips
/
and corporations (e x c lu d in g n on m e m b e r b a n k s) on eligib le p aper,
u nder S ection 13.

Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
( I n thousands
of dollars)

Tune,
1935

M av,
1935

J une,
1 9 34

Tune, 1935 com p , to
M a y 1935
June 1934

N a t l.
.$ 2 6 ,7 1 3
E l D o r a d o , A r k ....
3 ,1 5 6
E v a n sv ille,
In d ...., . 2 0 ,7 6 2
F o r t S m ith , A rk ...,
7 ,1 2 2
G reen ville, M iss... .
2 ,7 7 4
H e le n a , A r k ............
1 ,2 3 3
2 9 ,0 2 0
, 1 3 9 ,9 6 4
.
8 4 ,8 6 7
4 ,2 1 2
O w e n sb o ro , K y .....
5 ,6 2 9
Pine B lu ff. A r k ....
Q u in c y , 111................
6 .4 5 7
St. L o u is, M o ......... 6 0 8 ,2 5 7
1 ,8 0 8
Sedalia, M o ............. .
1 2 ,9 6 0
Sprin gfield , M o ....
*T e x a r k a n a ,
A rk.,
5 ,6 3 7

$ 2 6 ,5 2 9
3 ,7 1 8
2 0 ,6 3 8
8 ,0 5 8
3 ,1 6 2
1,341
3 1 ,8 1 8
1 3 8 ,8 4 4
8 7 ,8 0 3
4 ,2 0 7
5 ,6 0 8
6 ,3 7 7
5 4 7 ,8 5 2
1 ,8 9 7
1 3 ,8 8 7
4 ,8 0 9

$ 2 1 ,1 7 4
3 .3 1 4
1 8 ,8 2 4
7 ,3 4 8
2 ,5 3 1
1 ,6 03
2 1 ,4 8 9
1 3 5 ,9 1 3
89 ,7 5 1
3 ,2 3 4
4 .4 9 0
5 .9 9 1
5 0 0 ,1 1 2
1 ,7 2 9
11,Q23
4,8 1 1

+
—
+
—
—
—
—
+
—
+
+
+
+
—
—
+

0 .7 %
15.1
0 .6
1 1 .6
12 .3
8.1
8 .2
0 .8
3.3
0.1
0 .4
1.3
11 .0
4 .7
6 .7
17 .2

........................ ,...9 6 0 ,5 7 1

9 0 6 ,5 4 8

8 3 4 ,2 3 7

+

6 .0

+ 2 6 .2 %
— 4 .8
+ 10.3
— 3.1
+ 9 .6
— 23 .1
+ 3 5 .0
+
3 .0
— 5 .4
+ 3 0 .2
+ 2 5 .4
+ 7 .8
+ 2 1 .6
+ 4 .6
+ 8 .7
+ 17 .2

6 0 .0 %
T o ta ls

The amount of savings deposits held by selected
banks on July 3 was 0.7 per cent greater than on
June 5, and 13.7 per cent in excess of the total on
the corresponding date a year ago.




At downtown St. Louis banks as of the week
ended July 15, interest rates were as follows: Cus­
tomers5 prime commercial paper, 1 to j J2 per cent;
/
collateral loans, 2 to 6 per cent; loans secured by
warehouse receipts, 2^2 to 5 per cent and cattle
loans 5 to 6 per cent.

+ 15.1

^ In c lu d es one bank in T e x a r k a n a , T e x a s , n o t in E ig h th D istr ic t.
N o t e — A b o v e figu res in clu d e to ta l d eb its charged b y ban k s to
ch eck in g accou nts, sav in g s ac co u n ts, certificate o f d ep osit a ccou n ts, and
tru st accou nts, of in divid u als, firm s, corporation s and U . S . G o v e rn m en t.
C h arge s to accounts of b a n k s, d eb its in se ttle m e n t of clearin g house
b alan ces, p aym en ts of c ash ier’ s c h e ck s, charges to ex p e n se and m isc e l­
lan eou s accou nts, correction s and sim ilar c h a rg e s, are n o t included.

