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O f Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
Released for Publication O n and After the Morning of June 29, 1929
Chairman and Federal Reserve Agent



N FLU EN CED by continued unfavorable weath­
er conditions, uncertainty relative to the out­
com e some important crops and a general
disposition on the part of the merchants and the
public to purchase cautiously and await more defi­
nite developments, business in this district exhibited
slightly recessionary tendencies during the past
thirty days as contrasted with the high rate of ac­
tivity which marked the preceding several months.
In a number of lines investigated, notably those
handling goods for ordinary consumption, the v ol­
ume of sales fell below that of the corresponding
period last year. Taken as a whole, however, the
May volume of production and distribution of mer­
chandise in this district was measurably larger than
during the same month in 1928. Wholesale prices
of commodities declined further during the month,
notably in the case of cereals and some other im­
portant farm products.


The showing made by industry was relatively
more favorable than in the distributive lines. This
was true particularly of the iron and steel industry,
in which only minor recessions in production were
noted as compared with the peak levels of April and
May. Activities at the textile mills were only slight­
ly reduced, and at glass plants, packing establish­
ments, stone quarries, cement plants and some other
manufactories, the rate of operations was as high
as during the preceding tw o or three months. D is­
tribution of automobiles decreased seasonally from
May to June, but recorded a fair gain over May a
year ago. There was a decrease in building opera­
tions in the housing category, but such construction
as municipal improvements, public utility exten­
sions, river and levee work, highway building, etc.,
continued in as great volum e as at any time in the
In virtually all merchandising lines, distribution
was held down by the unseasonably low tempera­
tures, and excessive precipitation during May and
fearly June. The m ovement of spring apparel, hats,
shoes, sporting and recreational goods, electrical

Assistant Federal Reserve Agent






supplies and other commodities ordinarily in heavy
demand at this time of year, was in less than the
usual volume. Lateness of the season and heavy
rains seriously interfered with agricultural opera­
tions, and crops generally are from tw o to four
weeks behind the seasonal schedule. These condi­
tions are reflected in decreased demand for farm
supplies and equipment, and merchandise generally
for consumption in the rural areas. Debits to indi­
vidual checking accounts in this district in May
were 1.6 per cent smaller than in April, and 3.2 per
cent below the M ay total last year. For the first
five months this year, however, the total shows a
gain of 3.8 per cent over the corresponding period
in 1928.
Conditions in the bituminous coal trade were
spotty and irregular, but on the whole some im­
provement was noted, and despite heavy produc­
tion in May, prices averaged about steady. Demand
for domestic sizes was stimulated to some extent
by the low temperatures prevailing generally over
the country, and purchasing by dealers to replenish
stocks. Contracting for future needs, however, was
disappointing, there being a disposition on the part
of railroads, public utilities companies and im por­
tant industrial interests to postpone commitments
until later in the year. Operators in Indiana, K en­
tucky and Illinois reported screenings slow and
weak, and in some instances mine run was sold at
the same prices as slack. Through persistent effort,
Illinois operators have regained a considerable
amount of the contract tonnage lost to other fields
as a result of the strike last year, and in a lesser de­
gree the same is true of Indiana mines. The early
opening of navigation on the Great Lakes was re­
flected in heavy dumpings at lower lake ports, but
competition for this business has been keen, result­
ing in some instances in concessions. In virtually
all fields a reduction in loaded cars on tracks at
mines was reported. In a measure this was due to
curtailed operations, the average working time in a
number of districts being only tw o days per week.
For the country as a whole total production of soft

coal during the present calendar year to June 8, ap­
proximately 135 working days, was 225,403,000
tons, against 207,312,000 tons for the corresponding
period in 1928, and 248,384,000 in 1927.
Freight traffic of railroads operating in this dis­
trict is being maintained at the high levels of re­
cent months, total volume surpassing that at the
same period during all previous years. Gains were
reported in shipments of merchandise and m iscel­
laneous freight, and the movement of early farm
products exceeded earlier estimates. For the coun­
try as a whole loadings of revenue freight for the
first 22 weeks this year, or to June 1, totaled 21,308,287 cars, against 20,472,331 cars for the correspond­
ing period in 1928, and 21,436,696 cars in 1927. The
St. Louis Terminal Railway Association, which han­
dles interchanges for 28 connecting lines, inter­
changed 244,051 loads in May, against 241,881
loads in April and 222,333 loads in May, 1928. D ur­
ing the first nine days of June the interchange
amounted to 68,471 loads, which compares with
72,140 loads during the corresponding period in
May and 63,569 loads during the first nine days of
June, 1928. Passenger traffic of the reporting lines
decreased 3.0 per cent in May as compared with the
same month last year. Estimated tonnage of the
Federal Barge Line between St. Louis and New
Orleans in May was 123,000 tons, the largest on
record for that particular month, and comparing
with 134,747 tons in April and 117,929 tons in May,
Reports relative to collections during the past
thirty days developed no marked change as con­
trasted with the preceding month. Taken as a whole
payments averaged slightly low^er than at the same
time last year, and there were some complaints of
backwardness and requests for extensions in sec­
tions affected by the floods or other peculiar local
conditions. Questionnaires addressed to representa­
tive interests in the several lines scattered through
the district showed the follow ing results:

