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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication on Morning of June 30, 1939
FEDERAL
RESERVE
B A N K
State Capitol, Jefferson City, Mo.
OF
ST * L O U I S
SU M M AR Y OF EIGH TH DISTRICT
June 1, 1939, comp, with
1938
Av. 1928-37
Agriculture:
Estimated produc. of winter wheat...... —21.7%— 2.5%
May, 1939, comp, with
Livestock:
Apr., 1939 May, 1938
Receipts at National Stock Yards........ +29.0%— 3.1%
Shipments from aforesaid Yards........... +17.4 — 6.4
Production and Distribution:
Sales by mfrs. and wholesalers..............+ 6.9 + 8.6
Department store sales.......................... + 1.2 + 16.2
Car loadings........................................... + 2.3 + 1 0 .1
Building and Construction:
Bldg. permits, incl. repairs { c ““ ber ±}| ;| J ^
Value construction contracts awarded..— 3.1 + 17.9
Miscellaneous:
Commercial failures { f i f t i e s ! ; ; ; ; Z ^ o
Consumption of electricity.................... + 4.2
Debits to individual accounts............... +18.8
Life Insurance Sales............................... + 7.1
Z jjgJ
+15.6
+ 15.1
+ 7.8
June 14, ’39, comp, with
Member Banks (24):
May 17, *39 June, 15 *38
Gross deposits........................................ + 1.3%+ 10.9%
Loans......................................................
1.3 + 9.2
Investments............................................— 7.8 + 3.4
NFLUENCED by more seasonable weather
and favorable prospects for agriculture, gen
eral business in the Eighth District developed
noticeable improvement during May and the first
half of June. In addition to increased volume of
commodity distribution in a number of important
lines and higher than expected seasonal activities
in certain industrial classifications, sentiment in
the business community as a whole was more op
timistic than during the preceding two or three
months.
Purchasing of seasonal merchandise,
which had been delayed by the late spring, was in
sufficient volume to substantially reduce inven
tories of such goods, and in numerous instances re
ordering was necessary to supply current demands.
I
Volume of retail trade was relatively larger than
was the case with wholesaling and jobbing, though
good gains in May over both a month and a year
earlier were reported by several important whole
sale lines, notably drugs and chemicals, dry goods,
furniture and plumbing supplies. May sales of
department stores in the leading cities were 1.2
per cent and 16.2 per cent greater, respectively,
than a month and a year earlier, while cumulative
total for the first five months was 4.8 per cent
above that for the comparable period in 1938.
Retail sales of automobiles in the St. Louis area
were greater by 6.5 per cent than in April and 76.2
per cent above those of May, 1938; for the first
five months, cumulative sales were 37.0 per cent
greater than for the comparable period last year.
Page 2
Employment conditions in the district under
went moderate improvement, being favorably af
fected by absorption of numerous workers in
agricultural and other seasonal occupations, also
by resumption of production at bituminous coal
mines following settlement of the recent labor
controversy.
Except in the case of industries directly affected
by seasonal influences, production was well sus
tained through May and early June. In the prin
cipal industrial centers, consumption of electric
power by industrial users in May was about 4 per
cent greater than in April and 15.6 per cent more
than a year ago. Production of bituminous coal
at district mines was appreciably larger than in
April, but about 8 per cent less than in May last
year. Lumber output showed little change from
April to May, but continued well above a year ago.
Orders and shipments are still running heavier
than current production.
Outlook for Eighth District crops is far aboveaverage yields for most of the principal pro
ductions. Improved weather conditions enabled
farmers to catch up on delayed work, and at midJune farm operations of all descriptions were close
to the average for that date, whereas in late April
they were from ten days to two weeks behind the
usual seasonal schedule. Except where hampered
by excessive rains, excellent progress has been
made in the planting and cultivation of spring
crops. Marketing of early fruits and vegetables
has proceeded satisfactorily.
Commercial failures in the Eighth Federal Re
serve District in May, according to Dun and Bradstreet, numbered 24, involving liabilities of $221,000,
which compares with 32 defaults with liabilities
of $1,695,000 (revised figure) in April and 35 de
faults for a total of $733,000 in May, 1938.
SPECIAL ANNOUNCEMENTS
Bankers and others are cordially invited to
visit the Board of Governors of the Federal
Reserve System in its new building, Consti
tution Avenue and Twentieth Street, Wash
ington, D. C., as well as the Federal Reserve
Bank of St. Louis and its branches in Louis
ville, Memphis and Little Rock.
The Board of Governors recently issued a
booklet entitled “ The Federal Reserve Sys
tem— Its Purposes and Functions.” Copies
may be obtained upon request.
DETAILED SURVEY OF DISTRICT
M A N U F A C T U R IN G
AND
Lines of Commodities
Data furnished b y Bureau of Census,
U. S. Dept, of Commerce.
Boots and Shoes.................
Drugs and Chem icals........
D ry G oods..........................
