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Monthly Review
R E S E R V E
V olum e X X X I V

N

K

Number 3

M A R C H , 1952

Postwar
Investment Trends
and
Secondary
Reserve Policies
of
Eighth District
Member Banks




A

Bank investments expanded rapidly in the
9
thirties and early ’forties until by the end of the
war investments constituted over three-fourths of
bank earning assets. Liquidation was sizable in the
earlier postwar years, largely as a result of Treas­
ury operations, loan growth, and monetary policy
actions. After the first quarter of 1949, the re­
duction in investments was halted temporarily, but
was resumed in the first half of 1950, accelerating
after Korea, largely because of an unprecedented
loan expansion and pressure on bank reserves
Over the last nine months of 1951, the trend re­
versed and investments expanded slightly.

.

Investment trends also reflect bank policy aimed
at more full utilization of available funds, a move­
ment particularly noticeable in postwar years.
Trends in total investments do not apply to each
type of investment or to each bank. Individual bank
statements show considerable variation in portfolio
composition, particularly in the size of their secon­
dary reserves. Partly these differences in size of
secondary reserves appear to be related to steadi­
ness of deposit volumes, to size of capital accounts,
and to volume of cash assets. Individual character­
istics of the loan portfolio and numerous other
factors, such as tax changes and anticipated interest
rates changes, also influence both secondary re­
serve and over-all investment policies

.

American banking, inheriting its traditions
mainly from Nineteenth Century British banking
experience, typically has viewed its major credit
function as the extension of short-term productive
loans. However, from time to time the concept of
the commercial banking function has been broad­
ened by legislation, by usage, and by basic economic
changes. The structure of commercial bank assets
has been influenced strongly by two important eco­
nomic changes taking place over the past several
decades. These are the growth of the Federal debt
and the development of broad, sensitive money and
capital markets in New York. Thus, while the com­
mercial banker still sees his primary function as
meeting the short-term credit needs of private bor­
rowers in his community, his earning asset pattern
has changed considerably.

B ank in v e s tm e n ts ex p a n d ed r a p id ly in t h e 9th ir tie s
a n d e a r ly 9 r t ie s u n til b y t h e e n d o f t h e w a r
fo
in v e s tm e n ts c o n s titu te d o v e r th r e e - fo u r t h s o f
bank e a r n in g a s sets .
During the ’twenties, bank resources, both in the
Eighth District and nationally, were employed
mainly in short-term, commercial loans. In 1929,
for example, loans accounted for 71 per cent of the
earning assets of Eighth District member banks and
73 per cent for all member banks in the United
States.
The severe depression in the early ’thirties
brought drastic loan liquidation. Total loans at all
member banks dropped from $26 billion at the end
of 1929 to $12 billion at the end of 1934 (at member
banks in the district they declined from $1 billion
to $400 million). Investments in Government se­
curities, on the other hand, rose sharply as deficit
financing by the Government enlarged the supply of
these securities and the loan contraction freed bank
resources. In the five-year period, member banks in
the nation increased their holdings of Government
obligations from $4 billion to $11 billion. In the
Eighth District, Goverment security holdings rose
from $100 million to $350 million.
From 1934 to 1941 banks continued to increase
their investment portfolios, both absolutely and
relative to total earning assets. By the end of 1941,
Government securities represented 45 per cent of the
earning assets of all member banks in the United
States. In the Eighth District, Government secur­
ity holdings rose from $350 million to $550 million.
During W orld War II, loans increased moder­
ately. A t the same time there was a huge increase
in bank holdings of Government securities. Less
than half of the dollar cost of W orld W ar II was
Page 26




paid for immediately in taxes. The balance was bor­
rowed, in large part from the commercial banking
system. While the banks continued to carry out their
lending ^function and expanded the dollar amount
of their loans, the ratio of these loans to total earn­
ing assets declined sharply. Total member bank
loans rose from $18 billion at the end of 1941 to $23
billion at the end of 1945, and from $750 million to
$900 million for district member banks. Govern­
ment securities, however, jumped from $20 billion
at the end of 1941 to $78 billion at the end of 1945.
Banks in the district increased Government secur­
ities at an even faster rate, from $550 million to
over $2.7 billion. Total security holdings (Federal
Government and other) were almost $3 billion at
the close of 1945. W ar financing generated a sharp
rise in total earning assets but a much more than
proportionate rise in the investment share of these
assets. As a result, Eighth District member banks
had 77 per cent of their earning assets in securities
at the end of 1945.

L iq u id a tion w as siz a b le in t h e e a r lie r p o stw a r
yea rs9 . . .
In contrast with the prewar and war periods, in­
vestments declined almost steadily in the postwar
years. The bulk of the reduction in investment
portfolios came in the earlier years. By April, 1949,
total securities held in district member banks were
reduced to $2.1 billion. This represented a decline
from 77 to 59 per cent of member bank earning
assets. Nationally, the decline was from 79 to 63
per cent. The $900 million decrease in the district
was concentrated in short-term Government secur­
ities, offset in small part by moderate increases in
holdings of municipal and corporate obligations.
. . . la r g e ly as a r e s u lt o f T rea su ry o p e r a tio n s , . .
The Treasury, by reducing cash balances and
using cash surpluses to retire short-term debt
(largely bank-held) and by shifting debt to non­
bank investors, operated to reduce bank holdings
of the public debt. The Treasury cash balance in
all banks, swelled by subscriptions to the Seventh
War Loan and the Victory Loan drives, totaled
$24 billion at the end of 1945. Of this amount,
roughly $700 million was held in Eighth District
member banks. In addition, the Treasury operated
at a $17 billion cash surplus in the 39-month period.
A large share of these funds was used to retire
bank-held Government securities. The banking
system held only 33 per cent of the Federal debt
on March 31, 1949, compared with 42 per cent on
December 31, 1945.

PERCENTAGE

DISTRIBUTION OF EARNING ASSETS

EIGHTH
Per Cent

YEAR

END

FI GURES

DISTRICT MEMBER BANKS
THROUGH 1945.

QUARTERLY

FIGURES. 1 9 4 6 " 1 9 5 1

100

1920

1925

1930

1935

. . • lo a n g r o w t h , • . •
The increase in private loans during the 39month period led to additional bank reduction in
Government security holdings. Financing reconver­
sion from war to peace and an expanding level of
civilian production generated a strong demand for
credit. Except for brief interruptions, bank loans
rose throughout the period. District member bank
loans rose from $900 million to $1.5 billion. Loans
to businesses, farmers, consumers and on real estate
all increased. The only offset was a decline in loans
for purchasing or carrying U. S. Government obli­
gations.
. . . a n d m o n e ta r y p o li c y a c tio n s •
In addition, monetary policy in the period had
definite effects on banks' investment policies and
portfolios. Federal Reserve actions still were in­
hibited by the aftermath of the war financing.
Nevertheless, over the period through March, 1949
System action operated to offset a $4 billion inflow
of gold, a $1 billion reduction in money in circula­
tion, and a $1 billion drop in Treasury cash holdings,
all of which if not offset would have provided banks
with primary reserve funds and enabled them to ex­
pand further their investments or loans. In addition,
specific System actions, for example, reserve re­




1940

1945

Per Cent

100

1951

quirement increases, had direct and almost immedi­
ate impact on bank security holdings.

