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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 Morning of June 29,1935
JOHN S. W O O D ,
Chairman and Federal Reserve Agent

FEDERAL

WORKING CAPITAL LOANS
Supplemental information (from Federal Reserve Bulletin, etc.) re­
garding loans and commitments under Section 13b of the Federal Reserve
Act, which authorizes the Reserve banks to aid in providing working capital
for established industrial or commercial businesses for periods of not ex­
ceeding five years:

“ Under the terms of the amendment . . . the prob­
lem of obtaining funds for working capital has been
facilitated for industry and commerce, and a safe and
profitable use for funds has been provided for the
b a n k s .”

“ Obviously there must be a sound basis for the
loans. There must be grounds for a reasonable expec­
tation that the enterprise will succeed if it gets the
assistance for which it applies.”

Businesses Assisted
“ T a k i n g th e e n tir e c o u n tr y , th e f o l l o w i n g
o f b u s in e s s c o n c e r n s h a v e r e c e iv e d a s s is ta n c e :

typ es

“Manufacturers: Aircraft; autos, trucks and acces­
sories; chemicals; electrical goods; food products;
office and household equipment; hides and leather;
jewelry and silverware; lumber and builders’ supplies;
machinery and machine tools; metals; paper products;
railway equipment; rubber goods; stone, clay, and
glass products; textiles; wearing apparel; wood prod­
ucts, etc.
“Wholesale and Retail Trades: Autos and acces­
sories; chain and department stores; clothing and dry
goods; jewelry; drugs, tobacco, and liquors; florists
and nurseries; food products; furniture; grain and
feed; hardware and machinery; lumber and builders’
supplies; oil, etc.
“Miscellaneous: Contractors and construction;
hotels, apartments and restaurants; laundries, cleaners
and dyers; mines and quarries; oil and gas produc­
tion; printing and publishing; shipbuilding; trans­
portation, etc.”

Volume of Loans
“ Industrial advances by the twelve Federal Re­
serve Banks and commitments to make such advances
have continued to increase during 1935. By June 12,
$88,110,000 of applications had been approved . . . The
volume of industrial advances outstanding on June 12
was $27,282,000 and of commitments outstanding
$20,008,000.”
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
p-age 7 of this review.

J

Additional information will be furnished on request.




C. M. STEW ART,
Secretary and Ass't Federal Reserve Agent

RESERVE

BANK

OF

ST.

J. VION PAPIN,
Statistician

LOUIS

AKEN as a whole, Eighth District industrial
and commercial activity during May and the
first half of June developed no marked change
in trends as contrasted with the like period imme­
diately preceding. Such changes as did occur were
ascribable chiefly to seasonal influences and to pecu­
liar conditions arising from the late spring, extra­
ordinary rainfall, more or less serious floods and
actual and moral reactions resulting from the United
States Supreme Court’s NRA decision. Retail trade
was adversely affected by the unfavorable weather,
and for the first time in twenty months, with the
exception of March, 1935, failed to show an increase
over the corresponding period a year earlier. Con­
siderable spottiness and unevenness developed in
wholesaling and jobbing lines, but despite the dis­
position to cautious and conservative buying, en­
gendered by price uncertainties, in a majority of
classifications investigated by this bank, there were
increases in May sales over those for that month
in 1934, and in several instances the May totals were
the highest for any single month since 1930. Ex­
tremely favorable exhibits were made by boots and
shoes, electrical supplies, furniture and hardware.
The late, wet spring militated against the usual
seasonal improvement in textiles, apparel and some
other lines which are particularly sensitive to weath­
er conditions.

T

Employment conditions in the district under­
went moderate improvement, being favorably af­
fected by the absorption of numerous workers in
agricultural and other seasonal occupations also by
the settlement of labor trouble in various localities.
Distribution of automobiles in the district, accord­
ing to dealers reporting to this bank, was seasonally
smaller in May than April, but recorded a substan­
tial gain over the May, 1934, total. Production of
lumber increased, demand for certain descriptions
being stimulated by the strike of lumber workers in
Washington and Oregon. Industrial consumption of
electric^ current in the chief cities increased in May,
both as Compared with the preceding month and
a year ago. Production of soft coal in fields of this
Page 1

district during May, while slightly below that
month in 1934, increased sharply over the April
output, owing in large measure to a speeding up of
operations in expectation of a strike of bituminous
miners about mid-June. Labor difficulties in the
lead and zinc sections were reflected in sharply cur­
tailed ore production.
The Eighth District crop season, according to
the U. S. Department of Agriculture, is opening
under conditions that stand out sharply in contrast
with those prevailing a year ago. Instead of recordbreaking high temperatures which prevailed in 1934,
the weather through the central states has been
abnormally cold and wet. April and May brought
heavy rains, and precipitation has persisted into the
third week of June. As a result of the excessive
moisture, preparations for and planting of spring
grains, cotton, Jobacco and other crops are consid­
erably behind the usual seasonal schedule. Consid­
erable replanting and abandonment of acreage is
indicated. Floods of major proportions of acreage
is indicated. Floods of major proportions prevailed
along the Mississippi River and its tributaries,
waters of the Missouri River reaching the highest
stage since 1903. Thousands of acres of rich farm
lands were inundated, and because of the lateness of
the season, much of this land will probably be un­
workable this year.
Retail trade in May, as indicated by sales of
department stores in the principal cities, was 2.7
per cent more than in April and 7.8 per cent below
the May, 1934, total; cumulative total for the first
5 months was 2.0 per cent smaller than for the
comparable period a year ago. Combined sales of
all wholesaling and jobbing firms reporting to this
bank in May were larger by 28 per cent and 19 per
cent, respectively, than a month and a year earlier;
for the first five months cumulative sales of these
firms fell 3 per cent below the like period in 1934.
The dollar value of permits for new construction in
the five largest cities in May was 5.5 per cent smaller
than in April, and 77 per cent more than in May,
1934; for the year to May 31, the aggregate was
50.4 per cent greater than for the like period a year
ago. Debits to individual accounts in May were
8.7 per cent and 14.6 per cent larger, respectively,
than a month and a year earlier, and for the first
five months the total exceeded that of the like period
last year by 8.8 per ,cent.
Freight traffic of railroads operating in this dis­
trict was stimulated during the past several weeks
by increased loadings of coal and coke, caused by
the threatened strike of bituminous miners. Total
Page 2