May, 1929..................... 3.4%
April, 1929................... 2.6
May, 1928..................... 1.4







Commercial failures in the Eighth Federal R e­
serve District in May, according to D un’s, numbered
107, involving liabilities of $1,215,307, against 126
defaults in April with liabilities of $1,992,932, and
138 failures for a total of $1,663,143 in May, 1928.
The average daily circulation in the United
States in May was $4,684,000,000 against $4,679,000,000 in April and $4,722,000,000 in May, 1928.

Automobiles — Combined passenger car and
truck production in the United States during May
was 603,969, which compares with 621,331 in April
and 425,783 in May, 1928.
There was a rather sharp decrease in distribu­
tion of automobiles in this district during the past
thirty days as contrasted with the similar period
immediately preceding, but a fair increase as com ­
pared with the corresponding time last year. Dur­
ing the past five years, with the exception of 1928,
sales of the reporting dealers have uniformly shown
decreases from May to June. In the month to
month comparison this year, the decrease is attrib­
uted in large part to continued rains and the poor
condition of dirt roads in many sections of the dis­
trict. Country dealers, especially, attribute the
slowing down in business to unfavorable weather.
Less favorable crop prospects in some areas, and
preoccupation of farmers with intensive field work
were mentioned as additional factors holding down
purchases in the agricultural sections. In the large
centers of population, dealers also report that the
unusual precipitation and low temperatures had a
tendency to curtail distribution. The gain made in
the yearly comparison was fairly well distributed
through all lines of vehicles, though most marked in
the cheap-priced cars. It will be recalled that one of
the leading producers of cars in this category was
on a low production schedule during the correspond­
ing period last year. May sales of new passenger
cars by 320 dealers scattered through the district
were 32.0 per cent smaller than in April and 3.5 per
cent larger than in May, 1928. Stocks of new cars
in dealers’ hands on June 1 were 5.2 per cent larger
than on May 1, and 18.3 per cent greater than on
June 1, 1928. Less satisfactory conditions existed
in the used car market than earlier in the year. The
number of salable cars increased, and in both the
city and country more difficulty was encountered
in effecting sales. Stocks of used cars on June 1
were larger by 5.8 per cent than thirty days earlier,
and by 15.5 per cent than on June 1, 1928. Demand
for accessories and parts was generally well main­
tained, the May volume showing a slight gain over
April, and an increase of 7.3 per cent over May, 1928.
Special sales campaigns and the conditioning of
cars for the touring season were mentioned as in­
fluences in the gains in both comparisons. There
was the usual seasonal decrease in demand for
trucks from May to June, but the number of light
vehicles for city merchandise deliveries sold was
larger than a year ago. There was no change worthy
of mention in the status of the tire trade as con- *
trasted with the dull conditions of the preceding

several months. A ccording to dealers reporting on
that item, sales of new cars on the deferred payment
plan in M ay constituted 53.1 per cent of their total
sales, against 54.8 per cent in April, and 46.1 per
cent in May, 1928.
Boots and Shoes — May sales of the five report­
ing interests were 5.2 per cent smaller than for the
same month in 1928, but 13.9 per cent larger than
the April total this year. Stocks on June 1 were 6.3
per cent and .18.2 per cent smaller, respectively,
than thirty days and a year earlier. Orders received
from salesmen on the road since June 1 have been
in considerable volume, despite the fact that there
is usually a seasonal slowing down at this time of
year. Buyers did not cover their full requirements
earlier in the year, and generally small retail stocks
are reflected in numerous mail orders and purchas­
ing of small lots for immediate shipment. There was
no change in prices of finished goods as contrasted
with a month ago, but a slight stiffening in raw
materials was noted, due chiefly to the firmer mar­
ket for hides. Factory operation was at from 90 to
95 per cent of capacity, with most firms building up
stocks for fall and winter delivery.
Clothing — W eather was unfavorable for the
movement of seasonal apparel into consumption.
Purchasing for future delivery, however, was in
considerable volume, and ahead of the correspond­
ing period last year. Demand for work clothes was
reported quiet, particularly in the rural sections. In
the immediate past there has been some im prove­
ment in lightweight clothing, both for men’s and
w om en’s wear. B uying of straw hats has been much
below the average of the past several years, and
millinery interests report M ay sales sharply below
a month and a year earlier. Sales of the reporting
clothiers in M ay were 4.1 per cent smaller than for
the same month in 1928, and 50.1 per cent greater
than in April this year.
Drugs and Chemicals — A s compared with the
corresponding month in 1928, sales of the reporting
firms in May showed a gain of 9.0 per cent over the
same month in 1928, but the total was 4.5 per cent
below that of April this year. Stocks on June 1 were
0.1 per cent smaller than on M ay 1, and 1.6 per cent
less than on June 1, 1928. Business was reported
active through virtually the entire line, but with an
especially good showing made by heavy drugs and
chemicals and insecticides and fertilizers. Some
seasonal goods have not moved in as large volume
as at the same time during the past several years.
Soda fountain equipment and supplies were re­
ported in less than the usual seasonal demand.
Dry Goods — M ay sales of the six reporting
interests were 7.6 per cent greater than for the same
month in 1928, and 7.0 per cent less than the April