A fter t h e fir s t q u a r ter o f 1949 , t h e r e d u c tio n in
in v e s tm e n ts w as h a lted te m p o r a r ily . • •
During the second, third and fourth quarters of
1949 this pattern of liquidation of investments was
reversed. Economic uncertainties induced a slacken­
ing in business loan demand. Total loans outstand­
ing continued to edge up in the period but at a sub­
stantially reduced pace. Further, fiscal and mone­
tary actions ceased to be restrictive. The Federal
Government operated at a cash deficit. The Treas­
ury reduced its deposits at Federal Reserve Banks
and so added to the supply of bank reserve funds.
Three reductions in reserve requirements (May 1-5,
June 30-July 1, and August 1-September 1) pro­
vided member banks with a large volume of investable funds.
. . . b u t w as r e s u m e d in t h e fir s t h a lf o f 1950 ? . . .
Investment holdings of member banks in the
Eighth District, as well as nationally, decreased
slightly in the first half of 1950, continuing the
general downward trend which characterized the
earlier postwar period. Banks liquidated invest­
ments as the demand for loans improved and total
bank reserves declined. The reserve positions of
Page 27

banks, in the aggregate, were under pressure as a
result of Federal Reserve sales of Government bonds
and a moderate gold outflow, offset in part by some
return flow of currency into banks and System
purchases of short-term obligations.
. . . accelerating after K orea9 . . .
In the nine months following the outbreak of
hostilities in Korea, bank holdings of Government
bonds were reduced sharply. An increase in demand
for loans resulted in a substantial drop in bank
investments. The banks were willing to liquidate
some Governments because they still had large
holdings; they were able to do so without penalty
because of fairly rigid market supports. At the end
of June, 1950, Eighth District member banks held
$2 billion Government obligations (52 per cent of
earning assets) ; by April 9, 1951 their holdings had
declined to less than $1.8 billion (44 per cent of
earning assets). Other investments showed little
net change at district banks in the nine-month
period.
. . . largely because o f an unprecedented loan ex­
pansion . . .
Loans at all member banks in the district jumped
over 24 per cent in the nine-month period. The
need to finance the 1950 cotton crop and substantial
purchases of stored cotton from the CCC pool, both
at high prices, contributed heavily to the loan in­
crease. Business demand for inventory accumula­
tion and working capital requirements (at increas­
ing prices) added to the upswing. In addition, an
increase in defense activity led to further financing
requirements. And, although the greatest surge in
loans went to businesses, increases in real estate
and consumer loans also were significant. As a
result of the increase in demand for nearly all types
of loans, banks shifted readily (and still without
penalty) from Governments to loans to take ad­
vantage of the spread in yields and to meet the
needs of their customers.
. . . and pressure on bank reserves.
In addition to the loan expansion, some pressure
was exerted on member bank reserves by other
factors. The banks needed additional reserves to
meet requirements against expanding deposits and,
after January, 1951, to meet an increase in reserve
percentage requirements. At the same time, reserve
losses resulted from a sizable gold outflow, which
amounted to $2.4 billion or about 10 per cent of
our monetary gold stock. Pressure on reserves was
eased in large part, however, by market-support
purchases of Government securities by the Federal
Reserve in the period.
Page 28




Over the last nine months o f 19519 the trend reversed and investments expanded slightly.
From March 31, 1951 to the end of 1951, invest-,
ment trends again shifted direction. Total invest­
ments rose $233 million at district member banks,
practically all in Government securities. Several
factors accounted for this movement. In the first
place the banks gained some funds net as a result
of gold inflow, Treasury operations and System
security purchases, offset only partly by currency
outflow. In addition, monetary policy, after the
Federal Reserve-Treasury accord of early March,
resulted in price declines of Government securities.
It no longer became possible to liquidate Govern­
ments at fixed supports, in fact liquidation meant
penalties in the form of capital losses. At the same
time the higher yields on Government securities
made them more attractive as earning assets and
brought some increased buying interest. On the
loan side, the lessened availability of reserves, the
Voluntary Credit Restraint Program and selective
credit controls operated to reduce loan expansion.
The net result was to increase holdings of Govern­
ments.
Investment trends also reflect bank policy aimed
at m ore full utilization o f available funds9 a
movement particularly noticeable in postwar
years.
T o meet their need for funds, commercial banks
have always drawn upon excess reserves and other
cash balances, borrowed from the Federal Reserve
Banks and other banks, and sold investments
(largely short-term Government securities). Sim­
ilarly, inflowing funds have found their way into
these same categories, building cash balances, re­
ducing borrowings, and adding to secondary re­
serve investment holdings. All three methods of
adjustment are used today and have been used
over the past several decades. But from time to time
emphasis has centered on one, then another.
In the 1920’s, banks borrowed to make most of
their adjustments and reduced their obligations
when funds flowed in. Of course, cash balances and
investments supplied some of the needed funds and
absorbed some of the inflowing funds.
During the 1930’s, the rise of large excess cash
balances (principally from inflow of gold after de­
valuation and the dearth of credit-worthy loan
demand and investment outlets) cut down on the
need to borrow funds from other banks to meet
most drains. Member bank borrowings, on call
dates, for example, declined from levels in the neigh­
borhood of $3 billion in the early 1920’s to some $3
million during 1939. The large volume of non-earn­

ing cash balances were not carried just to meet
withdrawals of funds. Rather, because cash assets
were abnormally high, they served to meet most
withdrawals and relatively less use was made of
borrowing or sale of investments for this purpose.
Over the 1940’s, member bank excess reserve posi­
tions were reduced, particularly at the larger city
banks, as deposit volumes and earning asset volumes
increased under the impact of the war program.
The decade witnessed a return to the previously
normal situation of fairly full utilization of available
resources in lending or investing. The banks ad­
justed by mid-1943 to working balances of excess
reserves between $1 and $1.5 billion in the aggre­
gate. In the first two postwar years, excess reserve
balances were pulled down to roughly $1 billion and
subsequently to about $700 to $800 million. These
balances, of course, served the banks as a first line
of defense in meeting any adverse clearing balances,
but over the decade many banks, particularly the
larger ones, were again developing a technique of
keeping more fully invested and selling short-term
Government securities to meet the drains on their
cash positions. While holding their cash reserve
position to near-minimums, banks were able to earn
a moderate return on secondary reserve funds and
at the same time maintain a cushion between reserve
drains and liquidation of loans.
Trends in total investments do not apply to each
type o f investment or to each hank.
Although investments generally declined in the
postwar period, banks increased their ownership of
obligations of states and political subdivisions. At
the end of the war, district banks had 3 per cent of
their earning assets invested in municipals. Six
years later, by the end of 1951, they had increased
their holdings of these securities to over 6 per cent
of earning assets. Nationally, the increase was even
greater. A large factor in the gain was the fact
that many new high-grade municipal issues were
floated in the postwar period; hence a larger supply
than before was available for investment. Higher
tax rates and a reduced supply of partially taxexempt Government bonds also made municipals
more attractive. The smaller country banks had a
larger percentage of their earning assets in muni­
cipals (nearly 8 per cent) than reserve city banks
(less than 5 per cent).
Over the entire postwar period, corporate secur­
ity holdings were increased slightly (both abso­
lutely and relative to total earning assets). At dis­
trict banks, the gain was concentrated in the early
postwar years and was about the same at both the
larger and smaller banks. Nationally, corporate