volume continued below the same period a year
earlier but was substantially greater than in 1933.
The late spring is reflected in a smaller than usual
movement of early fruits and vegetables. The sharp
decrease noted in the livestock classification as con­
trasted with a year ago is accounted for by the
transfer of livestock from the drouth areas in the
earlier period. For the country as a whole, loadings
of revenue freight for the first 23 weeks this year,
or to June 8, totaled 13,337,082 cars, against
13,548,417 cars for the corresponding period in 1934
and 11,500,184 cars in 1933. The St. Louis Terminal
Railway Association, which handles interchanges
for 28 connecting lines, interchanged 73,378 loads in
May, which compares with 75,298 loads in April and
77,849 loads in May, 1934. During the first nine
days of June the interchange amounted to 22,336
loads, against 20,954 loads during the corresponding
period in May, and 23,780 loads during the first
9 days of June, 1934. Passenger traffic of the report­
ing lines decreased 4 per cent in May as compared
with the same month in 1934. Estimated tonnage of
the Federal Barge Line between St. Louis and New
Orleans in May was 151,300 tons, against 154,070
tons in April, and 105,954 tons in May, 1934.
Reports relative to collections in the district
during the past thirty days reflect the same general
trends as during the preceding several months.
Questionnaires addressed to representative interests
in the several lines scattered through the district
show the following results:
Excellent

May, 1935................. 6.3%
April, 1935................. 2.3
May, 1934................. 4.3

Good

Fair

41.0%
36.8
47.2

44.4%
55.2
43.2

Poor

8.3%
5.7
5.3

Commercial failures in the Eighth Federal Re­
serve District in May, according to Dun and Bradstreet, numbered 45, with liabilities of $272,085,
which compares with 42 defaults in April, with
liabilities of $460,527, and 22 failures for a total of
$217,670 in May, 1934.
MANUFACTURING AND WHOLESALING
STOCKS
ON H AN D
5 months ending M ay 31, 1935
M ay, 1935
com pared to
M ay 31, 1935
compared to
M ay 31, 1934
com p, to 1934
M ay ’ 34 A pr. ’ 35
+ 76.1%
Boots and Shoes.......... + 4 2 .7 % + 6 1 .8 %
— 1.4%
+ 4 0 .1
— 5.7
Drugs and Chemicals.. — 3.7
+ 0.7
— 18.7
— 14.9
— 13.2
— 2.3
+ 14.0
+ 17.3
Electrical Supplies...... + 2 9 .3
+ 13.4
+ 2 3 .2
— 9.3
+ 0.5
+ 32.6
+ 10.0
+ 6.2
+ 6.7
+ 9.5
— 8.7
+ 6.8
+ 8.0
+ 11.3
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

+ 19.4

+ 2 7 .9

— 2.8

+

0.2

Boots and Shoes — May sales of the reporting
firms increased from April, following the usual
sonal trend. The extent of the increase, how ever/
was considerably greater than the average during

the past several years, and the total with the excep­
tion of May, 1933, was the largest for any single
month since the fall of 1929. There was no change
in prices during the period, but generally levels
were from 5 to 8 per cent higher than a year ago.
Clothing — Adverse effects of the unfavorable
weather, which has prevailed generally through the
district since early spring were reflected in reports
of the firms supplying their statistics to this bank.
May sales of the reporting group of clothiers were
2 per cent greater than a year ago, but about onefourth smaller than the April total this year. Stocks
increased 10 per cent between May 1 and June 1,
and on the latest date were 4 per cent less than at
the same time in 1934.
Drugs and Chemicals — A lessened demand for
heavy drugs and chemicals from the general manu­
facturing trade was partly responsible for the slight
decline in sales of the reporting interests in May as
contrasted with the same month last year. The wet
and backward spring has resulted in an unusually
heavy call for spraying materials of all descriptions,
due to the extraordinary infestation of fungus and
insect pests. Inventories continue substantially larg­
er than a year earlier. Prices showed little change
during the period, but as of June 8, according to the
Bureau of Labor Statistics, were 7 per cent higher
than on the comparable date a year earlier.
Dry Goods — Excessive rainfall, accompanied
by more or less serious flood conditions, tended to
hold down the volume of May and early June busi­
ness in this classification. Seasonal merchandise
moved in relatively smaller volume than a year and
two years earlier. The decrease in May sales of the
reporting firms was contraseasonal. Price uncertain­
ties had a retarding influence on forward buying.
Electrical Supplies — Despite the cool weather,
which has held down the movement of fans, refrig­
eration units and other seasonal items, business of
the reporting firms continued the steady betterment
of recent months. May sales of the reporting group
increased from April by considerably more than the
calculated seasonal amount, and were the largest
for any single month since December, 1929.
Flour — Production at the twelve leading mills
of the district in May totaled 185,589 barrels, against
200,569 barrels in April and 224,648 barrels in May,
1934. Stocks showed about the usual seasonal de­
crease from April to May. Business during the past
thirty days continued quiet and featureless. Pur­
chasing by the domestic trade was almost exclu­
sively on a necessity basis, though some improve­
ment was reported in shipping directions on flour




