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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BU SIN ESS CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Released for Publication On and After the Morning of June 30, 1922 W I L L I A M M cC. M A R T IN , CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT S T E A D Y improvement in general business con ditions throughout this district continued dur ing the past thirty days. In virtually all lines investigated reports indicate good gains over the corresponding period last year, also over the preced ing month this year. In addition to betterment in concrete results, sentiment in both city and country is considerably more optimistic than earlier in the year. The latter fact is reflected in a disposition on the part of merchants and the public to more freely supply their needs, immediate and future. Alm ost unanimously manufacturers, jobbers and whole salers indicate substantial increases in unfilled orders. Many large distributors of commodities w ho in recent months had little or no future busi ness booked, now have a showing of orders for forward shipment comparable with their volume during normal years in the past. The principal reason given for the growing activity in commercial lines is the favorable crop prospects. In the Eighth Federal Reserve District crops already gathered and marketed have been large and of exceptional quality. Yields of early fruits and berries in the Southern states were the largest in recent years, and the same is true rela tive to vegetables. In the main, prices obtained for these productions were satisfactory, and better organized marketing facilities enabled the producers to minimize losses and get in their money promptly. The United States Department of Agriculture makes the average condition of all crops in the seven states entirely or partly within this district (1 0 0 = 10-year average) 105.8 per cent as of June 1, against 92.2 per cent on June 1, 1921. Other favorable factors mentioned as affecting the general situation are decreased unemployment, more seasonable weather, willingness of the public to buy, easier and more plentiful credits, activity in building and further progress in the direction of price stabilization. Changes in prices of manufac tured goods were relatively slight, with advances about balancing declines. This general statement holds true as well of prices of the leading agricul tural products. There was a sharp decline in wheat values between May 15 and June 15, but during the same period middling cotton advanced in the St. Louis market from 19.50c to 21.50c, and the market for corn, oats and other cereals was well sustained. Farmers are still obtaining high prices for their hogs, sheep and cattle. A general comment by merchants and manu facturers is that recent orders cover a broader variety of merchandise than heretofore. W hile the public is still economizing and displaying conser vatism in filling its needs, a much greater variety of goods is being called for. This has compelled retailers to increase their stocks and give greater attention to assortments. D rygoods houses report that they are receiving orders in quantity for cer tain goods which have been neglected for many months. These same interests say that many of their country customers wrho have purchased vir tually nothing during the past year and a half, are now ordering substantial bills of goods, with a fair proportion of the total for forward delivery. W hile the first weeks of June showed little diminution in the recent activity, there is some disposition to await the outcome of the year’s crops before increasing commitments. The coal strike and agitation in railroad labor circles are having a tendency to hold back business to some extent, but the issue of fall business in this district, according to a great m ajority of the interests reporting to this service, is dependent largely upon the outcome of crops. The immediate need for all sorts of commodities, especially for daily consump tion, is indicated by the heavy growth in recent weeks of the mail order business of wholesale houses, and the volume of purchases for immediate shipment. W ith success in its agricultural sections, prosperity throughout this district during the fall and winter is virtually assured. Aside from a tendency to price increases, the fuel situation in this district has undergone no change worthy of note during the past thirty days. Reports from industries and public utilities indicate that heav}r drafts have been made upon reserve stocks, but thus far no one has suffered from lack of supplies. Leading consumers have made their purchases with the utmost caution, and enter the market heavily only when they can purchase at what looks like bargain prices. Offerings of K en tucky coal continue on a liberal scale, and in the immediate past Alabama coal has been placed^ in the northern markets of the district. The leading producers of by-product coke still have large reserves, and are offering it at unchanged prices. There has been considerable substitution of coke for bituminous coal for raising steam, and certain important users are making arrangements to tem porarily burn oil under their boilers. In the ninth week of the strike (M ay 29—-June 3) the combined production of bituminous and anthracite was 4,631,000 tons, which compares with 8,400,000 tons during the same week in 1921. Unbilled cars of bituminous coal at the mines dropped from 30,730 cars on April 8 to 6,312 on June 3. A ccording to officials of railroads operating in this