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March 1956 Volume X X X V I I I Number 3 uncl-water Resources of the Eighth District V A S T R E S E R V O I R S O F W A T E R underlie the E ig h th F ed eral R eserve D istrict and d e m a n d for w ater is grow ing rapid ly on the part o f b o th in dustry and agriculture. Particularly a bu n d an t groun d-w ater supplies are associated w ith m ajor river basins such as the O h io at L ouisville a n d the M issouri-M ississip pi at St. L ouis. A n o th er large su p p ly is fo u n d in the G u lf C o a sta l Plain at M e m phis and un derlying m ost o f the southern portion o f the district. O ther un dergrou n d w ater resources are b road ly distributed, b u t surface supplies a p pear to affo rd the best w ater source for m u ch o f northern M issouri, south ern Illinois and southern Indiana. In conclusion, the ph ysical qu an tity o f w ater appears sufficient for needs over m a n y decad es in m ajor district cities and to m ee t further farm irriga tion dem an ds. B u t o n ly a sm all part o f the w ater resource potential is b e ing realized tod ay. Federall Bank St. Louis District Member Bank Earnings p. 40 v Survey of Current Conditions p . 42 Ground-water Resources of the Eighth District Vast resettoirs of water underlie the Eighth Federal Reserte District . . . Vast reservoirs of water lie underneath the ground surface of the Eighth Federal Reserve District. In some areas they have been heavily drawn upon; in others the reserve has been barely tapped. What is the nature and extent of this district underground water supply? Does it offer great potentialities for agriculture and industry? Or is it merely a supplemental source of supply that is rela tively unimportant? Considerable mystery about the origin of ground water has persisted, and colorful theories died hard. In 1717 Athanasius Kircher in his “Mundus Subterraneous” attrib uted springs to caverns of fire and water fed respectively by a fiery mass in the center of the earth and the waters of the sea. Even today water diviners practice their art with a bent twig, suggesting that there is something super natural about underground water, although experiments have demonstrated that water-divining is useless even in “finding” water that is already known to exist. Geologists have done much to dispel the mystery as sociated with this hidden resource. They classify sub surface-water resources under two major headings from the standpoint of use. The first category is subsurface water held in the upper layers of the crust of the earth, usually on a more or less temporary basis. This water, discussed in a previous article in connection with rainfall, is the source of most soil moisture and is not part of what r ‘One Aspect o f W ater Resources o f the Eighth District,” Monthly Re view, Federal Reserve Bank o f St. Louis, May 1955. Page 30 is ordinarily considered the ground-water supply.1 The second category designates what is ordinarily meant by “ground water;” it is found considerably deeper beneath the surface, though usually not over a depth of 2,500 feet, in the pores and fissures of the rocks, including clay, sands, and gravels. It is the main source of supply for wells, artesian water, and springs. Other categories of sub surface water are subsurface ice, mineral water in rocks at great depths, and water in the zone of rock flowage deep down in the earth, which may be the source of hot springs and geysers and the steams escaping with vol canic eruptions. Editor’s Note This article on the ground-water supply of the Eighth District is the third of a series by this bank in which water resources have been considered. Prior articles, appearing in the April 1954 and May 1955 issues of the Review , dealt with climate and with atmospheric water supply. They pointed out that, while the district is far more humid than much of the rest of the world, when evaporation is taken into account there are some areas of moisture de ficiency. The current article emphasizes ground water but includes some discussion of surface waters. Were the district’s underground waters gathered to gether in some vast subterranean cavern, the problems of estimating their utility and productivity would be great ly simplified. Unfortunately for purposes of measurement, this is not so. On the contrary, ground water is found separately in many different kinds of rock formations. Some yield generously; others not at all. Consider sand stones, for example, which are an important water-bearing rock. For some of these sandstones, it is possible to de termine with fair accuracy the extent of the rock strata and the water capacity per cubic foot. But even in such a case the yield at any given point and depth may not reach expectations. More than likely the rock bed is fractured at various points, and if the fracturing is ac companied by displacement, it may be necessary to drill hundreds of feet deeper to obtain water (figure 1). In FIGURE 1 The series of rocks above are separated by an unconformity, representing an interval of time during which practically no sedi ments were deposited, but existing rocks were eroded and perhaps tilted, warped, or broken. The rocks above the unconformity repre sent a later period of deposition (after Meinzer). fact, the productivity of the water in some areas may not be worth the expense of drilling to it. Some limestones are another important series of water bearing rocks in the Eighth District, but they are usually a much more erratic source of water than sandstone (fig ure 2). One driller may strike a concentration point for FIGURE 2 drill happened to miss suitable structure. Other lime stones are so cemented by clays that they are poor water bearers. Clays, on the other hand, hold vast quantities of water, but yield it so niggardly that they too are gen erally considered a poor water source. Besides, compacted clay may form a “roof” over water-bearing rocks, prevent ing the latter from being used until the clay is pierced. Granites, known for their hardness and thus excellent building properties, are an unlikely source of water, yet even they may provide enough water for domestic use if the well successfully taps a “crossroads” of jointing and fracturing (figure 3). No wonder then that experienced geologists are