total this year. Stocks on June 1 were smaller by
6.6 per cent than thirty days earlier, and 23.3 per
cent under those on June 1, 1928. W eather was
unfavorable for distribution of seasonal merchan­
dise, and price uncertainty caused hesitation in pur­
chasing of certain lines. Piece goods and the general
run of staples were reported quiet. Since the first
week in June some improvement in orders from
salesman on the road has taken place. Except for
special constructions, sheetings continued dull, with
prices unchanged.
Electrical Supplies — May was marked by an
increase in business in this classification, both as
compared with the preceding month and corres­
ponding period last year. Demand for seasonal
goods picked up during the latter half of the month,
and distribution of pole hardware and supplies gen­
erally for public utilities companies was in consid­
erable volume. Radio goods continued active, and
further expansion in demand for household appli­
ances was noted by tw o of the leading distributors.
Sales of fans were held down by the unusually cool
weather. Demand from the building industry was
less active than heretofore. May sales of the six
reporting firms were 17.4 per cent larger than for
the same month in 1928, and 2.0 per cent in excess
of the May total this year. Stocks on June 1 were
smaller by 1.0 per cent and 6.8 per cent, respectively,
than thirty days and a year earlier.
Flour — Production at the 12 leading mills of
the district in May totaled 389,237 barrels, against
351,777 barrels in April and 345,670 barrels in May,
1928. Stocks of flour in St. Louis on June 1 were
8.1 per cent larger than on May 1, and 11.5 per cent
greater than on June 1, 1928. Business continued
quiet throughout May and early June, the market
being unsettled by the broad and frequent fluctua­
tions in cash wheat. Prices declined in late May in
sympathy with the downturn in wheat, but later
partly responded to the recovery in prices of that
cereal. Purchasing by domestic buyers was confined
to a necessity basis, while export demand was quiet
with bids from Europe too far out of line to result
in substantial workings. Mill operation was from 50
to 55 per cent of capacity. In the immediate past,
improvement was noted in shipping directions on
flour previously contracted for.
Furniture — Business in this classification con­
tinued the declines recorded in recent months. May
sales of the 13 reporting firms were 5.9 per cent
smaller than for the corresponding month in 1928,
and 6.9 per cent below the April total this year.
Manufacturers specializing in radio cabinets and
other novelties, report relatively better results than
makers of staple lines. Prices were unchanged as

compared with the preceding thirty days, and show
little variation from a year ago.
Groceries — May sales of the 13 reporting firms
were 11.3 per cent smaller than for the same month
in 1928, and 1.2 per cent larger than the April total
this year. Stocks on June 1 were 6.1 per cent larger
than thirty days earlier, and 0.1 per cent smaller
than those on June 1, 1928. Unseasonable weather
held down the movement of certain commodities,
and heavy roads and floods kept salesmen from com­
pleting their rounds in some sections. There was
the usual seasonal decline in demand for canned
goods, due to increased arrivals of fresh fruits and
vegetables from the south. Price trends were irreg­
ular, with the average about the same as thirty days
earlier, advances counterbalancing declines.
Hardware — Unseasonably cool weather, back­
wardness of farm operations and generally conserv­
ative purchasing by retailers were mentioned as the
chief influences in causing a decrease in May sales
of the 11 reporting firms of 6.0 per cent under the
same month in 1928. The May total, however was
0.4 per cent larger than that of April this year.
Stocks on June 1 were 5.0 per cent and 44.0 per cent
larger, respectively, than thirty days and a year
earlier. Demand for builders hardware and tools
was considerably less active than heretofore, and
sales of shelf hardware were below expectations.
The general run of farm supplies and equipment
were moving in smaller volume than at the same
time last year.
Iron and Steel Products — While production
and distribution of iron and steel goods receded
slightly during the past thirty days as contrasted
with the late April and early May peak, the total
volume was considerably greater than at the corres­
ponding period last year. At mills, foundries,
machine shops and many specialty plants, the slow­
ing down in activities was less than usual at this
season, and in a number of important instances un­
filled orders on June 1 showed only slight decreases
under those a month earlier. New orders placed,
however, were mainly for immediate and well de­
fined requirements, contracting in volume for third
quarter needs having failed to develop in most lines.
Demand from the building industry was irregular,
though still in considerable volume. Call for materi­
als going into housing construction was measurably
less active than heretofore, but this decrease was
offset by heavy requirements of highway construc­
tion, river and levee improvement work, the build­
ing of gas and oil pipe lines, municipal improve­
ments, and extensions and new construction by the
carriers and public utility companies. The outlet
through the general manufacturing trade continues
broad. Some recession in the demand from the auto­