previously acquired. Export business was confined
chiefly to routine transactions with the LatinAmerican countries. Mill operations were at from
45 to 50 per cent of capacity. Prices declined slight­
ly in mid-June in sympathy with the downturn in
cash wheat.
Furniture — Sales of practically all lines during
May, according to the reporting interests, extended
the generally upward trends which began during the
opening months of the year. Advance buying is re­
ported in larger volume than at the corresponding
period a year ago. Inventories expanded moderately
from April to May, but continued substantially
smaller than last year.
Groceries — Handicaps of unseasonably cold,
wet weather and serious flood conditions failed to
retard business in this classification; May volume,
according to the reporting firms, showed an increase
from the preceding month of greater than average
proportions. While increases over both a month and
a year earlier were general in all lines, relatively the
best showing was made by staples. The movement
of early fruits and vegetables had a stimulating
effect on trade in many localities.
Hardware — As during each preceding month
this year, with the exception of March, May sales of
the reporting firms showed an increase over the cor­
responding period a year earlier, and the total was
the largest for the month since 1930. Sales of paints,
builders' hardware and tools, and kindred lines con­
tinued the moderate improvement of the preceding
month.
Iron and Steel Products — Activities in the iron
and steel industry in this district during the closing
weeks of May and the first half of June developed
little change as a whole as contrasted with the simi­
lar period immediate preceding. In certain lines
some slowing down was noted, due to seasonal influ­
ences and hesitancy on the part of consumers. Else­
where, however, operations were well sustained,
and in the immediate past purchasing of a variety
of commodities has broadened, owing mainly to
market stability and the announced policy of numer­
ous producers to maintain prices, wage scales and
other practices which were in effect under the code.
For the most part consumer stocks are low, and
while it has been the policy in many quarters to use
up inventories before making new commitments,
necessity buying has accounted for the movemeiit
of substantial tonnages of both finished and raw
materials. Moderate betterment was noted in de­
mand for galvanized materials, and purchasing of
tin plate continued in considerable volume. Manu­
Page 3

facturers of farm implements reported some slowing
down in operations, but the rate continued consid­
erably higher than at the same period in a number
of years. Operations at stove and range plants
showed less than the usual seasonal recession, and
May shipments were reported the highest for
the month since 1930. Operations at the steel mills
at mid-June were slightly below the rate obtain­
ing a month earlier. Shipments of pig iron to
melters in the district in May fell below the April
total. Aside from changes in certain grades of scrap,
mainly in the nature of adjustments, there has been
practically no change in iron and steel prices since
the emergence of the industry from code control.
For the country as a whole, production of pig iron
in May, according to the Magazine “ Steel,” totaled
1,735,577 tons, against 1,671,556 tons in April and
2,057,471 tons in May, 1934. Steel ingot production
in the United States in May amounted to 2,602,054
tons, which compares with 2,606,311 tons in April
and 3,352,788 tons in May, 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

F ort Smith, Ark..
Louisville, K y ......
M emphis, Tenn....
St. Louis, M o ......
Springfield, M o....
A ll Other Cities..

Stocks
______ N et Sales Comparison
on H and
5 mo. ended
M ay, 1935
M ay 31/35 M ay 3 1 /3 5
compared to
to same
com p, to
M ay 1934 A pr. 1935 period ’ 34 M ay 3 1 /3 4
+ 17.8%
+ 6.5%
+ 5.0%
.. + 0.8%
— 11.0
. — 22.3
— 17.6
— 45.4
— 7.0
. + 0.2
+ 1.2
— 6.0
— 3.6
+ 11.8
— 4.7
— 7.5
— 5.0
— 3.6
+ 2.7
+ 4.7
— 9.0
+ 9.6
— 2.4
+ 9.6
— 8.8
+ 1.1
— 2.6
— 4.3
+ 16.3
+ 0.6
— 19.6
. . + 1.9
2.5
— 0.9
+ 3.9
+ 2.7
+ 2.7
— 2.0
— .2.5
..— 7.8

Stock
Turnover
Jan. 1, to
M ay 31,
1935 1934
1.12 1.08
.90
.78
.95
.93
.95
.97
1.53 1.49
1.26 1.36
1.57 1.52
.94
.78
1.23 1.16
1.41 1.39