Electrical Supplies.............
Furniture..............................
Groceries..............................
Hardware............................
Plumbing Supplies..............
Tobacco and its Products.
Miscellaneous......................
W H O L E S A L IN G
Net Sales
M a y , 1939
compared with
April, ’39
M a y , ’38
— 1.9%
+ 7.9
+17.0
-0-
+36.5
+ 8.6
+ 3.0
+13.4
+10.7
—19.9
— 16.2%
+ 13.0
+14.7
+61.2
+46.4
+ 2.5
+14.7
+23.3
+ 11.7
+23.3
Stocks
31, 1939
comp, with
M a y 31, 1938
M ay
-2 3.3 %
— 3*2
+ 3.5
— 2.3
— 1.5
-
0-
+ 1.8
With the exception of boots and shoes, all whole
saling and jobbing groups whose statistics are
available to this bank reported increases in sales
volume in May over the same month a year ago.
A large majority of the reporting lines also reported
larger sales in May than in April. Reflecting ex
pansion in building activities, heavy gains were
recorded by distributors of building materials,
particularly hardware and plumbing and electrical
supplies. In the latter industry a considerable part
of the increase over a year ago was accounted for
by electrical installations in new buildings. Large
gains in the furniture classification were attribut
able to expansion in erection of new homes and in
creased sales of office supplies and furniture. As
shown in the above table aggregate sales of all
lines were 6.9 per cent and 8.6 per cent greater,
respectively, than a month and a year earlier. The
trend of inventories continued downward, but at
a less rapid rate than during the preceding ten to
twelve months.
Automobiles— Combined
passenger car, truck
and taxicab production in the United States in
May totaled 297,508, against 337,372 in April and
192,068 in May, 1938.
Iron and Steel Products— Activities in the iron
and steel industry in this district during May and
the first half of June developed no marked changes
from the similar period immediately preceding.
Recessionary trends, mainly seasonal in character,
appeared in some divisions, while elsewhere opera
tions were maintained at a steady to slightly better
rate. In the immediate past demand for finished
steel has been slightly better, as evidenced in freer
releases against orders previously placed and some
expansion in new purchasing. As has been the
case for the past several months, however, there
is a disposition on the part of consumers to avoid
inventory accretions and to hold down buying to
actual or nearby requirements.
Steel ingot production in this general area,
which was at 39 per cent of capacity at mid-May,
rose to 47 per cent in the first week of June, then
declined to 42 per cent at the middle of the month.
The rate at mid-June last year was 39 per cent.
Shipments and the melt of pig iron in May were
about 8 per cent smaller than in April, and in the
first two weeks of June a further slight recession
was noted, reflecting chiefly the usual seasonal cur
tailment of production at stove and farm imple
ment factories. New buying of iron and steel
scrap was in smaller volume in May than the pre
ceding month, but shipments on old contracts con
tinued in substantial volume.
Steel warehouse and jobbing interests reporting
to this bank showed May sales about on a parity
with the preceding month, and 5.5 per cent larger
than a year ago. A moderate expansion has taken
place in sales since the final week of May. Miscel
laneous demands and requirements of the petro
leum industry offset smaller purchasing of com
modities for consumption in the rural areas. Tin
plate specifications were reported active, and de
mand for galvanized sheets, both the wider and
narrower gauges, showed well defined improvement
as contrasted with the preceding thirty days.
For the entire country, production of pig iron
in May, according to the magazine “ Steel” , totaled
1,716,544 tons, a decrease of 338,782 tons from the
April output, and comparing with 1,260,937 tons
in May, 1938. May total was the smallest since
September, 1938, when 1,683,097 tons were pro
duced. Steel ingot production in the United States
in May was 2,917,876 tons, against 2,986,985 tons
in April and 1,800,877 tons in May, 1938.
W H ISK E Y
At present only 12 distilleries are in operation
in Kentucky out of a total of 60, as compared with
27 active a month earlier. Tw o additional plants,
it is understood, will go out of production in the
near future. The limited number of distilleries in
operation, it is reported, are running at only 18 per
cent of capacity, with 40 per cent of the combined
output being the product of one unit. This low
rate of operations is entirely seasonal, and repre
sents completion of “ spring runs” of whiskey. Dur
ing the first four months production of whiskey
was slightly in excess of consumption, but meas
urably below a year ago. The trend among dis
tillers continues toward improving quality without
advancing prices. This fact, coupled with increas
ing taxes and heavy advertising outlays, has had
the effect of raising operating expense and narrow
ing profit margins.
Page 3
R E TA IL TRADE
Department Stores— The trend of retail trade in
the Eighth District, as reflected in statistics of de
partment stores in the principal cities which report
to this bank, is shown in the following comparative
statement:
Stocks
on Hand
Net Sales
M a y 1939
5 mos. 1939
compared with
to same
Apr., 1939 M a y , 1938 period 1938
Ft. Smith, A r k ....
