Full text of Review (Federal Reserve Bank of St. Louis) : March 1, 1948

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Monthly Review
Volume X X X

MARCH 1, 1948

Number 3

Wood Processing Industries in the Eighth District
The forests of the Eighth District constitute one
of the most important natural resources in the
region. A substantial part of the district’s income
is derived directly or indirectly from our timber
resources. The production and marketing of timber
is the primary source of income to commercial forest
operators and a welcome supplemental income to
many farmers and other owners of small wood lots.
In addition to the direct return from growing
and selling trees is that income which results from
the processing of timber into lumber and finished
wood products, and into many other products which
require wood as a raw material. In mid-March of
1946 (the latest date for which such data are avail­
able) there were more than 7,000 establishments
in district states in the business of producing lum­
ber, and manufacturing finished wood products.
In addition, there were almost 600 establishments
in the pulp and paper industry which depends
mostly on forest products as a raw materials source,
and a number of other plants manufacturing items
(such as certain chemical products) made from
forest resources. In the basic and finished lumber
industries approximately 190,000 workers were em­
ployed and taxable payrolls during the first three
months of that year totaled $74 million (an unad­
justed annual rate of $295 million).1 Eight per cent
of manufacturing employment and 6 per cent of
manufacturing payrolls were reported by these
forest products industries. In the paper and allied
products lines, 60,000 workers and $30 million in
1 Based on reports
O A S I program.




tabulated
c

for establishments reporting under the

This article is the first of two on the indus­
tries using forest products as a raw material
and on the possibilities of industrial expan­
sion in these lines. In the December, 1947
Review an appraisal of the district’s forest
resources and of possibilities for increasing
income to the landowner from timber under
good management was given. The present
article is designed to point out salient fea­
tures of the existing wood processing indus­
try in the district and the following article
to appraise potential growth of industry
through increased output from the district
forests and through shifts in the pattern of
the district industry.

quarterly taxable payrolls were reported, 2.5 per
cent each of manufacturing employment and pay­
rolls, respectively.
The proportion of jobs and incomes from these
industries varies considerably from state to state.
In Arkansas, for example, the basic and finished
lumber industries plus pulp and paper lines ac­
counted for 55 per cent of the manufacturing em­
ployment and 49 per cent of the payrolls. In
Mississippi, 44 per cent of all manufacturing em­
ployment and almost half of the payrolls were pro­
vided by these plants. At the other extreme was
Indiana where they represented only 7 per cent of
employment and 6 per cent of manufacturing pay­
rolls.

Average employment and payrolls for the full
year 1946 and probably for 1947 undoubtedly were
larger than is indicated by figures based on opera­
tions in the first quarter of 1946. Activity in the
first quarter, particularly in basic lumber produc­
tion, is near the seasonal low point for the year.
In addition, logging operations and lumber produc­
tion in the early part of 1946 were curtailed con­
siderably by adverse weather conditions in many
sections of the district.
Unfortunately, there appears to be a sizable gap
between the amount of income presently being real­
ized from the production of timber, as well as its
processing into finished products, and the potential
income that could accrue to the district from these
sources. The original article in this series indicated
that timber production, and hence income, in most
parts of the district might be increased substantially
if known timber management practices were applied
to the wood lots and forest tracts of the area. Fur­
ther study suggests that district income can be
increased through the development of the woodproducts industries.
There are three general directions in which a
further development of the wood processing indus­
tries might take place. First, the industry might be
expanded along the lines of its present pattern,
which would call for larger output from the dis­
trict’s forests— as pointed out in the earlier article,
a definite possibility if management practices are
improved. Second, expansion could take place in
the form of new industries— not only those that are
new to the district but also those new in technology.
Included here would be processes based on utiliza­
tion of waste wood materials and their conversion
into synthetic wood products and laminated and
molded materials, and operations which transform
wood into items far different from the original ma­
terial—for example, molasses from oak chips. This
also would call for increased forest yields. Third,
expansion might occur through shifting emphasis
from some present uses and providing for more
processing— for example, less raw lumber shipped
and more used as material for finished wood prod­
ucts. Depending on the extent of markets, this
might or might not call for increased output from
the forests.
Actually, 'expansion probably should proceed
along all three lines, providing that the district’s
forests can be brought to yield increasing output in
sufficient volume to meet increased demand.
Page 30




W OOD PROCESSING

The process of converting timber into finished
wood products or products based on wood begins
at the time the tree is cut, and the various process­
ing plants are classified in several general industry
groups. Tw o of these, where the main change from
the tree to the product is physical, are the basic
timber and the finished lumber products industries.
Logging operations, sawmills, planing mills, coop­
erage stock mills, veneer mills, and plywood mills
constitute the basic industries. A large part of the
final product of the basic industries is sold as raw
lumber and used as such in construction, crating,
etc. The balance becomes the raw material used
in the furniture and other finished lumber products
industries. Included in this group are the host of
factories manufacturing wood products ranging
from matches to freight cars.
The other major industry group processing wood
is the paper and allied products industry. Here
the basic line is pulp mills, and the finished prod­
ucts, paper and items made from paper. In addition,
however, various lines in other industries use wood
as a raw material— notably some chemical processes.
TH E BASIC INDUSTRIES

A downward trend has characterized the basic
lumber industry in the Eighth District for the past
quarter century despite wartime expansion. In the
twenty years from 1919 to 1939 the number of basic
lumber plants in the seven district states decreased
from 7,500 to less than 2,OOO.2 The number of
workers employed fell from 115,000 to 61,000 and
total annual wage payments declined from $101
million to $40 million.
During the war period, however, there was a
rapid increase in basic industries as lumber produc­
tion was expanded to meet wartime requirements.
This was especially true of sawmills and planing
mills.
The basic industries in the district states are
heavily concentrated, geographically, since they
must of necessity be located near the source of their
raw materials. In the case of logging camps, this
location factor is obvious. Thus it is to be expected
that about nine-tenths of the district states’ logging
camps were in Arkansas and Mississippi where the
largest timber tracts are located.
To a somewhat lesser extent, sawmill and plan­
ing mill operations also are concentrated in these
two states. However, the development of small
portable-type sawmills, together with the increase
2 T h e discussion is in terms o f the seven district states because exact
data are not available for the district proper. O f the 2,000 plants noted,
somewhat m ore than half were in the district proper.
M ost o f the
lo gg in g camps, and m ore than half o f the sawmills, were in the district
proper. A bou t the same situation prevails today.

in hard-surfaced roads and the use of trucks for
transportation, has tended to diffuse operations at
this level in the industry.
Today the vast majority of lumber manufacturing
plants in this district are small. This also was
characteristic of prewar plants since long-term
influences, related directly to the condition of the
timber resources, exerted pressure in this direction
for a number of years. In addition, however, the
tremendous wartime and postwar demand for lum­
ber greatly stimulated the establishment of new,
small-scale plants, particularly sawmills.
Sawmill Operations Affected by Timber Manage­
ment Practices— For many years lack of concern
for the future of our timberland, which found ex­
pression in the policy of “ cutting and getting out” ,
resulted in a significant decline in the number of
large timber tracts capable of supporting largescale lumber operations. Today much of the stand­
ing timber is found in small wood lots that are
scattered over wide areas. While small portabletype sawmills are highly adaptable to such condi­
tions, operations of this kind generally tend to
increase the cost and hence the market price of
lumber.
In more modern times a number of large manu­
facturing plants, whose operations are dependent
upon a continuing supply of timber, have built up
extensive holdings which have been placed on a
sustained-yield basis, thus reversing the trend noted
above. In addition, many of the these companies
are encouraging farmers in adjacent areas to plant
trees as a source of income which aids the farmer
and provides an additional supply of raw material
for the manufacturer. This movement is particu­
larly noteworthy in the southern portion of the
district. If this practice continues to develop, the
size of timber stands (either under one owner or
handled pretty much as such) will increase and
hence will be capable of supporting larger sawmill
operations.
Poor timber management practices have led
wood lot owners and commercial operators in too
many instances to pursue a policy of indiscriminate
cutting of trees, with little regard to selecting the
most efficient sized tree in terms of lumber pro­
duction. While the practice of cutting small-diameter trees increased during the war, it has been
common for many years. The effect on sawmill
operations is significant. Prior to the war, 70 per
cent more manhours of labor were required to
process 1,000 board feet of lumber from trees eight
inches in diameter than were required when trees




averaged 24 inches in diameter, according to a
U. S. Forest Service survey of small mills in the
South. Labor requirements per unit of lumber
processed in logging operations averaged twice as
large for eight-inch trees as for 24-inch trees. The
continuing effect of this factor is indicated by a
study by the Bureau of Labor Statistics reporting
a decline of three inches in the diameter of the aver­
age sawlog in the South between 1935 and the
survey of 1945-1946. Again it must be noted that
timber cutting practices and individual sawmill
operations vary widely and averages such as these
cannot be applied universally. However, available
evidence indicates that these estimates are fairly
representative of management practices and of saw­
mill operations in many sections of the district.
Lumber Production in District States—Although
the basic lumber industry in the district states is
not as large now as it was in the 1920's or in earlier
years, output of lumber here is still considerable.
In 1945, output was estimated at 4.0 billion board
feet. During the peak war years, from 1942 through
1944, output averaged 4.9 billion board feet. Prior
to the war, from 1936 through 1939, district states’
production averaged 3.0 billion board feet.
Not only has the physical volume of lumber pro­
duced in this area in recent years averaged less than
in the 1920's and in the early years of this century,
but until W orld W ar II it also declined relative to
total U. S. production. The large wartime demand
for lumber brought many marginal mills into opera­
tion. The number of small mills increased sharply
as it became profitable to cut low quality timber not
merchantable in periods of normal demand. As a
result, production increased faster in this area than
nationally and from 1942 through 1944 averaged
14.0 per cent of U. S. output. In 1945, the ratio
increased to a little less than 15.0 per cent.
Most of the lumber production in the seven-state
area and in the Eighth District portion thereof
comes from Arkansas and Mississippi. In 1945, 61
per cent of the region’s lumber and 75 per cent of
the Eighth District production was accounted for
by these two states. Except during the peak war
years, these two states have held their output at
approximately the present level, relative to produc­
tion in the other five states, for the past quarter
century.
Before the recent war, most of the lumber pro­
duced in the district states was of the softwood
variety, with yellow pine accounting for the bulk
of the output. In 1929, for example, softwood lum­
ber represented 57 per cent of the total and in 1939
Page 31