securities, like municipals, showed a greater per­
centage increase than districtwise.
Individual hank statements show considerable
variation in portfolio com position, . . .
Analysis of investment portfolios shows some
other striking differences between banks in the area.
For instance, in 1951 (three call dates averaged)
one bank had less than 6 per cent of its resources
in Governments, while another had 77 per cent. One
bank in ten had less than one-quarter of resources in
Governments, while two in ten had more than half
of the resources so invested. In the aggregate, dis­
trict banks had one-third of their resources in
Government securities.
Average holdings of non-Government securities in
1951 at all member banks in the district were 7
per cent of total assets. Yet the range extended
from virtually zero holdings to as much as a third
of the total.
, . . particularly in the size o f their secondary
reserves.
Size of the secondary reserve varies greatly from
one institution to another.1 In the aggregate, banks
in the Eighth District had about half of their
Government holdings in short-term obligations in
1951. In addition, they held some other securities
and a few loans that would meet the liquidity test
for secondary reserves. A few banks had virtually
all their Government holdings in short-term ma­
turities, whereas others had less than 20 per cent
in such securities.
Partly these differences in size o f secondary re­
serves appear to be related to steadiness o f
deposit volumes, . . .
A comparison of balance sheet items and certain
other factors between various banks gives some
indication of reasons for differing size of the sec­
ondary reserve. For instance, a sample of district
member banks having no time deposits in 1951 had
an average of 23 per cent of their resources invested
in secondary reserves. On the other hand, a sample
of member banks with very high ratios of time to
total deposits (averaging 64 per cent) had an aver­
age of 17 per cent of their assets invested in these
secondary reserves. Since demand deposits gener1E)very member bank in the district has a sizable share of its total
investments in highly liquid securities. Some bankers call these securi­
ties their “ secondary reserve.”
A security is said to be liquid if it can
be readily sold without suffering a material loss. T o be liquid, a
security must be high-grade, one for which there is an active established
market, and of relatively short maturity. Short-term is essential, as
even the highest grade long-term bonds fluctuate greatly in price in
response to interest fate changes.
Probably the most nearly liquid
investment today is the Treasury bill. Liquid securities (or secondary
reserves) make up a fund from which banks meet contingencies, but
which in the meantime earn them a moderate return. For the purposes
of this study, Treasury bills, certificates of indebtedness and notes were
taken as a rough measure of secondary reserves. O f course, longer-term
Treasury notes are more properly classified as a part of the investment
account.

Page 29

ally are more volatile than time deposits, it would
be expected that a bank with a high percentage of
demand deposits would have a larger percentage of
its assets in secondary reserves than a bank with a
high percentage of time deposits.
Similarly, of district member banks reporting
monthly on debits to deposit accounts, those with
the highest deposit turnover figures in 1951 (rang­
ing from 18 to 33 times per year) had an average
ratio of short-term Government securities to total
assets of 14 per cent at the end of 1951. By com­
parison, those with low deposit turnover ratios
(ranging from 4 to less than 8 times per year) had
an average ratio of 11 per cent. Not only did the
banks with the highest turnover have more second­
ary reserves but they also had more cash assets
(over 29 per cent of total resources) than the banks
with the slowest turnover (less than 19 per cent of
total resources).

. . . to siz e o f ca p ita l a c c o u n ts , . . .
In addition, analysis of call report balance sheets
for 1951 indicates an inverse, but not necessarily a
causal, relationship between size of capital accounts
and size of secondary reserves. For instance, district
member banks with high capital-total asset ratios
(averaging 15 per cent) had an average of 11 per
cent of total assets in secondary reserves. However,
banks with low ratios of net worth to total resources
(averaging 4 per cent) had an average of 29 per
cent of total assets in secondary reserves.
• • • a n d to v o lu m e o f ca s h a ssets.
Another major factor considered when determin­
ing the size of secondary reserves is the amount
of the bank’s primary reserve. A bank with large
cash assets has less need for secondary reserves
than one with a minimum of cash (assuming all
other factors equal). District banks with high ratios
of cash assets to total assets (ranging from 37 to 51
per cent) had an average of 11.5 per cent of their

assets in short-term Governments. On the other
hand, banks with small amounts of cash assets
(ranging from 13 to 15 per cent) had an average of
19 per cent of their assets in short-term Government
securities.

I n d iv id u a l c h a r a c te r is tics o f t h e lo a n p o r t fo li o . . .
Another factor influencing the size of secondary
reserves is the volume, stability, trend and composi­
tion of the loan portfolio. Analysis of condition re­
ports indicates that banks with large amounts of
real estate loan tend to have a larger percentage of
their assets in secondary reserves than banks with a
smaller ratio of real estate loans to total resources.
Also, where loans tend to fluctuate irregularly,
banks tend to have more secondary reserves than
where there is little fluctuation in their loan ac­
counts.
. . . a n d n u m e r o u s o t h e r fa c t o r s , s u c h as tax

c h a n g e s a n d a n t i c i p a t e d in te r e s t ra te
c h a n g e s , a lso in flu e n c e b o th s e c o n d a r y r e s e r v e a n d o v er -a ll in v e s tm e n t p o lic ie s .
There are, of course, numerous other factors bear­
ing on individual bank management of secondary
reserves. Anticipation of increased (or decreased)
reserve requirements seems to influence bank in­
vestment policies. Similarly, changes in tax laws,
such as the increased normal and surtax rates or
reinstitution of excess profits taxes, bear on invest­
ment policies of banks, making tax-exempt earn­
ings more attractive and putting some pressure on
banks to increase earnings before taxes in order
to minimize the shrinkage in earnings after taxes.
Finally, idiosyncracies of individual bank manage­
ment, persuasion of investment counsellors, pecu­
liarities of geographic location, and a host of other
factors also bear on the handling of individual
banks’ secondary reserves and over-all investment
policies. Few, however, escaped the influence of the
investment trends noted in the postwar period.
Norman N. Bowsher

Survey of Cur ;nt Conditions
The first six weeks of 1952 have brought some
signs of increase in Eighth District economic ac­
tivity from the high plateau prevailing throughout
most of 1951. In some lines activity increased
absolutely— for example, manufacturing employ­
ment and production rose reflecting growing de­
fense and defense-supporting output and a more
than seasonal revival in industries which have been
Page 30




undergoing inventory adjustment. In other lines
where activity normally is low in the first part of
the year, the drop from late 1951 was somewhat less
than seasonal— for example, in construction and
trade. The money supply also contracted less than
usual, although net repayment of bank loans was
fairly extensive. Wholesale prices, however, con­
tinued to drift gently downward.

The record for the district was paralleled in the
nation. The Federal Reserve index of industrial
production for January showed manufacturing out­
put up, and total industrial production about the
same as in December. Retail sales were down about
the usual amount. Construction activity seasonally
adjusted, was sharply higher.
The level and timing of defense expenditures, the
volume of business spending for plant and equip­
ment and consumer attitudes toward spending and
saving constitute three factors of strategic import­
ance in the outlook for 1952. In January, the mo­
bilization officials made known a decision to stretch
out the period of time in which peak defense opera­
tions are to be reached. A $65 billion annual rate is
now the goal for first quarter 1953 instead of the
dose of 1952. (In December, 1951 the annual rate
was $45 billion). A slower rise in defense spending
should lead to less pressure on supplies of critical
materials and smaller-than-anticipated Government
expenditures in general.
New plant and equipment expenditures planned
for the first quarter of 1952, as indicated by exten­
sive surveys, are about 18 per cent ahead of the
comparable period of 1951. Apparently high level
activity also will continue into the second quarter.
So far in 1952 consumer spending has been fairly
stable and a high level of saving has continued.
Neither scarce supplies nor substantially higher
prices apparently are anticipated by most con­
sumers.
Thus the opening weeks of 1952 give no indication
of any major change in prospects for the immediate
future. Activity in the aggregate apparently is
higher, after allowance for seasonal movements, but
the gain is slight.
EM P LO YM E N T