Little Rock, Ark.. .
31,1939
comp, with
31,1938
M ay
M ay
+ 7 .3 %
— 6.0*% + 1 . 0 %
+ 4 .9
+ 12 .2
+ 6 .4
Louisville, K y ...............+ 2.4
+20.1
+ 4.1
Memphis, Tenn___ ____+23.4
+12.8
+ 7.2
Pine Bluff, A r k .. ..
+ 16 .0
+20.2
+ 18 .0
+ 19.8
+ 7.4
Quincy, 111.............. ....... + 8.4
St. Louis, M o......... .......— 4.9
+ 17.4
+ 4 .1
Springfield, M o___ ____+18.1
+21.3
+ 4 .5
All Other C ities....
+ 7 .3
+21.1
+15.1
8 th F .R . D is tr ic t..
+ 1 .2
+ 16 .2
+ 4 .8
*The decrease shown under a year ago was due to a
tended to raise sales volume in the earlier period.
Stock
Turnover
Jan. 1, to
M a y 31,
1938
1939
— 1.7%
1.11
1.11
— 2.8
1.30
1.14
— 10.0
1.67
1.51
— 4.5
1.43
1.24
— 8.5
1.14
.90
— 22.6 . 1.59
1.22
— 7.1
1.87
1.64
— 3.3
1.32
1.13
— 3.1
1.34
1.13
— 6.7
1.70
1.49
special situation which
Percentage of accounts and notes receivable
outstanding May 1, 1939, collected during May,
by cities:
Installment
Accounts
Forth S m ith.............. %
Little R o c k .... 17.5
Louisville......... 14.4
Memphis.......... 28.7
Excl. Instal.
Accounts
39.2
37.3
51.1
44.5
Installment
Accounts
Quincy......................... %
St. Louis......... 19.3
Other Cities... 15.7
8th F. R . Dist. 19.6
Excl. Instal.
Accounts
46.7
57.7
45.3
51.8
Specialty Stores— May results in men’s furnish
ings and boot and shoe lines are shown in the
following table:
Stocks
on Hand
Net Sales
May, 1939
5 mos. 1939 May 31,1939
compared with
to same
comp, with
Apr., 1939 May, 1938 period 1938 M a y 31,1938
Men’s Furnishings...
Boots and S h o e s ....
+ 4 .1 %
—10.7
+ 22 .7%
+ 6.1
+ 4 .8 %
+ 1.3
— 7.9%
— 2.5
Stock
Turnover
Jan. 1, to
May 31,
1939 1938
1.11
2.94
.94
2.85
Percentage of accounts and notes receivable
outstanding May 1, 1939, collected during M ay:
Men’s Furnishings......................36.3%
Boots and Shoes........................56.2%
MINING AND OIL
Following several weeks during which many
Eighth District bituminous coal mines were closed,
pending negotiations between operators and union
miners’ representatives for a new wage contract
and other points in controversy, production was
resumed on May 15 after an agreement was reached.
Production prior to the suspension had been
stepped up markedly and in all likelihood second
quarter output in this area will exceed that of the
same period of a year ago. In comparison with
1937, on the other hand, production during the
first half of this year will be off about one-fourth.
For the entire country, according to the National
Bituminous Coal Commission, output of soft coal
in May totaled 17,880,000 tons, as against 10,747,000
tons in April and 21,321,000 tons in May, 1938.
Production at Illinois mines in May was 2,254,198
tons, which compares with 3,427,278 tons in April
Page 4
and 1,874,332 tons in May, 1938. There were 99
mines in operation in May, with 28,279 men on pay
rolls, as against 106 active mines and 29,098 op
eratives in April.
Petroleum— April output of crude oil in states
of the Eighth District was 1.8 per cent less than in
March and 113.9 per cent greater than in April,
1938. Cumulative total for the first four months
this year was 120.9 per cent in excess of the cor
responding period in 1938. Stocks on May 1 were
2.2 per cent and 3.3 per cent greater, respectively,
than a month and a year earlier. Detailed pro
duction and stocks by states are given in the fol
lowing table:
(In thousands
of barrels)
Arkansas...................
Illinois........................
Indiana......................
K entucky..................
T otals....................
Production
---------------------------------Apr.,
Mar., Apr.,
1939
1939
1938
1,526
5,415
60
418
7,419
1,679
5,380
59
437
7,555
1,576
1,388
73
432
3,469
Cumulative
---------------------1939
1938
6,281
19,783
235
1,755
28,054
Stocks
--------------------Apr.,
Apr.,
1939
1938
5,759
2,343
2,673
4,954
12,195 11,357
2823,144
3,198
1,706
1,261
1,116
12,701
18,943
18,344
TR A N SPO R TA TIO N
According to officials of railroads operating in
this district, freight traffic during May and the
first half of June showed somewhat greater than
the expected seasonal expansion. All classifica
tions of freight, with the exception of livestock,
grain and grain products, showed increases over a
year ago. The movement of miscellaneous freight
continued the marked gains recorded earlier in
the year. Loadings of coal, which during April
and early May were relatively higher than in other
districts, have increased noticeably since the re
opening of Illinois bituminous coal mines in the
third week of May.