district there has been a satisfactory gain in traffic, both freight and passenger, during the period under review. Curtailment of the fuel movement has been largely offset by unusually large forward ings of early fruits and vegetables. In the week ended May 27, revenue freight loaded in the country as a whole amounted to 821,121 cars, against 792,459 cars for the week ending M ay 20, 777,459 for the week ending May 13, and 795,335 cars for the week ending May 27, 1921. The St. Louis Terminal Rail way Association, which includes in its membership 26 roads operating through this gateway, inter changed 165,168 loads in May, against 138,690 loads in April and 147,879 loads in May, 1921. During the first nine days days of June 48,935 loads were inter changed, against 47,185 during the first nine days of May and 40,346 loads during the corresponding period in April. Passenger traffic of the St. Louis roads in May was 6 per cent under a year ago, but 7 per cent larger than in April. The Mississippi W arrior Service, Inland W aterways, which operates the St. Louis-N ew Orleans barge line on the Mississippi River, car ried approximately 67,374 tons of freight during May, exceeding by 7,000 tons its largest previous towage. The line also established a net revenue record of approximately $42,000. M ay was the sixth consecutive month in which the service earned a surplus above operating costs and a reserve for depreciation. A ccording to reports of 235 automobile dealers scattered through the Eighth Federal Reserve D is trict, sales in M ay were the largest in more than eighteen months, and the business as a whole is on a more satisfactory basis than at any time since the reaction set in about tw o years ago. Particular emphasis is laid upon the increased purchases in the country. Dealers in the small towns are driving cars from the larger distributing centers to deliver on sales already made. But in addition to gains in the lower priced cars, there has been a marked improvement in sales of passenger cars selling from $2,000 to $2,500. The tractor business, while still under normal, has displayed considerable life during the past sixty days. Accessories are m oving well, and the tire business is described m ore nearly nor mal than at any time since the depression started in 1920. The U. S. Department of Commerce reports the production of cars and trucks for the entire industry, with only a few companies missing, as fol low s: January, 90,842; February, 121,907; March, 171,096; April, 218,456. Decided improvement in collections, extending generally through the district, was noted during the period under review. In many localities where backwardness in settlements was the rule earlier in the year, bills are being paid, and there was sat isfactory reduction in indebtedness of long stand ing. Especial improvement was noted in the fruit grow ing sections, where the crops this season were unusually successful, whereas last season there was almost complete failure. Merchants and bank ers in the coal mining region, where the strike is in progress, report numerous requests for exten sions, and general backwardness in collections. iVnswers to 305 questionnaires addressed to representative interests in various lines through the district asking for data relative to collections show the follow ing results: 7.2 per cent excellent; 40 per cent fair; 52 per cent good and only .08 per cent poor. The per capita circulation of the United States on June 1, 1922, was $48.78, against $48.89 on May 1, 1922 and $56.09 on June 1, 1921. Commercial failures in the 12 Federal Reserve Districts during the months of May and April, with comparative figures for May, 1921, as compiled by Dun’s, were as follow s: District May 1922 Boston, First........................ ......................... New York, Second..................................... Philadelphia, Third..................................... Cleveland, Fourth....................................... Richmond, Fifth......................................... Atlanta, Sixth............................................... Chicago, Seventh......................................... St. Louis, Eighth......................................... Minneapolis, Ninth..................................... Kansas City, Tenth................................... Dallas, Eleventh......................................... San Francisco, Twelfth............................ 186 419 87 173 169 179 231 117 79 70 84 166 Total................................................... 1,960 NUMBER April May 1922 1921 May 1922 L IA B IL IT IE S April 1922 May 1921 165 420 78 156 148 264 284 120 116 66 167 183 97 222 69 102 99 148 169 101 59 67 92 131 $ 3,476,746 16,605,233 1,568,262 3,359,073 2,544,963 3,784,262 4,254,855 1,750,033 1,342,341 1,294,560 2,175,351 2,247,207 $ 2,403,840 33,677,526 1,468,343 2,840,844 3,277,906 6,557,398 10,909,837 2,244,444 2,268,658 1,937,395 3,865,301 1,607,145 $ 2,783,066 11,172,495 1,516,894 1,969,231 2,657,764 4,750,423 5,624,522 20,612,058 1,203,396 1,073,219 1,851,774 1,851,629 2,167 1,356 $44,402,886 $73,058,637 $57,066,471 M A N U F A C T U R IN G A N D W H O L E S A L E Boots and Shoes — The boot and shoe industry continues to enjoy marked prosperity. Sales of the 11 reporting interests in May increased from 10 to 45 per cent in dollar value over the corresponding month last year and from 15 per cent to 80 per cent in numbers of pairs. Gains of from 2 per cent to 11K per cent were made in May sales over those of April. Orders received dring the first half of June indicate about the same rate