motive industry was in evidence, but specifications
on goods previously acquired were still heavy. Rail­
road equipment builders report a rather decided
slump in new orders placed, but they still have sub­
stantial business on their books for completion over
the next two or three months. Due to unfavorable
weather, less favorable crop prospects and lower
prices of certain agricultural products, a well de­
fined slowing down in demand for goods for use in
the country was in evidence. Farm implement
manufacturers report a recession in purchasing of
their products, with scattered cancellations from
sections of the grain belt. Sales of wire and wire
products, notably barbed wire and woven fire fenc­
ing, were under expectations. Galvanized material,
with the exception of heavy corrugated items, con­
tinued relatively slow. Considerable betterment
was noted in demand for the general run of oil
country goods, commodities in this category having
been stimulated by development in new oil fields in
this district. Stove manufacturers reported May
sales below the corresponding period a year ago,
but business of jobbing foundries was greater than
for that month in 1928. Purchasing of pig iron was
in unusually small volume in May and early June,
users being disposed to await more definite develop­
ments before covering their third quarter require­
ments. For the country as a whole, production of
pig iron in May was the largest for any single
month in history. The total output, 3,898,461 tons,
compares with 3,663,167 tons in April, and 3,292,790
tons in May, 1928. Steel ingot production in the
United States in May totaled 5,237,167 tons, also
the largest for any month on record, against 4,938,025 tons in April, and 4,207,212 tons in May, 1928.
The condition of retail trade is reflected in the
following comparative statement showing activity
at department stores in leading cities of the district:
Net sales comparison
Stocks on hand Stock turnover
May, 1929 5 months ending May 31, 1929
Jan. 1, to
comp, to
May 31, 1929 to
comp, to
May 31,
May, 1928 same period 1928 May 31, 1928
1929 1928
+ 4.4%
Evansville ....... — 0.9%
Little Rock.....— 4.1
— 1.8
— 6.2
Louisville ....... - f 3.8
+ 0.5
— 0.3
Memphis ......... — 11.8
— 4.8
— 4.8
Quincy ........... + H-3
+ 7.7
+ 4.9
St. Louis......... + 4.4
- f 2.3
— 6.9
Springfield, Mo.— 7.8
— 7.7
+ 5.4
8th District..... - f 0.6
+ 0.7
+ 5.3
N et sales comparison
Stocks on hand
May, 1929 comp, to
May, 1929 comp, to
.May, 1928 April, 1929
May, 1928 April, 1929
Men’s furnishings........... — 3.5%
-+- 7.5%
— 3.4%"
— 3.2%
Boots and shoes............. -f- 2.3
-j- 9.9
— 4.3
— 3.0

Department Store Sales by Departments — As
reported by the principal department stores in Lit­
tle Rock, Louisville, Memphis, and St. Louis.
Percentage increase or decrease
May, 1929 compared to May, 1928
N et sales
Stocks on hand
for month
at end of month
Piece goods........................................— 14.6%
— 11.6%
Ready-to-wear accessories............... — 5.5
— 5.0
W omen and misses’ ready-to-wear— 7.0
-f- 3.3
Men’s and boys’ wear.............. .........— 8.5
— 9.6
Home furnishings............................. — 1*0
— 7.8

Public utilities companies in the five largest
cities of the district reported consumption of elec­
tricity in May by selected industrial customers as
being 5.5 per cent greater than in April, and 16.2
per cent larger than in May, 1928. In the yearly
comparison a large part of the gain was accounted
for by heavier loads taken by the iron and steel
working plants. Increases in May over April were
generally through all lines reporting. Detailed fig­
ures follow:
No. of
May, 1929
comp, to
*K .W .H . *K .W .H . April 1929 *K .W .H .
Evansville .... 40
+ 13.5%
Little Rock.. 35
+ 2.5
Louisville .... 89
— 6.1
Memphis ..... 31
+ 10.9
St. Louis..... 133
+ 14.4
Total....... 328
*In thousands (000 omitted).