it amounted to 63 per cent of all lumber produced.
Under the pressure of wartime demand, however,
many hardwood trees were marketed which in
normal times would not have been profitable for
the timber owner to cut. This was true particularly
of such trees found in mixed stands and trees of
small size and low quality. As a result, hardwood
lumber production more than doubled from 1939
to 1942, although it remained less than that of soft­
wood lumber. Since 1942, softwood production has
declined steadily, from 3.0 billion board feet in
1942 to an estimated 1.6 billion in 1945. During
the same period hardwood output increased from
2.3 billion board feet to 2.7 billion in 1945.
Most of the softwood lumber is produced in
Arkansas and Mississippi. In each of those states,
however, hardwood lumber production has in­
creased considerably relative to softwood output,
and was larger in 1945 than in 1942. Softwood pro­
duction in 1945 was less than in 1942 in both states.
A large quantity of lumber produced in the
district states is processed in this area. However,
shipments to other states are sizable. From 1940
through 1943, estimated shipments of lumber from
district state mills, including shipments from inven­
tories, averaged 4.9 billion board feet per year.
Forty-eight per cent was consigned to points within
the state of origin, 24 per cent was shipped to
other district states, and the remaining 28 per cent
was shipped outside the district states.
Receipts of lumber from outside the district in
1940-1943 averaged 2.2 billion board feet, or 57 per
cent more than was shipped to other parts of the
country. Arkansas and Mississippi were the only
states that shipped more lumber out of the district
than they imported from other sections.
FINISHED WOOD PRODUCTS INDUSTRIES
The availability of a large supply of lumber in
the district states has led to the development of
many finished wood products industries. In 1939,
there were 1,500 plants engaged in the manufacture
of wood products. Employment totaled 73,000 and
production was valued at $306 million.
As in the case of basic timber products, full
statistics for the finished lumber industry in the
district proper are not available. But where the
pattern of the basic industry was not distorted by
using district state data rather than those for the
district proper, such is not the case in the finished
lumber products lines. In the first place, the Eighth
District proportion of the finished lumber industry
of the seven-state area is appreciably smaller than
that of the basic timber industry—less than onethird as opposed to more than one-half. Thus comPage 32




paring the two groups for the seven-state area gives
the impression of balance, whereas within the dis­
trict proper there is considerable unbalance.
Furthermore, while the district has roughly 30
per cent of the finished lumber products industry
group in the seven district states, the proportions
for the several industry lines vary appreciably, and
unfortunately, larger than average shares of the
more profitable lines (in terms of value produced
per worker) lie outside the district proper. Thus,
district Illinois contains only 5 per cent of the
finished lumber industry in that state, and many
of the highly productive lines are concentrated out­
side of the district.3
Thus the following discussion should be inter­
preted with care and with these points in mind :
(1) Aggregate figures for the seven-state industry
group and for individual lines are not representative
of the district proper; and (2) the proportion of a
particular line in the district pattern may be differ­
ent from that for the entire region; but (3) the
data on relationships of employment to value of
production and value added for individual lines
apply roughly to the district plants as well as to
those outside the district; and (4) change from
1939 to 1946 for the industry as a whole and for
the individual lines is as applicable to the district
as the seven state area— in fact, expansion within
the district in those years probably has been rela­
tively greater than that within the entire area.
Since 1939, the number of plants in district states
has increased considerably. Official comparable data
are not available for years since 1939, but industrial
directories published by some of the individual
states show a growing industry. In Arkansas, for
example, 192 finished lumber products plants were
listed in 1946, which compares with 69 in the 1939
Census of Manufacturers. A similar source reports
144 establishments in Mississippi as compared with
41 in 1939. In Missouri, 395 plants are listed as
compared with 221 prior to the war, and in Tennes­
see the latest directory lists 337 plants as compared
with 156 in 1939.
Some of the newer finished wood products plants
no doubt represent types of manufacturing activity
that were not in existence in the region in 1939.
However, it is not likely that the general structure
of the finished wood products industry as a whole
has been altered materially since 1939.
8 A bou t four-fifths o f the Mississippi and Indiana industries lie in the
m ore industrialized sections of those states outside the Eighth District.
The district proper contains all of the Arkansas plants, 85 per cent of
the Kentucky establishments, and 70 per cent o f the Missouri plants.
A bou t one-third o f the Tennessee industry is within the district proper.

In 1939, the value of furniture (excluding fix­
tures) produced in the district states represented
about 50 per cent of the value of all finished wood
products. The wood preserving industry ranked
second in importance in the wood-using industries,
although the value of output was less than the value
of mattress production, which, for census purposes,
is included in the general industry group. Pro­
duction of caskets, partitions, and shelving and
wood boxes ranked in that order of importance in
terms of the value of production in 1939.
In mid-March, 1946 there were 1,231 plants in
the district states engaged in the production of
furniture and fixtures.4 Included in the “ fixtures”
group are manufacturers of mattresses, Venetian
blinds, window and door screens, window shades,
and the like. This represents an increase of 50 per
cent in the number of furniture and fixture plants
from 1939 to 1946. Employment increased from
50,000 to 65,000 during this period, while payrolls
in the first three months of 1946 were at an unad­
justed annual rate of $127 million, or 2.6 times
larger than in 1939.
Most of the district plants and workers in 1946
were in Illinois and Indiana, these two states ac­
counting for 62 per cent of the establishments, 60
per cent of the employment, and 75 per cent of the
value of production. As noted earlier the great bulk
of the industry in these states lies outside the dis­
trict proper.
Most of the plants in the second most important
wood processing industry in the district states— the
wood preserving industry— were located in Illinois
and Mississippi in 1939. Production in these two
states accounted for about 60 per cent of the value
of output in all district states wood preserving
plants. These plants treat timber to protect it from
rot, insects and other destructive agents.
Casket manufacturing plants were located in all
district states, although production was concen­
trated in Illinois, Indiana and Missouri. Of the
total production valued at almost $19 million, about
95 per cent was from plants in these three states.
Noted earlier was the fact that the Eighth Dis­
trict contained a considerably smaller number of
finished lumber products establishments than of the
basic timber establishments. This unbalance results
in the district losing a substantial amount of income
that would accrue if the manufacturing process
were carried further in this area.
4 Based on reports submitted b y companies under the O ld A ge and
Survivors Insurance program.
Data contained in published summaries
o f these reports are not strictly com parable with 1939 Census of M anu­
facturers figures but the latter can be re g r o u p e d to arrive at reasonably
comparable estimates.




Illustrative of this point, the value of production
per worker in the basic timber industry in the seven
states in 1939 was roughly $2,700, and the value
added per worker was about $1,400. Contrasted
with these figures were a per worker value of pro­
duction in finished lumber of $4,200 and per worker
value added of $2,000.
Under present conditions of very high demand
for raw lumber, the spread between output per
worker in the basic and finished lumber lines prob­
ably is appreciably narrower. Nevertheless, as a
long-run measure, it would seem desirable to in­
crease substantially the finished lumber industry
in this area. Similarly other wood-using lines might
well be expanded. This point will be discussed at
greater length in the succeeding article.
Lumber Requirements— As indicated earlier, a
substantial amount of the lumber required by the
finished wood products plants is produced in the
state in which the plants are located, or in other
of the district states. Part of the requirements,
however, involve species not grown in the area.
It is difficult to measure lumber requirements of
manufacturers of wood products, of other manufac­
turers using wood as a raw material, or total lumber
requirements, including the amount used in con­
struction, shipping, and for other nonprocessing
uses. Estimates of industrial requirements are avail­
able for certain years. No estimates of construc­
tion requirements are available for the individual
states.
A partial picture of lumber requirements can be
obtained from the U. S. Forest Service survey of
lumber used in manufacture in 1940. Tabulations
based on this report are shown in Table I. These
figures show “ the quantity of wood used in 1940
by the so-called secondary wood-using industries—
industries such as box factories, furniture factories,
car shops, pattern shops, etc., which do not as a
class obtain their raw material directly from the
forest.” 5
The largest demand for softwood lumber in 1940
was for southern yellow pine. About 53 per cent of
the softwood used was of that variety, with require­
ments totaling 425 million board feet. This type
of pine was used largely in the manufacture of
boxes, baskets, crating, flooring, millwork, and in
the construction and repair of railway cars. Produc­
tion of southern pine lumber in the area was con­
siderably larger than industrial requirements. H ow­
ever, it should be borne in mind that the amount
of lumber used in construction and for other non5 Lum ber used in m anufacture, 1940, U . S. Forest Service.