often reluctant to forecast before they drill. Water, like oil, is where you find it. In addition to sandstones and limestones, stream and glacial sands and gravels are other leading holders of the district's ground-water supply. Water-retaining sands and gravels resulting from continental glaciation are often closely linked with these major stream deposits, but others, left as irregularly shaped lenses, are not necessarily so. It would seem that at least the deposits along streams could be readily identified and the extent of their waterholding capacity measured. But much remains to be learned about these deposits even in industrial areas. The United States Geological Survey has completed only re cently, in manuscript form, the first extensive study of them along the lower Ohio River. And a new study on the “American Bottoms,” the area opposite St. Louis, has just been published by the Illinois State Geological Sur vey.2 To the vagaries of occurrence noted above must be added the fact that ground-water supplies undergo vary ing rates of recharge and withdrawal. Such changes in the supply may be the result of both natural and manmade causes. A drop in the water table is not always an indication that a ground-water supply is being impaired, for some water-bearing rocks are capable of rapid re charge with good quality water. However, any assess ment of the ground-water supply should take its fluctuat ing nature into account. The manuscript, prepared by Eugene H. W alker of the G eological Survey, is entitled ’ ’ The Deep Channel and the Alluvial Deposits of the O hio Valley in Kentucky.” Pending publication, manuscript copies may be examined at the office o f the Agricultural and Industrial Development Board o f Kentucky, located at Frankfort, or at the Geological Survey offices in Louisville. The Illinois report is: Bergstrom, Robert E., and W alker, Theodore E., Groundwater G eology of the East St. Louis Area, Illinois, Report o f Investigations 191, Illinois State Geological Survey, Urbana, Illinois, 1956. FIGURE 3 The property of containing pores and shape and arrangement of the high porosity may not provide much or become clogged, so that they lack pressure, known as permeability. varies in rocks with the size rock particles. But a rock of water if the pores are small, ability to transmit water under water seeping between the rock spaces so that his well flows generously. But his neighbor, sinking a well only a short distance away, may get only a trickle because the In granite most of the water is in fractures within a few hundred feet of the surface. Page 31 Is it possible, then, to measure this variable, im perfect ly known resource? In terms o f a precise figure, the an swer is “ N o.” But even if an aggregate cou ld be reliably com puted, it w ould have little practical significance, for ground-water availability varies greatly from place to place. And in the Eighth District the total supply is not econom ically available everywhere. H ence, the most meaningful analysis is one in terms o f smaller areas. . . and demand for water is grow ing rapidly . . . Despite problems o f measuring the ground-water res ervoir, it appears that the need for more water will be increasingly met from ground water because o f its many likely advantages. Harold E. Thomas has cited four prin cipal reasons w hy ground rather than surface waters have frequently been selected as a source o f supply: 1. Ground water can often b e reached more con veniently than surface water. 2. Ground water may b e available in areas where surface waters have already been appropriated for use. 3. The yield from wells and springs generally fluctuates less than streamflow in alternating w et and dry periods. 4. Ground water is more uniform in temperature and soluble mineral load than surface water and is ordinarily free o f turbidity and bacterial pollution.3 That use o f water in the United States has recently grown by leaps and bounds hardly needs arguing in view o f the w ide publicity given to this fact b y both G overn ment and press. The President's Materials Policy C om mission estimated that water requirements in this coun try w ould increase from 185 billion gallons daily in 1950 to 350 billion gallons daily by 1975. An even higher esti mate o f future requirements has recently been published by the United States Department o f Com m erce (figure 4). By 1955 residential, industrial, public, and com m ercial demand, including allowance for loss, had grown to an estimated national average o f 143 gallons per person per day from an average o f 95 gallons in 1900 and 138 gallons in 1950.4 times. M oreover, an individual plant may re-cycle the water it uses many times, thus greatly reducing initial requirements.5 . . . and agriculture . . . Farmers have also begun to draw more heavily on ground-water supplies. In the states east o f the Mis sissippi River, excluding Florida, the number o f farms reporting irrigation increased more than three times b e tween 1950 and 1954, and in these 25 states there are now more than one-half million acres o f irrigated land. In Arkansas irrigation o f rice land expanded from 411,000 acres in 1949 to 667,000 acres in 1954. It appears that m ore and more use o f supplemental irrigation will b e made for such crops as co m , cotton, and soybeans, and even for pastures. But there are many immeasurables. F or one thing, water requirements for supplemental irrigation vary greatly. Mississippi Circular 180 notes that from 12 to 15 inches o f irrigation water is required to keep perennial summer pasture productive through out an average season.0 A study made in Kentucky suggests that an average o f 6 acre-inches o f water is re quired for each acre to be irrigated.7 Costs o f irrigation also show w ide differences from one farm to another. For example, in Kentucky in 1950 sixteen farmers made investments o f from $875 to $9,000 for portable irrigation systems, the annual fixed costs for the systems ranging betw een $94 and $856. 5 For detailed information on industrial water use based on a survey o f over 3,000 plants, see W ater in Industry, National Association o f Manufac turers and The Conservation Foundation, New York, December 1950. (i Crop Response to Irrigation in Mississippi, Mississippi State College A g ricultural Experiment Station, State College, Mississippi, 1953. p. 12. 