(C o m p le te d July 2 3 , 1 9 3 5 )

Page 7

NATIONAL SUMMARY OF BUSINESS CONDITIONS
BY FEDERAL RESERVE BOARD

Factory production declined seasonally in June, while output
of mines increased. Employment and payrolls at factories showed
more than seasonal declines. There was little change in the
average level of wholesale prices, and a decrease in retail food
prices.
PRODUCTION AND EM PLOYM ENT — Daily average
output at factories, according to the Federal Reserve Board’s
production index, declined by about the usual seasonal amount
during June. Output of mines increased, and the Board’s com­

the five-year average for 1928-1832. Acreage of cotton in culti­
vation on July 1 was reported as about 5 per cent larger than
at the same time last year.
DISTRIBUTION — Daily average loadings of freight on
railroads increased during June, reflecting larger shipments of
coal. Daily average value of department store sales showed little
change from May to June, when a decline is usual, and the
Board’s seasonally adjusted index advanced from 76 per cent of
the 1923-1925 average to 80 per cent.
CENT

PER CENT

120

120

PRICES
1

WHOLE:s a l e

10
1

*.% r \

10
0

A

90
0 Iher

\

odities

80

-

70

N

I

\

Foods

60

V

I'VV

Farm P oducts
r<

50

V'

40
30

1929

bined index of industrial production, which is adjusted for usual
seasonal changes, advanced from 85 per cent of the 1923-1925
average in May to 86 per cent in June. Daily average output of
automobiles and lumber increased in June, while activity at cotton
mills, shoe factories, and meat packing establishments declined.
Activity at steel mills declined seasonally during June, but accord­
ing to trade reports, increased after the first week of July. There
were sharp increases in the production of anthracite and bitumi­
nous coal during June and output of crude petroleum was also
larger than in May. Factory employment and payrolls decreased
between the middle of May and the middle of June. More than
seasonal declines in employment were reported by producers of
automobiles, clothing, shoes, and cotton fabrics, and employment
at lumber mills also decreased while the number of workers at
woolen mills increased. In most other manufacturing industries
MILLIONS OF DOLLARS

600

1930

1931

1932

1933

1934

1935

Indexes of the United States Bureau of Labor Statistics. (1926=100.)
By months 1929 to 1931; by weeks 1932 to date. Latest figures for week ended
July 20, farm products, 77.2; foods, 82.0; other commodities, 77.9.

COM M ODITY PRICES — Wholesale prices of farm prod­
ucts and foods declined during June, while the prices of other
commodities as a group showed little change. Retail prices of
food, which have increased sharply in the two years ending last
April, according to the index of the Bureau of Labor Statistics,
declined somewhat in May and June.
BANK CREDIT — Member bank reserve balances with the
Federal Reserve banks and excess reserves showed declines for
the four weeks ending July 17, reflecting in large measure an
increase in the balance of the Treasury with the Federal Reserve
banks following a sale of Treasury notes.^ Total loans and invest­
ments of reporting banks in leading cities increased by $260,000,000
during the five-week period ended July 17. Subscriptions by re-

MILLIONS OF DOLLARS

CO N ST RUCTIO N CONT RACTS AWARD!ED

500

600
500

400

400

Total
/ A N
'
I ^
\

300

s.

300

i

Ail O <' V \
th
!
^ R
eside]rv l
tia
\

200
100

200
It

100

i-.....n
V

0

0
1929

1930

1931

1932

1933

1934

1935

Three-month moving averages of F. W . Dodge data for 37 Eastern States,
adjusted for seasonal variation. Latest figures June, preliminary, total 117.8,
residential 42.9, all other 74.9.

changes in employment from May to June were largely seasonal
in character. Employment and payrolls at mines increased con­
siderably. Daily average construction contracts awarded, accord­
ing to reports of the F. W. Dodge Corporation, were larger in
value in June and the first half of July than in May. Awards of
residential building contracts were twice as large as a year ago,
while contracts for public projects continued smaller than last
year. The Department of Agriculture July 1 estimates forecast
corn and wheat crops larger than a year ago, but smaller than
Page 8



1932

1933

1934

1935

Wednesday figures for reporting member banks in 91 leading cities.
Latest figures are for July 17, 1935.

porting banks to new security offerings by the Treasury exceeded
retirement of bonds held by these banks, and consequently their
holdings of direct obligations of the United States increased by
$200,000,000. Holdings of other securities increased by $125,000,000,
while loans declined by $60,000,000. Government deposits with
these banks were reduced by over $200,000,000, while other de­
posits, exclusive of interbank balances, showed an increase of a
similar amount. Yields on Government securities declined slight­
ly during this period, while other short-term open-market money
rates remained at low levels.