Page 33

TABLE I
E S T IM A T E D L U M B E R R E Q U IR E M E N T S O F
W O O D -U S I N G I N D U S T R I E S I N D I S T R I C T S T A T E S , 1940
(M illion s o f board
feet)
Total
S oftw ood H ardw ood
T O T A L A L L R E Q U I R E M E N T S * ..........
2,146
802
1,344
F looring .................................................................
603
44
559
Boxes, baskets and crating................................
553
310
243
Furniture ...............................................................
277
16
261
Car construction and repair..............................
201
183
18
M illwork .................................................................
177
134
43
Handles ...................................................................
53
1
52
M otor vehicles ......................................................
50
10
40
Caskets and burial boxes..................................
40
34
6
Agricultural implements ..................................
25
8
17
Refrigerators ........................................................
15
9
6
Fixtures .................................................................
15
3
12
Radio and phonograph cabinets..................... 12
................
12
12
2
10
Vehicles, nonm otor ...........................................
Musical instruments ...........................................
11
1
10
Toys ........................................................................
10
6
4
Patterns and flasks.............................................
9
8
1
Playground equipment .......................................
8
7
1
Ladders ...................................................................
6
6
Pencils and penholders.......................................
4
4
Signs, scenery and displays..............................
3
3
A ll other .................................................................
62
13
49
* Excludes 124 million board feet of veneer and 62 million board feet of
bolts and logs required in 1940.
Source: “ Lum ber Used In Manufacture, 1940” , U. S. Forest Service.

manufacturing purposes and in the paper and chemi­
cal lines is not included in these aggregates.
Second softwood species in order of demand in
1940 was Ponderosa pine, of which 126 million board
feet were required. Consumption of this species was
almost exclusively in factories in Illinois and Indi­
ana where it was used in the manufacture of boxes,
millwork, toys, and fixtures. This type of pine is
not grown in the district states; consequently all
lumber requirements must be met by imports from
other states, principally from the west coast states.
The supply situation with respect to Douglas fir
lumber, the type next most important in terms of
demand, is similar to that of Ponderosa pine. About
104 million board feet of this lumber, produced
principally on the west coast, were used in the
district states in 1940, largely in Illinois, Indiana,
and Missouri. Most of it went into car construction
and repair, millwork, boxes, baskets and crating,
and ladders.
These three softwood species accounted for 80
per cent of the total softwood lumber required.
Northern white pine, spruce, and cypress accounted
for the bulk of the remaining 20 per cent. Produc­
tion of cypress lumber in the district states was
in excess of these requirements in 1940, and some
types of spruce lumber were produced in quantities
approximating requirements. However, northern
white pine requirements have to be met by imports
from other states.
Production of most types of hardwood lumber
in the district states is equal to or is in excess
of requirements of manufacturers in these states.
About 47 per cent of the hardwood lumber used in
1940 was oak, of which production in the seven
states was substantially larger than requirements.
Page 34




A total of 642 million board feet was required, of
which 80 per cent was used in the manufacture of
flooring. The remainder was used largely for furni­
ture, boxes, baskets and crating, car construction
and millwork. Most of the flooring was manufac­
tured in Arkansas and Tennessee, the two states
which accounted for more than three-fourths of the
oak lumber produced in the district states.
Red and sap gum requirements, totaling 174 mil­
lion board feet, represented 12 per cent of all hard­
wood lumber used in the wood products industries
in 1940. Average production in 1939-41 was slightly
in excess of requirements and originated chiefly in
Arkansas, Mississippi and Tennessee. These species
of gum are used primarily in the manufacture of
furniture and boxes, baskets and crating in Arkan­
sas, Illinois and Indiana.
Requirements of maple lumber were next in size
in 1940, amounting to 130 million board feet, or
nearly 10 per cent of the total hardwood demand.
This species has a wide variety of uses, including
flooring, furniture, millwork, boxes, baskets and
crating, and toys. Average production in 1939-41
was less than half as large as requirements in 1940,
and was centered in Indiana, Tennessee, and Ken­
tucky, although relatively smaller quantities were
produced in the other states.
THE PAPER AND ALLIED PRODUCTS INDUSTRY

This industry differs from the basic and finished
lumber lines in that chemical as well as physical
change is involved in processing the raw material
into intermediate and final products. In terms of
employment, the industry is not as important as the
others in the seven-state area and the district proper,
but it does represent a major district activity and
offers considerable possibilities for expansion.
As classified by the Census, the industry consists
first of pulp mills which transform raw wood into
wood pulp and are the basic processors for the
group. Intermediate products are produced from
the pulp at paper and paperboard mills. Final
products include paperboard containers, fiber cans,
paper bags, die-cut paper, coated and glazed paper,
envelopes, wallpaper, and miscellaneous converted
paper products.
The war saw expansion in this industry, but
(aside from Illinois experience) it was mostly in
terms of expansion of existing plants rather than
establishment of new ones. Consequently the 1939
pattern in the district states is fairly applicable to
the present time.
In 1939, the industry in the seven-state area
consisted of 450 establishments, with 32,000 wage
earners turning out well over $200 million value of

production. By 1946, there were about 580 estab­
lishments and almost 60,000 wages earners (90 of the
additional establishments were in Illinois). About
one-fourth of the seven-state area plants are located
in the Eighth District proper, most of them (aside
from pulp mills) in the St. Louis, Louisville, and
Memphis industrial areas.
Lumber requirements for the paper and allied
products industry are in terms of pulp mill require­
ments and, generally speaking, pulp mills need
extensive holdings of timber to assure operations.
Proper forest management is a “ must” for pulp
producers because pulp mills are expensive and are
long-term ventures.
In 1939, there were but 11 pulp mills in the seven
district states combined, and because of the Census
disclosure rule, there is little published data on
employment, payrolls or output. There were 49
paper and paperboard mills in the district states
in that year, most of them lying outside the district
proper in Illinois and Indiana. In the 38 mills in
those two states, employment in 1939 was 5,500
persons, and production was $42 million in goods
which included a value added by manufacture of
$20 million. Per worker value produced thus was
$7,500 and value added $3,600.

More than 200 paperboard container plants were
in the district states in 1939 with about one-third,
in the district proper. The balance of the establish­
ments in the industry produced items mentioned
above: bags, various types of paper stock, envelopes,
etc. The great bulk of these plants lay outside the
district.
OTH ER W OOD-USING INDUSTRIES

W ood is also used in a variety of other industries.
The table on wood requirements gives some indi­
cation of lines not included in the basic or finished
lumber and paper industries. It does not include,
however, the chemicals industry which uses wood
to produce turpentine, charcoal and many other
products.
These wood distillation lines do not occupy a
very prominent position within the district proper,
although there are a few plants engaged in such
operations. Because of the small number of estab­
lishments, Census data, even on a state basis, are
not available for the industry since it would violate
the Census disclosure rules. There are possibilities
for industrial expansion in these lines, and some of
them will be pointed out in a subsequent article.
Weldon H. Stein.

Member Bank Earnings in 1947
Total earnings of Eighth District member banks
in 1947 were substantially larger than in 1946, and
income tax liabilities were smaller, but increased
operating expenses and net charge-offs resulted
in a substantial decline in net profits after taxes.
Capital accounts increased and the ratio of net
profits after taxes to capital accounts declined ap­
preciably from 1946 to 1947. The capital-deposit
ratio rose, but with the rise in loans the ratio of
capital to risk assets declined.1
The chart shows total earnings, total expenses,
net current earnings and net profits for the years
1941 through 1947. It may be noted that total earn­
ings have increased steadily but total expenses also
have grown steadily. The curve of net current
earnings (the difference between operating earnings
and expenses) slants upward, indicating that earn­
ings have grown faster than expenses, dollarwise,
but the curve of net profits (which reflects net re­
coveries or charge-offs and income taxes) is much
more flat and actually turns downward in 1947.
1 T he table on pages 36 and 37 shows the operating ratios o f E ighth
D istrict member banks for 1947. The banks are divided into eight size
classes on the basis of average deposits. R atios for each class and for
all member banks com bined are averages of individual bank ratios, thus
avoiding undue w eighting o f larger banks. T he average ratio for size




SELECTED EARNING REPORT ITEMS
OF EIGHTH DISTRICT
MEMBER BANKS
19 4 1 1947
—

M ILL IO N S OF D O L L A R S

MILLIONS OF DOLLARS

class and for all member banks, however, still masks substantial differ­
ences am ong individual banks. F or that reason, the range o f the middle
50 per cent o f ratios is shown also. I t should be noted that this is not
the range o f all bank ratios. In each size class the individual bank ratios
were arrayed in order and the extreme upper and lower fourth eliminated,
leaving the middle 50 per cent which the table presents.

Page 35

AVERAGE OPERATING RATIOS OF MEMBER BANKS, 1947
EIGHTH FEDERAL RESERVE DISTRICT

Banks with Average Deposits o f ...................................................
A ve ra g e
of
G roup

Range within
which fell middle
50% o f the
banks

%

%

CAPITAL AND DEPOSIT RATIOS—In Percentage
Capital accounts to total assets...................................................
Capital accounts to total assets less Government and cash assets
Capital accounts to total deposits...............................................
Time to total deposits..................................................................
Interest to time deposits (1)........................................................
Number of Banks............ .............................................