of increase as that recorded in May. The comment is made that recent orders are m ore generally spread over the entire line than was the case earlier in the year, with a revival o f the demand for the better grades of both men’s and w om en’s shoes. Orders for forward delivery are picking up, and are expected to be much larger as soon as something more definite is determ ined relative to styles for the com ing autumn and winter. One of the leading interests reports that approximately 75 per cent of its May business repre sented mail orders and sales for immediate delivery. This same interest has sold its output for the next sixty days, and expects to operate at capacity through the balance of the year. Factory operation in the district during the period under review was at from 90 to 100 per cent of capacity. N o change in prices took place since the preceding issue of this report. Hides are firmer, and the tendency of the leather market is higher. Clothing — Considerable diversity features the May results of clothing interests reporting to this bank. Sales ranged from 10 per cent less to 101 per cent larger than in May, 1921, and there was also considerable unevenness in the comparison of May sales with those of April. A general comment is that business is steadily improving, and while the demand still centers in low priced suits, more of the better grade goods are being purchased. Retailers earlier in the year underestimated their needs, and manufacturers are now receiving a heavy volume of mail orders, which in many instances they have not the goods to fill. Distributors of wom en’s apparel report a heavy volum e of reorders, particularly from the South. Iron and Steel Products — W hile there is a decided lull in the purchasing of pig iron, and other raw materials, the demand for finished and semi finished ferrous goods continues to maintain the activity noted in the preceding issue of this report. The decline in buying of raw material is attributed to the fact that leading melters have supplied their immediate needs, and to the sold-out condition of many important furnaces. Southern pig iron ad vanced to $19 to $20 per ton, while Northern iron of the same grade is quoted at $23. The melt of pig iron and scrap in the district increased approxi mately 8$4 per cent in May over the April level. Structural steel fabricators report specifications received in May the heaviest in any month this year. Seven leading stove manufacturers report sales in May 10 per cent to 115 per cent larger than for the same month in 1921, and 10 to 60 per cent in excess of those made in April this year. Five farm imple ment manufacturers and distributors reported their May sales from 6 to 82f4 per cent larger than the same month last year and from 2 per cent less to 32 per cent larger than in April. Electrical supply interests, eight reporting, show sales in May 4 per cent less to 51 per cent larger than a year ago and steady to 9 per cent larger than in April. One manufacturer specializing in electrical equipment for automobiles says that rating his production of January 1 as 100 per cent, shipments for the year to date are as follow s: January, 100 per cent; Feb ruary, 120 per cent; March, 158 per cen t; April, 167 per cent and M ay 217 per cent. T he recent gains indicated by railway supply interests were continued during the period under review, the four reporting showing M ay sales from 34 to 52 per cent over those of May, 1921, and from 5 to 19 per cent in excess of April this year. Hardware — M ay sales of the 12 reporting interests were unchanged to 25 per cent larger than for the corresponding period a year ago, and 2 per cent less to 7 per cent larger than in April. The comment is made that business is broadening from week to week, with the proportion of orders for forward delivery steadily increasing. A t the moment building hardware is leading the line, but there has been an excellent movement of seasonal goods, especially wire and wire products, hand implements, refrigerators, electric fans, and dairy supplies. Sales of hardware supplies for farms and lumber camps in the South show enormous gains over the corresponding period in 1921. Flour — Production of 11 leading mills in the district during May was 279,970 barrels against 252,868 barrels in April, 329,428 barrels in March and 250,472 barrels in February. The demand for flour throughout M ay was dull and featureless. L it tle in the way of export buying materialized, and domestic consumers were taking only what they had to have, the disposition being to await the new wheat crop and possibly lower prices before stock ing up. A fairly active inquiry existed for clears and low grade flours, but the mills were unable to sell the higher grades, and had no clears to dispose of. Choice soft milling wheat continues extremely scarce and is being held at a high premium over the ordinary varieties. Mill operations in the district during the period under review were at from 40 to 50 per cent of capacity. Groceries — The 13 reporting interests show May sales from 6 per cent to 36 per cent larger than for the corresponding period last year and un changed to 18 per cent larger than in April, with one exception which reported a decline of 18 per cent under last May and 10 per cent under April. This firm is located in the heart of the Illinois coal belt, and its business has been seriously affected by the miners’ strike. Sales generally through the agricul tural districts have been stimulated by the demand for the planting and harvesting season. A rather general comment