The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BANK OF S“T. L O U IS MONTHLY REPORT ON GENERAL BUSINESS AND AGRICULTURAL CONDITIONS IN FEDERAL RESERVE DISTRICT No. 8 RELEA SED FOR P U B L IC A T IO N O N A N D AFTER T H E A FTER N O O N OF JU NE 2 5 , 1919 W IL L IA M MCC. M A R T IN C H A IR M A N O F T H E B O A R D A N D F E D E R A L R E S E R V E A G E N T The outstanding features of the business situation in this District are the great activity in the retail trade, the undiminished prospect of an excellent crop yield, the likelihood that the over-supply of labor in some lines, which was materially reduced during May, will soon be converted into an actual shortage, and the fact that throughout the District collections were exceptionally good. Manufacturers and wholesalers, in practically every line, say that their business is steady or improving. The increased confidence evident in April has taken concrete form in the placing of larger orders for future delivery. Many concerns, notably those handling drugs, boots and shoes, clothing and dry goods, assert that their orders for futures are larger than usual. There is a strong demand for the better classes of goods and for luxuries, and some authorities believe that this demand will continue through the present year and for several years to come. The increased buy ing is no doubt the natural result of higher wages, which have placed within reach of many people articles once bought only by a few. MANUFACTURING—Clothing manufacturers say their business is beyond the normal basis and report large orders for future delivery. They claim that their trade is limited only by the scarcity of piece goods and by the lack of labor to make them up. A large hardware firm states that its business shows an increase over last year, that buying is more liberal and that prices are hardening. A manufacturer of ranges says the demand for his product is beyond the normal footing. The necessity of railroads making replacements and buying new equipment, both cur tailed during the war, makes for an optimistic outlook in certain grades of iron and steel manufacturing. The sale of electrical supplies has been stimulated by the increased building activity, but the demand is said to be only about 75% of normal. A good fall business is anticipated. There is a growing demand for lumber, but the supply is limited owing to the shortage of logs, due to wet woods and the scarcity o f skilled labor. One dealer says that he looks for the best business of many years. He states that his business showed an increase of 20% over May a year ago and of 30% over April this year. Manufacturers of clay products report decreases from their sales a year ago and a month ago. Prices have dropped from 10% to 25%. This line is being affected by the depression in certain metal lines, which has curtailed the demand for fire-brick. Dealers, however, anticipate a growing business through the year. W HOLESALE AND JOBBING— Dealers in boots and shoes report increases in their business over last year. Many hold larger orders than usual for future delivery. Orders for fall delivery are already being placed. One dealer states that the same manufacturers who formerly sold him goods on his own terms now require ten days* discount. Drug firms say their sales have increased from 5% to 15% over May a year ago. One concern states that its May business showed an increase o f 70% over April this year. Prices on many articles have declined. Wholesale grocers say their sales have increased from 10% to 50% over last year. Orders for future delivery are light. One concern says that its business each month has shown an increase over the corres ponding month last year. A large furniture dealer states that his sales are the largest that be has ever had. Cotton factors are very optimistic over the sudden rise in cotton prices. One dealer says: “ With the exception of the late crop caused by cold spring and late rains, conditions could not be better.” A book and stationery house says its business increased 23% over May a year ago and over April this year. Glass and paint lines are very active, some concerns showing increases over May a year ago as high as 50%. Building operations in prospect foreshadow continued good business. RETAIL— Department stores and general stores throughout the District report increases in business over May a year ago ranging from 17^4% to 60%, and increases over April this year as high as 20%. The warm, bright weather early in June brought on, in great volume, the demand for seasonable merchandise, which was delayed by a cold, rainy May. Some dealers say business was never better and others expect this to be a “ banner year.” The returned soldier has proved a very important factor in stimulating buying. AGRICULTURE— Harvesting of the winter wheat has begun in some sections of the District, and indi cations point to a bumper yield. The following figures, taken from the report of the Bureau of Crop Estimates, United States Depart ment of Agriculture, indicate general crop conditions on June 1st in each state in this District, 100% repre senting the ten-year average of all