A vera g e
of
G roup

Range within
which fell middle
5 0 % o f the
banks

A vera ge
of
G roup

Range within
which fell middle
5 0% o f the
banks

Average
of
G rou p

Range within
which fell middle
50% o f the
banks

A vera g e
of
G roup

Range within
which fell middle
50% of the
banks

A verage
of
G roup

%

%

%

%

%

%

%

%

%

%

%

19.0
18.5
15.1
3.6

16.5
15.1
11.9
3.0

12.2— 20.4
11.3— 18.8
8.8— 15.7
2.1— 3.7

1.8— 2.4
0.6— 1.2
0.5— 1.0

2.2
0.9
0.6

%

%

#
2.1— 12.5
2.1— 11.4
1.5— 10.2
0.4

12.5
12.1
10.2
2.3

2.6
0.8
0.6

2.0— 3.3
0.2— 1.3
0.1— 1.0

2.2
0.9
0.7

25.1
12.1— 39.0
10 4
1.4— 15.5
59.3
43.1— 84.5
5.2
1.6— 8.9
XXX
100.0
3.1
1.9— 4.0
38.5
26.3— 56.8
8.2
...18.8
29.1
21.5— 36.8
60.7— 92.7
75.8
24 2
7.3— 39.3
—1.6 — 3.5— . . . .
3.0
0.8— 4.3
19.6
5.0— 33.9

38.7
3.6
47.0
10.7
100.0
6.5
30.4
6.2
25.7
62.3
37.7
—0.6
5.8
31.3

15.5
15.7
13.4
3.1

14.9
14.4
11.8
2.9

1.8— 2.5
0.6— 1.1
0.5— 0.9

2.2
0.9
0.7

7.8—
8.6—
7.0—
1.6—

30.6—
0.6—
37.0—
6.2—

47.3
4.3
57.0
14.9
XXX
1.8— 7.7
25.7— 34.4
10.2
20.2— 30.2
53.8— 68.6
31.4— 46.2
— 3.5— +3 .0
4.4— 7.4
23.2— 40.0

41.3
5.1
42.9
10.7
100.0
5.1
27.9
6.8
24.4
59.1
40.9
—1 3
7.0
32.6

10.7—
10.0—
8.6—
2.0—

29.4—
1.0—
29.6—
5.4—

52.4
8.0
53.7
15.3
XXX
2.3— 7.0
23.4— 30.6
0.8— 11.1
19.4— 26.6
51.8— 65.1
34.9— 48.2
- 3.5— +1.3
5.1— 9.4
26.6— 40.4

39.8
6.4
41.6
12.2
100.0
5.7
28.2
8.2
23.7
60.1
39.9
—2.4
7.7
29.8

17.0
15.5
11.2
3.1

13.2— 20.7
11.4— 19.6
7.7— 14.2
2.3— 3.9

2.5
1.0
0.8

2.2
0.9
0.6

1.9—
0.7—
0.4—

30.0— 49.1
1.9— 8.9
30.7— 53.3
7.0— 16.7
XXX
2.0— 8.7
24.3— 31.9
0.9— 11.8
20.4— 26.9
53.6— 65.7
34.3— 46.4
— 6.6— +1.9
5.2— 9.8
23.5— 36.7

35.8
8.0
41.3
14.9
100.0
5.7
28.4
8.8
22.6
59.8
40.2
—3.0
10.2
27.0

26.7—
2.7—
30.8—
9.7—

45.0
11.7
51.8
19.2
XXX
2.7— 7.3
24.5— 31.6
3.7— 13.1
18.4— 26.6
52.6— 67.0
33.0— 47.4
— 7.2---- bO.7
6.2— 13.6
19.8— 34.0

1.9—
0.7—
0.5—

2.4
1.0
0.7

2.5

2.2

1.4—

2.5

2.7

2.6

1.9—

3.3

2.6

...—

. .

4.4
—0.1

3.9—
-- 0 . 1 —

4.9
.. .

4.0
—0.1

55.3
13.2
22.6
25.9
0.8
0.2

51.5
7.2
19.3
21.1
0.8
0.1

44.9—
3.3—
9.9—
15.9—
0.5—
...—

58.9
10.5
24.0
24.4
1.1
0.3

44.0
7.1
22.5
25.4
0.8
0.2

32.2—
0.6—
12.5—
21.8—
0.5—
0.1—

53.0
11.6
28.2
30.3
1.1
0.3

38.1
5.0
29.5
26.7
0.4
0.3

31.4—
1.8—
26.9—
25.6—
0.2—
0.2—

41.2
8.0
35.4
29.0
0.6
0.4

49.6
6.3
18 3
25.2
0.5
0.1

4.6— 5.9
14.6— 25.2
4.8— 6.3
10.0— 31.1
0.8— . 1.0

5.0
22.2
5.3
37.8
0.8

4.2— 5.3
13.7— 30.6
4.3— 5.6
26.2— 55.9
0.6— 0.9

5.4
20.1
5.7
21.1
0.8

4.7—
13.5—
4.9—
12.8—
0.6—

5.7
27.1
6.1
28.0
0 9

5.5
16.2
5.9
16.3
0.7

4.7— 6.4
14.2— 18.7
5.0— 6.9
8.3— 19.0
0.6— 0.9

5.9
28.4
6.3
20.9
0.9

1.4—

1.8

1.6

3.3

1.7—

5.2

3.1

2.0—

4.3

2.9

1,7—

3.5

2.5

1.7—

3.0

2.1

1.5—

-0.1—

...

-0.1—

. .

5.5
—0.1

4.9—
— 0.1—

6.1
...

5.1

51.1
60.4
6.2
7.7
17.2
21.6
29.7 b 24.9
0.5
0.6
0.1
0.1

44.8—
1.8—
11.1—
21.1—
0.2—
. . .—

59.0
9.0
21.9
28.3
0.7
...

47.7
9.2
18.8
23.6
0.6
0.1

38.5—
2.7—
12.7—
20.1—
0.3—
...—

4.5— 6.4
18.4— 33.3
4.7— 6.8
4.8— 29.7
0.8— 1.0

5.6
22.6
6.0
24.1
0.9

31.4
5 4
27.8
34.8
0.6

9.7—
2.5—
15.3—
24.9—
0.2—
....—

51.8
9.0
44.9
41.9
0.9
0.1

48.8
3.5
17.9
29.2
0.5
0.1

43.0--56.5
0.5— 3.1
13.1— 21.4
23.3— 33.4
0.1— 0.6

51.4
5.0
17.1
26.1
0.4

43.5—
0.8—
9.9—
21.2—
0.1—
...—

11 2
39.9
12.7
19.7
1.3

10.1—
22.9—
11.2—
2.6—
0.6—

12.2
52.9
13.9
36.5
1.9

7.1
38.8
7.7
15.0
1.0

5.9— 7.9
26.6— 48.0
6.3— 8.6
2.4— 26.8
0.8— 1.5

6.3
33.6
6.8
16.5
0.9

5.2— 7.5
22.3— 39.2
5.4— 7.8
2.7— 25.0
0.7— 1.0

6

---- —

38

113

5.6
28.2
6.0
20.4
0.9

189

38.6
6.3
42.5
12.6
100.0
5.5
28.7
8.1
24.0
60.8
39.2
—2.1
8.0
29.1

1.6

1.6

5.0— 6.4
-- 0 . 1 — . . . .

19.8— 36.2
2.2— 11.0
56.4
41.0
9. &— 23.8
XXX
1.4— 3.8
27.0— 33.6
2.9— 7.3
22.8— 28.0
56.3— 68.7
31.3— 43.7
— 4.4— + 3 .0
7.7— 14.4
21.9— 29.9

1.5

1.9

5.8
—0.1

2.2
0.9
0.6

1.2—

1.4—

5.5— 6.3
—0.1— + 0.2

2.1
0.9
0.6

1.4

1.6

6.0
+0.1

38.2
28.8— 46.2
6.8
3.2— 10.0
38.6
26.8— 52.7
16.4
10.4— 20.3
100.0
XXX
6.2
3.6— 8.2
30 6
26.2— 34.3
12.3
6.1— 18.6
23 6
20.4— 27.6
61.2— 73.3
66.5
26.7— 38.8
33.5
—2.2 -- 6.2---- hi . 2
9.2
7.1— 11.0
22.1
17.9— 27.0

1.7—
0.6—
0.4—

1.6

1.9

6.5
...

29.3
6.4
49.0
15.3
100.0
3.0
30.4
6.1
25.6
62.1
37.9
—1.3
10.7
25.9

2.0
0.7
0.5

15.4
14.4
11.2
2.9

1.4—

1.4—

5.4—
— 0.3—

33.8
24.2— 44.2
7.8
0.8— 12.8
42.3
29.1— 52.7
16.1
10.1— 20.5
XXX
100.0
4.7
3.3— 5.9
26.4— 36.1
30.5
7.9
3.3— 11.7
26.2
22.1— 32.0
54.3— 72.4
64.6
27.6— 45.7
35.4
—2.2 -- 8.3---- b2.6
9.2
5.8— 11.5
17.4— 29.2
24.0

1.8— 2.2
0.5— 0.8
0.3— 0.6

10.5— 14.8
10.3— 14.6
7.0— 10.4
2.5— 4.2

1.5

1.7

6.0
—0.2

1.8
0.7
0.5

2.1
0.7
0.5

10.8—
10.6—
6.9—
2.5—

1.6

2.2

. .—

1.9— 2.2
0.5— 0.9
0.4— 0.7

13.7
12.7
9.2
3.3

1.3—

1.6—

.—

12.9
12.3
8.7
3.3

11.3— 18.0
10.3— 15.9
7.0— 12.8
2.4— 3.6

1.5

1.8

f O. l

17.7
15.2
10.7
3.9

14.5
13.4
9.4
2.9

4.6— 5.5
- 0.1— +0.1

79

37

1

6.9
6.3
5.5
2.3

(1) Banks reporting zero amounts were excluded in com puting this average and range.
(2) Includes charge-offs for recurring depreciation on banking house, furniture, and fixtures.
(3) Includes profits or losses from sales of securities.
N O T E : Balance sheet figures used as a basis fo r ratios are averages o f amounts reported for Decem ber 31, 1946, June 30 and October 6, 1947.




Range within
which fell middle
50% o f the
banks

Range within
A vera ge
which fell middle
of
50% of the
t G roup
banks

CO
iss

DISTRIBUTION OF ASSETS
Percentage of Total Assets:
U. S. Government securities........................................................
Other securities............................................................................
Loans........... ...............................................................................
Cash assets...................................................................................
Real estate assets.........................................................................
All other assets.............................................................................

All District
Member
Banks

$50,000,000
and
Over

$25,000,000
to
$50,000,000

CO

RATES OF EARNINGS ON SECURITIES AND LOANS
Percentage of U. S. Government Securities:
Interest on U. S. Government securities.....................................
Percentage of Other Securities:
Interest and dividends on other securities.................. .............
Percentage of Total Securities:
Net recoveries on securities (+ ), charge-offs (—) (3)................
Percentage of Total Loans:
Earnings on loans.........................................................................
Net recoveries on loans (+ ), charge-offs (—) .............................