The St. Louis Terminal Railway, which handles
interchanges for 28 connecting lines, interchanged
79,700 loads in May, which compares with 77,911
loads in April and 72,388 loads in May, 1938.
During the first nine days of June the interchange
amounted to 23,289 loads, as against 23,759 loads
during the corresponding period in May and 21,474
loads during the first nine days of June, 1938.
Passenger traffic of the reporting lines in May was
5 per cent greater in number of passengers car
ried and 5 per cent more in revenue than in the
same month a year ago.
For the country as a whole loadings of revenue
freight for the first 22 weeks this year or to June 3,
totaled 12,762,137 cars, against 11,973,591 cars for
the corresponding period in 1938 and 15,964,597
cars in 1937. Estimated tonnage of the Federal
Barge Line between St. Louis and New Orleans
in May was 64,600 tons, which compares with
169,400 tons in April and 217,132 tons in May, 1938;
cumulative tonnage for the first five months this
year was 678,067 tons, against 922,216 tons for the
comparable period in 1938. The sharp decrease
from April to May was occasioned by a strike,
which virtually halted operations during most of
the period.
AGRICULTURE
Combined receipts from the sale of principal
farm products and Government benefit payments
to farmers in states including the Eighth District
during the period January-April, 1937, 1938 and
1939, and during April, 1938 and 1939, are given
in the following table:
April
(In thousands---------------------------------of dollars)
1939
1938
Cumulative for 4 months
----------------------------------------------1937
1939
1938
Indiana....... $ 18,855
Illinois........ .
35,751
M issouri.. . . .
17,054
K en tu cky...
7,005
Tennessee...
8,796
Mississippi..
7,696
6,822
Arkansas. . .
$ 22,822
38,434
16,763
7,109
7,855
6,581
6,640
$ 77,880
163,007
67,947
51,723
37,218
38,094
22,282
$ 79,643
141,204
63,530
67,485
43,847
35,834
31,735
$ 96,028
156,929
69,400
68,482
46,468
43,262
34,245
Totals___ . $101,979
$106,204
$458,151
$463,278
$514,814
General Farming Conditions—According to re
ports of the U. S. Department of Agriculture, agri
cultural departments of the several states and other
agencies, Eighth District crop prospects are up to
average or better. While some spottiness exists
with reference to the different productions and
localities, indications point to ample yields for all
requirements of food, feed and fiber crops. In the
main the planting season for spring crops, corn,
cotton, legumes, vegetables, etc., was favorable.
While in some sections excessive rains delayed
field work during April and the first half of May,
there were sufficient dry days to accomplish the
work. Rains since June 1 have also been excessive
in certain areas, and in lowlands considerable re
planting will be required. From available infor
mation, however, the amount of such work will be
no greater than was the case in many past years
when harvests were large.
For the most part winter wheat is doing well,
with harvesting starting in the lower tiers of coun
ties. Corn growth is more advanced than usual
at this season, and except in limited dry spots,
legumes have made a good start on an increased
acreage. Pastures have held up well and as of
June 1, in all states of the district except Indiana,
the condition was above the 10-year (1928-1937)
average. The condition of tame hay as of June 1,
was also above average. Outlook for tree fruits
is generally good, the frosts in early April having
wrought much less damage than was anticipated.
Strawberries in Tennessee and other important
producing sections were a large crop of high qual
ity, and brought generally satisfactory prices to
producers. Prospects for vegetables for market
and manufacturing are reported generally above
average.
As a whole, prices of farm products fluctuated in
a narrow range during May and early June, but the
general level remained measurably below that for
the corresponding period in recent years. As of
the week ended June 10, the farm products group
of the U. S. Bureau of Labor Statistics index stood
at 62.7 per cent of the 1926 average, a decline of
0.4 per cent from the preceding weejc and compar
ing with 64.4 per cent on May 13; 68.3 per cent on
June 11, 1938; 88 per cent on June 12, 1937; 77.4
per cent on June 13, 1936 and 79.9 per cent on
June 8, 1935.
Cotton—The new cotton crop in practically all
sections of the district has made excellent progress,
except on lands which are subject to overflow.
Owing to excessive rains many farms have been
flooded which are ordinarily not affected by high
water. Considerable replanting will be necessary
in Arkansas and Mississippi. Stands are reported
in the main good, and chopping has made headway
in the southern end of the district. As a whole the
crop is from a week to ten days late. Considerable
local damage was reported as a result of heavy
wind and rain storms in late May and early June.