Percentage of collections in May to accounts
and notes receivable first day of May, 1935.
PERCENTAGE OF COLLECTIONS BY CITIES
E l D orado, A rk ....................... 57.6%
M em phis, T en n ......................... 44.1%
F ort Smith,. A rk ........... ...... ,....36.8
Springfield, M o .........................24.5
Little R ock , A rk .....................37.0
St. Louis, M o ...... t,.................... 53.4
Louisville, K y ............................51.9
A ll Other Cities........................ 35.8
8th F. R . D istrict......................... 49.0%

Retail Stores
Stock
Stocks
N et Sales Comparison
on Hand T urnover
5 m o. ended
M ay, 1935
M ay 31/3 5 M ay 3 1 /3 5 Jan. 1, to
com pared to
to same
com p, to
M ay 31,
M ay 1934 A pr. 1935 period *34 M ay 3 1 /3 4 1935 1934

Men’s
Furnishings ............ — 12.3%
B oots and
Shoes ....................... — 10.1

— 15.4%

— 0.7%

— 3.2%

1.03

.99

— 16.4

+

+ 1 7 .2

1.76

2.08

4.3

AUTOMOBILES
Combined passenger car, truck and taxicab pro­
duction in the United States in May, was 364,721
against 477,746 (revised figure) in April, and 331,652
(revised figure) in May, 1934.
May distribution in the Eighth District, accord­
ing to dealers reporting to this bank, decreased as
Page 4




compared with the preceding month, but was sub­
stantially greater than for the corresponding period
last year and the largest for the month since 1930.
The decrease in the month-to-month comparison
was seasonal in character, though somewhat heavier
than the average during the past decade. Relatively
the best results were achieved by dealers in the
large cities, the continuous rains tending to hold
down purchasing in the rural areas. While fairly
diversified, demand still centers chiefly in the low
price field, more than 50 per cent of the total sales
being accounted for by dealers handling vehicles of
the two leading producers in that category. Demand
for trucks of all descriptions was less active than
heretofore, May sales being 23 and 38 per cent
smaller, respectively, than a month and a year
earlier. Advent of the touring season had a moder­
ately stimulating effect on the trade in parts, acces­
sories and tires.
Sales of new passenger cars by the reporting
dealers in May were 14 per cent smaller than in
April and 30 per cent greater than in May, 1934.
Stocks on June 1 were slightly smaller than thirty
days earlier and 8 per cent less than a year ago.
Reversing the trend in inventories of new cars,
stocks of salable secondhand vehicles increased 12
per cent between May 1 and June 1, and on the
latest date were approximately 60 per cent larger
than at the same time a year ago. May sales of used
cars wrere 6 per cent and 18 per cent larger respec­
tively, than a month and a year earlier. Generally,
selections of secondhand cars were more complete
and of higher quality than has been the case in a
number of years. According to dealers reporting
on that item, the ratio of deferred payment sales to
total sales in May was 43 per cent, against 46 per
cent in April, and 46 per cent in May, 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 May as
being 6.7 per cent larger than in April, and 8.2 per
cent more than in May, 1934. Detailed figures
follow :
A p r.,
M ay, 1935
M ay,
N o. of
1935
1935
com p, to
Custom ­
ers
* K .W .H . * K .W .H . A p r., 1935
2,673
+ 10.7%
2,958
Evansville .... 40
1,710
+ 12.3
1,523
L ittle R ock.. 35
7,679
7,745
Louisville .... 82
+
-9
1,549
1,728
— 10.4
19,451
17,702** + 9.9
T otals......382 ^ 33,413
* In thousands (000 om itted).
**R evised figures.

31,305**

+

6.7

M ay, M ay, 1935
1934
com p, to
* K .W .H . M ay, 1934
2,686** + 10.1%
1,627
+ 5.1
6,988** + 10.8
1,758
— 11.9
17,828** + 9.1
30,887**

+

8.2

LIFE INSURANCE
Sales of new, paid-for, ordinary life insurance
including the Eighth District during May, the pre­

ceding month, and a year ago, together with the
cumulative totals for the first five months this year
and the comparable period in 1934 are shown in the
following table:
( I n thousands
M ay,
of dollars)
1935
Arkansas.......... $2,57^ $
Illinois..............
40,539
11,003
Indiana.............
K en tu cky.........
5,455
M ississippi.......
2,188
15,396
M issouri...........
T ennessee........
5,627

A pr.,
1935
3,022 $
44,255
12,561
6,390
2,228
14,949
5,526

M ay,
1934
3,018
48,695
12,057
5,537
2,792
20,960
6,490

T otals...........
m a
]
U nited O i. i. y ^
States..

C A A ^ OA

88,931
540,280

f? OOA O1 O

82,781
500,380

CA A OOA

Jan.-M ay, In c.,
1935
1934
$ 14,729 $ 14,650
234,060 230,585
59,798
55,272
28,658
26,771
11,404
11,995
83,479
91,935
30,246
30,164

99,549
462,374
461,372
C OOZ A O A Ol
588,421 2,765,226T 2,683,981

Cumul.
change
-j- 0 ^ %
+ 1.5
-f- 8.2
- f 7.0
— 4.9
— 9.2
+ 0.3
- f 0.2
A
-f- ^ 3.0

I

BUILDING
The dollar value of permits issued for new con­
struction in the five largest cities of the district in
May was 5.5 per cent smaller than in April, and 76.6
per cent more than in May, 1934. As in other sec­
tions of the country residential construction in
the Eighth Federal Reserve District continues to
show moderate improvement over the correspond­
ing periods a year and two years earlier. Produc­
tion of portland cement for the country as a whole
in May, totaled 8,222,000 barrels, against 6,136,000
barrels in April, and 8,554,000 barrels in May, 1934.
Building figures follow :

E vansville ..
L ittle R ock
Louisville ..
M emphis ...
St. Louis....