crops reported upon: Arkansas, 90.1%; Illinois, 112.7%; Indiana, 110.6%; Kentucky, 110.5%; Mississippi, 93.0%; Missouri, 113.0%; and Tennessee, 93.8%. The poor condi tion of the cotton crop is responsible for pulling down the averages of the states in the southern part of the District. Continued rains have retarded the growth of cotton plants and prevented the proper care of them. Some acreage has been plowed up. A season of hot, dry weather would do much to improve the situation. Corn is grassy, but, with the advent of clear weather, is being cultivated. Much tobacco has been planted and the outlook is for a very large yield. The rice crop is in excellent condition. From every part of the District come reports of good hay and alfalfa crops, a good potato crop, and good crops of vegetables. Despite some loss owing to the June “ drop” and wet weather, there is promise of a large fruit crop. According to Government reports, the level of prices paid producers in the United States for the prin cipal crops increased about 4.6% during May, as against a ten-year average increase for May of 1.4%. LIVE STOCK—The report of the St. Louis National Stock Yards for May, 1919, shows increases in the receipts and shipments of all kinds of live stock over the corresponding month last year, with the exception of a slight decrease in the shipments of horses and mules. The comparative figures are as follows: Cattle April "1919 Receipts ........................................................ 90,460 Shipments .................................................... 27,108 1918 84,032 22,174 Hogs 1919 340.036 121,904 Sheep 1918 251.167 88,429 1919 51,239 12,966 Horses and Mules 1918 29,151 2,633 1919 6.697 6,044 1918 5,201 6,655 A newThigh price for hogs in this locality was established at the St. Louis National Stock Yards on June 16th, when a top price of $21.35 per 100 pounds was reached. LABOR— The unemployment of labor has decreased since last month. From one state it is reported that there is no unemployment there. Regions where the harvesting of winter wheat is beginning need help and likewise those where corn and cotton require cultivation. There is a strong demand for skilled labor in the clothing lines and on the sales forces of department and general stores, where trade is exceptionally brisk. The demand for high-grade machinists, cabinet-makers, painters, etc., continues unabated, and there is a growing deficiency' of skilled labor of various kinds. N o serious labor troubles in this District are apparent at the present time. The one-day telephone strike which tied up some exchanges was really an echo of disturb ances originating in other parts of the country. BUILDING—The increase in building operations noted in April continued during May. The compara tive figures for May arr as follows: Permits St. L o u is............................................................................................. Louisville ........................................................................................... Mem phis.............................................................................................. Little Rock ...................................... ........ ...................................... 736 288 210 125 1919 Cost $1,224,325 402,545 768,950 189,714 May Permits 630 173 175 67 1918 Cost $792,971 423,504 245,465 72,137 While Building activity is increasing it is not what the demand for residence and business premises requires. BAN KIN G—The flurry in eastern money rates has had little effect on the rates in this District. During the past month, the demand for money has been slightly better than the previous month, but there has been very little change in the rates. The high, low and customary discount and interest rates prevailing in St. Louis, Louisville, Memphis and Little Rock from May 16th to June 15th, as reported by banks located in those cities, were as follow s: St. Louis H Customer’s prime commercial paper: 30 to 90 days........................................ 6 4 to 6 months....................................... 6 Prime commercial paper purchased in open market: 30 to 90 days......................................... 5J4 4 to 6 months.................................... 5*4 Loans to other banks............................... 6 Bankers’ acceptances of 60 to 90 days: Endorsed ............................................. 6 Unendorsed ......................................... 6 Loans secured by prime stock exchange collateral or other current collateral: Demand ............................................... 6 3 months ............................................. 6 3 to 6 months..................................... 6 Cattle Loans ............................................... 6 Commodity paper secured by warehouse receipts, etc........................................... 6 Loans secured by Liberty Bonds and Certificates ......................................... 6 Louisville Memphis L c H L C 5 5*4 5*4 5/2 6 6 5 5 6 6 5 5*4 5 5*4 5*4 5'4 5*4 5*4 5 5 5 5 4 *4 4*4 5 5 4*4 4*4 4*4 4J4 5 5 5*4 5H 5*4 5*4 5*4 6 6 6 6 6 S’/a 6 m sy2 Little Rock L C H L C 6 6 5*4 sx 6 6 7 7 6 6 6 6 S'/2 sy2 6 5 6 5*4 5 5*4 5 6*’ 554 6 6*' 5*4 6” 4% 4 *4 ... ... ... ... ... ... ... ... 