Employment in the Eighth District and in the
nation decreased about the normal seasonal amount
from December, 1951 to January, 1952. As usual,
most of the reduction took place in wholesale and
retail trade establishments and in agriculture and
construction. Unemployment failed to show an in­
crease equal to the decline in the number of em­
ployed persons, because many temporary workers
withdrew from the labor force. Unemployment was
estimated at 2 million persons (3.3 per cent of the
total civilian labor force) in January, an increase
of 400,000 over December, but substantially below
the 2.5 million estimated to be unemployed in
January, 1951.
In Louisville n o n -a g r ic u lt u r a l employment
dropped seasonally as a result of lower activity in
construction, trade, and distilleries. Total non­




agricultural employment decreased about two per
cent from December, but remained above the Jan­
uary, 1951 level. Manufacturing employment re­
mained about the same as in December, and was five
per cent below the level in January, 1951. Employ­
ment in ordnance work increased by 500 persons
from December to January.
In Evansville employment increased from De­
cember to January in contrast to the seasonal drop
in other areas. A large gain in manufacturing em­
ployment, primarily at refrigerator plants which
have partially converted to defense work, more than
offset decreases in trade and construction employ­
ment. Unemployment showed a decrease of 13 per
cent as a result of the improvement in employment
conditions in this are^.
In Little Rock both manufacturing and nonmanufacturing employment declined. Retail trade
employment was down seasonally. The decline in
construction employment was due to bad weather
conditions and the completion of several projects.
Manufacturing employment decreased in January
due to a temporary layoff in an apparel plant but by
February had regained the December level.
In St. Louis total non-agricultural employment
decreased seasonally as a result of curtailment of
construction activity and post-holiday layoffs in
trade establishments. Manufacturing employment
increased slightly. Seasonal increases in garment
and shoe manufacturing and a sharp increase in
defense production more than offset the decreases
in food, chemical, and construction materials pro­
duction.
The recently announced Government policy of
awarding Government contracts to firms in areas
of heavy unemployment may have a bearing on
employment trends in two smaller areas in this
district. As has been noted previously, Vincennes,
Indiana, and the Herrin-Murphysboro-West Frank­
fort, Illinois, area have had substantial labor surPRICES
CONSUM ER
Bureau of Labor
Statistics
(1 9 3 5 -3 9 = 1 0 0 )
United States........
*N ew series.

Jan. 15,
1952
189.1

P R IC E I N D E X *

D ec. 15,
1951
189.1

Jan. 15,
1951
181.5

Jan. IS, 1952
compared with
D ec. 1 5 /5 1
Jan. 1 5 /5 1
- 0- %
+ 4%

R E T A IL F O O D *
Jan. 1 5 ,1 9 5 2
Bureau of Labor
compared with
Jan. 15,
D ec. 15, Jan. 15*
Statistics
Jan. 1 5 /i
1951
Dec. 1 5 /5 1
1952
1951
(1 9 3 5 -3 9 = 1 0 0 )
221.9
- 0- %
232.2
+ 5%
U . S. (51 cities).... 232.4
- 0234.0
+ 4
244.0
243.9
St. Louis.............
- 0229.9
222.7
+ 3
Little R ock......... 229.7
- 0+ 4
219.1
210 .0
Louisville............ 218.4
+ 4
238.9
227.6
- 0237.8
M emphis.............
*N ew series.
Wholesale price indexes were not available as this went to press.
Figures are being revised by the Bureau of Labor Statistics and will be
published next month.

Page 31

pluses for some time. The United States Depart­
ment of Labor has designated these two areas, along
with 18 other large areas and three smaller ones in
the rest of the nation, as having unemployment of
six per cent or more of the labor force or where the
level of unemployment is expected to reach six per
cent within the next two or four months. Govern­
ment contracts may be awarded to firms in these
areas of heavy unemployment even though con­
tractors there could not bid as low as firms in other
parts of the nation. Since both of these areas in
the Eighth District have plant facilities and labor
skills which could be quickly converted to output of
military items, their employment prospects have
brightened.
INDUSTRY

Industrial activity in the Eighth District in January appeared to be somewhat higher after adjust­
ment for seasonal factors than it was a month
earlier. Production of steel ingots, coal, and whiskey
were important exceptions to the over-all trend.
Defense production continued to give industry a
strong underlying support.
Manufacturing — Daily average consumption of
electric power by selected industrial firms in six
major district cities was up slightly (3 per cent) this
January compared with a year earlier. But since
IN DU STRY
C O N S U M P T IO N

O F E L E C T R IC IT Y *

Jan., 1952
D ec., 1951
( K . W .H .
K .W . H .
K .W . H .
in thous.)
. 17,194
14,354
Evansville.
13,746
14,192 r
Little R ock ......
, 82,494
84,923
Louisville.. ,
... 30,677
30,774
Mem phis...
11,286
Pine Bluff. ........ 11,417
....... . 102,835
97,291
St. Louis...
........ 258,363
252,820 '
Totals....
* Selected Industrial Customers.
R Revised.
—

January, 1952
compared with
Jan.,’ 51
D ec., 51
+ 20%
+ 8%
— 3
+ 2
— 3
+ 1'
- 0+ 9
+ 24
+ 1
- 0+ 6

Jan., 1951
K .W .H .
15,874
13,487
81,314
28,089
9,182
102,690 r
250,636

+

2%

+

3%

F O R 25 R A I L R O A D S A T S T . L O U I S
First Nine D ays
1 mo. *51
1 mo. *52
D e c .,*51
Jan.,’ 51
F e b .,’ 52
F e b .,’ 51
Jan., 52
121,922
105,332
121,922
35,189
9,703
110,584
110,584
So u rce: Terminal Railroad Association of St. Louis.
LOADS

IN T E R C H A N G E D

CRUDE

O IL P R O D U C T IO N — D A IL Y

( I n thousands
Jan .,’ 52
of bbls.)
Arkansas... ........
78.3
168.9
Illinois....... ........
30.7
Indiana...............
34.2
K en tu cky- ........
T o ta l...... ..... 312.1
COAL

Jan.,’ 52
181.7 P

Unadjusted
D e c .,’ 51
169.2 P

D e c .,’ 51

Jan.,*51

76.9
168.8
32.0
33.9
311.6

80.8
165.1
29.4
30.2
305.5

P R O D U C T IO N
1 9 3 5 -3 9 = 1 0 0
Jan.,’ 51
203.2

D e c .,’ 51
121.2 P
P— Preliminary.