%

%

A verage
of
G roup

$10,000,000
to
$25,000,000

00

SOURCES AND DISPOSITION OF EARNINGS
Percentage of Total Earnings:
Interest on U. S. Government securities.....................................
Interest and dividends on other securities...................................
Earnings on loans.........................................................................
All other earnings.........................................................................
Total earnings................................................................
Service charges on deposit accounts (included in item 11) (1)...
Salaries and wages.......................................................................
Interest on time and savings deposits..........................................
All other expenses (2)..................................................................
Total expenses (2).........................................................
Net current earnings before income taxes...................................
Net recoveries (+ ), charge-offs (—) ............................................
Income taxes................................................................................
Net profits....................................................................................

Range within
which fell middle
50% o f the
banks

$5,000,000
to
$10,000,000

I

SUMMARY RATIOS
Percentage of Total Capital Accounts:
Net current earnings before income taxes...................................
Profits before income taxes........................................................
Net Profits..................................................................................
Cash dividends declared.............................................................
Percentage of Total Assets:
Total earnings..............................................................................
Net current earnings before income taxes...................................
Net profits....................................................................................

A vera ge
of
G roup

$2,000,000
to
$5,000,000

$1,000,000
to
$2,000,000

$500,000
to
$1,000,000

Up to
$500,000

— 0.1— + 0.2

- 0.1— +0.1
3.5— 4.3
-- 0 . 3 — .. .

14

3.2
—0.1

2.7— 3.3
— 0.2 . . .—

15

5.4
—0.1

491

Changes in Earning Assets— Banks derive their
current earnings mainly from their security holdings
and the loans they make to their customers. Other
sources of current earnings include service charges
and fees in connection with loans, service charges
on deposit accounts, income from trust departments,
real estate divisions, etc., and a variety of miscel­
laneous charges, commissions and fees.
Over the past seven years Eighth District mem­
ber banks have registered great changes both in
absolute volume of security holdings and loans and
in the relative proportions held. In 1947, earning
assets (loans and investments) amounted to 74.2
per cent of total assets; in 1941 the ratio was 61.7
per cent.
In 1947, Eighth District member bank combined
loans and investments increased. The rise in total
loans and investments was common to all years,
1941 to 1947, with the exception of 1946, but the
pattern of change differed from that of previous
years. Total investments expanded in each year
through 1945 and then declined in 1946 and 1947.
Total loans declined from 1941 to 1942, rose again
in 1943 and 1944 (but failed to reach the 1941 level)
and then expanded sharply in the following three
years. In 1946 the growth in loans failed to offset
the decrease in security holdings; in 1947 loan ex­
pansion exceeded contraction in investments.
The rise in investments from 1941 through 1945
stemmed from the heavy wartime expenditures of
Government, much of which had to be met by
borrowing from the banks. Government security
holdings of all Eighth District member banks totaled
$424 million at the end of 1941 and $2.7 billion at
the end of 1945, a more than five-fold increase.
Relative to total assets, holdings of Government
securities averaged 21.9 per cent during 1942 and
52.8 per cent during 1945.

dollar volume declined in only one year, 1942. As
a proportion of total assets, loans declined steadily
from 1941 through 1945. In 1941 outstanding loans
averaged 34.8 per cent of total assets, but by 1945
had dropped to 12.1 per cent. In 1946 loan volume
averaged 13.8 per cent of total assets, and in 1947
was 18.3 per cent.
As noted, Eighth District member bank loans
and investments shifted substantially in relative
importance in 1947, and this shift was common to
banks of various sizes (in terms of average de­
posits). Generally speaking, the relative shift was
more pronounced in the smaller banks than in the
larger ones.
While Government security holdings at district
banks declined from 1946 to 1947, both absolutely
and relative to total assets, holdings of other securi­
ties increased. In dollar terms the gain was about
$28 million from December, 1946 to December, 1947.
Relative to total assets, the increase in average
holdings in each year was from 5.1 per cent to 6.3
per cent. The gain was general, with all size-groups
showing roughly similar changes in per cent of
total assets in other securities, except for the very
large banks (over $50 million deposits) where the
proportion of total assets in other securities was
the same in both years.
Cash assets as a proportion of total assets, de­
clined slightly from 1946 to 1947 for Eighth District
member banks as a whole, indicating a generally
more full lean and investment position. At the
larger banks, however, cash assets relative to total
assets increased, with the rise more pronounced as
the size of bank increased.

The Treasury redemption program, begun in
March, 1946, brought about a substantial reduction
in bank holdings of Government securities. By the
close of the year, district bank portfolios were
$500 million less than a year earlier, and in 1947
they dropped another $200 million.

Sources of Earnings— The bulk of bank earnings
comes from loans and investments, but the share of
earnings from each of these sources is not the same
as the asset distribution because of varying rates
of return. Government securities generally yield
a lower rate of return than do other securities, and
those in turn a lower rate than do loans. Varying
maturities yield different returns. Loans at small
banks, being generally smaller than those at large
banks, carry higher interest rates.

While Government securities were becoming the
major source of income during the war years, loans
were declining in relative importance, although

In 1947, Eighth District banks received 42.5 per
cent of their current earnings from loans, 38.6 per
cent from Government securities, 6.3 per cent from

Page 38




other securities and 12.6 per cent from other sources.
Loans were the major source of income in 1947 at
all size classes of banks. In 1946 loans ran second
to Government securities as an income source.
In 1941 banks depended mainly on loans for
income and obtained 60.3 per cent of total earnings
from that source. Income from Government and
other securities was secondary in importance and
furnished banks with only 24.1 per cent of total
earnings. During the war years the tremendous
volume of war financing increased income from
Government securities until in 1945 member banks
obtained over half of their total income from Gov­
ernment and other securities. After 1942, income
from loans when measured against total earnings
declined in each year and by 1945 supplied only
32.3 per cent of earnings. The change in the char­
acter of earning assets in 1947 resulted in loans
exceeding Government securities as the major
source of income for the first time since 1943.
Banks earned an average of 5.4 per cent on loans
as compared with 1.6 per cent on Government se­
curities. Very small banks had the highest rate of
return on loans (6.0 per cent) but the rate declined
as banks became larger in size and the very large
banks earned only 3.2 per cent.
Other current earnings continued in 1947 the
decline in relative importance evident since 1943,
dropping from 18.0 per cent of total current earn­
ings in that year to 12.6 per cent in 1947. The de­
crease reflects mostly the fact that other earnings
are fairly constant from year to year and thus de­
cline in relative importance as total earnings rise.
Disposition of Earnings— Salaries and wages con­
stitute the largest single expense item for banks,
and used up 28.7 per cent of total earnings in 1947.
This percentage was slightly larger than in the
previous year but aside from 1946 was the lowest
since 1941, indicating that while the dollar amount
paid in salaries and wages has increased in the last
seven years, it has not increased as much as total
earnings. In 1947 salaries and wages increased at a
slightly faster rate than earnings at all groups of
banks except those with deposits between $500,000
and $1 million. The percentage of earnings used
to pay salaries and wages ranged from a low of
27.9 per cent to a high of 38.5 per cent among




the various size classes, and the range within the
size classes was even more pronounced.
All other operating expenses accounted for 32.1
per cent of current earnings in 1947, slightly less
than a year earlier. Such expenses also have shown
a definite downward trend relative to earnings since
1941, even though they have grown substantially in
terms of dollars.
After operating expenses were paid, banks had
about the same percentage of earnings left as in
1946. The average for all banks was 39.2 per cent
and among size groups ranged from 24.2 per cent
to 40.9 per cent. Net profits, however, declined
sharply from 34.0 per cent of total earnings in 1946
to 29.1 per cent in 1947.
The failure of net profits to compare more favor­
ably with those reported in 1946 was due to net
charge-offs instead of recoveries. In every year be­
tween 1943 and 1946, Eighth District member banks
showed recoveries and profits from sales of securi­
ties exceeding charge-offs. W ith the depression
years' carry-over of charged off items reduced to a
practical minimum and with profits from sales
on Governments largely eliminated in 1947, items
charged off in that year exceeded recoveries and
profits from sales.
While 1947 net profits after income taxes and
charge-offs were down from the 1946 peak, return
on capital was still substantial and amounted to
11.2 per cent of total capital accounts. In 1941 the
return was 8.0 per cent, and in 1942 it was but 6.5
per cent.
Member banks during the last seven years have
enjoyed good profits and have retained a large part
of these profits to increase their capital structures.
Member banks distributed to their stockholders
slightly over one-fourth of net profits earned in
1947.
Deposits expanded rapidly during the war years,
and notwithstanding the banks’ retention of the
greater portion of their net profits the ratio of
capital accounts to deposits steadily declined from
14.1 per cent in 1941 to 6.0 per cent in 1946. The
ratio increased in 1947 to 6.3 per cent.
E. Francis DeVos;
Page 39