May, 1929
comp, to
May, 1928
+ 27.2 %
+ 19.3
+ 33.6
+ 62.6
+ 8.2
+ 16.2

In point of dollar value, permits issued for new
construction in the five largest cities of the district
in May were 35.6 per cent smaller than in April,
and 34.0 per cent smaller than in May, 1928. Accord­
ing to statistics compiled by the F. W . Dodge Corp.,
construction contracts let in the Eighth Federal
Reserve District in May totaled $41,019,755, which
compares with $54,362,947 in April, and $36,360,248
in May, 1928. Production of portland cement for
the country as a whole in May totaled 16,151,000
barrels, against 13,750,000 barrels in April, and
17,308,000 barrels in May, 1928. Detailed figures

Planting of all spring crops is backward, and at the
middle of June farm operations generally were from
two or four weeks behind the seasonal schedule.
Considerable local damage was done by severe wind,
hail and rain storms. Fruit prospects were material­
ly lowered in some localities, and the outlook for
cereals and vegetables was less favorable than thirty
days earlier.
The heavy precipitation, however, has been
beneficial to pastures, which are mainly in excellent
condition. Prospects for hay in the district are
somewhat above average for this time during the
past ten years. Milk production was high, owing
to good pastures, and egg production also was at
high levels. Farmers are taking advantage of every
day of sunshine to catch up on backward work, and
with average favorable meteorological conditions
from this time forward, a considerable part of the
delay may be overcome. The supply of farm labor,
with the exception of a few scattered counties, was
reported adequate to all requirements.

$ 771 $1,010

Winter Wheat — While prospects for winter
wheat in the entire country improved from May to
June, the crop in states of this district lost ground.
Based on the June 1 condition, according to the
U. S. Department of Agriculture, the indicated yield
in states entirely or partly within the Eighth Dis­
trict was 98,184,000 bushels, a decrease of 2,314,000
bushels under the May 1 estimate and comparing
with 52,302,000 bushels harvested in 1928, and a
five year average of of 103,596,000 bushels. The loss
was chiefly in Missouri and Illinois, where exces­
sive rains and floods caused a lowering of condition,
and considerable irreparable damage. There were
increasing complaints of hessian fly infestation and
injury from rust. The full extent of abandonment
from late May and early June rains has not been
established. Generally harvest will be from a week
to fifteen days late.

Weather throughout this district during the past
thirty days was distinctly unfavorable for farming
operations and growth and development of crops.
With exception of a very few days, temperatures
were unseasonably low and sunshine lacking. A l­
most continuous rains seriously interfered with out­
side work, and extensive acreages along rivers and
creeks were completely covered with water. In the
low lands generally, and in many instances even in
the flat uplands, standing water and the soggy con­
dition of the soil made plowing and other cultiva­
tion impossible. In many important farming areas
several weeks of dry warm weather will be required
to put the land in condition to be properly tilled.

Corn — Throughout the district, planting of
corn is backward and prospects belov^ average. Con­
tinuous rains have prevented farmers cultivating
fields where early planting was possible, and grass
and weeds have made considerable headway. An
unusually large amount of replanting has been
necessary, due to washing and the rotting of seed
in the ground. A t the middle of June there was still
considerable acreage to be seeded, and the matur­
ing of this portion of the crop will be contingent
upon late frost dates. According to Illinois Coopera­
tive Reporting Service, corn planting on June 1
averaged about 75 per cent completed in that state,
while in Missouri, next in importance as a corn pro­
ducing state, only 53 per cent had been completed.
Demand for corn was active and stocks on farms

New Construction
Evansville .. 328
$ 425 $1,316
Little Rock
Louisville .. 183
Memphis ... 443
St. Louis.... 578
May totals 1,592 2,040
$4,428 $6,712
April totals 1,894 2,065
Mar. totals 1,786 1,996
*ln thousands of dollars (000 omitted).