is that the grocery business has worked back to a stable basis, and for the first time in many months operations are being conducted on a fair margin of profit. Furniture — A ccording to the 11 reporting interests, the recent growth in building, particularly of homes, has had a stimulating effect on the furni ture industry. Factory operations have been stead ily increasing during the past ninety days, and in May were at from 75 to 80 per cent of capacity. May sales of the firms reporting were 10 per cent to 5 iy 2 per cent larger than for the same month in 1921, and 5 to 17 per cent better than in April. The demand at the moment centers chiefly in dining room and bedroom sets, but there is also an excel lent movement of office furniture. During the past sixty days there has developed a tendency to buy better and more expensive goods, and for the first time in many months stock orders are beginning to materialize. Drugs and Chemicals — Sales of the 7 reporting interests in May showed decreases of from 7 / T2 per cent to gains of 15 per cent as compared with the same month in 1921, and losses of 4 per cent to gains of 10 per cent as contrasted with April. The retail trade is buying with more conservatism than here tofore, and the line generally is less active than earlier in the year. The firms showing gains were able to achieve the results only by intensive effort and the featuring of seasonal specialties, such as soda fountain supplies. There is a strong demand for spraying materials and insecticides, stocks of which are scant and prices higher. Toilet articles and sundries are described as slow, with a prefer ence being shown for cheaper and inferior quality goods. The trend o f drug and chemical prices is higher. O f 21 important articles in the list on which price changes were made during May, 13 advanced and 8 declined. Lumber — The unprecedentedly heavy m ove ment of lumber in May, due to unfavorable weather and floods during the early spring, slowed down preceptibly in the opening weeks of June. In March and April receipts o f lumber in St. Louis totaled 28,000 cars, and in M ay receipts reached 19,500 cars. Figuring about 20,000 feet to the car, accretions to local stocks resulting from this movement were about 102,000,000 feet. W hile the large yards are heavily stocked, retail yards and a m ajority of w oodw orking industries have less than seasonal holdings. This is true both of city and country yards, the latter having done little in the way of stocking early in the season. Expectation of the general railroad rate reduction has been a deterrent to stock buying by retail lumbermen throughout the first half of the year. The present lull, which is expected to continue until adjustment of the freight rate and early harvests are disposed of, has not affected the strength of the market for building lumbers. M ost of the mills are sold ahead, and their position is strengthened by orders from the railroads and car shops, which are still in the mar ket for car material, bridge timbers and cross ties. Prices on shipments of lumber to be sold while m ov ing, however, have weakened, especially on dimen sion and common boards. H ardwood prices con tinue strong, despite a decided slacking in recent buying movement. Industrial Pow er Consumption — Puiblic utility companies in the four leading cities of the report continued increases in consumption of electrical power by industrial customers during May pared with the same month last year. For the first time since this compilation was started, all cities a substantial increase during the current month over the preceding one. The comparative figures Representative May, 1922 Customers St. Louis..... 63 10,474,297 k. w. h. Memphis .... 31 975,360 “ Little Rock.. 11 720,932 “ Louisville .. 81 2,206,411 “ Total.... 186 14,377,000 April, 1922 8,599,980 k. w. h. 941,900 “ 669,121 “ 2,098,280 “ May, 1922 comp, to April, 1922 + 21.8 % + + + 3.6% 7.7% 5.2% + 16.8% 12,309,281 district as com showed fo llo w : May, 1922 comp, to May, 1921 + 3 2 .3 % + 5 3 .6 % + 4 6 .9 % + 3 6 .9 % May, 1921 7,918,143 k. w. h. 635,070 “ 490,597 “ 1,612,782 “ 10,656,592 + 3 4 .9 % R E T A IL Department Stores — T he condition of retail trade during May, 1922, in the leading cities of this dis trict is reflected in the follow ing statement, compiled from reports of 21 representative department stores: (Percentages) St. Net Sales: Louis May, 1922 compared with May, 1921........................ - 2.3 Period January 1 to May 31, 1922, compared with same period in 1921.....................................-11.1 Stocks at end of May, 1922: Compared with same month in 1921................- 3.3 Compared with stocks at end of April, 1922....- 2.6 Average stocks on hand at end of each month since January 1, 1922, to average monthly sales during same period.....................................361.9 Outstanding orders for May, 1922, compared with previous year's purchases.......................... 