7 For this and other cases used in the follow ing paragraph see: Tharp, Max M ., and Crickman, C. W ., "Supplemental Irrigation in Humid Re gio n s," Water, Yearbook of Agriculture, 1955, United States Department o f Agriculture, pp. 253-256. FIGURE 4 W ater Use in the United States, 1920 — 1975 Billions of Gallons 500i--------------------------------------------------------------- . . . on the part o f both industry . . . The extent o f the expansion o f industrial water d e mand for any one small area is particularly difficult to estimate. W h o, ten years ago, could have forecast for the Paducah area a potential demand for 23 million gal lons o f water per day b y a single Government plant? In this case, as for most industrial plants, the water is largely returned to the river where it may b e re-used for other purposes. An outstanding example o f such m ul tiple use is Ohio's M ahoning River, where it is esti mated that every gallon o f the average flow o f 500 mil lion gallons daily is drawn into use from three to 15 3 Thomas, Harold E., "Underground Sources of Our W a ter," Water, The Yearbook of Agriculture, 1955, United States Department o f Agriculture, p. 63. 4 Jordan, Harry E., "T h e Problems That Face Our C ities," Water, The Yearbook of Agriculture, 1955, United States Department o f Agriculture. Page 32 1920 1940 Source: United States Department Defense Administration. I960 of Commerce 1980 Business, and FIGURE 5 Localized Hydrologic Cycle at Louisville. Source: Geological Survey Circular 276, p. 6. The fixed costs per acre-inch varied from only 66 cents for a system used at near-capacity to $25.82 for a system that was little used. Variable costs per acre-inch of water applied did not show so great a range, but dif ferences in labor costs account for a considerable spread in variable costs throughout the district. Some studies have indicated the profitability of supplemental irriga tion in certain places, but final conclusions cannot be reached until data are obtained which cover a series of years. Particularly abundant supplies are associated with major river basins such as the Ohio, . . . It seems clear that there will be more and more call upon the water resources of the Eighth District. Al though no total estimate of potential is feasible, a more detailed examination of district territory will indicate which smaller areas have the greatest possibilities of ex pansion for future needs. While the emphasis will be on ground water, surface water relationships are includ ed where necessary for comparative purposes. The major river basins of the Eighth District have an exceptionally abundant supply of ground water. Ac cording to the Geological Survey study noted earlier, the lower Ohio River Valley in Kentucky has more than a trillion gallons of water stored in its sand and gravel fill, this ground-water reservoir ranking as one of the most important in the United States in terms of present use and future potentialities. Because water moves from the river into the alluvium, the supply is virtually in exhaustible as long as water flows in the river. . . . at Louisvillet . . . This ability of ground-water reservoirs near rivers to refill so rapidly that they afford a continuing source of supply, provided they are not overdrawn, is illustrated by the geologic structure at Louisville (figure 5). The river basin is largely filled with glacial gravels overlain by a blanket of silt, soil, and clay. Underneath and on both sides of the basin are rock layers of limestone and shale. The most productive wells in the area have been drilled into the glacial gravels, although a few have been drilled deep enough to penetrate the underlying lime stone. The shale holds little water, even acting as a barrier against the recharging of water into the gravels. Use of water from this basin has shown that in most cases both rainfall and Ohio River water very rapidly replace water drawn from wells. Where natural re charging is insufficient, artificial recharging and con servation methods have proved successful. A ground water shortage developed in the central industrial area in 1943, but various techniques, including artificial re charge of city water (river sources), re-use of water, use of city water in place of ground water, use of cooling towers, and changes in plant equipment so improved mat ters that since 1946 pumpage in this sector of the basin has been in close balance with natural recharge. Further more, city water has been stored in the ground during the Page 33 FIGURE 6 Coastal Plain in the Eastern United States Showing Eighth District Portion and Irrigated Acres about 175 square miles comprising the Mississippi River Valley to the east of St. Louis. A Chamber of Commerce study has estimated that the potential water supply here is about 1.2 billion gallons daily, or six times what is presently needed to meet the daily average requirements of communities in the area. The study of the Illinois Geological Survey previously noted shows, however, that there are great differences in the potential from place to place, ranging from unfavorable to excellent. Even this generally abundant supply, moreover, is dwarfed by the surface-water supply of the Mississippi which, after being joined by the Missouri and Illinois, has channelled from a minimum of 21 billion to a maximum of over 400 billion gallons of water past St. Louis daily (according to mean monthly flow figures for the years 1940-1950). n r*n^ n n r l - w p f p r -- c n n r v lip c fnr+V m i* n r jc f r ^ o mi V U il UV-'LVVV./V/il 4-V ^ » U 1V/ Missouri and the Mississippi and along the south bank of the Missouri also have promising possibilities, though not as much is known about their capacity.9 Another Large ground-tv (iter supply is found in the Gulf Coastal Plain . , . Sources; United States Departm ent of Agriculture, W afer, The Ye ar bo ok of Agriculture, 7955, p. 245, an d Fenneman, N evin M., Physical Divisions of the United States (map), United States G e o lo g ic a l Survey, 1946. winter to supply cold water in summer, and used warm water has been recharged into the ground water supply. The potential supply of ground water in the area, in cluding not only the central industrial area discussed above but