Repairs , etc.
1929 1928
$ 14 $ 37



fair, but the movement was restricted by preoccu­
pation of farmers with field work and the poor con­
dition of dirt roads in many sections.
Fruits and Vegetables — Prospects for fruits
and vegetables are spotty, varying considerably
with reference to locality and crop. Planting of
potatoes was unusually late, and generally condi­
tions are less favorable than a year ago. In the
southern states conditions are more favorable than
in the northern stretches of the district. In the
Ozark region the apple crop is expected to be larger
than that harvested last year, though since the last
week in M ay there have been numerous reports of
a heavy drop and serious damage from blight. Grape
prospects are less favorable than a year ago, due to
the fact that continuous rains interfered with spray­
ing. Peaches in the Missouri and Arkansas Ozark
districts and in Illinois promise a good yield. Cher­
ries, plums and pears show indications for a yield
about equal to the five year average. Cane fruits
suffered generally from cold weather in the late
spring and excessive rains throughout the season.
Gardens at the middle of June were universally be­
low the five year average. Early plantings were
badly washed, and generally vegetables are not up
to average for this season. Early fruits and truck
crops in the south turned out better than antici­
pated, shipments from certain important centers
being larger than a year ago. Outlook for the com ­
mercial tom ato crop in the south is good, and owing
to increased acreage, the output will probably be
the largest on record. The combined yield of peach­
es in states partly or entirely within this district is
estimated at 10,770,(XX) bushels, against 9,758,000
bushels produced in 1928, and a 5-year average of
7,111,000 bushels.
Live Stock — Generally through the district
pasturage is in excellent condition, and the status
of live stock was reported somewhat improved as
contrasted with thirty days earlier. The spring
lamb crop turned out better than expected. Through
the south growth in the dairying industry continues,
with particularly notable forward strides having
been made in Arkansas and Mississippi. W hile hay
crops have produced heavily, there has been some
trouble in saving them due to heavy rains and flood­
ing bottom lands. The average production of eggs
in the district was slightly higher than at the cor­
responding period a year ago.
Receipts and shipments at St. Louis, as reported
by the National Stock Yards were as follow s:
April, May,
1929 1928
Cattle and calves....... 92,695 81,881 95,727
Hogs ........................... 340,215319,092 332,162
Horses and mules..... 1,7315,170
Sheep ................... ...... 42,228 25,810 38,473

49,199 46,197 62,224
242,053 231,809 249,505
4,898 2,230
16,146 14,484 12,991

Cotton — Planting and development of the cot­
ton crop made fair progress during the past thirty
days. Temperatures were too low for best results,
however, and excessive rains in certain areas
retarded cultivation. Generally, though, fields are
fairly clean of weeds, and stands are good. M ost
of the planting and replanting remaining to be done
at the middle of June is along the Mississippi River
and its tributaries. Complaints of boll weevils are
increasing, particularly in the southern portions of
the district. The crop is from two to three weeks
late. Prices fluctuated within a narrow range, and
in the St. Louis market the closing quotations on
the middling grade on June 15 was 18c per pound,
the same as on May 18, and comparing with 20% c
on June 15, 1928. Stocks of cotton in Arkansas
warehouses on June 14 totaled 43,906 bales, against
72,903 bales on the corresponding date in 1928.
Tobacco — Transplanting of tobacco in all dis­
tricts was practically completed by June 15. In late
May considerable trouble was experienced from
weed growth in land prepared early, however,
plants set during that period show good stand, ex­
cept where damaged by cutworms. Since June 1
transplanting has advanced rapidly, and dry weath­
er favored the use of tobacco setting machines.
W eather has been auspicious for cultivation, and
showers were favorable in obtaining a stand in the
late settings. Fields are mainly clear of weeds with
soil and subsoil moisture abundant.
Commodity Prices — Range of prices in the St.
Louis market between May 15, 1929 and June 17,
1929 with closing quotations on the latter date and
on June 15, 1928:
June 17, 1929
June 15, 1928
: 1.0454
July ................. ..per bu.$1.08%$ .98%
... “
1.1354 .95
... “
No. 2 red winter “
1.07%$1.20 @ 1.24
No. 2 hard...... ... “
1.07 @ 1.09 $1.51 @ 1.52
July ................ ... “
1.0 3%
... “
No. 2 mixed.... ... “
.90% @ .91
1.02 @ 1.03
No. 2 white.... ... “
.94 % @
1.0614® 1.07
.46% @ .47
No. 2 white.... ... “
.71 @ .71%
6.00 @ 6.25
8.50 @ 9.00
Soft patent......... ..per bbl. 6.75
Spring patent. ... “
5.70 @ 5.80
7.10 @ 7.25
Middling cotton..,,.per lb.
.1854 •
9.50 @11.35
Hogs on hoof...... .per cwt. 11.55
8.75 @10.25