5.8 Louisville - 2.7 Memphis - 4.1 Little Rock -17.7 Evansville -18.0 Quincy - 6.1 8th District - 4.1 - 7.9 -11.2 -18.9 -11.8 -13.2 -11.4 -11.4 -5 .1 - .7 -.7 +15.5 - 4.1 -13.2 -2 -1 - 2.0 - 2.9 - 2.8 588.6 553.3 427.3 695.8 444.3 430.3 1.9 9.6 3.9 1.7 3.6 5.3 A G R IC U L T U R E Reports o f the U. S. Department of A gricul ture and those o f the several states in the Eighth Federal Reserve District covering May and the first half of June almost unanimously indicate im provement in crop conditions, and prospects for large yields. This general estimate of the situa tion is confirmed by replies to questionnaires ad dressed by this bank to agriculturists and country merchants scattered throughout the district. The crops already garnered, particularly early fruits and vegetables, were in numerous instances of bumper proportions, and prices realized were in a large majority of cases high enough to return good prof its to the producers. W eather during the past few weeks has been ideal for farm operations and the growth of planted crops. This is true particularly in sections where corn and cotton are the important productions. In the areas which were affected by the floods, heavy losses of winter wheat and oats were sustained, but the fields have dried out suffi ciently to permit of planting corn and forage crops, with which it is hoped to offset a considerable part of the loss occasioned by high water. Harvesting of winter wheat in the district is in full swing, and in the southern sections has been completed. Early reports from the wheat fields are optimistic, and indicate yields equal to, or in excess of the Department of Agriculture’s June 1 estimate. Quality in some localities has been lowered by high temperatures during the filling period, and the berry is light in weight. In Illinois the general condition is above the average, and indications in Missouri are for a yield of 43,733,000 bushels against 34,390,000 bushels harvested in 1921. The district as a whole is expected to produce 83,390,000 bushels of winter wheat, against 66,110,000 bushels last year. The late spring and excessive rainfall militated against the acreage of oats, but the crop is making good headway. T he yield for this district will be under that of last season, the total based on the June 1 estimate being placed at 48,689,000 bushels, against 59,090,000 bushels last year. Corn planting is nearing completion, and the recent dry, warm weather has put fields in condition to permit of cultivation. Generally through the dis trict the plant is up to a good stand, and fields are fairly clean of weed growth. Private reports to this bank indicate that the acreage in the Southern states will be smaller than a year ago, probably from 15 to 20 per cent. In Missouri and Illinois fair gains in acreage over last year are indicated. For Missouri the increase will be approximately 365,000 acres. Reports from the tobacco counties of Kentucky and Tennessee indicate a considerable increase in acreage of all varieties. A ll of the tobacco in the burley district of Kentucky has been delivered and is now in the hands of the Burley T obacco Growers Co-operative Association, with a certain percentage of the purchase price having been paid to the farm ers. An effort is being made to effect the organiza tion of the co-operative marketing association in the dark tobacco districts, which is meeting with satisfactory results. High temperatures and sunshine over virtually all cotton producing sections of the district during the past few weeks has greatly improved the condi tion of that crop. Good growth is reported and activities of the boll weevil have been retarded. Intensive cultivation is general, and freer use of fertilizers than last season is reported in Arkansas and other sections of the district. The supply of farm labor is abundant, with wages reported unchanged to as much as 25 per cent under those paid last season. T he U. S. Department of Agriculture, in its report as of June 1, 1922, gives the condition of winter wheat in States of the Eighth Federal Reserve District as follow s: C O N D IT IO N June 1 1922 10 yr. av. % Illinois ........................................ 89 Indiana ....................... ...............88 Kentucky .................................... 93 Missouri ..................... ...............83 Tennessee .................................. 82 United States ............ ............... 81.9 F O R E C A ST 1922 from June 1— May 1 DEC. 1921 Condition ♦Bu. ♦Bu. % 75 77 82 77 82 81.5 51,613 33,977 8,644 43,754 5,196 607,333 ♦Bu. 48,094 32,974 8,336 43,044 5,616 584,793 P R IC E PER BU. June 1 1922 1921 E S T IM A T E 5 yr. av. 1916-20 ♦Bu. 42,638 24,144 6,340 34,390 4,500 587,032 41,201 33,668 8,959 39,479 6,077 565,905 cents cents 116 121 136 115 139 134 135 140 128 146 OATS A C R E A G E 1922 % of Acres C O N D IT IO N June 1 1922 10 yr. % % FO R EC A ST June 1 from June condition ♦Bu. 80 76 67 85.5 88 88 84 89.5 132,754 47,912 28,068 1,304,664 1921 Illinois ............. Indiana ............. Missouri ........... United States . 86 85 60 93.3 av. 3,951 1,596 1,289 41,822 DEC. 1921 E S T IM A T E 5 yr. av. 1916-20 P RICE PERBUSHEL June 1 1922 ♦Bu. 121,741 45,072 42,960 1,060,737 ♦Bu. 1921 cents cents 32 35 41 38.4 181,914 71,070 48,047 1,412,602 35 35 42 37.9 ♦In thousands— i. e., 000 omitted. Range of prices on typical products in the St. Louis market between May 15 and June 15, with closing quotations on each of these dates, and on June 15, 1921: Close May 15 July wheat..................... . Per bu. << September wheat......... << July corn........................ it September corn............ tt July oats.......................... No. 2 red winter whe t “ “ No. 2 hard wheat....... No. 2 corn...................... (( No. 2 white corn......... No. 2 white oats.......... Flour: soft patent..... Per bbi. « Flour: spring patent.. Middling cotton........... Per lb. Hogs on hoof............... Per cwt. NOTE: $1.47 @ .60*4 ao/ 2 6.75 7.80 @ @ m @ 8.50 @ $1.22*4 1.175/s .63 .6 5 ^ .41 1.48 1.38 .60 .61*4 .41 7.50 8.00 .1 9 ^ 10.95 High______ Low_________ Close June 15______ Close June 15,1921 $ 1.25*4 1.20 MVs .66H .4134 1.40 1.39*4 .63 .62*4 .41 7.50 8.30 .21*4 10.95 $1.06*6 1.07*6 .58*6 .61H .35 1.15 1.10 .57 .59 .35*4 5.75 6.90 .19*4 8.15 $1.17 @ .60 @ 5.75 @ 6.75 @ 8.50 @ May wheat closed at $1.21; May corn at 58c and May oats at 37*4c. $1.07 1.08% .60*4 .635/s .35 1.18 1.10 .58*4 .60*4 .35/2 6.75 6.90 .21*4 10.75 $1.46 .61 7.40 8.50 6.25 $1.26*4 1.1934 .585/s .61*4 .36 @ 1.48 1.50 .58 @ .61% .38 @ 9.50 @ 8.75 .1154 @ 8.20 C O M M O D IT Y M O V E M E N T Receipts and shipments of important commodities at St. Louis during May, 1922 and 1921, and April, 1922, as reported by the Merchants’ Exchange, were as fo llo w s : Flour, barrels...................... Wheat, bushels.................. Corn, bushels...................... Oats, bushels...................... Lead, pigs............................ Zinc and Spelter, slabs Lumber, cars...................... Meats, pounds.................... Fresh Beef, pounds............ Lard, pounds...................... Hides, pounds...................... May, 1922 348,210 2,558,400 2,870,352 2,603,625 406,880 338,320 19,518 20,510,300 4,447,800 7,264,700 Receipts April, 1922 May, 1921 303,400 366,550 1,422,225 2,823,807 1,196,000 2,355,600 1,294,000 2,596,000 308,670 266,160 198,180 107,420 13,131 11,017 20,479,500 17,417,300 513,400 31,000 2,145,300 3,318,200 3,484,500 6,992,700 May, 1922 443,460 2,284,320 2,145,420 1,959,760 217,110 308,040 14,392 28,389,100 19,205,100 8,010,000 8,849,700 Shipments April, 1922 437,130 1,331,660 1,211,995 1,349,940 122,150 164,150 9,699 22,364,200 16,335,100 6,728,300 8,025,400 May, 1921 337,020 2,197,610 1,309,050 1,764,355 136,380 237,310 9,139 20,801,200 20,345,300 7,242,600 6,049,400 L IV E STO C K M O V E M E N T A s reported by the St. Louis National Stock Yards, receipts and shipments of live stock in May, 1922 and 1921, and April, 1922, were as follow s: May, 1922 Cattle and Calves...................... 91,939 Hogs ............................................. 337,158 Sheep ............................................. 49,635 Horses and Mules...................... 3,758 Receipts April, 1922 May, 1921 55,835 70,421 262,953 262,788 20,497 67,642 4,981 3,482 May, 1922 47,095 219,866 16,205 4,009 Shipments April, 1922 32,110 184,144 5,519 5,750 May, 1921 36,449 146,116 34,377 4,394 L A B O R S IT U A T IO N The labor situation in this district is reflected in the follow ing table, compiled from reports received from 200 leading employers in 20 of the largest cities in the district: Men May 31, 1922...................................104,522 April 30, 1922.................................102,460 May 31, 1921................................... 95,402 Women 16,704 20,058 15,542 W age Earners Total Normal 121,226 147,352 122,518 156,761 110,944 147,352 % of Normal -17.7 -21.8 -24.7 Pay Roll $8,837,054.29 7,314,631.46 8,941,526.23 From the above tabulation it will be noted that the number of employes of the reporting interests increased 10,282 or 9.2% (men increased 9.5% while women increased 7.4% ) between May 31, 1921, and May 31, 1922. On M ay 31, 1921 the number was 24.7% under normal and on April 30, 1922, the total was 21.8% under normal as compared with 21.8% on May 31, 1922. W ages figured on a semi-monthly basis, decreased 10.2% between May 31, 1921 and May 31, 1922. B U IL D IN G Building permits issued in the five leading cities of the Eighth Federal Reserve District in May showed substantial increases over April, and the total cost involved was approximately three times as large as for the corresponding month in 1921. Gains proportionately as large are indicated in reports from the country districts and smaller cities and towns of which no regular tabulation is kept. The class of projects covered by permits issued in May include a greater variety of construction than any preceding month this year. W hile numerically residential construction heads the list, the number of business buildings, garages, schools and churches, industrial buildings, etc., figure more prominently than heretofore. Road building is being pushed in all states of the district, with Missouri, Illinois and Arkansas making a par ticularly impressive show ing in this respect. In some sections of the South contractors and builders report that backwardness in deliveries on certain materials are temporarily delaying their work. Comparative figures for May in leading cities of the district fo llo w : Permits 1922 1921 St. Louis..............................858 572 Louisville ..........................331 102 Memphis ............................338 205 Little Rock...................... 88 ' 69 Evansville ........................ .112 67 May totals........................ 1,727 April totals........................ 1,553 March totals.................... 1,405 1,015 962 927 New Construction___________ Cost 1922 1921 $2,099,960 $ 845,665 3,210,250 444,650 1,032,644 752,192 297,605 238,825 249,545 140,315 $6,890,004 5,400,263 4,510,577 $2,421,647 1,983,911 2,083,569 _____________Repairs, etc. Permits Cost 1922 1921 1922 1921 666 571 $296,920 $241,530 197 273 128,950 96,800 89 46 49,330 34,620 155 160 46,991 42,239 121 64 31,660 18,000 1,228 1,097 915 1,114 1,116 1,164 $553,851 676,421 502,030 $433,189 419,646 488,705 F IN A N C IA L note and deposit liabilities decreased 5.6 per cent, standing at 66 on June 15. Acceptances — The market for acceptances continues inert and featureless. Virtually no bills are originating in this district, and the market for outside offerings is extremely dull. Purchases by this bank in the open market, however, gained heavily in May, the total being $3,815,505, against $150,743, in April. Commercial Paper— Brokers report the volume of their sales holding up well, but the demand is rather spotty and erratic. The decline in rates has removed country banks very largely from the mar ket, and the demand from large city institutions is easily satisfied. Rates were steady with the preced ing thirty days, ranging from 4 % to 4% per cent. Bonds — The market for investment bonds slowed down noticeably during the past four weeks, due in large measure to the advance in prices. Bond houses report that the recent buying movement heavily reduced their portfolio holdings, and there is a scarcity of issues to supply the grade of securi ties desired at the moment. There is still a strong demand for Government obligations of all kinds, this bank’s quota of the latest issue of 3^4 per cent Treasury Certificates of Indebtedness being heavily oversubscribed. Aside from a further strengthening in the gen eral position, financial conditions in the district developed no change w orthy of note during the period under review. Liquidation continues on a fairly liberal scale, and both city and country banks, particularly the former, are well equipped with loan able funds. The demand for credits to finance agricultural operations, usually felt at this season, is less pronounced than during former years. This is attributed to the smaller cost at which crops are being produced, and the fact that local banks in the rural districts are able to take care of their custom ers with less outside aid than in the past. Banks in the large cities report that mercantile loans are being liquidated, and the demand from general commercial sources is moderately active only. The marketing of early fruit and vegetable crops, which were very successful in this district, has served to increase cash resources in sections where these crops are produced in quantity. There is still a good demand for financing live stock operations. Between May 15 and June 15, the net deposits of the Federal Reserve Bank of St. Louis increased $2,143,000 and Federal Reserve notes in circulation decreased $4,894,000, while bills discounted for member banks decreased $2,444,662. The total reserve carried against combined Federal Reserve Interest Rates — Between May 16 and June 15 the high, low and customary interest rates prevailing in St. Louis, Memphis and Little Rock, as reported by banks in those cities were as fo llo w s : Customers’ Prime Commercial Paper: 30 to 90 days.......................................................................... 4 to 6 months........................................................................ Prime Commercial Paper purchased in open market: 30 to 90 days.......................................................................... 4 to 6 months........................................................................ Loans to other banks............................................................... Bankers’ Acceptances of 60 to 90 days: Endorsed .............................................................................. Unendorsed .......................................................................... Loans secured by prime stock exchange collateral or other current collateral: Demand ................................................................................ 3 months .............................................................................. 3 to 6 months...................................................................... Cattle Loans.................................................................................. St. Louis H L C Louisville H L C 6y2 Ay2 5H 6 / 2 41/2 5*2 i 6 ■5% 4H 4*4 .5*4 4*4 4*4 6 5 5*4 43/4 4'A 4*2 4*4 4y4 4*2 6 5 5*^2 3tt ■3H ■SH 3Vs m ..... .6 6 6 7 m 6 5 4*2 4*4 5*4 5 5 5 5 6 6 8 8 6 6 6 6 Little Rock C H L 8 8 6 6 5 4l/ 2 5 7 7 ...... .......... .. 7" ” <r 6 6-7 ................. 5 6 6 6 sy2 5 6 6 6 5 5 5 5 s ’" 5 6 ...... Memphis H L C 6 6 6 8 8 8 7 7 7 6 6 6 6 6 6 6 7 7 6 6 6 8 8 8 8 8 8 7 7 7 7 7 6 7 7 7 8 8 6-7 Savings Deposits — The changes in the number of savings accounts and the amount of savings depos its, exclusive of postal savings deposits, since a month ago and a year ago, as reported by the largest mem ber banks in the leading cities of this district, are shown in the follow ing ta b le: _________________ June 7, 1922 Number Number Amount Banks Savings Savings Reporting Accounts Deposits St. Louis.............. Louisville ......... Memphis ............ Little Rock......... Evansville .......... 12 7 7 5 4 Total....... 35 236,781 135,193 55,668 26,130 20,679 474,451 May 3, 1922 Amount Number Savings Savings Deposits Accounts June 1, 1921 Number Amount Savings Savings Deposits Accounts $ 64,697,000 20,810,000 14,690,000 6,006,000 8,138,000 235,191 133,912 55,395 25,222 20,936 $ 63,795,000 20.502.000 13.437.000 6,101,000 8,155,000 223,512 117,949 53,311 22,988 20,008 $ 61,290,858 17,650,885 13,160,150 5,458,029 7,988,459 $114,341,000 470,655 $111,990,000 437,768 $105,548,391 Condition of Banks — The condition of banks in this district and changes since a month ago and last year, are reflected in the follow ing comparative statement, showing the principal resources and liabilities of member banks in St. Louis, Louisville, Memphis, Little Rock and E vansville: June 14, 1922 May 10,1922 June 15,1921 37 37 $ 13,346,000 126,635,000 274,112,000 $ 17,633,000 117,496,000 283,465,000 Total loans and discounts..........................................................-$409,758,000 Investments: U. S. Bonds.......................................................................... .. 