Page 32




D e c .,’ 50
152.6

+ 2%
- 0— 4
+ 1
—
0—%

—
+
+
+

3%
2
4
13

+

2%

IN D E X

Jan.,’ 52
156.6 P

S H O E P R O D U C T IO N
19 3 5 -3 9 = 1 0 0
Unadjusted
N o v .,’ 51
102.1

AVERAGE
January, 1952
compared with
D ec.,*51
Jan.,’ 51

Adjusted
D ec.,’ 51
162.7 P

Jan.,’ 51
175.2

IN D E X

D e c .,’ 51
123.6 P

Adjusted
N o v .,’ 51

D ec.,’ 50

103.1

155.7

many defense plants are not represented in the sam­
ple, the full effect of defense production is not
reflected in the industrial power consumption data.
Principal groups contributing to the gain were wood
and paper products manufacturers who used over
one-fifth more power this January than a year
earlier. But metal fabricators and transportation
equipment and stone-clay-glass products manufac­
turers used less power than in January last year.
A marked decline in the steel ingot production
rate in the St. Louis area occurred in December and
was continued in January. Current operations were
at only 74 per cent of capacity, down from 78 per
cent in December, and 91 in November. January
operations last year were over 100 per cent of
capacity. Mild weather had a favorable effect on
accumulation of scrap stock piles, but the cold-rolled
sheet market was dull.
Lumber production improved moderately during
January. Gains in average weekly production of
Southern Pine more than offset some decrease in
rate of hardwood operations. Weakening prices in
Southern Pine, and a sagging flooring market for
hardwoods at the end of January, did little to en­
courage lumber production. A spotty improvement
of the market had developed by mid-February.
Shoe production in the St. Louis area increased
more than seasonally on the basis of preliminary
estimates. United States output was estimated by
the Tanners’ Council to be off 13 per cent from
January, 1951 and 6 per cent from January, 1950.
Not adding any brightness to the picture is the
estimate by the National Production Authority that
military orders for 1952 will only be one-half the
amount ordered last year.
Whiskey production in Kentucky was not high
in January and sales were reported as slow. On
January 31, thirty of the 63 Kentucky distilleries
were in operation. This compared with 27 at the
end of December, and 51 at the end of January, 1951.
The December production of distilled spirits in
Kentucky was the lowest for that month in the
last four years.
Mining— Crude oil production in the Eighth Dis­
trict during January was at a rate of 312,000 barrels
per day, practically the same as during December
and just two per cent above that of January a year
earlier. This current rate, however, equals the best
production rate attained during any month in the
preceding year.
Total coal mined in Western Kentucky and the
four producing district states during January was
11 per cent less than a year earlier, but 13 per cent
over that of December, a period marked by holidays.

Domestic demand was slow due to mild weather
and industrial stocks were fat.
Transportation— Railroad freight interchanges at
St. Louis in January were 6 per cent more than
during December, although volumes continued to
run below the year-earlier levels.
CONSTRUCTION

Construction activity declined less than seasonally
in January, primarily as a result of expanding indus­
trial and commercial building and construction of
military and naval facilities. Nationally, the total
value of new construction put in place during Janu­
ary was $2.1 billion, a four per cent drop from
December but about two per cent above the Janu­
ary, 1951 total. Reductions in housing, commercial
building, highway and some other types of construc­
tion have been offset in part by increases over the
year in military, industrial and public utility con­
struction.
Residential construction activity, after allowance
for seasonal changes, remained at about the same
level as in the last half of 1951 and about 20 per
cent below the 1950 average. Non-farm housing
starts in January totaled 68,000 dwelling units, an
increase of 10 per cent above the number started in
December but substantially less than the 85,900
units started in January, 1951. The increase may
reflect in part builders' efforts to start construc­
tion before any possible further curbs are put on
residential activity. Continued strength in housing
activity for February was indicated by an increase
in building permits in January over December.
In the Eighth District construction contracts
awarded during January totaled less than those of
December, 1951, but were 19 per cent ahead of the
value of contracts awarded in January, 1951. The
increase over January, 1951 was primarily the result
of large public works contracts awarded during
January, which more than offset declines in new
residential construction. Private non - residential
construction also increased somewhat in the Eighth
District during January.
CONSTRUCTION

Evansville..........

New Construction
Number
Cost
1952
1951
1952 1951
94
28 $ 118 $
44

91
Little R ock.......
Louisville...........
192
M em phis..... ....... ....... 1,609 1,868
176
225
St. Louis............ ......

434
658
2,659
1,418

Jan. T otals....... ........ 1,975 2,404 $5,287
D ec. Totals....... ....... 1,709 2,502 $4,191




2,758
2,290
3,642
3,964
$12,748
$18,196

TRADE

District retail sales in January were down sharply
from December levels and also were below those of
January, 1951 when the second post-Korea buying
wave was in full swing. The decreases from Decem­
ber totals were primarily seasonal in character, in
fact in some lines January figures were off less than
usual from December. Special and seasonal pro­
motions helped reduce the normal seasonal decline.
Generally speaking, sales of hard goods dropped
relatively more than did sales of soft goods.
The level of inventories held by district retailers
at the end of January reflected the ease with which
inventory may currently be replaced. Both furniture
stores and department stores held slightly less in­
ventory on January 31 than a year ago. Outstand­
ing orders at the end of January were at a minimum
except for seasonal items. There was apparently
little necessity of forward buying of either hard
goods lines or soft goods merchandise.
Department Stores — Throughout the district,
sales during January declined somewhat less than
seasonally from December. On a seasonally ad­
justed basis daily sales in January were 111 per
cent of the 1947-49 average. In comparison, they
were 107 per cent in December and 128 per cent
in January, 1951. “ White sales” during the month
W H O L E S A L IN G

B U IL D IN G P E R M IT S
M onth of January
(C ost in
thousands)

Backlogs of proposed construction projects are
greater than ever before. The large military con­
struction programs and industrial expansions facili­
tated by certificates of necessity should help keep
construction expenditures at a high level through­
out 1952. Recent surveys indicate that private com­
panies plan to increase their capital expenditures,
much of it for construction, in 1952 over 1951. The
supply of labor, except in small areas such as Padu­
cah, Kentucky, where labor must be imported, is
generally adequate. Some metals and metal items
are short and expected to remain short. Construc­
tion materials, other than metals, are expected to be
in good supply.

Repairs, etc
Num ber
Cost
1951
1952 1951 1952
76
26
50 $ 18 $
147
157
164
140
79
58
131
49
575
165
178
157
657
156
379
196
$1,534
569 613 $842
$1,563
479
410 $785

Line of Commodities
Data furnished by
Bureau of Census
U .S . Dept, of Commerce*
Automotive Supplies..........................
Drugs and Chemicals.......................

Tobacco and its Products................
Miscellaneous ........................................

N et Sales
Jan., 1952
compared with
D e c .,’ 51
Jan.,’ 51
— 12%
— 7%
+ 17
— 2
+ 58
— 27
+ 17
— 3
+ 3
— 30
— 3
+ 4
— 4
+ 7
— 16%
+ 2%

Total A ll L in e s** .....................
* Preliminary.
* * Includes certain items not listed above.

Stocks
Jan. 31, 1952
compared with
Jan. 31, 1951
+ 20%
—
— 15
— 8
+ 16
+ 3
+ 1
- 0- %

Page 33

TRAD E
D E P A R T M E N T STO R E S
S to ck s
on H a n d
Jan. 31,’ 52
co m p , w ith
J a n . 3 1 /5 1