Developm ent in the banking and financial situ­
ation in this district during the past thirty days in­
cluded a continued active demand for credits, a
further recession in deposits of the commercial
banks, a sharp increase in investments of these
banks around June 1 and a firmer trend in rates.
Requirements for commercial and industrial pur­
poses exceeded those of a year ago, and while cur­
rent routine liquidation of loans by mercantile in­
terests was in considerable volume, new borrowings

held total commitments of these interests at approx­
imately the same levels of the preceeding month or
six weeks.
A steady increase, seasonal in character, was
noted in demand from the country for agricultural
financing. The winter wheat harvest has made pro­
gress in the southwest, and milling and grain inter­
ests are making financial preparations for handling
the crop. The recent decline in cash wheat values,
coupled with a heavy carry over from the 1928 crop,
is reflected in earlier and heavier borrowings for
handling the crop than last year or in 1927. In the
typical corn and cotton areas, requirements of plant­
ers are making themselves felt. Local banks in those
sections are for the most part well prepared for
meeting these needs.
Considerable liquidation has taken place in
localities where early fruits and vegetables are im­
portant crops. Bankers in the large centers and in
the country report substantial liquidation by field
seed houses, and generally through the district the
favorable condition of the live stock market has
been conducive to a liberal movement of meat ani­
mals and a considerable reduction of loans based on
that class of property. Demand for funds for con­
ditioning live stock, however, continues active.
Between May 8 and June 12, security loans of
the reporting member banks decreased slightly,
while all other loans chiefly for commercial and
agricultural purposes showed a gain of approximate­
ly 0.7 per cent. Deposits of these banks, which have
been decreasing steadily since the second week in
January, reached a new low point for the year in
the first week of June. Borrowings of all member
banks from this institution increased sharply in the
first week of this month. T o some extent this re­
flected heavy requirements of individuals and cor­
porations for meeting the June 15 income tax install­
ment. F ollow ing the usual sharp upward movement
in investments of reporting member banks around
June 1, the total of this item in the second week of
June fell to the level prevailing at the middle of
W hile actual quotations were changed in minor
degree only, the trend of rates was firmer. A t St.
Louis banks, current rates were as fo llo w s : Prime
commercial loans, 5H to 6*4 per cent; collateral
loans, 6 to 7 per cent; loans secured by warehouse
receipts, 5 } i to 6 per cent; interbank loans, 5 ^ to 6
per cent, and cattle loans 6 to 7 per cent.

May 15, 1929. Deposits decreased 1.3 per cent be­
tween May 15, 1929 and June 12, 1929 and on the
latter date were 5.2 per cent smaller than on June
13, 1928. Composite statement follow s:
*May 15,

*June 13,



Total loans and discounts....,
U. S. Government securities..... 59,664
Other securities........................... 113,611





Total investments............................. $173,275
Reserve balance with F. R. bank.. 45,079
Cash in vault...................................
Net demand deposits................... 373,697
Time deposits............................... 228,477
Government deposits...................





*June 12,
t2 7
Number of banks reporting.... .......
Loans and discounts (iticl. rediscounts)
Secured by U. S. Govt, obligations
and other stocks and bonds....$227,295
All other loans and discounts.... 285,446

Total deposits................................... $602,696
Bills payable and rediscounts with
Federal Reserve Bank............... 25,865
*In thousands (000 omitted).
fDecrease due to consolidation. These 27 b------\ are located in St. Louis,
— --------Louisville, Memphis, Little Rock, and Evansville, and their resources
represent 53.1 per cent of all the resources of member banks in this
(1) Figures for 1928 include acceptances of other banks and bills of
exchange sold with endorsements, while figures for 1929 exclude same.

Debits to Individual Accounts — The follow ing
table gives the total debits charged by banks to
checking accounts, savings accounts, certificates of
deposit accounts and trust accounts of individuals,
firms, corporations and U. S. Government in leading
cities of the district. Charges to accounts of banks
are not included.
East St. Louis & Natl.
Stock Yards, 111..$ 70,770
El Dorado, Ark....
Evansville, Ind.... 37,220
Fort Smith, Ark... 13,234
Greenville, Miss....
Helena, Ark..........
Little Rock, Ark.. 77,515
Louisville, K y....... 213,355
Memphis, Tenn.... 155,679
Owensboro, K y ....
Pine Bluff, Ark.... 10,731
Quincy, 111............ 13,430
St. Louis, M o....... 791,230
Sedalia, M o..........
Springfield, M o.... 16,614
Ark-Tex......... 16,570

$ 68,556

$ 64,802



May, 1929 comp, to
April, 1929 May, 1928
+ 3.2%
— 4.4
— 15.2
— 7.8
— 3.7
— 4.2
+ 7.4
— 5.7
— 1.7
— 0.7
— 7.1
— 2.4
— 7.3
+ 8.2
— 0.1

+ 9.2%
— 13.0
— 30.0
+ 0.8
+ 6.0
— 3.3
+ 1.3
+ 10.9
+ 8.6
+ 2.2
+ 9.0
— 6.8
— 7.6
— 11.4
+ 14.0
— 3.2

Totals.......$1,443,575 $1,466,755 $1,491,443
— 1.6
*In thousands (000 omitted).
**Includes one bank in Texarkana, Texas not in Eighth District.