N ew construction______
Permits
*C ost '
1935
1934
1935
1934
34
21
$
48 $
6
10
16
2
15
54
13
251
88
90
149
63
87
331
163
540
316

M ay Totals
A pril
“
Mar.
*In thousands

519
362
904
529
378
957
506
353
1,365
(000 om itted).

512
1,585
338

_______ Repairs, etc.
Permits
*C ost
1935
1935 1934
1934
109
190
$
20 $ 41
98
52
25
98
80
90
42
140
196
162
126
74
250
242
100
106
725
745
734

790
761
557

340
317
352

386
323
222

AGRICULTURE
Throughout May and the first half of June,
Eighth District weather conditions continued unfav­
orable for farm operations and the growth and
development of crops. Unseasonably low tempera­
tures and excessive precipitation were the rule,
whereas sunshine and warm days were greatly
needed for preparing the soil and planting corn, cot­
ton, tobacco and other spring crops. The unusually
heavy rainfall affected rivers and streams, causing
major floods which have resulted in distress and
heavy losses to farmers in the areas bordering on
them. Even in the uplands, low lying fields and all
land with inadequate drainage were covered with
standing water, and the soil rendered unworkable.
The most acute flood conditions were along the
Missouri River, which stream in early June reached
the highest stage since 1903. At mid-June, accord­
ing to reports of State agricultural departments,
heavy abandonment of crops was indicated,, and
more replanting will be required than has been the
case in a number of years.
All descriptions of farm work are from two to
four weeks in arrears of the usual seasonal schedule.




The continuous cloudy, wet weather seriously hin­
dered spraying of fruit trees and other vegetation,
and in apple orchards considerable scab has devel­
oped. However, fruit prospects are generally fav­
orable and much better than a year ago. The mois­
ture has greatly benefited pastures, which have
made excellent growth, many fields which were be­
lieved killed by last year’s drouth having been re­
vived. Tame and wild hay have also been greatly
benefited, the June 1 condition in all states of the
district being well above the 10-year (1923-1932)
average. With more stable feed conditions prevail­
ing, milk and egg production have been gradually
returning towards normal levels. The farm labor
situation showed no change worthy of note as con­
trasted with the preceding thirty days.
Corn — In all sections of the district rains have
seriously delayed planting of corn. Typical of con­
ditions in other states are those described in the
Illinois Crop Report as of June .1, which stated that
field work in May was nearly at a standstill due to
heavy rainfall. In the southern two-thirds of the
state rainy days ranged from 21 to 25 in the central,
and from 14 to 19 in the southern counties. By June
1 only 41 per cent of the state corn acreage had
been planted as compared with 93 per cent usually
planted on that date. Northern counties had planted
about 80 per cent of their corn, but elsewhere plant­
ings ranged from 4 to 53 per cent. Fields plowed up
hard and cloddy, requiring extra work to prepare
for planting. Where the plant has come up, stands
are irregular and germination poor; much replant­
ing will be necessary, and in many sections farmers
are doing this work by hand. Quite generally grow ­
ers are using early maturing varieties to offset de­
layed seeding, but even where this has been done,
the backward season is still a handicap which can be
overcome only by unusually favorable weather until
harvest. Attention is called to lesser yields possible
with 90-day corn as compared with other varieties.
Cotton — In the Eighth District, according to
county agents, marketing associations, and other
sources of information available to this bank, the
cotton crop averages the poorest start since 1927.
Over the northern stretches of the area, planting at
the middle of June was far from complete, and due
to the heavy rains and floods, much replanting will
be essential. Many fields are infested with grass
and weeds, and this condition may become acute
unless a turn in the weather affords an opportunity
to cultivate them. A rainy May is usually adverse
for cotton, and that month this year was unusually
wet, rains have persisted through early June. Sta­
tistics compiled by the National Fertilizer AssociaFage 5

lion indicate that tag sales in states including the
Eighth District in May were slightly smaller than
for the same month a year and two years earlier, but
for the period January-May this year total sales were
15 and 19 per cent greater, respectively, than during
the comparative periods in 1934 and 1933. The trend
of raw cotton prices was downward. In the St. Louis
market the middling grade ranged from 11.00c to
12.10c per pound between May 16 and June 15, clos­
ing at 11.65c on the latest date, which compares
with 12.00c on May 16, and 11.75c on June 15, 1934.
Fruits and Vegetables — Latest information
issued by the U. S. Department of Agriculture and
the agricultural departments of the several states,
growers associations, etc., indicate that tree fruit
prospects are considerably better than in recent
years. Outlook for cane fruits is also favorable, and
the condition of grapes in the principal producing
sections is above that at the corresponding period a
year ago. Based on June 1 conditions, the yield of
peaches in states including the Eighth District is
estimated at 9,935,000 bushels, as against 6,578,000
bushels harvested last year and the 5-year average,
1928-1932, of 7,056,000 bushels. Apple prospects
are somewhat above average, though spotty, and
reports of scab infestation and blight are causing
considerable concern. The codling moth flight has
been heavy this season, but has been under control
as emergence has been uniform and intensive spray­
ing has been practiced in all commercial orchards.
The condition of the early potato crop in southern
states is reported slightly above average, despite
some deterioration during May. In the north the
potato outlook is less favorable, and in the lowlands
much replanting will be necessary because of rotting
of seed in the ground.
Live Stock — The condition of live stock gener­
ally through the district underwent considerable
improvement during May, due mainly to the further
betterment in pastures. The spring lamb crop in
virtually all states of the district made considerable
progress during the past thirty days, and quality is
generally high. According to the U. S. Department
of Agriculture, stocks of old hay are much below
average, but indications are that hay-consuming
animals on farms will be no greater numerically
than last winter, and 3 to 4 per cent less than the
average number wintered during the past decade.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
M ay,
1935
Cattle and Calves......110,911
H o g s ..............................165,903
H orses and M ules...... 4,265
Sheep ........................... 71,985