S to ck
T u rn o v er
Jan. 1, to
Jan. 31,
1952
1951
— 6%
.30
.32
+ 3
.27
.29
— 14
.27
.28
— 4
.29
.33
+ 2
.22
.26
.30
+ 1
.32
.32
— 7p
.35
— 5
.22
.23
— 2
.33
.34
.21
.23
-0 *
F a y ettev ille, P in e B lu ff, A r k a n s a s ; H a r ris b u r g , M t. V e r n o n , Illin o is ;
V in cen n es, I n d i a n a ; D a n v ille , H o p k in s v ille , M ayfield , P a du cah , K e n ­
t u c k y ; C h illicoth e, M is s o u r i; G reen v ille, M is s is s ip p i; and Ja ck son , T e n ­
nessee.
aI n order to p erm it p u b lic a tio n o f figu res fo r this c ity ( o r a re a ), a
special sam ple has been c o n s tr u c te d w h ich is n o t con fin ed ex clu siv e ly to
d epartm ent stores.
F ig u re s fo r an y su ch non d epartm en t stores, h o w ­
ever, are n o t used in c o m p u tin g the d istrict p ercen tag e ch an g es or in
c o m p u tin g d ep a rtm en t store in dexes.
2In clu d es St.
L o u is ,
C la y to n , M a p le w o o d , M is s o u r i; A lt o n and
B elleville, Illin o is.
O u tsta n d in g ord ers o f r e p o r tin g stores at the end o f Jan uary, 1952,
w ere 32 per cen t less than on the c o r re s p o n d in g date a year ago.
P ercen ta g e o f a c c o u n ts and n o te s re ce iva b le ou tsta n d in g Jan uary 1,
1952, co lle c te d d u rin g J an u ary, b y c it ie s :
I n s ta lm e n t E x c l. In sta l.
In stalm en t E x c l. Instal.
A ccou n ts
A ccou n ts
A c c o u n ts
A c c o u n ts
F o r t S m ith ............. %
47%
Q u in c y ............... 2 5 %
57%
44
St. L o u is ......
21
50
L ittle R o c k ...... 17
60
O th e r C ities.... 14
46
L o u is v ille ...... 21
M em p h is ......... 25
45
8th F .R . D ist. 21
49
N e t Sales
Jan ., 1952
c o m p a re d w ith
D e c .,’ 51
J a n .,’ 51
— 51%
— 11%
F t. Sm ith, A r k .1.... • 59
—
— 8
L ittle R o c k , A r k .... — 55
— 13
Q u in cy , 111................ — 52
— 19
E v an sville, I n d ....... — 58
— 10
— 12
L ou isv ille, K y ......... — 60
— 12
45
St. L o u is A r e a 1- 2.. —
— 3
Sprin gfield, M o ...... — 53
— 51
— 6
— 6
A ll O th er C ities*.... — 59

IN D E X E S

OF

D E P A R T M E N T ST O R E SA LE S A N D STOCKS.
8th Federal Reserve District
Jan .,
D e c .,
N o v .,
Jan.,
1951
1952
1951
1951
Sales (d a ily a v e r a g e ), u n a d ju ste d 3.....................
81
168
130
93
Sales (d a ily a v e r a g e ), season ally a d ju sted 3.... I l l
107
109
128
S to ck s, u n a d ju sted 4 .................................................. 92
105
125
110
119
114
127
S to ck s, season ally a d ju sted 4................................... 106
3D a ily a vera ge 1 9 4 7 -4 9 = 1 0 0 .
4E n d o f M o n th A v e ra g e 1 9 4 7 -4 9 = 1 0 0 .

proved moderately successful and shopping was
not limited by the adverse weather experienced
during January, 1951 and 1950.
At the end of January, 1952, the retail value of
department store inventories was 6 per cent below
that on January 31, 1951. The value of orders out­
standing on January 31 was substantially below a
year ago.
Specialty Stores— W om en’s specialty store sales
volume during January was down about seasonally
from December. Although women’s specialty shops
did not share to any large extent in consumer “ scare
buying’’ a year ago, sales this year were about onesixth under those in January, 1951. The value of in­
ventories held on January 31, was reported at about
the same level as a month ago and a year ago.
Men’s wear store sales in the district during Jan­
uary were also about one-eighth below those in
January, 1951. The retail value of inventories on
January 31 was slightly below that of a year ago.
Furniture Stores—January sales at reporting dis­
trict furniture stores totaled 8 per cent less than
in January, 1951. Sales were slow in nearly all lines
wnth least interest shown in major appliances.
The retail value of inventories at reporting stores
in the district on January 31 was somewT
hat less
than a month earlier and was 21 per cent lower than
on January 31, 1951.
AGRICULTURE

S P E C IA L T Y STO R E S
S to ck s
S tock
_______________ N e t Sales_______on H a n d
T u rn o v e r
Jan ., 1952
Jan. 3 1 /5 2
Jan. 1, to
co m p a re d w ith
co m p , w ith Jan uary 31,
D e c ./5 1 J a n ./5 1 Jan. 3 1 /5 1
1952 1951
M e n ’ s F u rn is h in g s ............................. — 5 2 %
.19 .22
.29 .30
B o o t s and S h o e s ................................... — 48
P e r c e n ta g e o f a c c o u n ts an d n otes rece iv a b le ou tsta n d in g Jan. 1, 1952,
c o lle c te d d u r in g J a n u a r y :

-12%
-3

—1/
°
—3

M e n ’ s F u rn ish in g s ................ 4 4 %
B o o t s and S h o e s ..................
46%
T r a d in g days : Jan ., 1952— 26 ; D e ce m b e r , 1951— 25 ; Jan u ary, 1951— 26.
P — P relim in a ry.
R E T A IL F U R N IT U R E STOR ES
N e t Sales
In v e n to rie s
J an ., 1952
Jan ., 1952
c o m p a r e d w ith
co m p a re d w ith
D e c ./5 1
J a n .,’ 51
D e c .,’ 51 J a n .,’ 51
8th D is t . T o t a l1... — 4 6 %
— 44
— 45
— 45
— 46
M e m p h is .....
— 42
— 32
L it t le R o c k .
— 41
S p rin g field ..

—
—
—
—
—
—
+
—

8%
17
17
18
17
1
7
29

—
+
+
+
+
—
—

8%
3
3
4
4
*
7
2

R a tio
of
C o llection s
J a n .,’ 52 J a n ./5 1

— 21%
— 10
— 10
— 7
— 8
*
— 11
+ 6

22%
30
30
14
13
13
20
17

24%
32
32
17
16
14
24
15

* N o t s h o w n separately du e to in s u fficie n t co v e ra g e , b u t included in
E ig h t h D is t r ic t totals.
*In a d d itio n to fo llo w in g citie s, in clu d es stores in B lyth e ville , P in e B lu ff,
F o r t S m ith , A r k a n s a s ; H o p k in s v ille , O w e n s b o r o , K e n t u c k y ; G reen w ood ,
M is s is s ip p i; H a n n ib a l, M is s o u r i ; and E v a n sv ille , In dian a.
2In c lu d e s St. L o u is , M is s o u r i ; and A lt o n , Illin o is.
3I n c lu d e s L o u is v ille , K e n t u c k y ; and N e w A lb a n y , In dian a.
PERCENTAGE

D IS T R IB U T IO N

OF

C a sh S ales ...................................................................
C r e d it S ales .................................................................
T o ta l

Sales

............................................................

Page 34




F U R N IT U R E
SALES
J a n .,’ 52
D e c ., ’ 51 Jan .,’ 50
16%
84

18%
82

17%
83

1 00 %

100%

100%

In district states and the nation, livestock num­
bers on farms increased during 1951. A national
increase of 6 million head of cattle during the year
brought their numbers to an all-time high. Num­
bers of hogs, sheep, poultry, and turkeys were mod­
erately higher than a year earlier, and numbers of
milk cows, sows, and horses were somewhat lower.
A 7 per cent increase in cattle numbers in district
states for the year ending January, 1952 was the
same as the national rate. But numbers at the out­
set of this year had increased in district states by a
greater percentage from the 1941 to 1950 average
number than for the nation.
Although cattle numbers increased during 1951,
the number of milk cows declined in both district
L IV E S T O C K O N F A R M S IN EIGHTH
A ll cattle and ca lv es
( I n th o u s a n d s )

Jan . 1, 1952

A r k a n s a s .....................................................................................
1,381
Illin o is .........................................................................................
3,550
In d ia n a .......................................................................................
1,886
K e n tu c k y ....................................................................................
1,722
M ississip p i................................................................................
1,686
M is s o u r i......................................................................................
3,658
T en n essee...................................................................................
1,658
D is tr ic t S ta tes.........................................................................
15,541
U n ited S ta tes...........................................................................
88,062
S o u r c e : U .S .D .A .
L iv e s to c k on F a rm s, J a n u a ry 1, 1952.