There has been an active demand for cotton from
both domestic and foreign spinners, which has had
a stimulating effect on prices, and in addition has
resulted in the withdrawal of a considerable vol
ume of cotton from the Government loan. In the
St. Louis market the middling grade ranged from
8.60$ to 9.100 per pound between May 15 and June
15, closing at 8.900 on the latter date, which com
pares with 8.600 May 15 and 7.400 June 15, 1938.
Fruits and Vegetables—The outlook for fruit in
this district, both tree and ground and cane species,
was above average as of June 1. Orchards for the
most part came through the winter in excellent
shape, and the April frosts did less damage than
was looked for in most localities. Early indications
point to somewhat smaller acreages for certain
commercial vegetables this year than last, notably
tomatoes, snap beans and corn. The condition of
early potatoes in the southern states as of June 1,
was reported to be 74 per cent of normal. This
compares with a June 1 condition last year of 75
per cent and the 1928-1937 average of 73 per cent.
The U. S. Department of Agriculture's June 1 re
port places the peach crop in states of this district
at 9,122,000 bushels, as against 6,214,000 bushels in
1938 and the 10-year average of 7,195,000 bushels.
Pear production in these states is forecast at
Page 5
2.488.000 bushels, which compares with 1,784,000
bushels harvested in 1938 and the 10-year average
of 2,112,000 bushels. In all states of the district the
June 1 condition of apples was above a year ago
and average. A record strawberry production of
10.199.000 crates is indicated for the early, second
early, intermediate and first late states combined,
which area includes the Eighth District.
Livestock— The general condition of livestock
in the Eighth District during May and the first half
of June retained the high average which marked
earlier months this year. Under fair pasturage
conditions and ample feed and forage supplies,
average marketing weights have exceeded those of
the past several seasons. Marketings of meat ani
mals in May were measurably larger than in April,
but below the May total a year ago. Milk produc
tion per cow on June 1 in this district averaged
about the same as on that date in 1938, but was 5.2
per cent above the 10-year (1928-1937) June 1
average.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
Receipts
Mav,
1939
Apr.,
1939
417,724
COMM ODITY PRICES
Range of prices in the St. Louis market between
May 15, 1939, and June 15, 1939, with closing
quotations on the latter date and on June 15, 1938,
follow s:
Close
High
May,
1939
Apr.,
1939
323,898 430,874
213,523
b u ____ $ .7 5 %
“
•75%
“
•76%
“
.86%
“
•82
♦July................
“
H
*S ep t.........................
“
* D e c .........................
“
N o . 2 m i x e d .. . .
“
N o . 2 w h ite ........
“
O ats
♦July.........................
*S ep t.........................
“
* D e c .........................
“
N o . 2 w h ite ........
“
Flour
Soft p atent.......... per b b l .
“
Spring “ .........
M iddling C otton .p er lb . .
H ogs on H o o f . . . . per c w t .
* N om inal quotations.
.69%
•70%
.71%
•78M
.75
$
.45%
■47V2
•47%
•50H
•563^
.30
•28%
.30%
.34
.32%
.31
•31K
.35
.25%
.25%
.26%
•29H
4.50
5.55
.0870
6.21
4.65 @ 5.80
5.80 @, 6.10
.0890
6.25
4.10 @ 4 .4 0
5.75 @ 6.15
.0740
8.83
■36H
.0910
6.86
.s iy 2
.82%
.83%
.86
.87
.57%
.58%
.57
.33%
.32%
.33 H
6.10
$
.46
.47%
■47%
•50H
.57%
.49%
.50%
•51%
.59
5.80
June 15, 1938
.69%
.70%
.7 m
.79
.75
.56
.57
181,819 228,194
The dollar value of permits issued for new con
struction in the five largest cities of the district in
May was 18.4 per cent less than in April and 7.8
per cent greater than in May, 1938. According to
statistics compiled by the F. W . Dodge Corpora
tion, construction contracts let in the Eighth Dis
trict in May amounted to $20,420,000, which com
pares with $21,069,000 in April and $17,318,000 in
May, 1938. Building figures for May follow :
New Construction
(Cost in
As of the third week in June approximately 80
per cent of the burley crop had been transplanted
under mainly favorable conditions. Auction mar
kets in the Western Dark Fired District have closed
for the 1938-1939 season, with total sales of 17,346,419 pounds, at an average price of $6.19 per cwt.
Good progress has been made in this district;
plants are ample and setting is well advanced. In
dications point to a moderate increase in acreage
this year over last.
Winter Wheat— While prospects for winter
wheat in the country as a whole declined some
what from April to May, improvement took place
in states of the Eighth District. Indicated pro
duction in this area, according to the U. S. Depart
ment of Agriculture's June 1 report, is 92,307,000
bushels, 2,118,000 bushels greater than the May 1
forecast, and comparing with 117,879,000 bushels
harvested in 1938, and the 10-year (1928-1937)
$!