all other reservoirs as well, was more than ten times use in 1952. Besides, the flow of the Ohio River is so large that it overshadows the ground-water supply. A study of water use in 1952 indicated that the estimated potential supply (based on minimum daily flow for 20 years) was more than four times use. Moreover, since most of the water used at Louisville is returned to the river and is available for re-use downstream, the magni tude of potential use is greatly understated. Total use will probably be largely controlled by temperature and pollu tion with chemical wastes rather than by flow rates, according to the Geological Survey.8 . . . and the Missouri-Mississippi at St. Louis, The flood plains of the Missouri, Mississippi, and some of their major tributaries also have large quantities of ground water. At St. Louis, for example, the supply is particularly abundant. Part of the river flood plain, known as the “American Bottoms,” is an elliptic area of 8 Rorabaugh, M. I., Schrader, F. R ., and Laird, L. B., Water Resources Kentucky and Indiana, Geological Survey Circular 276, Washington, D . C., 1953. of the Louisville Area, .t'age 34 The Coastal Plain of the United States, which in its entirety includes both the Atlantic and Gulf-fronting low lands, and the lower Mississippi Basin, has been described by a leading expert as “probably the region the most abundantly endowed with water of all those in the United States.”10 As shown by the map (figure 6), this region in cludes a considerable portion of the Eighth District. The rock strata in the district section were laid down in the body of water that was once an arm of the Gulf of Mexico. They are thus very recent in terms of geologic age and less compacted than the rocks underlying the other two major ground-water regions of the Eighth Dis trict which will be considered next (map, figure 7). The rock beds in the Coastal Plain Region are also more uni form in water-bearing characteristics and are of generally much greater capacity than those in other major regions of the district. They form long, continuous, inclined strata that are often ideally constituted so as to, first, catch surface water and, second, retain it as ground water. In addition, the generally abundant rainfall of the region constantly recharges the underground water supply. . . , at Memphis . . . Memphis benefits greatly from the exceptional ground water supply of this region. So plentiful and pure is the ground water there that the vast surface supply of the Mississippi has not even been drawn upon for municipal use. Of the 22 cities in the United States with a 1950 population between 250,000 and 500,000, only San An tonio and Memphis obtained their municipal supplies from 9 For a fuller discussion of both surface and ground-water resources, see: Searcy, J. K ., Baker, R. C., and Durum, W . H ., Water Resources of the St. Louis area, Missouri and Illinois, Geological Survey Circular 216, United States Geological Survey, W ashington, D . C., 1952. 10 Thomas, Harold E., "Ground-water Regions o f the United States— Their Storage Facilities,” The Physical and Economic Foundation of Natural Resources, III, Interior and Insular Affairs Committee, House o f Representa tives, United States Congress, 1952, p. 65. ground water. Houston was the only one of 18 cities of more than 500,000 inhabitants that depended on wells for all its public supplies.1 1 Deep wells drilled in the Memphis area pass first through the topsoil, then through a mixture of sand and gravel. At a depth of about 100 feet hard clay is en countered, which, varying from 100 to 250 feet in thick ness, seals off surface water from above. Below this clay blanket are three U-shaped layers of water-bearing sands. These layers extend from the Ozarks on the west to the Tennessee River on the east. The first is reached at a depth of about 500 feet and the second at about 1,400 feet. The third at about 2,600 feet extends all the way to bedrock. These sands are constantly being recharged by rainfall, which enters the sands where their margins are at surface, particularly in the east, and the supply will probably continue as long as the rainfall continues. Today the city of Memphis is drawing around 210,000,000 gallons of water daily from this vast underground reservoir. The water is so pure that the only treatment the city gives it is aeration to remove carbon dioxide gases and filtration to remove traces of iron.12 . . . and underlying most of the southern portion o f the district . Other sections of the district's Coastal Plain include western Tennessee, northern Mississippi, the Jackson Pur chase area of Kentucky, eastern Arkansas and the Mis souri Bootheel (map, figure 7). Ions per minute to continuous yields of 1,300 and 1,400 gallons per minute. Surface water was being used by only one public (Paducah) and two industrial (Calvert City) systems in this part of Kentucky, although they used 60 per cent more than the total amount of ground water used by 29 other systems. “The present rapid industrial expansion in the Jackson Purchase will greatly increase the use of both ground and surface water within the next few years, but large reserves of ground and surface water should satisfy these additional demands.”1 5 While the eastern Arkansas portion of this Gulf Coastal Region shares in the general characteristics noted, excep tionally large demand for rice irrigation has resulted in a rather sharp decline in the water table in some places. It is estimated that in the area ground water was pumped in 1938 at an average rate of 320 million gallons per day and in 1952 at a rate of 685 million gallons per day. The water table between 1915 and 1953 has shown declines ranging from 10 to 60 feet, the greatest lowering center ing around Stuttgart.10 A project is now underway at the University of Arkansas Rice Experiment Station near Stuttgart to test artificial recharging of the ground water. In the Missouri Bootheel, wells are generally expected to yield large quantities of water at relatively shallow depths. For example, a well near Wardell in Pemiscot County has a capacity of 4,700 gallons per minute at a depth of less than 100 feet. The situation at Memphis in western Tennessee has just been noted. For the balance of the area the Geological Survey reports that except for the presence of iron the water is of good quality for all purposes and that “large quantities of ground water can be developed throughout the area.”13 The Geological Survey further reports that the alluvial deposits underlying the Yazoo Delta in the State of Mis sissippi to depths of 125 to 200 feet contain vast quanti ties of water which may be regarded as practically inex haustible even locally. A well of large diameter would probably yield from these deposits up to 3,000 to 4,000 gallons a minute without seriously lowering the water table.14 In the Jackson Purchase area of Kentucky, that part of the state lying west of the Tennessee River, the velocity of wells in various localities in 1951 ranged from 26 gal11 Thomas, Harold E., "Underground Sources o f Our W ater,” Water, The Yearbook of Agriculture, 1955, United States Department o f Agriculture. 