______

P er ce n t ch a n g e fro m
1951
1941-50 A v e .
+12%
+ 8
+ 4
+ 4
+ 7
+ 9
+ 5
+ 7
+ 7

+ 9%
+12
+ 4
+18
+12
+17
+17
+13
+11

states and the nation and was greater percentage­
wise for district states than for the nation. Com­
pared with the average for 1941 to 1950, however,
the district states rate was less than that nationally.
The decline in milk cow numbers may be nearing
an end, since more heifers one to two years old were
being kept for milk cows on January 1, 1952 than a
year earlier. Heifer calves being kept for milk cows
increased 6 per cent during the year both in district
states and nationally.
Crop conditions were favorable for the develop­
ment of 1952 crops in most areas during the month
of January. Winter wheat generally was in good to
excellent condition. Exception to this was in Texas
and Oklahoma, where droughts have persisted. Soil
blowing and insect infestation was small.
Prices received by farmers slumped during the
month ending January 15. On the latter date the
index of prices received was 300, (1910-14=100),
the same level as a year earlier. The index declined
5 points from December, 1951 to January, 1952, in
contrast to an increase of 14 points during the same
month a year earlier. Some further declines oc­
curred after January 15.
Prices paid by farmers increased 1 per cent (or
3 points) during the month to an index of 287, a
new record high. Prices were higher for feeder
cattle, feed and food, but were lower for clothing
and building materials. In addition, farm wage rates
increased 5 per cent, taxes payable per acre 4 per
cent, and interest payments 8 per cent. (The tax
and interest payment increases were not concen­
trated in January, of course, but were spread out
over the past year. The shift is made statistically
in January.) As a result of the lower prices re­
ceived and higher prices paid, the ratio between
prices received and paid (parity ratio) declined
from 107 to 105. In January, 1951 it was 110.

District Banking Developments— Earning assets
of district member banks declined $30 million during
January. The drop was the result of substantial net
repayments of loans and a small decline in “ other”
investments partially offset by increases in Govern­
ment security holdings.
Loans decreased $45 million in the month. Nor­
mally loans do not decline this much in January. All
the decrease was at larger urban banks and about
three-fourths of it was due to a drop in business
loans. The bulk of the net repayments came from
commodity dealers (primarily cotton dealers at
Memphis). Other businesses with large net repay­
ments were food manufacturers, sales finance com­
panies, wholesalers and retailers. On the other hand,
public utilities and metal manufacturers increased
their borrowings (a large share going for defense
and defense-supporting activities). Loans on real

BUSINESS AND AGRICULTURAL LOANS
8th DISTRICT W E E K L Y R E P O R T IN G M E M BER BANKS
1 9 4 9 - 1952
MILLIONS
OF DOLLARS
8UO

MILLIONS
OF DOLLARS
800

', P \s W
L
/

v'
700

700
/

/
i

1951

/
/

s’\ 1949

600

t

600

/
‘— — ^1950

K

/

\

/
500

500

BANK ING AN D FINANCE

In January, bank earning assets and deposits con­
tracted, both districtwise and nationally. The loan
decrease centered at large city banks and was
mainly in inventory loans for non-defense activities
offset, in part, by an increase in defense loans.
D ISTR IC T S T A T E S -J A N U A R Y
Milk cows and heifers
______ (2 years old and older)
Jan. 1, 1952
432
922
692
655
571
984

668
4,924
23,407

1%

—

12 %

5
2

—1
8
—

2

+

12
4

—
+

3
4

+ 1
—
1
-0—2
—1




-0-

6
—1
0

—

^

1st
Quarter

2nd
Quarter

3rd
Quarter

4th
^
Quarter

2 , 1952
Heifers 1 to 2 years old
kept for mjlk cows

Per cent change from
1951
1941-50 A v.

400

400

Tan. 1, 1952
118
267
153
108
132
205
132
1,115
5,726

Per cent change
from 1951

+ 8%

+1
+6
+ 3

+20
+
+
+
+

3
5
5
4

Sows and gilts
6 months old and older
Jan. 1, 1952

from 1951

102
1,080
708
156
102
543
175
2,866
9,811

— 11 %
— 7
- 0-

— 18

— 9
— 18
— 7
— 9

— 8

A ll sheep and lambs
Jan. 1, 1952
41
726
457
668
75
1,008
274
3,249
31,725

from 1951
+ 11%
+ 20
+ 5
— 1
+ 3
+ 5
+ 5
+ 8
+ 4

Page 35

estate and securities and loans to banks and con­
sumers all declined in the month.
Demand deposits fell $162 million in the month,
with the bulk of the decline at larger city banks.
Roughly half the net withdrawals were in accounts
of individuals and businesses; however, both banks
and the U. S. Government drew upon their bal­
ances in the month. Time deposits were up $9 mil­
lion in January, wT
ith two-thirds of the gain at
smaller banks.
Changes in Assets of Life Insurance Companies
in 1951— Assets of life insurance companies in the
United States rose $4.3 billion in 1951, virtually the
same as in 1950. Over 1951, these companies sold,
on balance, $2.4 billion Government securities (pur­
chases of $7.1 billion and sales and redemptions of
$9.5 billion). Most of the funds obtained last year
from resource growth and from net sales of Govern­
ment securities were used to purchase “ other”
securities and real estate mortgages. Bulk of the
“ other” securities purchased were industrial and
public utility bonds. A major share of these pur­
chases were obligations of businesses engaged in
defense and defense-supporting activities. The
mortgage expansion was 45 per cent in conven­
tional type, 34 per cent in V A guaranteed and 21
per cent in FHA insured loans.
ASSETS

O F L I F E IN S U R A N C E C O M P A N IE S
IN T H E U N IT E D ST A T E S
(In Billions of Dollars)
H o ld in g s
C h ange in
1950
D e c. 31, 1951
1951
10.9
— 2.4
— 1.8
U .S . G o v ern m en t S ecu rities..
30.7
+ 2.9
+ 2.2
O th er S e c u r itie s ............................
+ 3.2
+ 3.2
19.3
M o r tg a g e s ......................................
+ 0.2
+ 0.2
1.6
R ea l E s ta te ......................................
+ 0.2
2.6
+ 0.2
P o lic y
L o a n s .................................
1.1
+ 0.1
+ 0.1
C ash ................................... ..............
+ 0.3
1.8
O th er A s s e t s ...................................
+ 0.1
T o ta l

....................................

68.0

+ 4.3

MEM BER

1.

2.
3.
4.

Liabilities and Capital
5. Gross Demand Deposits...........................
a. Deposits of B anks................................
b. Other Demand D eposits....................
6 . Time Deposits ..............................................
7. B o r r o w in g s and O th e r L ia b ilitie s .......
8. T o t a l Capital A ccounts.............................
9. Total Liabilities and Capital Accounts..

( I n thousands
o f d o lla rs )
.
Illin o is ................
.
.
.