SURVEY OF CURRENT CONDITIONS
The significance of the recent break in commodity
prices is still far from clear, as this Review goes
to press. Obviously the key question is which of
three major alternatives is denoted by the price
decline: (1) The long-awaited “ readjustment” in
prices which itself would aid in continuing high
level activity; (2) a definite downturn to a lower
level of activity; or (3) a temporary situation such
as occurred last spring and fall and which signifies
no real change in the inflationary potential.
The situation has not yet developed sufficiently
to answer this question with any confidence, partly
because the attitude of business and of consumers
is still uncertain, partly because a host of subsidiary
questions relative to taxes, wage demands, credit
controls, etc. are still unanswered. Meanwhile,
certain points should be noted carefully.
First, inflationary potentials, on balance, remain
strong. W e still have an excessive money supply
which is supporting a total demand for goods
unmatched by supply. Consumer income remains
at near record levels and consumer credit continues
to expand. Business demand for new plant and
equipment is strong and foreign demand for our
goods is still remarkably high.
Second, the fact that the recent price decline was
concentrated in farm and food prices is significant.
If sustained, lower food processing costs should be
reflected in lower retail food prices. At the present
time the food bill constitutes a larger proportion
than usual of the average consumer's budget for
expenditures. If retail food prices generally should
level off at even 10 per cent below the highs of re­
C O N S U M P T IO N O F E L E C T R I C I T Y
Jan.,
D ec.,
Jan.,
Jan., 1948
( K .W .H .
N o .o fC u s - 1948
1947
1947
Compared with
in thous.)
tomers* K .W .H .
K .W .H .
K .W .H .
D ec., *47 Jan., *47
—
3%
9,081
Evansville ....... ... 40
8,849
8,244 R
4- 7%
—
9
Little R o ck .... , 35
4,781
3,634 R
4,345
4- 20
1
63,666
63,102
57,745 R
Louisville ........... 80
4- 10
4—
4
Memphis ......... ... 31
5,372
5,600
5,296
4- 1
4-311
Pine B luff .....
9
6,350
6,953
1,545
2
St. L ou is..........
74,642
69,901
73,084 R
4- 7
+
Totals ............ 309
163,224
159,114
149.852R
4- 3% 4* 9 %
* Selected industrial customers.
— R — Revised.
L O A D S IN T E R C H A N G E D
Jan., ’48
120,723
Source

F O R 25 R A I L R O A D S A T ST. L O U I S
First Nine Days
D ec., ’ 47 Jan., '47
Feb., ’ 48 Feb., ’ 47 1 mo. ’ 48 1 mo. ’ 47
121,381
123,390
33,341
37,209
120,723
123,390
Term inal Railroad A ssociation of St. Louis.
C R U D E O IL P R O D U C T IO N

(I n thousands
o f bbls.)
Jan., ’48
Arkansas ........... .
Illinois ..............
Indiana .............. .... 17.7
K entucky .......... .... 26.7
T otal ..............

Page 40




D ec., ’ 47
85.9
176.7
18.3
27.7
308.6

Jan., ’ 47
78.7
196.6
17.9
28.8
322.0

Jan., *48
compared with
Jan., ’ 47
D ec., ’ 47
4- 2%
4 -11%
— 13
— 3
— 1
— 3
__ 4
— 7
— 6%
— 2%

cent months, consumers’ monthly costs for the basic
necessities would be lowered appreciably. With less
money required for food, consumers should have
more money available to buy other types of goods.
Third, it should be observed that many manufac­
turers can look forward to only slightly lower raw
materials costs as a result of the commodity price
decline in January and February. Average indus­
trial raw materials prices on March 1, as measured
by the Bureau of Labor Statistics cash price index,
were only 5 per cent below the January peak as
compared with declines of 13 per cent in prices of
foodstuffs and 11 per cent in agricultural commodi­
ties. It is important to note that the decline in
average industrial raw materials prices did not re­
flect a general lowering of prices for materials of
this type. Decreases occurred only in the rosin,
hides, rubber, print cloth and burlap components of
the index. Prices of other and more important raw
materials, including nonferrous metals, steel scrap,
wool, silk and shellac were unchanged or higher
than at the January peak. Consequently, since even
the minor decline in average industrial raw mate­
rials prices was concentrated in a relatively few
commodities, manufacturers’ cost in many indus­
tries, and prices consumers pay for their finished
products, are not likely to reflect the recent decline
in the grain markets.
Finally, it will be increasingly important to watch
the actions of business men and consumers as a
result of this break in commodity prices. How
much of the super-optimism that prevailed at the
end of the year has been changed into pessimism
cannot be measured as yet. Depressions do not
occur solely because of consumer and business
attitude but such attitude does accentuate swings
in economic activity.
EM PLOYM EN T

Employment in the nation and in the Eighth
District decreased between December and January,
principally as the result of seasonal decreases in
retail trade, Government service, and construction
industries. January, 1948 employment in the dis­
trict was approximately 3 per cent higher than in
January, 1947.
The employment decrease in the St. Louis area
between November and January was principally the
result of seasonal drops in trade and construction
employment. Manufacturing employment remained
stable as increases in the apparel and leather indus­

tries offset decreases in transportation equipment.
Relatively large gains are anticipated (according to
employers' estimates) for the next four months in
manufacturing, construction, trade and service em­
ployment, with the automobile and aircraft indus­
tries expected to hire the most new workers.
In Louisville, employment reached a postwar high
in December but by January dropped back to about
the November level. This drop occurred principally
in the trade and distilleries industries. The Ken­
tucky State Employment Service reports that em­
ployment is expected to remain constant during
the next two months as increases in manufacturing
will be offset by decreases in nonmanufacturing.
In Memphis, employment has remained relatively
stable for the past few months, but is expected to
increase in the future as new plants get into
full production. In Evansville, employment rose
slightly between November and January, and is
expected to continue to increase gradually during
the next four months. In Little Rock, nonagricul­
tural employment decreased during January as the
result of seasonal declines in retail trade, food,
lumbering, and construction industries. Employ­
ment is expected to grow by May as increases in
instrument, lumber and apparel manufacturing are
expected to more than offset declines in cotton oil
mill operations and retail trade activity.
INDUSTRY

The level of industrial activity in the Eighth
District in January was not much changed from
December. Manufacturing operations in many parts
of the district were interrupted during the latter
part of the month as a result of adverse weather
conditions but apparently averaged higher than in
December. Coal production increased but oil output
was slightly less than in the preceding month. New
construction begun in January, as measured by the
value of building permits awarded, declined sharply
but on-site activity on projects begun late last year
remained at a fairly high level.
Total industrial power consumption in the major
district cities in January increased 3 per cent over
December and 9 per cent over January, 1947. The
increase was concentrated in St, Louis, where indus­
tries used 7 per cent more electrical power than in
the previous month. When adjusted to a daily
average basis, power consumption by industries
in Memphis, Louisville, and Evansville increased
slightly, while decreases were registered in the other
reporting cities. Power consumption in most of the
industrial areas was affected by the severe cold
wave in the latter part of the month, which resulted




in fuel gas shortages and temporary suspensions
of production in a number of industries.
Manufacturing— General manufacturing activity
was at a high level in January, but in certain of
the district cities aggregate output of some indus­
tries was curtailed because of the lack of fuel gas.
Industries in which operations increased over De­
cember included those manufacturing lumber pro­
ducts, automobiles, chemicals, machinery, metals
and metal products, and transportation equipment.
Declines were indicated in the manufacture of food
products, whiskey, meat packing, and stone, clay
and glass products.
Steel—Scheduled operations of the basic steel
industry in the St. Louis area in January were at
77 per cent of capacity, a slight drop from the 81
per cent in December, but a considerable increase
over the 58 per cent of January of last year. The
decrease resulted from an acute scrap shortage dur­
ing the latter part, of the month.
Lumber—According to preliminary estimates,
lumber production in January showed slight gains
over December and January, 1947. Reporting south­
ern hardwood mills were operating at 76 per cent
of capacity, compared with 68 per cent in December
and 73 per cent in January a year ago. Average
production of southern pine mills in January was
the same as in December and about 8 per cent above
that of January, 1947.
Whiskey—At the close of January, 24 distilleries
were in operation in Kentucky, compared with 58
at the same time a year ago and 38 at the end of
December. While awaiting Congressional action,
distillers in the main have voluntarily restricted
production, using grain at a rate equivalent to
about 3 to 4 million bushels per month. This
program would permit operations at about 50 per
cent of capacity, which probably would produce
enough whiskey to meet requirements.*
Whiskey production in Kentucky in December,
when the grain-saving program was in full force,
totaled only 403,000 tax gallons, less than 4 per
cent of production in December, 1946.
Shoe Production— District shoe production in
December totaled 8.3 million pairs according to pre­
liminary estimates. This was 9 per cent above
B U IL D IN G P E R M IT S
(M on th o f January)
N ew Construction
Repairs, etc.
Cost
Num ber
(C ost in
Num ber
Cost
1948
1947
1948
1947
thousands)
1948 1947 1948 1947
58
51 $ 112 $ 139
56
$ 43
Evansville ........ ....
$
45
55
63
Iyittle R o ck ....... ....
71
92
785
596
108
88
127
537
796
36
42
68
151
35
Memphis .......... , .. 607
552
2,730
1,188
99
95
135
115
496
175
923
1,130
147
256
191
St. I<ouis..........
550 $572 $736
Jan. T otals........ ....1,008 1,021 $5,087 $3,849
442
658
$774
Dec. Totals....... ....1,399
$7,569 $2,134
440
420
$507

Page 41

TRADE
D E PA R TM E N T STORES
Stocks
Stock
N et Sales
on Hand
Turnover
Jan. 1 to
Jan. 31, ’ 48
Jan., ’ 48
Jan. 31,
com pared with
comp, with
1947
D ec., ’ 47 Jan., ’ 47 Jan. 31, ’ 47 1948
.30
.31
Ft. Smith, A rk ........
—
1%
. — 56%
4 1%
.34
.32
— 3
4-17
Little R ock, A rk ......
„ — 57
.29
.29
419
.. — 54
Q uincy, 111..................
4- ^
.24
.26
— 2
— 55
4-14
Evansville, In d .........
.33
.34
.. — 58
Louisville, K y ............
410
4- 8
.29
.32
— 1
4-11
St. Louis A r e a l.......
— 49
.29
.33
— 2
. — 49
4-10
St. Louis, M o ......
4-42
, — 17
E. St. Louis, 111..
’ 28
"24
Springfield, M o ..........
.. — 54
412
4- 4
.32
.26
— 6
, — 60
Memphis, T enn.........
421
.22
.26
*A11 other cities.......
424
— 58
4- 4
.30
.30
.. — 53
4 6
4- 6
le, Pine Bluff, Ark. ; Harrisburg, Jacksonville,
M t. V ernon, 111.; N ew A lbany, Vincennes, I n d .; Danville, Hopkinsville,
Mayfield, Paducah, K y . ; Chillicothe, M o .; and Jackson, Tenn.
1 Includes St. Louis, M o., East St. Louis, A lton and Belleville, 111.
Trading d a ys: January, 1948— 2 6 ; December, 1947,— 2 6 ; January,
1947— 26.
Outstanding orders of reporting stores at the end of January, 1948,
were 3 per cent greater than on the corresponding date a year ago.
Percentage of accounts and notes receivable outstanding January 1,
1948, collected during January, by cities:
E xcluding
Excluding
Instalm ent Instalm ent
Instalment Instalment
A ccoun ts A ccounts
A ccoun ts Accounts
51%
Q uincy ............ 29%
64%
F ort Smith .............. %
Little R ock .... 23
51
St. Louis ........ 31
54
Louisville ........ 24
51
Other cities .... 23
54
Memphis .......... 29
48
8th F. R. Dist. 28
52
IN D E X E S OF D E P A R T M E N T STO R E SALES AN D STOCKS
8th Federal Reserve District