5 5 5 5 6 6 6 6 6 6 6 6 5*4 5*4 5*4 6 6 6 6 6 7 7*4 7 6 5 6 6 6 6 4H 5 6 4X H ••• ♦. • ... ... 8 6 6 6 6 6 6lA 6J4 7 6 7*4 6H 7 5*4 8 6 6 City banks, as a rule, are not buying commercial paper, but there is an active demand from country banks. The bond and stock market is slightly more active since the conclusion of the Victory Liberty Loan campaign. The condition of the banks in this District at the present time and the changes during the past month are reflected in the following comparative statement showing the principal resources .and liabilities of mem ber banks in St. Louis, Louisville, Memphis, Little Rock and Evansville: June 6, 1919 Number of banks reporting........................................................................... ................ May 9. 1919 36 36 ................ ................ ................ ................ $ 17,056,000 16,566,000 22,660,000 49,905,000 $ 16,956,000 19,219,000 Total United States securities owned.................................................. ................ 106,187.000 112,171,000 Loans secured by United States bonds and certificates........................ ................ All other loans and investments................................................................... ................ 26,366,000 386,813,000 25,489,000 385,533,000 Total loans and investments................................................................... ................ 519,366,000 523,193,000 39,885,000 10,398,000 289,862,000 97,930,000 55,153,000 37,468.000 10,382,000 304,914,000 98,390,000 20,145,000 United States bonds to secure circulation................................................ Other United States bonds, including Liberty Bonds............................ United States Victory notes........................................................................... United States certificates of indebtedness.................................................... Reserve with the Federal Reserve Bank.................................................... Cash in vault....................................................................................................... Net demand deposits on which reserve is computed............................ Time deposits..................................................................................................... Government Deposits ..................................................................................... ................ ................ ................ ................ ................ ’ 75,996,000 The volume of banking business transacted in this District during the past month is indicated by the fol lowing comparative table compiled from information received from the Clearing Houses in the cities shown: Debits to Individual Accounts, week ending: St. Louis ....................................................................... Louisville ......................................................... *.......... Memphis ....................................................................... Little R o c k ................................................................... Evansville ..................................................................... Debits to Bank Accounts, week ending: May 21 .............. $151,045,000 .............. 40,823.000 .............. 27,954,000 .............. 7.416,000 .............. 5,453,000 May 21 St. Louis ....................................................................... .............. $139,394,000 Louisville ..................................................................... .............. 44,367,000 Memphis ....................................................................... .............. 27,069,000 6.383.000 Little Rock ................................................................. .............. 1,724,000 Evansville ...................................................................... .............. May 28 $124,195,000 33.200.000 25.039.000 6.798.000 4.582.000 May 28 $124,264,000 35,334,000 2 1 ,002,000 6,658,000 3,846,000 June 4 $131,520,000 32.959.000 24.900.000 6.650.000 4.908.000 June 11 $128,582,000 35.096.000 32.880.000 6,082,000 4,092,000 June 4 June 11 $128,153,000 35,334,000 21,491,000 5,470,000 1,601,000 $137,909,000 37,160,000 25,203,000 2,214,000 1,593,000 In May the Federal Reserve Bank of St. Louis discounted a total of $205,165,543.85 of paper for 191 dif ferent member banks, which is an increase of $8,038,480.46 over the amount of paper discounted during April and an increase of one in the number of banks accommodated. The only change in the discount rates of the Federal Reserve Bank during the past month has been the elimination of the special rate of 4% for paper secured by Fourth Liberty Loan bonds. The rates in effect on June 18, 1919, were as follows: MEMBER BANKS' CO LLATERAL NOTES: Secured by Liberty Bonds or Treasury Certificates. Secured by War Finance Corporation Bonds............ Secured by Bills Receivable........................................... REDISCOU NTS: Secured by Liberty Bonds or Treasury Certificates........................................................... Secured by War Finance Corporation Bonds............................................................... Commercial Paper.................................................................................................................. Agricultural or Livestock Paper........................................................................................ Trade Acceptances ................................................................................................................ . Bankers’ Acceptances purchased at the market rate, subject to agreement. 15 days 16 to 60 and less days 4% 5% 4% 61 to 90 days 91 days to 6 months ...... 4% 4% 5% 4% 4% 4 y4% 5H% 4 4H% 4y2% 4% 4'A% 5n% 4M% 4H% 4y2% sy2% ........ \ on June 13, 1919,, as compared to a month ago and a year ago, are shown in the following statement: RESOURCES: May 16, 1919 Gold coin and certificates................................................................................ Gold settlement fund— F. R. Board............................................................. $ 3,973,000 34,975,000 June 13, 1919 $ 3,786,000 26,712,000 June 14, 1918 $ 1,894,000 33.247.000 30,498,000 ................ 56.528.000 58,270,000 5.520.000 4,465,000 35.141.000 92.546.000 101,683.000 2.647.000 2,264,000 76.823.000 1.345.000 95.193.000 103,947,000 80.268.000 Bills Discounted— Secured by Government war obligations.................. All other............................................................................. Bills bought in open market............................................................................. 62.903.000 56.383,000 10.436.000 8,242,000 4.108.000 3,668,000 47.773.000 Total bills on hand..................................................................................... U. S. Government bonds..................................................................................... U. S. Certificates of Indebtedness.............. ’.................................................. 77.447.000 68,293.000 1.153.000 1,153,000 16.182.000 14,682,000 52.536.000 2,234,000 511.000 Total earning assets..................................................................................... 94.782.000 84,128,000 55.281.000 Bank premises ..................................................................................................... Uncollected items and other deductions from gross deposits.................. 5% redemption fund against F. R. Bank notes.......................................... All other resources............................................................................. . ............. 541.000 541,000 57.731.000 48,067,000 570.000 571,000 476.000 464,000 36, 158,666 237,718,000 249,293,000 ___ 172.394.000 Capital paid in....................................................................................................... Surplus ................................................................................................................... Government deposits ......................................................................................... Due to members— Reserve Account............................................................... Deferred availability items............................................................................... Other deposits, including foreign government credits.......................... 3,838,000 1,603,000 12,184,000 63,175.000 36,676,000 401.000 3,867,000 1,603,000 24,332,000 59,089,000 40,653,000 878.000 3.627.000 Total gross deposits..................................................................................... F. R. Notes in actual circulation..................................................................... F. R. Bank notes in circulation— net liability.............................................. All other liabilities............................................................................................. 112,436,000 105,491,000 13,094,000 1,256,000 124,952,000 103,159,000 14,341,000 1,371,000 102.584.000 64.921.000 T O T A L L I A B I L I T I E S ........................................................................... 237,718,000 249,293,000 172.394.000 Total gold held by bank................................................................................. Gold with foreign agencies............................................................................... Gold with Federal Reserve Agent................................................................. Gold Redemption Fund..................................................................................... 38,948,000 ................ Total gold reserves..................................................................................... Legal tender notes, silver, etc., ..................................................................... Total reserves ......................................................................................... T O T A L RESOURCES ....................................................................... 2 , 100,000 39.993.000 1.689.000 ‘ 4.803,666 687.000 L IA B ILITIE S: 24.597.000 54.267.000 22.944.000 776.000 1.262.000
@FedFRASER