R E C E IP T S

ran.,’ 52

C A SH F A R M IN C O M E
D e ce m b e r , 1951
12 m onth total Jan. to D ec.
co m p a re d w ith
D e c .,
N o v .,
D e c .,
com p a red w ith
1951
1951
1950
1951
1950
1949
3 3 % — 11%
$ 60,74(
$ 564,523
+ 14 %
+ 5%
152,943 22
+ 7
2,020,380
+ 14
+ 3
97,628 — 15
+ 15
1,170,038
+ 20
+ 22
+ 35
147,210 + 105
632,799
+ 23
+ 18
73,221 - 22
+ 9
556,484
+ 13
+ 21
95,199 — 27
— 5
+ 18
+ 20
1,214,208
50,776 — 20
+ 13
-17
487,666
+ 14
$677,7 ’ 3
$6,646,098
+ 17%
+ 12%
11 % 4- 7 %

AND

S H IP M E N T S

AT

N A T IO N A L

STOCK

YARDS

__________ R eceip ts __________ ______________Sh ipm en ts_________
J an u ary , ’ 52
Jan u ary, ’ 52
J an .,
co m p a re d w ith
Jan .,
com p a red w ith
1952
D e c .,’ 51 J a n .,’ 51
1952
D e c .,’ 51 J a n .,’ 51
C attle and calv es.... 8 2,959
H o g s ............................359 ,330
S h eep ........................... 51,064
T o ta ls .....................493,353

+12%
+14
+41
+16%

—
4%
+
8
+ 28
+
7%

29,825 + 1 9 %
121,723
+20
21,665
+66
173,213
+24%

+

24%
+ 24
+163
+ 33%

DEBITS TO DEPOSIT ACCOUNTS
Jan., 1952
Jan .,
Jan .,
D e c.,
com p a red w ith
1952
1951
D e c .,’ 51 J a n .,’ 51
1951
31,734 $
28,953 $
E l D o ra d o , A r k ............. $
28,530
+ 10%
+ 1 1%
F o r t Sm ith, A r k ............
47,747
47,746
47,443
-0 + 1
H e le n a , A r k .....................
10,381
12,751
9,812 — 19
+ 6
— 6
145,536
154,434
149,021
L ittle R o c k , A r k ...........
- 2
P in e B lu ff, A r k ..............
41,258
44,986
34,899 — 8
+ 18
T e xa rk a n a , A r k .* ..........
16,530
17,997
14,128
— 8
+ 17
-XA lt o n , 111...........................
30,490
29,957 — 5
32,129
E .S t .L .-N a t .S .Y ., 111....
138,287
130,087
142,171
+ 6
33,842
Q u in cy , 111.......................
33,784
35,910
-0 6
140,752
-0 -0
E v a n sville , I n d ...............
140,936
140,771
L o u isv ille , K y .................
— 5
687,396
726,019
667,543
+ 3
O w e n s b o r o , K y ..............
43,510
45,404
50,406 — 4
— 14
P a du cah , K y ....................
34,318
35,659
17,800 — 4
+ 93
28,956
G reen ville, M is s ............
28,990
31,127
- 7
-0 13,568
13,527
14,658
C ape G irardeau , M o ....
— 8
-0 — 6
H an n ib a l, M o .................
9 ,524
9,364
10,088
+ 2
J efferson C itv , M o .......
73,104
44,224
63,608
+ 65
+ 15
St. L o u is , M o ................. . 1,940,929
— 4
1,947,797
2,009,686
-0 11,824
Sedalia, M o ......................
12,173
12,141
— 3
— 3
69,775
69,384
70,255
+ 1
— 1
S p rin gfield , M o ..............
Ja ck so n , T e n n ................
22,456
23,415
23,041
— 4
— 3
M em p h is, T e n n .............. .
737,182
747,248
818 ,656 — 1
— 10
( I n thousands
o f d olla rs)

T o t a ls ............................
*T h ese figu res are
hanks in T ex a rk a n a ,
D istrict, a m ou n ted to

.$4,3 0 9 ,2 8 3 $ 4 ,346,842 $4,421,632 — 1 %
— 3%
fo r T ex a rk a n a , A rk a n sa s on ly .
T o ta l <
debits fo r
T e x a s-A rk a n sa s, in clu d in g ban ks in the E leven th
$37,724.

+ 4.

E IG H T H D IS T R IC T
B A N K ASSE TS A N D L IA B IL IT IE S
BY SE LE CTED GROUPS
L a rg e C ity B a n k s i
C hange fr o m :

A ll M em ber
C h an g e f r o m :

( I n M illio n s of Dollars)

A ssets
L o a n s and In v e s tm e n ts ..........................
a. L o a n s .......................................................
b. U .S . G o v e rn m e n t O b lig a tio n s ....
c. O th er S ecu rities .................................
R eserv es and O th e r Cash B a la n ces..
a. R eserv es w ith the F .R . b a n k ......
b. O th er C ash B a lan ces*.....................
O th e r A s s e t s ................................................
T o t a l A s se ts ................................................

AGRICULTURE

D e c .,’ 51
to
J a n .,’ 52

J a n .,’ 51
to
J a n .,’ 52

4,293
1,919
1,997
377
1,420
722
698
51
5,764

—
—
+
—
—
—
—
+
—

30
45
17
2
124
26
98
3
151

+ 223
+ 59
+ 158
+
6
+ 76
+ 40
+ 36
+
1
+ 300

4,326
781
3,545
999
75
364
5,764

— 161
— 59
— 102
+
9
-0
+
1
— 151

+ 231
+ 64
+ 167
+ 40
—
2
+ 31
+ 300

J a n ., ’ 52
2,520
1,302
1.040
178
869
471
398
32
3,421

2,656
737
1,919
485
67
213
3,421

D e c .,’ 51
to
J a n .,’ 52
— 35
— 45
+
8
+
2
— 93
— 18
— 75
+
2
— 126

J a n .,’ 51
to
J a n .,’ 52
+ 108
+ 21
+ 93
—
6
+ 31
+ 15
+ 16
+
2
+ 141

-1 2 9
— 55
— 74
+
3
—
1
+
1
-1 2 6

+ 116
+ 59
+ 57
+
9
—
4
+ 20
+ 141

Sm aller B a n k sC h a n ge from :

J a n .,’ 52
1,773
617
957
199
551
251
300
19
2,343

1,670
44
1,626
514
8
151
2,343^

D e c .,’ 51
to
J a n ., ’ 52
+

J a n .,’ 51
to
J a n ., ’ 52

5
-0 9
4
31
8
23
1
25

+ 115
+ 38
+ 65
+ 12
+ 45
+ 25
+ 20
—
1
+ 159

— 32
—
4
— 28
+
6
+
1
-0 — 25

+ 115
+
5
+ 110
+ 31
+
2
+ 11
+ 159

+
—
—
—
—
+
—

1 In c lu d e s 13 St. L o u is , 6 L o u is v ille , 3 M em ph is, 3 E v an sville, 4 L ittle R o c k and 4 E a st St. L o u is - N a t io n a l S to c k Y a rd s , I llin o is , ban k s.
8 I n c lu d e s all oth er E ig h th D is t r ic t m em ber banks.
S om e o f these ban ks are loca ted in sm aller u rban cen ters, b u t the m a jo rity are ru ral area banks.
s I n c lu d e s vault cash, balances with o th e r banks in the U n ite d S tates, and cash item s re p orted in p r o c e s s o f co lle c tio n .

Page 36