Sales (daily average), U nadjusted 2.........
Sales (daily average), Seasonally adjusl
Stocks, U nadjusted 3 ....................................
Stocks, Seasonally a d ju sted 3....................
2 Daily Average 1935-39 = 100
3 End of M onth A verage 1 9 3 5 -3 9= 1 0 0

Jan.,
1948
239
292
265
308

D ec.,
1947
516
337
250
297

N ov.,
1947
428
339
310
290

Jan.,
1947
228
278
250
291

S P E C IA L T Y

STORES
Stocks
Stock
N et Sales
on Hand
Turnover
Jan., ’ 48
Jan. 31, ’48
Jan. 1 to
com pared with
comp, with
Jan. 31,
D ec., ’47 Jan., *47 Jan. 31, ’ 47 1948
1947
M en’ s Furnishings ............ — 61%
4 - 2%
-f-13%
.25
.27
B oots and Shoes................... — 43
4- 7
4-41
.32
.35
Percentage of accounts and notes receivable outstanding January 1,
1948, collected during January:
M en’ s Furnishings....................... 47%
B oots and Shoes....................... 47%
Trading d a ys: January, 1948— 2 6 ; December, 1947— 2 6 ; January,
1947— 26.
R E T A IL F U R N IT U R E STO RES
N et Sales
Inventories
Jan., 1948
Jan., 1948
Ratio of
com pared with
compared with
Collections
D ec. ’47
Jan.’ 47 Dec. ’47 Jan. ’47 Jan. ’48 Jan. ’47
— 45%
4 -20 %
33%
35%
4- 10 %
4- 1 %
— 44
420
34
35
4- 9
4 - *1
*
*
*
*
A lton ........
Louisville ......
— 53
4-20
27
18
4-31
4- 9
Memphis ........
— 56
— 2
— 10
427
18
24
— 43
Little R ock ..
— 4
— 6
25
35
4- 9
*
*
*
*
Springfield ....
— 30
— 17
8th D istrict 1
— 46
27
33
416
4- 6
4- 1
* N ot shown separately due to insufficient coverage, but included in
Eighth D istrict totals.
1 Includes St. Louis, M issou ri; East St. Louis and A lton, Illinois.
2 In addition to above cities, includes stores in Blytheville, Fort Smith
and Pine Bluff, A rkansas; O w ensboro, K en tu cky; Greenville, Greenwood,
M ississippi; Springfield, M issou ri; and Evansville, Indiana.
P E R C E N T A G E D IS T R IB U T IO N O F F U R N IT U R E
Jan., *48
D ec., *47
Cash Sales ................................................
17%
20%
Credit Sales .............................................
83
80
T otal Sales ......................................... 100
100

Page 42




SALES
Jan., ’ 47
23%
77
100

November output and 7 per cent larger than that
of December, 1946. Production was the largest for
any December of record.
M eat P ack in g — Meat packing operations in the
St. Louis area in January were considerably below
December operations and about 3 per cent less than
in January of last year. The number of animals
slaughtered under Federal inspection totaled 505,000, compared to 603,000 in December and 523,000
in January, 1947.
Mining and Oil— Production of bituminous coal
in the district in January totaled 11.6 million tons
according to preliminary reports. This was a 4
per cent increase over December and was about the
same as production in January, 1947. The largest
increase was registered in western Kentucky where
output was up 9 per cent over December and 24 per
cent over January a year ago.
Preliminary estimates of crude oil production in
the district states in January show a daily average
of 303,000 barrels, a 2 per cent decrease from De­
cember, 1947 and about 6 per cent below the rate
in January, 1947. Daily production in Arkansas
increased somewhat over the previous month, but
this was offset by decreases in Illinois, Indiana and
Kentucky.
C on stru ction — The value of building permits
awarded in the major district cities in January
totaled $5.7 million as compared with $8.3 million
in December and $4.6 million in January of last
year. Increases over December occurred in Mem­
phis and Little Rock, but these failed to offset sharp
declines in St. Louis, Louisville, and Evansville.
The value of permits in the latter cities also was
down as compared with January, 1947.
TRADE

During January, 1948, department store sales
(dollar amount) declined more than seasonally. In­
dexes of sales, adjusted for seasonal variation for
January, 1948, December, 1947, and January, 1947,
were 292, 337 and 278 per cent, respectively, of the
1935-39 period. Despite adverse weather conditions,
district sales volume during the first half of the
month ran higher than in the latter part, appar­
ently being stimulated by post-holiday sales events.
These promotions this year were primarily because
of tradition rather than being designed to reduce
inventories. Actually retailers find that replace­
ment of inventory in many lines will be made at
increased prices.
The supply situation has improved, however, and
little difficulty is reported in obtaining replacements
in all but a few of the major durable lines, although,
as noted, at higher prices. Inventories at reporting
department stores at the end of January, 1948, were

7 per cent more than on December 31, 1947, and
were 6 per cent larger than at the end of January,
1947.
At reporting women’s apparel stores January
sales volume declined 39 per cent from the previous
month, but was 1 per cent less than in January,
1947. In terms of value, inventories at women’s
apparel stores were 6 per cent larger at the end
of the month than on December 31, 1947, but were
18 per cent greater than on January 31, 1947.
Dollar sales at men’s apparel stores during Janu­
ary declined 61 per cent from December, but were
slightly above the comparable month last year. The
value of inventories held by reporting men’s stores
at the end of January was up from both the end
of the previous month and the comparable date in
1947.
January sales volume at reporting furniture stores
was 46 per cent below December, 1947, but was
6 per cent above the level of January, 1947. Antici­
pation of traditional February sales events and
adverse weather conditions had a somewhat limiting
effect on the volume of furniture store sales during
the month. Inventories of reporting furniture stores
at the end of January were slightly above those re­
ported at the end of December, and 16 per cent
above those reported for January, 1947.
BANKING AND FINANCE

Since the beginning of the year, Eighth District
banks have lost demand deposits and have shown
a decline in earning assets. Between December 31,
1947 and February 18, 1948, total demand deposits
of the weekly reporting banks in the district drop­
ped slightly more than $200 million. About half
of this decline reflected withdrawal of interbank
balances by correspondent banks, but the remainder
represented a decrease in demand deposits of indi­
viduals, partnerships and corporations. Time de­
posits continued to increase but the net gain in
the seven weeks was just $1 million, a much slower
rate of gain than occurred in the comparable period
last year.
Bank loans decreased in the seven-week period.
Total loans of the weekly reporting banks declined
about $16 million with business loans off $13 million
and security loans off $10 million. Real estate and
“ other” loans continued to rise, showing gains of
$3 million and $4 million, respectively. The de­
crease in commercial, industrial and agricultural
loans at the district banks apparently is mainly
seasonal in character. Except for 1941, such loans
at weekly reporting banks here have declined from
year-end through the late spring in every year
since 1939.




WHOLESALING
Stocks
N et Sales
Jan. 31, 1948
Jan.,. 1948
compared with
com pared with
Jan., ’4 7 Jan. 31, 1947
D ec., ’ 47

Lines of Commodities
Data furnished by
Bureau of Census
U. S. Dept, of Com m erce*
Autom otive Supplies .................. .......
Drugs and Chemicals.................. .......

— 4%
+ 5

Groceries ..~................................... ....... + 1 1
Hardware ........................................
Plum bing Supplies .......................
, — 3
T obacco and its P rodu cts......... ....... — 12
Miscellaneous ............................... ......
+13
**Total all lines..................................... — 3%
* Preliminary.
** Includes certain items n ot listed above.