June 15, 1939
BUILDING
May,
1938
Tobacco— Revised figures in the U. S. Depart
ment of Agriculture’s June 1 report place the com
bined yield of all types of tobacco in Eighth District
states in 1938 at 406,838,000 pounds, which com
pares with 504,942,000 pounds in 1937 and the 10year (1927-1936) average of 413,409,000 pounds.
Page 6
Low
W heat
*J uly.........................per
*S ep t.........................
* D e c .........................
N o . 2 red winter
N o . 2 hard “
Corn
Shipments
May,
1938
101,224
84,253 104,385
53,816 49,297 62,074
Cattle and Calves..........
H ogs.................................. 247,102 198,806201,684
136,652
120,121 124,670
Horses and Mules...........
898
2,339
2,572
851
1,891
2,430
Sheep................................ 68,500
38,500122,233
22,204
10,510 39,020
T otals............................
average of 94,640,000 bushels. The condition is
generally high, and stands are above average.
Harvesting in the lower tier of counties was be
ginning at mid-June.
Permits
1939
1938
Evansville. . . .. 16
Little R o c k .... 31
Louisville
108
Memphis
St. Louis
304
20
16
94
210
284
. 784
.. 714
. 918
624
632
706
Apr.
Mar.
Repairs,, etc.
Cost
1939
$
1938
Permits
1939
1938
Cost
1939
1938
58
59
175
405
757
$& 50
35
428
362
474
144
134
59
209
270
118
80
65
193
210
$ 64
59
19
133
228
$ 59
20
18
115
215
1,454
1,782
1,845
1,349
1,123
1,494
816
704
668
666
790
745
503
481
540
427
450
380
CONSUMPTION OF E LECTRICITY
Public utilities companies in six large cities of
the district report consumption of electric current
by selected industrial customers in May as being
4.2 per cent greater than in April and 15.6 per cent
more than in May, 1938. Detailed figures follow :
K . W. H.
(in thous.)
May,
No. of
Custom 1939
ers
K.W .H .
Apr.,
1939
K.W .H .
Mav,
1938
K.W .H .
May, 1939
compared with
Apr., 1939 May, 1938
Evansville . .
Little R o ck .. ..
Louisville
Memphis
Pine Bluff
St. Louis
40
35
82
31
20
211
3,106
1,969
8,700
2,307
394
26,018
3,303
1,861
8,126
2,296
899
24,289
2,185
1,904
7,499
1,912
604
22,625
— 6.0%
+ 5.8
+ 7.1
+ 0.5
—56.2
+ 7.1
+42.2%
+ 3.4
+ 16.0
+20.7
—34.8
+15.0
T otals.......
419
42,494
40,774
36.729
+ 4.2
+15.6
B A N K IN G A N D F IN A N C E
The Eighth District banking and financial situa
tion during the past thirty days has been character
ized by a moderate recession in demand for credit
from commercial and industrial groups. This was
attributable in the main to seasonal influences,
coupled with generally good collections. Routine
liquidation by mercantile borrowers was in consid
erable volume, and more than offset new commit
ments and renewals, with the result that there was
a shrinkage in total loans and discounts at com
mercial banks. The increase in demand for agri
cultural financing was of about average proportions,
but due to the strong cash position of country banks,
there was less recourse on city correspondents than
is ordinarily the case.
cent less than on May 3, but 3.0 per cent in excess
of the total on June 1, 1938.
Federal Reserve Operations— The volume of the
major operations of the Federal Reserve Bank
of St. Louis, during May, 1939, is indicated below:
Collections (non-cash items) handled.
Transfers of funds...................................
Rediscounts, advances and com m itm ents................
New issues, redemptions, and exchanges of securi
ties as fiscal agent of U. S. G o v ’t., e t c ..................
Bills and securities in custody—coupons clipped. . . .
total loans of weekly reporting member banks in
the principal cities decreased 1.3 per cent, but on
the latter date were 9.2 per cent greater than a
year ago. Gross deposits declined sharply during
the first three weeks of the period, but turned more
sharply upward during the final week and on June
14 were 1.3 per cent higher than at mid-May. There
were also broad variations in Government bonds
which, with the fluctuations in deposits, reflected
large shifts in St. Louis around June 1, the date on
which personal property tax assessments are made.
Statement of the principal resource and liability
items of the reporting member banks follows:
(In thousands of dollars)
June 14,
1939
May 17,
1939
June 15,
1938
Commercial, industrial, and agricultural loans. . .
Open market paper...................................................
Loans to brokers and dealers...................................
$184,138
+17,611
— 5,061
2,711
+
7 — 4,283
6,364
+ 1,399
+ 1,266
12,213
364
—
809 —
49,542
+
282
+ 1.672
Loans to banks.
2,961
—
232 — 3,796
Other loans.......
49,899
+13,944
+
276
Treasury bills...
8,344
—34,648 }
48,007
+
314 V + 3,995
152,045
+ 3,655 )
63,019 — 2,070
+ 2,725
Other securities...................................................
100,290
+ 5,640
+ 1,393
Balances with domestic banks.........................