Federal Reserve Operations — During May the
Federal Reserve Bank of St. Louis discounted for
234 member banks, against 225 in April and 186 in
May, 1928. The discount rate remained unchanged
at 5 per cent. Changes in the principal assets and
liabilities of the institution as compared with the
preceding month and a year ago appear in the fol­
lowing table;

Bills bought..
U. S. Securiti

Condition of Banks — Loans and discounts of
the reporting member banks on June 12, 1929
Ratio of reserves to deposits
and F. R. Note Liabilities..
^ o w e d a decrease of 2.1 per cent as contrasted with
*In thousands (000 omitted).
(Compiled June 21, 1929)


*June 20,
, 16,625

*May 20, *June 20,

. 56,971
. 80,548






PRODUCTION — Industrial
large in May and was accompanied by a further increase in
the volume of factory employment and payrolls. Output of
the iron and steel industry increased further, and shipments
of iron ore during M ay were the largest for that month of
any recent year. Production of pig iron, steel ingots, and
coke was at record levels, and semifinished and finished
steel was produced in large volume. During the first half
of June, steel operations remained close to capacity, al­
though some decline from the high rate of May was re­

adjusted for seasonal variations (1923-25 average = 100).
Latest figure, May, 123.

ported. Output of automobiles, which has been in unusually
large volume since the beginning of the year, showed a
slight reduction in May. Copper production at mines, smelt­
ers, and refineries decreased during May, but continued
large. Combined stocks of refined and blister copper at the
end of M ay were the largest since 1927. Zinc, lead, petro­
leum, and bituminous coal were produced in larger volume
than in April while the output of anthracite coal declined.
Output in the textile industries continued large in May,
although there was a decline in activity in silk mills. Meat
production, while larger than in April, increased less than
is usual at this season. Value of building contracts awarded
declined in M ay, and was below last year’s level, the de­
crease in comparison with 1928 being chiefly in residential

PRICES — W holesale prices continued in May the
downward movement of the previous month, according to
the index of the United States Bureau of Labor Statistics.
The decline of the general level was chiefly the result of
price declines in agricultural products and their manufac­
turers, although prices of other products also declined
slightly. Prices of cotton and grains continued sharply
downward in May and there were marked declines in hogs,
wool and lambs. Prices of mineral and forest products and
their manufactures averaged lower in M ay than in April,

Index of United States Bureau of Labor Statistics (1926=100, base
adopted by Bureau). Latest figure, May, 95.8.

particularly those of copper, lead and tin. Petroleum and
gasoline and iron and steel advanced in price, while in lum­
ber there was a slight decline. Since the latter part of May
prices of cattle and hides have advanced sharply and there
have been increases in grains, hogs, and cotton.
BANK CREDIT — Total loans and investments of
member banks in leading cities, which were at a low point
for the year in the latter part of M ay increased considerably
during the subsequent 3 weeks and on June 19 were about
$250,000,000 larger than a year ago. The recent increase
reflected a large growth in the volume of loans on securi­
ties, which had declined during the preceding two months,
and a further growth in loans chiefly for commercial and
agricultural purposes. Investments declined during most of
the period and on June 19 were at a level about $450,000,000


building. During the first two weeks in June contracts
averaged 15 per cent less than in the same period in 1928.
The June 1 crop summary of the Department of Agriculture
indicated an increase of 43,000,000 bushels, or more than 7
per cent in the crop of winter wheat. The condition of
spring wheat, barley and hay was reported to be better than
a year ago.

DISTRIBU TIO N — The volume of freight shipments
increased seasonally in M ay and continued substantially
above the total of a year ago. Department store sales in­
creased in May and were 2 per cent larger than in the same
month in the preceding year.





Monthly rates in the open market in New Y ork: commercial paper rate
on 4- to 6-month paper and acceptance rate on 90-day bankers accept­
ances. Latest figures are averages of first 22 days in June.

below that of the middle of last year. Volume of reserve
bank credit outstanding, after increasing in the latter part
of May, declined in June and following the treasury finan­
cial operations around the middle of the month, showed a
small increase for the 4 weeks ending June 19. Discounts
for member banks increased, while holdings of acceptances
and U . S. securities showed a decline. There were som|(i
further additions to the country's stock of monetary gold.
Open market rates on collateral loans declined in June,
while rates on prime commercial paper and 90 day bankers'
acceptances remained unchanged.