27,836,000 U. S. Victory Notes......................................................... 2,422,000 U. S. Treasury Notes....................................................... .. 11,238,000 LF. S. Certificates of Indebtedness................................. 8,297,000 Other bonds, stocks and securities................................. 81,928,000 $414,093,000 $418,594,000 27,011,000 3,403,000 6,212,000 5,090,000 75,828,000 26,715,000 2,061,000 1,935,000 3,305,000 67,311,000 Total Investments................................................................$131,721,000 Reserve Balance with Federal Reserve Bank................... 40,675,000 Cash in vault................................................................................ 7,231,000 Net demand deposits on which reserve is computed. .. 318,100,000 Time deposits............................................................................... . 160,508,000 Government deposits................................................................. ... 9,414,000 Bills discounted with Federal Reserve Bank.................... 2,722,000 Bills payable with Federal Reserve Bank........................... 2,658,000 $117,544,000 44,837,000 7,039,000 320,080,000 161,493,000 6,454,000 4,316,000 3,353,000 $101,327,000 42,687,000 7,995,000 299,816,000 142,997,000 7,042,000 35,055,000 14,949,000 Number of banks reporting................................................... 37 Loans and discounts (excluding rediscounts): Secured by U. S. Govt, obligations.............................-$ 16,145,000 Secured by stocks and bonds other than U. S. bonds 121,684,000 All other loans and discounts........................................ .- 271,929,000 Debits to Individual Accounts — The following table gives the total debits charged by banks to check ing accounts, savings accounts and trust accounts of individuals, firms, corporations and U. S. Government and also certificates of deposit paid, in the leading cities of this district during the past month and corres ponding period a year ago.^ Charges to the accounts of banks and bankers are not included. These figures are considered the most reliable index available for indicating actual spending by the public during the periods which they cover: Debits for four weeks ending............... June 14, 1922 St. Louis......................................... ............. $513,248,000 Louisville ....................................... .............. 132,527,000 Memphis ....................................... ............. 94,734,000 Little Rock..................................... .............. 34,805,000 East St. Louis and Natl. Stock Yards.. 36,140,000 Evansville ..................................... ............. 25,776,000 Springfield ..................................... .............. 12,986,000 Quincy ........................................... .............. M Z U M 972,000 Owensboro ................................... .............. 3,533,000 Greenville ....................................... .............. Helena ........................................... ............. 4,055,000 June, 1922 comp, to May, 1922 + 1.4 + 6.4 - 7.5 - 2.7 - 9.0 - 3.2 +25.9 - 1.1 -10.1 4-11.4 4- 9.6 May 17, 1922 $506,408,000 124,565,000 102,433,000 35,756,000 39,721,000 26,636,000 10,309,000 8,721,000 4,415,000 3,171,000 3,699,000 June 15, 1921 $535,858,000 117,162,000 72,641,000 33,589,000 34,269,000 19,181,000 11,725,000 8,719,000 June, 1922 comp, to June, 1921 - 4.2 + 13.1 + 30.4 + 3.6 + 5.4 + 34.4 + 10.8 - 1.0 F E D E R A L R E S E R V E O P E R A T IO N S In May the Federal Reserve Bank of St. Louis discounted $65,439,357 of paper for 377 member banks, which is an increase of $8,842,051 over the amount discounted in April and an increase of 99 in the number of banks accommodated. Acceptances purchased in May amounted to $3,966,248, an increase of $3,815,505 over the preceding month. The discount rate of this bank remained unchanged at 4^2 per cent. Changes in the assets and liabilities of the Federal Reserve Bank of St. Louis since a month ago and last year are shown in the follow ing comparative statement (in thousands of dollars) : RESOURCES: L IA B IL IT IE S : June 14, 1922 Gold Reserves..................$ 74,193 Legal tender notes, silver, etc...................... 16,665 May 17, 1922 $ 83,999 June 18, 1921 $ 77,754 17,679 12,522 Surplus ............................. Total Cash Reserves..$ Discounts secured by U. S. Govt, obligations........ Discounts otherwise secured or unsecured.. Bills bought in open market................ U. S. Govt, securities.... 90,858 $101,678 $ 90,276 . Reserve for U. S. Govt, franchise tax............... 2 8 717 6,430 7,540 30,623 Deposits ......................... 67,849 68,554 67,648 12,265 14,762 46,385 F. R. notes in circulation ................... 68,694 72,496 104,272 9,597 31,605 2,190 28,216 372 22,860 F. R. Bank notes in circulation ................... 3,348 3,335 6,242 Deferred Availability items ............................. 33,297 34,301 32,914 Other liabilities ............. 935 771 1,812 Total liabilities........... $188,221 Combined reserve ratio. . 66.5% $193,544 72.1% $226,449 52.5% Total earning assets.—$ 59,897 Uncollected items............ 33,715 Other resources.............. 3,751 Total Resources..........$188,228 $ 52,708 35,556 3,602 $100,240 34,138 1,795 $193,544 $226,449 June 14, 1922 Capital paid in.... ............ $ 4,708 May 17, 1922 $ 4,691 June 18, 1921 $ 4,498 9,388 9,388 8,346 (Compiled June 20, 1922)
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