+17,320
140,928
—
39
Demand deposits—adjusted*...........................
439,140
+58,294
+ 8,100
Tim e deposits......................................................
+ 4.201
373
189,938 —
U. S. Government deposits..............................
20,226
+
129 — 2,307
Inter-bank deposits.............................................
301,080
+ 2,945
+37,138
Borrowings.............................................................................................................................
*Other than inter-bank and Government deposits, less cash items on hand or
in process of collection.
Above figures are for 24 m ember banks in St. Louis, Louisville, Memphis,
Little R ock and Evansville. Their resources comprise approximately 62.0% of
the resources of all m ember banks in this district.
Interest rates varied in minor degree only. At
downtown St. Louis banks as of the week ended
June 15, rates charged were as follow s: Customers’
prime commercial paper, i y 2 to 5y2 per cent; col
lateral loans, 2 to 5% per cent; loans secured by
warehouse receipts, 2 to 5 per cent and interbank
loans, 2% to 5 per cent.
The aggregate amount of savings deposits held
by selected member banks on June 7 was 0.2 per
5,747,526
123,300
4,881
8,222,665
8,072,927
4
$1,149,645,355
32,915,833
352,831,429
28,729,721
875,632
161,250
22,515
10,424
44,866,146
Changes in the principal assets and liabilities of
this bank appear in the following table:
June 20,
1939
(In thousands of dollars)
Member Banks— Between May 17 and June 14,
Amounts
Pieces
(Incl. Louisville, Memphis, Little R ock branches)
Industrial advances under Sec. 13b___
Other advances and rediscounts...........
Bills bought (including participations).
$
Total earnings assets.......................................
Total reserves.....................
Total deposits.....................
F. R . Notes in circulation.
19
25
2
124,174
—
-0 -0 -0 -
1
—
185
—
5
-0 + 5,466
124,220
—
1
+ 5,276
374,919
314,833
179,141
+34,413
+35,388
— 1,545
+25,557
+26,157
+ 5,149
—
—
566
Industrial commitments under Sec. 13b.
Ratio of reserve to deposit
and F. R . Note liabilities......................
Change from
May 20,
June 20,
1939
1938
33
+
75.9
3
0.4%
Following are the rates of this bank for accom
modations under the Federal Reserve A ct:
(1) Rediscounts and advances to member banks, under
Sections 13 and 13a....................................................................1H% per annum
(2) Advances to member banks, under Section 10b....................... 2 % per annum
(3) Rediscounts, purchases, and advances to member banks,
nonmember banks and other financing institutions
under Section 13b:
(a) On portion for which such institution is obligated......... 3)4% per annum
(b) On remaining portion....................................................... 4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing institu
tions, to rediscount, purchase, or make advances,
under Section 13b..................................................................... H% flat
(5) Advances to established industrial or commercial (4 % to
businesses, under Section 13b............................................
15^% per annum
(6) Advances to individuals, firms and corporaticpns,
including nonmember banks, secured by direct obliga
tions of United States under Section 13................................. 4 % per annum
On June 15 the First State Bank of St. Peter,
111., joined the System, making four admissions of
State banks since March 16 this year.
Debits to Individual Accounts—The following
comparative table of debits to individual accounts
reflects spending trends in this district:
(In thousands
of dollars)
May,
1939
Apr.
1939
May,
1938
May, 1939 comp.with
Apr., 1939 May, 1938
East St. Louis and Nat’l
Stock Yards, 111........ $ 35,978 $ 31,747 $ 30,758 + 13.3%
El Dorado, Ark............
4,968
5,149
4,907 — 3.5
Evansville, Ind.............
29,700
29,406
24,237 + 1.0
10,884
Fort Smith, Ark...........
10,499
10,268 + 3.7
Greenville, Miss............
4,537
4,853
3,823 — 6.5
Helena, Ark...................
1,496
1,489
1,477 + 0.5
41,490
Little Rock, Ark...........
34,891
31,888 +18.9
Louisville, K y ...............
145,513
137,502
135,577 + 5.8
Memphis, Tenn.............
107,452
91,026 — 0.3
107,106
Owensboro, K y .............
6,623
7,285
5,052 — 9.1
Pine Bluff, Ark..............
6,806
6,508
6,551 — 4.4
8,277
8,335
6,958 — 0.7
Quincy, 111..................
682,650
St. Louis, Mo.................
590,250 +29.7
526,483
2,064
Sedalia, Mo...................
1,889
1,797 + 9.3
Springfield, Mo..............
15,105
12,796
13,638 +18.0
Texarkana, Ark.-Tex__
6,481
7,079
5,889 — 8.4
Totals.
(Completed June 23, 1939)
L, 109,380
$ 933,661
$ 964,096
+18.8
+ 17.0%
+ 1.2
+22.5
+ 6.0
+18.7
+ 1.3
+30.1
+ 7.3
+17.7
+31.1
— 0.7
+19.0
+15.7
+14.9
+10.8
+10.1
+15.1 .