Page 6




R eceipts
Shipments________________
A pril,
M ay,
M ay, April,
M ay,
1935
1934
1935
1935
1934
100,804 108,869
67,831 58,976 51,848
187,207 278,305
116,300 117,875 161,264
6,295
3,315
4,198
6,877
3,454
61,935
55,853
13,906 17,798
5,788

Tobacco — Reports received as of June 14 from
county agents, marketing associations and other
sources indicate that rains have retarded transplant­
ing of the burley crop, and it is estimated that fully
10 per cent of the intended acreage had not been
planted, the greatest backwardness being in low­
lands. There are scattered reports of cut worm and
insect damage. Farmers have devoted their atten­
tion to cultivation and replanting, and in many
sections the stand is exceptionally good. In the
one sucker, air cured and Green River districts
planting had been about completed at mid-June.
Acreage in these districts is somewhat less than last
year. Intended acreage had also been planted in
the Clarksville, Hopkinsville and western dark fired
districts. Hot, dry wreather is much needed, as fields
are weedy and intensive cultivation is needed to
produce best results.
Winter Wheat — While for the country as a
whole, winter wheat prospects improved slightly
during May, there was a decrease of 4.7 per cent in
the June 1 indicated yield in States of the Eighth
District. In its report as of June 1, the U. S. Depart­
ment of Agriculture estimates the yield in these
states at 91,563,000 bushels, against 90,493,000 bush­
els harvested in 1934, and a 5-year average (19281932) of 82,742,000 bushels. The deterioration dur­
ing May was caused by unfavorable weather, the
crop being badly in need of sunshine. Generally
throughout the district, excessive moisture caused
rank growth, yellowing and lodging. Leaf rust is
prevalent, and there were reports of local damage
from hail. Flood damage along the Mississippi and
Missouri rivers and many smaller streams has
caused a considerable amount of abandonment.
COMMODITY PRICES
Range of prices in the St. Louis market between
May 15, 1935, and June 15, 1935, with closing quo­
tations on the latter date and on June 15, 1934,
f ° ll0 W :

Close
H igh

W heat
July ......................per bu..$ .92
* D e c...................... ...
N o. 2 red winter
N o. 2 hard “
Corn
July ................. ....

“
“

.9 2 ^
.95
1 .0 5 ^

L ow

$ .76H

-77'A
.79%
.83
.92

.7854
"
.84M
.79
.7 1 ^
* D e c......................
.61V4
.90
.83
*N o. 2 m ixed ...
.9 5 ^
.8 7 ^
*N o. 2 white ....... “
Oats
.39V2
N o. 2 white ... ... “
.47^2
Flour
5.40
Soft patent..........per bbl. 6.45
7.70
6.85
Spring
“ ....
.1210
.1100
M iddling Cotton. ..per lb.
5.50
H o g s o n hoof....,..per cwt.10.15
•Nominal quotations,

June 15, 1935
$

.77
.77*A
.79H
.83 ^
.92
.8 0 ^
.74y2
.62 U
.86
.90*4

June 15, 1934

$
.94

.5 7 y @
.5 9 H @

.40 5^
5 .40@ 5.90
6.85 @ 7 .7 0
.1165
8 .40@ 9.80

.92 ?£
.93 y2
.94 A
@ .9 4 ^
.96 H
.575/6

.59 H

.6 oy2
.60
.64

.45
6.40
6.65
2.50

@ 6.80
@ 7 .0 0
.1175
@ 4 .8 0

FINANCIAL
Except for a slightly more active demand for
funds to finance agricultural operations, seasonal

in character, there was little variation in the gener­
al trend of banking and financial conditions in the
Eighth District as contrasted with the preceding
several months.

tomers’ prime commercial paper, 1 per cent to Sy2
per cent; collateral loans, 3 to 6 per cent; loans
secured by warehouse receipts, 1J4 to Sy2 per cent
and cattle loans, 5 to 6 per cent.

Loanable resources of the commercial banks
continue at high levels, and rates on all classes of
loans hovered about the low mark of the present
year. Requirements of commercial and industrial
interests remained in relatively small volume, and
liquidation at both city and country banks was in
considerable volume. Borrowings of country banks
from their city correspondents were negligible, and
a further broadening in demand on the part of
country financial institutions for commercial paper
and other investments for surplus funds was noted.