12 Talley, Robert, "W a te r,’ ' The Commercial Appeal, Memphis, July 6, 1952. For a technical report, consult: Water-Supply Paper 638, United States Geological Survey, 1931. 13 W ells, Francis G ., and Foster, Margaret D ., Ground-W ater Resources of Western Tennessee, Water-Supply Paper 656, U. S. G eological Survey, W ash., 1933. 14 Stephenson, L lo y d W ., L oga n , W illiam N ., and W aring, G erald A ., The Ground-W ater Resources of Mississippi, Water-Supply Paper 576, U. S. Geological Survey, W ash., 1928. !•> Pree, H. L., Jr., and W alker, W . H ., Public and Industrial W ater ” Supplies of the Jackson Purchase Region, Kentucky, Geological Survey Cir cular 287, W ash., D . C ., 1953, 1, 2. !*• Baker, R. C ., "Arkansas’ Ground-W'ater Resources," a preliminary study prepared by the United States G eological Survey in cooperation with the Arkansas Resources and Development Commission, and University of Arkansas. (Research Memorandum N o . 2 on House Concurrent Resolution N o. 16, Research Dept., Ark. Legislative C ouncil) 1954. Mimeographed. Page 35 Other under ground-water resources are broadly distributed , . . . In addition to the river basins and coastal plain areas stressed thus far, other sections of the district also have considerable water potentials. One rather compre hensive area of generally moderate ground-water supply is the Unglaciated Central Region. It includes the Ozarks section of Missouri and Arkansas, a small part of southern Illinois, much of southern Indiana, and all of district Kentucky except the Jackson Purchase area. Compact, sedimentary rocks dominate most of the area, and lime stone is by far the most productive and extensive ground water reservoir of these. In the St. Francois Mountains and a few other isolated areas, granites, yielding little water, predominate. The most productive deposits, al though also of limited extent, are gravel and sand found in stream beds. Large underground streams are formed in some locali ties. They, or the springs issuing from them, have char acteristics similar to those of surface water of other areas, fluctuating in response to precipitation and sometimes carrying considerable sediment. Nevertheless, even at minimum flow such limestone springs may afford large supplies. For example, Big Spring, near Van Buren, Mis souri, could adequately meet the present water needs of St. Louis. But even if these springs do yield large amounts of relatively pure water they may never be used for manu facturing or harnessed for generating electricity because of their great recreational value. Many groups advocate that these larger springs and the rivers they supply be left as a natural wilderness area. Sandstone is another important bedrock formation in the Central Unglaciated Region. It outcrops in some areas and is found below the limestone in others. But these sandstones have not proven particularly productive and are generally of such mineral content, particularly at deeper levels, that they are unacceptable for many uses. An indication of the limited availability of ground water supplies in the Central Unglaciated Region is shown by the fact that the three largest cities, Springfield, Little Rock, and Fort Smith, all rely principally on surface res ervoirs. At Little Rock, a daily capacity of 23 million gal lons is available from a highly scenic as well as useful reservoir known as ‘Lake Winona.” Construction of a new dam at another location is planned to furnish an additional 83 million gallons per day. Fort Smith obtains its municipal water from a reservoir that provided 9 million gallons of water daily during the driest period of 1953, and a new reservoir is expected to increase dependable daily capacity to about 40 million gallons. At Springfield, Missouri, the main source of supply for many years was also a surface reservoir, supplemented by three deep wells and a spring. In 1954, however, following three drouth years, the water supply became critically short, and the city began construction of another reservoir and author ized drilling of additional wells to supplement the reser voir supply. Besides much of Missouri and Arkansas, a major part of district Kentucky and southern Indiana lies in the Un glaciated Central Region. In Kentucky the subregions are the Mississippian Plateau Region and the Western Coal Region. In the Mississippian Plateau Region, of a total daily pumpage of 33 million gallons about 25 million was obtained from ground-water sources and about 8 million gallons from surface water during the years 1951-1953. The largest producing wells in the region were from the alluvium of' the Ohio River Valley, which the Geological Survey calls “the only know potential source of very large public and industrial supplies in the region/'17 However, 17 Brown, Richmond F., Public and Industrial Water Supplies of the M ississippian Plateau Region, Kentucky, Geological Survey Circular 341, W ash ington, D . C , 1954, p. 12. FIGURE 7 G R O U N D -W A T E R R E G IO N S O F THE EIGHTH FEDERAL RESERVE DISTRICT Re g io n ) / / ^ V //.E V A N S V IL L E J Ar ^ U N G L A C I A T E D C E N T R A / V c - J / J FT. SMITH LITTLE RO CK^ S / DELTA / v r / . o I s ' KENTUCKY TENNESSEE MISSISSIPPI $--------------- S ^ \ f % J o DISTRICT BOUNDARYSTATE BOUNDARY e t;> ^ re gio n s after: GROUND-WATER REGION BOUNDARY DELTA SCALE IN MILES Thom as, H arold E., 1952. M issou ri areas after: personal 25 i u ■ 0 ■— 25 ■ Small areas in Kentucky and Missouri described in text. "G ro u n d -w a te r Regions an d Econom ic Foundation of Natural Resources, III, Interior an d Insular A ffairs lo g ic a l Survey studies. --------------------- RIVERS /MISSISSIPPI > M a jo r p l at e a o PENNYROYAL \ ^ •MEMPHIS GRAND PRAIRIE REGION BLUEGRASS ) MS 1 9 P 1 SSP ' } < i* > r 'v ;<? ARKANSAS V Sources: \ « v C . ------------------------ j / /•LOUISVILLE | ' WESTERN COAL FIELD L r '^ , R E G I O N ? JACKSON j PURCHASE y v- '- < CN ..