Page 7
NATIONAL SUM M ARY OF BUSINESS CONDITIONS
BY BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM
INDUSTRIAL PRODUCTION
Index of physical volume of production, adjusted for seasonal vari
ation, 1923-1925 average=100. By months, January, 1934, to May,
1939. Latest figure 92.
FREIGHT-CAR LOADINGS
Index of total loadings of revenue freight, adjusted for seasonal
variation, 1923-1925 average=100. By months, January, 1934, to
May, 1939. Latest figure 62.
WHOLESALE PRICES
Indexes compiled by the United States Bureau of Labor Statistics,
1926=100. By weeks, 1934 to week ending June 17, 1939.
MEMBER BANKS IN 101 LEADING CITIES
Wednesday figures for reporting member banks in 101 leading
cities, September 5, 1934, to June 14, 1939. Commercial loans,
which include industrial and agricultural loans, represent prior to
May 19,1937, so-called “ Other loans” as then reported.
Page 8
Industrial production, which had been receding on a seasonally
adjusted basis during the first four months of this year, showed
little change in May and increased considerably in the first three
weeks of June.
Production—In May the Board’s seasonally adjusted index of in
dustrial production was at 92 per cent of the 1923-1925 average, the
same as in April. Volume of manufacturing production declined
somewhat further, owing chiefly to reductions in output of steel and
automobiles, but mineral production increased as most bituminous
coal mines were reopened after the middle of the month. Steel ingot
production, which had been at an average of 52 per cent of capacity
in April, declined to 45 per cent in the third week of May. About
this time prices of some types of steel were reduced considerably and
orders were placed in substantial volume. Subsequently steel output
increased and the current rate is about 55 per cent of capacity,
approximately the level maintained during the first quarter of this year.
In the automobile industry output was reduced by about one-fifth
at the beginning of May, and in the latter part of the month there
was further curtailment partly as a result of a strike at a body plant
which led to the closing of most assembly lines of one major producer.
In the early part of June the strike was settled and by the middle
of the month output had risen to a level higher than that prevailing
during most of May. Lumber production increased further in May
following less than the usual seasonal rise during the first quarter
of this year.
Output of nondurable manufactures in the aggregate was at about
the same rate in May as in April. At woolen mills activity increased
sharply, following a decline in April, and at cotton and rayon mills
output was maintained. Mill consumption of raw silk showed a fur
ther sharp decline. At meat-packing establishments output increased
more than seasonally, and as in March and April, was considerably
larger than a year ago, reflecting a sharp increase in the number of
hogs slaughtered. Flour production continued in larger volume than
is usual at this season, while at sugar refineries there was a decrease in
output.
Mineral production increased in May owing chiefly to the reopen
ing of most bituminous coal mines. Anthracite production, which
had been in large volume in April, declined in May, while output of
crude petroleum increased somewhat further.
Value of residential building contracts, which had shown a consid
erable decline in April, increased in May, according to figures of the
F. W. Dodge Corporation. Public residential awards were higher
owing to a greater volume of United States Housing Authority
projects. Private awards also increased, but on a seasonally adjusted
basis were below the high level reached in February and March.
Contracts for both public and private non-residential construction
declined in May, following increases in the preceding two months.
Employment—Factory employment and payrolls showed little
change from the middle of April to the middle of May, according to
reports for a number of states.
Distribution—Department store sales declined from April to May,
while sales at variety stores and by mail order houses showed little
change. In the first two weeks of June department store sales
increased. Freight-car loadings increased in the latter half of May,
reflecting ^chiefly expansion in coal shipments. In the first half of
June loadings of coal increased further and shipments of other classes
of freight also were in larger volume.
Commodity Prices—Prices of industrial materials, such as steel
scrap, hides, wool, and print cloths, advanced somewhat from the
middle of May to the third week of June. Wheat, silk, and coal prices
declined early in June, following increases in May, and there were
further declines in prices of livestock and meats.
Bank Credit—During the four weeks ending June 14 total loans
and investments at member banks in 101 leading cities increased by
$270,000,000, following a decline of $200,000,000 in the preceding four
weeks. The major increase was in holdings of Treasury notes and
bonds at New York City banks. Demand deposits increased sharply
to new high levels both in New York and in the leading cities outside
New^York.
During the first three weeks of June excess reserves of
member banks showed little change from the new high level of
$4,300,000,000 reached on May 24. Continued gold imports largely
went into earmarked gold and into balances held for foreign account
at the Federal Reserve banks.
Money Rates—Prices of United States Government securities,
which had advanced sharply from April 11 to June 5, reaching a new
high level, eased slightly during the next two weeks. The yield on
the longest-term Treasury bond outstanding declined from 2.49 per
cent on April 11 to 2.26 per cent on June 5 and increased to 2.32 per
cent on June 19. Other money rates showed little change.
@FedFRASER