Federal Reserve Operations — Deposits of the
Federal Reserve Bank increased between May 13
and June 18, reflecting the sharp rise in member
banks’ reserve accounts. As of the latest date, the
volume of reserve credit outstanding was virtually
unchanged from a month earlier, but throughout
the period remained measurably greater than a
year ago.

Member Banks — Investments of reporting
member banks in leading cities, which had moved
sharply upward to a new high for the year at midMay, receded as rapidly thereafter and on June 12,
had fallen to the approximate level obtaining late
March. Total loans of these banks continued the
downward trend, and on June 12 were slightly be­
low a month earlier and 3.4 per cent less than on
the corresponding date in 1934. Deposits decreased
during the four week period, but continued substan­
tially higher than a year ago. At $92,550,000, reserve
balances on June 12, were 44 per cent and 31 per
cent larger, respectively, than a month and a year
earlier.
A composite statement of the principal resource
and liability items of the reporting member banks
is given in the following comparative table:
June 12,
(I n thousands of dollars)
1935
Loans and discounts (incl. rediscounts)
Secured by U . S. Govt, obligations
and other stocks and bonds....$ 56,954
All other loans and discounts.... 150,432

M ay 15,
1935

June 13,
1934

$ 58,908
148,763

$ 71,007
129,547

Total loans and discounts.............. .. 207,386

207,671

200,554

Investm ents
'
U . S. G ov’ t securities................. .. 214,159
Other securities............................. .. 126,840

251,500
127,536

200,519
100,054

T otal investments.............................. .. 340,999

379,036

__300,573

Reserve balance with F. R. Bank.. 92,550
Cash in vault........................................
9,018
Deposits
N et demand deposits..................... 419,080
T im e deposits.................................. 167,706
Government deposits..................... 15,159

64,227
8,572

70,766
7,955

425,641
167,524
17,369

334,090
163,562
21,943

Total

610,534

519,595

deposits..

601,945

Bills payable and rediscounts with
Federal Reserve Bank.....................
Num ber of banks reporting..
19
19
19
T h e total resources of these banks com prise approximately 60.0%
of all member, banks in this district.

The amount of savings deposits held by selected
banks on June 5, was 1.3 per cent greater than on
May 1, and 13.7 per cent in excess of the total on
June 6, 1934.
At downtown St. Louis banks as of the week
ended June 15, interest rates were as follows: Cus­




Changes in the principal assets and liabilities
of this bank.appear in the following table:
June 18,
(I n thousands of dollars)
1935
518
Industrial advances under Sec. 13b.........$
Other advances and rediscounts..............
64
Bills bought (including participations)..
81
U . S. Securities............................................. 108,200

M ay 18,
1935
$
558
14
81
108,200

$.............
178
121
93,200

108,863

108,853

93,499

, 186,804
150,481
138,985

162,391
126,063
138,683

182,097
135,897
132,879
409

T otal earning assets..
T otal Reserves
T otal Deposits
F. R. Bank N otes liability>
industrial commitments under Sec. 13b

1,794

1,650

64.5%

61.3%

Ratio of reserves to deposit and
,

June 18,
1934

67.8%

Rates charged by the Federal Reserve Bank of
St. Louis remain unchanged as follow s:
2 per cent on advances to m em ber banks on eligible paper
and/or collateral, whether rediscounts or member bank prom is­
sory notes, under Sections 13 and 13a.
4 Yz per cent on advances to banks and other financing insti­
tutions on obligations of established industrial or com m ercial
businesses, for w orking capital, under Section 13b.
y2 per cent flat for commitments not exceeding six months
on obligations o f established industrial or com m ercial businesses,
for working capital, under Section 13b.
SV2 per cent on direct advances to established industrial or
commercial businesses, for w orking capital, under Section 13b.
4 per cent on direct advances to individuals, firms or co r­
porations (including nonm em ber ban ks), secured by direct obli­
gations o f the U nited States, under Section 13.
5y2 per cent on direct advances to individuals, partnerships
and corporations (exclu din g nonmem ber banks) on eligible paper,
under Section 13.

Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
April,
1935

M ay,
1934

M ay,
1935
Natl.
,.$ 26,529
3,718
El Dorado, Ark....
Evansville, Ind.... . 20,638
8,058
Fort Smith, Ark.....
3,162
Greenville, Miss..,
1,341
H elena, A rk..........
31,818
Little R ock, Ark.,
Louisville, K y ..... . 138,844
87,803
Memphis, Tenn....
4,207
O wensboro, Ky....
5,608
Pine Bluff, Ark...„
6,377
Q uincy, 111.............
St. Louis, M o...... 547,852
1,897
Sedalia, M o ...........
13,887
Springfield, Mo....
4,809
*Texarkana, Ark.,.