-N '- A ✓ / W » T* \ SPRINGFIELD / < correspondence with Edw ard A. Clark. of the United Committee, States House of — Their Sto ra ge Representatives, Facilities," United The States Physical C o n gre ss, Kentucky areas correspond to those used by United States G e o O ther nam es iden tify places discussed in the text. Page 37 in the Pennyroyal Area a large number of towns and several industrial firms obtain water from wells and springs in the limestone. Elizabethtown in Hardin County, the largest town in the county using ground water, obtains its municipal water supply from a spring having a minimum flow of about 1,200 gallons per minute. Two large com panies in Warren County obtain water for industrial use from springs that have a minimum flow of more than 1,000 gallons per minute. In Kentucky’s Western Coal Region, as in the Mississippian Plateau Region to the south, ground-water supplies come largely from river bed sources. Most of the rest, less than 10 per cent of the total, is derived from sand stones which become highly mineralized in deeper wells. However, they yield as much as 500 gallons per minute, about one-half the gallonage obtained on the average from the river gravels.18 The Blue Grass Region lies largely outside the Eighth District. In general, the outer Blue Grass has only mod erate ground-water possibilities and district Indiana is considered in the following section, which emphasizes surface supplies. Although surface waters meet the needs of major cities in the Unglaciated Central Region, ground-water resources of this region nonetheless provide a large number of smaller municipalities with their supplies. Many wells are noted for their purity. There is every reason to be lieve that excellent underground supplies are available for many medium-sized industries and for a considerable ex pansion of farm irrigation needs. This is in contrast to the Glaciated Region, to be next considered, where surface waters appear to offer the most feasible means of in creasing water supplies. . . . but surface supplies appear to afford the best source for much o f northern Missouri, . . . Another area of generally moderate water resources, named the Glaciated Central Region, is shown by the map to lie north of the Missouri River in the State of Mis souri, and in a large part of district southern Illinois and southern Indiana. This region is underlain by compact, sedimentary rocks in which the water supply is generally rather poor. The deep bedrock formations are apt to have salt water, while much of the shallow or near-surface bedrock has a rela tively low permeability, hence yields only small quantities of water. These conditions of the bedrock lead to a con sideration of the debris left by continental glaciation as in general the best source of underground water in this region. The continental glacier, a huge mass of ice from per haps 4,000 to 8,000 feet thick extended some half mil lion years ago from Canada to approximately the present course of the Missouri and Ohio Rivers in the district. is Maxwell, B. W ., Public and Industrial Water Supplies of the Western Coal Region, Kentucky, Geological Survey Circular 339, Washington D . C., 1954. Page 38 In fact, the original course of these streams were formed by the waters rushing from beneath the frontal lobe of the ice cap as it remained relatively stationary at its point of farthest advance. Crushed and churned beneath the glacier, or piled irregularly over the existing drainage pat tern, was a layer of rock and finely ground rock particles, known as glacial till. At a later period some of the till was further weathered and with the addition of plant humus formed soil. In other areas the glacial till was buried under a covering of wind-blown soil from farther west. The significant feature from the standpoint of ground water is that this glacial till provides only indif ferent supplies of water today. Where deep pre-glacial valleys were filled there is apt to be more water, but in most cases the supply is sufficient only for farm and home use. Thus, surface storage must be the answer in many sections of northern Missouri, southern Illinois and southern Indiana. Edward L. Clark, for many years Missouri State Geolo gist, has divided northern Missouri into two ground-water provinces as noted on the map, (figure 6). He has written that in the first area “we obtain very small quantities of water from the glacial drift. Where buried valleys are present we get considerably more water, but not what you would call a great abundance. Below the glacial drift in this area the bedrocks at relatively shallow depth con tain salt water. “Area No. 2 across northern Missouri is essentially the same as area No. 1 except that the salt water is a little deeper in the bedrocks, and we are, therefore, able to develop some wells at depths of 500 to 600 feet. How ever, these wells are small producers. In area No. 2 in the vicinity of St. Louis and along the Mississippi River in Perry County we encounter salt water at depths of from 300 to 600 feet.” . . . southern Illinois . . . O. W. Beimfohr reported that about 75 per cent of the public water supply in southern Illinois is of surface origin. However, an apparently exceptional ground-water supply is available in the Cache River Valley, just north of the Ohio near Cairo.1 9 . . . and southern Indiana. Anton Hulman, Jr., Chairman of the Indiana Flood Control and Water Resources Commission wrote in 1954 that: “With the Commission recognizing that surface storage must be the answer in many sections of southern Indiana, cities have been encouraged and assisted in creating reservoirs having adequate capacities at minimum costs. It is thought that perhaps rather large reservoirs, centralized to serve several farms, and several towns, by pipeline, may be