— 4%
+14
— 4
— 3
+ 8
— 19
— 2
+ 14
+ 2%

+

3%

— 2
+ 6
+43
+ 10
+21
+ 11%

PRICES
W H O L E S A L E P R I C E S IN T H E U N I T E D S T A T E S
Bureau of Labor
Statistics
Jan.. ’ 48 com p, with
Jan., *47
(1926 = 100)
D ec., *47
Jan., ’ 48 D e c., *47 Jan., '47
+ 1 7 .0 %
A ll Commodities... ... 165.6
163.1
141.5
+ 1 .5 %
+
2 0 .7
Farm Products. ... 199.2
+
1
.3
196.7
165.0
+ 1 5 .2
Foods .................
178.4
156.2
+ 0 .8
Other .................
+ 1 6 .1
127.6
145.3
+ 1 .9
R E T A IL F O O D P R IC E S
Bureau of Labor
Statistics
Jan. 15,
D ec. 15,
Jan. 15, Jan. 15, ’48 com pared with
(1935-39 = 100) 1948
1947
1947
D ec. 15, ’ 47 Jan. 15, ’ 47
U .S. (51 cities).... 209.7
206.9
183.8
+14%
+ 1%
St. Louis .......... 217.2
+16
215.2
187.4
+ 1
-o .
Little R ock .... 211.4
211.8
182.4
+ 16
Louisville ........ 200.1
198.9
177.7
+13
+ 1
Memphis ........... .230.7
-0 +15
229.7
200.2

BANKING
P R IN C IP A L A SSE T S A N D L IA B IL IT IE S
F E D E R A L R E S E R V E B A N K O F ST. L O U I S
Change from
Feb. 19,
Jan. 21.
Feb. 18,
1947
1948
(I n thousands of dollars)
1948
Industrial advances under Sec. 13b....
$ ..........
$ ..........
2,937
3,756 +
17,695 +
Other advances and rediscounts............
- 42,538 + 23,623
U . S. securities...........................................
-$38,782 + $2 6 ,5 6 0
Total earnings assets................................ $1,150,958
-$35,730
- - 66,767
- 14,090

T otal reserves ............................................. .... $ 643,795
686,978
F. R . notes in circulation....................... .... 1,109,051

+ $ 4,581
+ 15,597
+ 14.678

— $ 3.645
-0Industrial commitments under Sec. 13b..$
580
P R IN C IP A L A SSET S A N D L IA B IL IT IE S
W E E K L Y R E P O R T IN G M E M B E R B A N K S
Change from
(In thousands of dollars)
Feb. 19,
Jan. 21,
Feb. 18,
1947
1948
1948
Assets
+
$
5,666
—
$
92,670
Total loans and investments.................. ..$2,102,375
(Comm ercial, industrial, and agri­
—
14,871 + 120.594
cultural loans, open market paper).,. 595,087
Loans to brokers and dealers in se­
3,020
348 —
6,989 +
curities .....................................................
Other loans to purchase and carry
4,151 — 36,927
30,630 —
securities ................................................ .
29,855
1,127 +
Real estate loans............ ........................... .
146,426 +
193
1,955 —
Loans to banks..........................................
993
—
39.304
1,244 +
Other loans ................................................. .
184,951
20,746 + 149,613
T otal loans ............................................ .
965,076 —
32,869
20,921 +
Treasury bills ............................................
39,012 —
2,336 — 29,934
.
100,179 +
6,517 —
80,544
Treasury notes ...........................................
91,483
U . S. bonds including guaranteed o b ­
46,356 — 65,936
ligations ................................................... .
760.665 —
466 —
402
145,960 —
Other securities ........................................ .
T otal investments ............................... . 1,137,299 —, 71,924 — 143,947
58,356 +
25,700
Cash assets .......................................... ...... .
735,342 —
1,360 —
413
Other assets ............... ...............................
25,064 +
T otal assets .......................................... .$2,862,781 — $149,666 + $ 30,953
Liabilities
Demand deposits— total ......................... .$2,192,024
Individuals, partnerships, and cor
porations ........................................ . 1,412,435
Interbank demand deposits................ .
625,004
U. S. Government deposits................
24,078
Other demand deposits........................ .
130,507
Demand deposits— adjusted* ............... . 1,329,940
. 474,030
Borrow ings ................................................
11,350
Other liabilities ........................................
15.670
Total capital accounts............................. .
169,707
Total liabilities and capital accounts... .$2,862,781

— $155,454

+$

4,678

74,561
— 93,125
9.592
+
2,640
+
41,969
1,260
+
2,600
+
485
+
1,443
+
— $149,666

+
—
—
+
+
+
+
—
+
+$

90,881
41,448
52,268
7,513
81,714
15,928
3,050
985
8,282
30,953

—

* Other than interbank and Governm ent deposits, less cash items on
hand or in process o f collection.

Page 43

Weekly reporting bank investments also declined
in the period from December 31 to February 18.
The decrease reflected primarily continued sales of
Treasury bonds as investors showed an increased
desire for liquidity. Note holdings also showed
some decrease in the seven weeks. About twothirds of the funds realized from bond and note
sales apparently were reinvested in Treasury bills
and certificates which, combined, were $45 million
higher on February 18 than on December 31. The
short-term issues have become much more attrac­
tive as bank investments with the rise in interest
rates.

products themselves, and a lowering of farm prod­
uct prices— especially those of feed, flour, certain
meats, etc.— leads to a decline in the index of prices
paid by farmers. As prices of farm commodities
drop, however, the index of prices received declines
more than that of prices paid, since prices paid
by farmers include manufactured and processed
articles, the prices of which are relatively stable
Thus, the parity ratio (index of prices received
divided by index of prices paid, including interest
and taxes) tends to narrow.

As prices of farm commodities dropped, the parity
ratio declined from 122 on January 15 to 112 on
February 15. Farmers, of course, buy various farm

Before the commodity price break, prices paid
had been moving up faster than prices received.
For example, the index of prices received was at
a record on January 15 (307 per cent of the 1910-14
average), up 2 per cent from December 15. In the
same period the index of prices paid reached 251,
up 2.5 per cent, and the parity ratio dropped from
123 to 122. In addition to prices for food and feed
rising from December to January, real estate taxes
also increased due to higher valuations and higher
rates.
Even with the fall in farm commodity prices, they
remain well above the level of a year ago. Farm
income in January was $2.6 billion, 15 per cent
higher than in January, 1947, but, due to seasonally
smaller marketings, it was lower than in December.
Income from livestock was $1.5 billion, 10 per cent
more than a year earlier. Crop receipts were $1.1
billion, 10 per cent less than December, but about
a fifth higher than a year earlier.
Demand for burley tobacco continued strong
through January. Ninety per cent of the crop had
been sold by January 23 at an average price of
40.2 cents per pound.

DEBITS TO DEPO SIT ACCOUNTS

AGRICULTURE

AGRICULTURE

The most dramatic development of the past
month concerning agriculture was the sharp break
in farm commodity prices. While prices of some
commodities had shown some weakness in the latter
part of January, the abrupt decline following Febru­
ary 3 was not generally anticipated. For several
days, future prices of farm products (wheat, corn,
soybeans, oats, and qotton) dropped the permissible
limit each day. Apparently in sympathy, livestock
and butter prices also moved appreciably lower.
The decline in prices was one of the sharpest in
history. At the low points, wheat was off 19 per
cent from February 3, corn off 21 per cent, and soy­
beans down 16 per cent. After a few days of limit
declines, prices, while gyrating rather wildly, tended
to fluctuate around somewhat higher levels than the
low point of the market.

00
Tf"

»-»

i

comp, with
Jan.,
D ec.,
Jan.,
(I n thousands
1948
1947
1947
Dec., ’47 Jan., ’ 47
in dollars)
+25%
E l D orado, A rk ....... $
21,162 $
22,191 $
16,898
— 5%
— 1
+17
34,506
F ort Smith, A rk .....
40,362
40,861
— 3
+13
Helena, A rk ..............
8,749
9,035
7,729
Little R ock, A rk .....
114,363
120,522
106,320
— 5
+ 8
29,223
Pine B luff, A rk .......
28,804
26,769
+ 9
+ 1
— 8
11,107
9,705
Texarkana, A rk .-T ex:.
10,207
+ 5
Alton, 111....................
25,363
25,431
19,414
-0 *
+31
— 4
+18
134,043,
E .S t.L .-N a t.S .Y .,Ill.
128,607
108,623
__ i
Q uincy, 111................
+27
31,736
32,169
24,936
+
34
Evansville, In d ........ ,
120.997
114,453
90,123
+ 6
517,043
Louisville, K y ...........
— 11
+10
581,217
471,089
Ow ensboro, K y .......
31,568
37,206
30,191
— 15
+ 5
Paducah, K y .............
— 7
+17
16,016
13,633
17,151
— 9
Greenville, M iss.......
22,875
16,354
20,925
+28
+ 12
Cape Girardeau, M o.
11,721
10,475
9,742
+20
— 3
H annibal, M o ...........
8,265
8,496
7,568
+ 9
Jefferson City, M o..
33,210
51,187
+58
52,612
+ 3
St. Louis, M o .......... 1,493,243 1,709,644 1,322,736
— 13
+13
Sedalia, M o ................
10,317
10,796
9,558
— 4
+ 8
— 3
Springfield, M o .........
58,682
49,359
56,964
+ 15
Jackson, T enn.......... .
— 12
17,589
20,067
15,834
+11
M emphis, T enn........ .
645,954
468,944
—
18|
529,146
+13
Totals ...................,$3,296,178 $3,694,389 $2,911,218
— 11
+13

Page 44




C ASH F A R M IN C O M E
D ec., ’ 47
com p, with
12 month total Jan. to D ec.,
(I n thousands
D ec.,
N ov.,
D ec.,
1947 com p, with
o f dollars)
1947
1947
1946_
1947
1946
1945
Arkansas ........$ 55,150 — 5%
+ 3%
$ 490,001
4 -1 2 %
+57%
Illinois ............ 178,051 — 17
+16
1,869,729
+29
+57
Indiana .......... 99,299 — 12
+23
1,079,751
+27
+53
Kentucky ...... 126,396 + 3 1 2
+56
579,258
+32
+36
Mississippi .... 59,247 +
4
4-81
473,439
+56
+43
Missouri ........ 111,628 — 4
4-14
1,080,676
+25
+52
Tennessee ...... 66,120 + 77
+28
485,938
+22
+43 _
Totals ..........$ 69 i,8 9 l + 1 1 %
+26%
$6,058,792
+28%
+ 51 ,%
R E C E IP T S A N D

S H IP M E N T S A T N A T I O N A L S T O C K Y A R D S
Receipts
Shipments
Jan., Jan., ’ 48 com p, with
Jan., Jan., ’ 48 com p, with
1948
D ec., ’ 47 Jan., ’47
1948
D ec., ’ 47 Jan., *47
Cattle and calves.. 103,248 — 20% — 25%
28,211 — 14% — 41%
H o gs .....................264,012 — 7
+
2
70,834
+
1
— 6
Sheep ................... 41,393 — 27
— 17
5,851
— 24
— 43
Horses ................... 1,545 + 1 0 4
— 72
1.545
+104
— 72
Totals .............. 410,198 — 13% — 9 %
106,441 — 4 % — 23%