$ 24,712
3,962
19,594
8,287
3,489
1,531
27,901
140,802
94,187
3,929
5,023
6,676
474,828
1,808
12,235
5,252

$ 20,490
3,239
17,412
7,009
2,658
1,410
21,226
123,811
81,605
3,382
4,008
6,406
480,227
1,652
11,611
4,712

.. 906,548

834,216

790,858

(I n thousands
of dollars)

M ay, 1935 com p, to
Apr. 1935 M ay 1934
+ 7.4%
— 6.2
+ 5.3
— 2.8
— 9.4
— 12.4
+ 14.0
— 1.4
— 6.8
+ 7.1
+ 11.6
— 4.5
+ 15.4
+ 4.9
+ 13.5
— 8.4

+ 2 9 .3 %
+ 14.8
+ 18.5
+ 15.0
+ 19.0
— 5.0
+ 4 9 .9
+ 12.1
+ 7.6
+ 2 4 .4
+ 39.9
— 0.5
+ 14.1
+ 14.8
+ 19.6
+ 2.1

+

+ 14.6

8.7

^Includes one bank in Texarkana, Texas, not in Eighth District.
N ote — A bove figures include total debits charged by banks to
checking accounts, savings accounts, certificate of deposit accounts, and
trust accounts, of individuals, firms, corporations and U . S. Government.
Charges to accounts of banks, debits in settlement of clearing house
balances, payments o f cashiers’ checks, charges to expense and m iscel­
laneous accounts, corrections and similar charges, are not included.

(Com pleted June 22, 1935)

Page 7

NATIONAL SUMMARY OF BUSINESS CONDITIONS
BY F E D E R A L R E SE RV E B O A R D

PRODUCTION AND EMPLOYMENT — Volume of in­
dustrial production, as measured by the Board’s seasonally ad­
justed index, declined from 86 per cent of the 1923-25 average in
April to 85 per cent in May, which was the fourth consecutive
month of gradual decline from the recent high level of 90 in Jan­
uary. At steel mills output declined somewhat in May and the
first three weeks of June, as is usual at this season. In the auto­
mobile industry, where output this spring has been at a level
substantially higher than in other recent years, production showed

els. Domestic stocks of wheat have been materially reduced this
season.
DISTRIBUTION — Total volume of freight-car loadings
increased in May by about the usual seasonal amount. Coal ship­
ments showed a marked increase, while loading of miscellaneous
freight declined. Department store sales, as measured by the
Board’s seasonally adjusted index, increased from 73 per cent
of the 1923-25 average in April, to 76 per cent in May and were
at approximately the same level as a year ago.

Index number of industrial production, adjusted for seasonal variation.
(1923-25 average = 100.) Latest figure, May, preliminary 85.

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
June 15, farm products 79.9; foods 83.4; other commodities 77.9.

a marked decline in May, reflecting in part the effects of a strike.
At cotton mills there was little change in activity, while at woolen
mills production increased further, contrary to seasonal tendency.
Production of shoes declined seasonally. Output of coal which
has fluctuated widely in recent months, reflecting partly develop­
ments in the labor situation, showed a marked increase during
May and the early part of June. Factory employment and payrolls
declined between the middle of April and the middle of May.
Decreases in employment were reported for the automobile, radio,
lumber, clothing, cotton, silk, and shoe industries, while at woolen
mills employment increased and in many other lines little change
was reported.
Value of construction contracts awarded, as reported by the
F. W. Dodge Corporation, was about the same in May as in April.

COMMODITY PRICES — The general level of wholesale
prices, which was 80.3 per cent of the 1926 average at the end of
April and also in the week ending May 25, had declined to 79.8
per cent by the week ending June 15, according to the index of
the Bureau of Labor Statistics. Grain prices decreased consider­
ably during May and the first half of June. Cotton prices, after a
sharp decline at the end of May and a subsequent increase, also
were lower in the middle of June than at the beginning of May.
Prices of commodities other than farm products and foods as a I
group advanced slightly during this period.
BANK CREDIT — During the five weeks ending June 19,
reserve balances of member banks increased by $175,000,000 as
a result of gold imports, offset in part by an increase in Treasury
MILLIONS OF DOLLARS

600
500
400

MILLIONS OF DOLLARS

CONST RUCTICiN CONT'RACTS AWARD!ED

600
500

A

400
T o ta l

\

/ VY
'

300

200

\

A ll O th er

^

100

300

' S. s

1

R e s id e n tia l

1
Y
\
v'** * *■
'■'* *'

i

200

too

0

0
1929

Index of factory employment, adjusted for seasonal variation.
(1923-1925 average= 100.) Latest figure, May, 81.3.

Residential work continued in excess of a year ago, while the vol­
ume of contracts for public projects was smaller than in the cor­
responding month of 1934.
Department of Agriculture estimates based on June 1 reports
indicate that conditions for wheat, oats, barley, rye, hay, and
pastures were at the ten-year average for 1923-32, in contrast
with conditions a year ago, which wrere unusually poor as a con­
sequence of a prolonged drought. The winter wheat crop this
year is estimated to be somewhat larger than last year and, with
a considerable increase indicated for spring wheat, present con­
ditions, according to the Department of Agriculture, suggest a
total crop of about 670,000,000 bushels as compared with 496,000,000 bushels last season and a ten-year average of 828,000,000 bush­
Page 8



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, May, preliminary total 102.5;
residential 35.9; all other 66.6.

cash, and deposits with the Reserve banks. Excess reserves of
member banks on June 12, were above $2,500,000,000 for the first
time, but declined somewhat in the following week.
At reporting member banks in leading cities there was an
increase of $540,000,000 in net demand deposits in the four weeks
ending June 12, due in part to gold imports. Time deposits de­
clined by $150,000,000, of which $70,000,000 represented a decline
at New York City banks consequent upon a ruling of the New
York Clearing House in May prohibiting the payment of interest*
on New time deposits maturing in less than six months. Total
loans and investments of reporting banks showed no important
changes. Short-term open-market interest rates continued at low
levels in May and the first half of June.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102