practical in the near future.” Thus, while ground-water supplies may be generally moderate in this region, it should not be overlooked that many localities have access to the river basin deposits such as those of the Grand, Chariton, and Wabash, or even the Illinois, Missouri, or Mississippi and Ohio. In conclusion, the physical quantity of water appears sufficient for needs over many decades in major district cities . . . In view of the exceptional ground-water and surfacewater resources that have been described as available to three of the districts major cities (Louisville, Memphis, and St. Louis), it is difficult to foresee any shortages within the next generation, provided facilities are increased and abuses lessened. In Louisville and its environs in dustrial use of ground water is said to be only about onetenth of recharge capacity, and the Ohio River has been used only moderately. Memphis has not yet tapped the surface waters of the Mississippi River for municipal purposes, and the ground-water supply is still abundant. 19 Beimfohr, O . W ., The Industrial Potential of Southern Illinois, South ern Illinois University, Carbondale, 1954. St. Louis, besides being able to draw further on the river, has developed only one of the five major potential ground water reservoirs near it. Of the other metropolitan centers in the district, Evans ville also enjoys an advantageous position with both good surface and ground-water potentialities. Fort Smith and Little Rock, Arkansas, and Springfield, Missouri, which rely largely on surface waters, have expanded or are now expanding their reservoir capacity for the reason that the ground-water potential is not exceptional. . . . and to meet further farm irrigation demands. In much of the Eighth District, large supplies are available for further farm irrigation. In much of the Coastal Plain Region, wells yielding from 1,000 to 4,000 gallons per minute and better can often be reached at relatively shallow levels. In the Central Nonglaciated Region, some wells may yield 450 gallons per minute, enough to supply an acre of farm land with one inch of water in an hour, but supplies are not nearly as broadly distributed or reliable as in the Coastal Region. In north ern district Missouri, in southern Illinois and Indiana, sur face supplies may have to be relied upon primarily, though many farmers there will be able to draw upon ground waters of river basins. But only a small part o f the district's water resource potential is being realized today. This study has shown that the ground-water resources of the district are much more than a mere supplement to surface waters. In their own right, they offer many op portunities to agriculture and industry for the most ad vantageous source of water supply. But their possibilities need to be further developed. The inability in many dis trict areas to tap these supplies for relief from drouth in recent years shows that a long path lies ahead before sup ply has been anywhere near equated with demand. H arry B. K ir c h e r S U B S C R I P T I O N S to th e Monthly Review a re a v a ila b le to th e p u b lic w ith o u t c h a rg e . F o r in fo rm a tio n c o n c e rn in g b u lk m a ilin g s to b a n k s, b u sin e ss o rg a n iz a tio n s a n d e d u c a tio n a l in s titu tio n s , w r it e : R e s e a rc h D e p a rtm e n t, F e d e r a l R e s e rv e B a n k o f S t. L o u is , S t. L o u is 2, M is s o u ri. Page 39 District Member Bank Earnings in 1955 N et current earnings of district banks were higher during 1955 than in 1954 . . . T h e YEAR 1955 was good, profitwise, for most Eighth District member banks. Net current income of these banks was at an all-time peak of $75 million, about 11 per cent higher than in the previous year. However, after deduct ing net losses on security sales (in contrast to profits in the previous year) net profits both before and after taxes were lower than in 1954. Nevertheless, the amount of cash dividends paid to holders of common stock continued to rise. Member banks in the rest of the nation had a similar experience. Preliminary figures indicate that net current earnings rose to $2.1 billion in 1955, compared with $1.8 billion a year earlier. However, after adjusting for net losses (as against net profits a year ago) and income taxes, net profits after taxes fell to $1.0 billion from $1.1 billion in 1954. Cash dividends declared, on the other hand, in creased from $450 million to a level of $500 million. . . , reflecting greater current earnings . . , During 1955 total operating earnings of district banks continued to expand, and all major categories of earnings contributed to the gain. Over 60 per cent of the dollar growth in earnings was the result of a greater return on loans. The larger income from advances was occasioned by a rise in the average volume of loans outstanding and a higher rate of return on these loans. Businessmen, con sumers, real estate owners, farmers and others all bor rowed more from district banks than in the previous year. At the bigger banks the higher average rate of interest on loans reflected a rise in the prime lending rate from 3 per cent to a level of 3Y2 per cent during the year and the relatively larger growth of higher-than-average rate consumer loans. At smaller banks most rates remained firm but a few were marked higher. Earnings on securities, both United States Government and other, continued to increase. For Government securi ties the higher return reflected a rise in interest rates which was fairly sharp for Treasury bills and other short term securities. Average holdings of Government obli Page 40 gations, however, contracted over the year as banks ap plied more of their available funds to meet the credit de mands of their customers. The higher income on munic ipal and corporate securities reflected both the rise in interest rates and larger holdings. Preliminary indica tions are that earnings from service charges on deposit accounts continued to rise but at a slower rate than in the previous year. . . . partially offset by larger expenses . The higher earnings at district member banks during 1955 were partly offset by an increase in expenses. Thus, although total earnings were $13.4 million higher than during 1954, net earnings rose only $7.6 million. For the third straight year it appears that the sharpest jump (9 per cent in the most recent year) in a major ex pense item was in interest paid on time and savings ac counts. Both the volume of time deposits and the aver age amount of interest paid on these accounts continued to edge up. A few additional institutions increased their payment rates, and indications are that the greatest in creases in savings accounts tended to be in banks paying relatively high rates. The biggest dollar amount of increase in expense from 1954 to 1955 at district member banks was in salaries and wages. This expense item rose approximately $3 million. Average wages of bank employees and officers were each estimated to be about 3 per cent higher than during the preceding year. In addition to the higher average pay ments per staff member, it appeared that district banks maintained on their payrolls a few more officers and em ployees in 1955 than during 1954 to handle the increased volume of deposits, checks, lending and other work. Another increase in expenses for a few district banks was in costs of using borrowed money. In the aggregate district banks borrowed substantially more funds in 1955 than in the previous year, and the average interest rate on these funds was higher. The heavier borrowings and increased rates reflected the tighter reserve positions of banks generally as the demands for credit by customers became more vigorous. Preliminary figures indicate that most other expense items also worked up, such as depre ciation, taxes (other than income), supplies, utilities and advertising. H ow ever, net profits were low er than in 1954 . Although net operating earnings of district member banks were $7.6 million higher during 1955 than in the previous year, net profits (before taxes) declined from $70 million to $61 million. The drop in profits in 1955 reflected net losses and charge-offs compared with large profits on security sales in 1954. The losses in 1955 re flected primarily: (1) the decline in prices of most se curities (especially intermediate-term), (2) the need for funds by many banks, requiring liquidation of a part of these holdings, and (3) tax advantages to certain banks of taking losses on securities in 1955 by shifting their portfolios. Actual losses on bad loans during 1955 were quite small for most district banks. However, charges against earnings to increase reserves for loan losses continued to increase. From these profits, income taxes took less , . Income taxes on district member banks took, in the aggregate, just over $24 million in 1955 as against $29 million in the previous year. When the income tax levy is related to net profits (before income taxes), it took 40 per cent compared with 41.5 per cent in the previous year. . . . and banks retained a smaller portion to strengthen capital . . . For many years, retained earnings have been the major source of funds contributing to growth of capital ac counts of district member banks. Preliminary figures show that these banks “plowed back” nearly $21 million of their net profits in 1955 to strengthen capital struc tures. However, in the previous year these banks re tained $27 million. Even on a percentage basis, the amount of profits (after taxes) retained was lower (57 per cent) than in 1954 (64 per cent). Despite the smaller volume of retained profits, mem ber banks for the third straight year added to their cap ital structures during 1955 at a more rapid rate than total assets or total deposits increased. On the other hand, since loans expanded greatly, “risk” assets (i.e., assets other than cash and Government securities) rose some what more sharply than total capital accounts. . . . but stockholders received a larger amount of dividends « During 1955 the distribution of cash dividends on com mon stock by Eighth District member banks amounted to nearly $16 million, the greatest amount on record. In 1954 these banks declared cash dividends of $15 million. Some banks raised their regular rates; others declared extra dividends. Compared with total capital accounts, cash dividends were about the same as in the previous year (2.9 per cent compared with 3.0 per cent). N o r m a n N . B E A R N IN G S A N D E XPEN SES S E L E C T E D O P E R A T IO N R A T IO S E IG H T H D IS T R IC T M E M B E R BANKS o w sh er E IG H T H D IS T R IC T M E M B E R BANKS (In M illions o f Dollars) (In per cent) 1953 1954 1953 1954 1955 Interest and D iscount on L oa n s. . . . . . . . 9 7.8 101 .0 1 09 .3 Net Profits (after taxes) to Capital A ccounts 9 .0 10.2 8.1 Interest on U. S. G overnm ent Securities . 3 9.9 4 0 .9 4 3 .4 Cash D ividends to Capital A cco u n ts ............ 2.9 3 .0 2.9 9.3 9 .5 1 0.5 Net Profits (after taxes) to T otal Assets. . . . 0 .6 6 0 .7 6 0 .6 5 Other current operating earnings............... . 2 0.4 -— T otal Current O perating E arnings. . . 107.4 2 2 .2 — —— 23.8 —..... Expenses to T otal E arnings........................... 6 1.2 62.7 173.6 1 87 .0 Net Losses and C harge-offs to T otal Earnings 4 .8 — 0 .2 5 .5 Interest on Other S ecurities...................... . Salaries and W a g e s .......................................... 1 95 5 P 4 9 .3 5 2 .2 5 5 .3 Interest on T im e D e p osits........................... . 11.8 14.2 62.3 Incom e Taxes to T otal E arnings...................... 10.9 11.4 11.2 Net Profits to Total E arnings........................... 23.1 26.1 2 1.0 1 5.5 A ll other expenses. . . ..................................... . 3 8.6 T otal Current O perating E xpense. . . 99.7 3 9 .5 ..... . 4 0 .9 — — Interest on Governm ent Securities............... 2 .0 6 2 .0 8 2 .1 5 Interest and D ividends on Other Securities 2 .5 7 2 .5 9 2 .6 4 5.81 105.9 111.7 Earnings on L o a n s ................. ............................. 5.81 5.71 Capital Accounts to T otal Assets. . . . . . . . . 7 .5 7 .8 8 .2 Capital A ccounts to Risk Assets . . . . . . . . . . 2 3 .4 23.1 22.1 8 .2 8 .5 9 .0 2 2 .7 2 3.6 2 4.2 Net Current O perating Earnings. . . Net Losses and C h a rg e -o ffs ...................... 6 7.7 8.1 _ _ 67.7 — 2 .5 . _— 7 5.3 14.7 .------ N et Profits B efore T a x e s .................... Taxes on N et I n c o m e ..................................... 5 9.6 2 5.0 ------ 7 0.2 29.1 ------- 6 0.6 2 4.4 ------ 3 4.6 41.1 3 6.2 Cash D ividends on C om m on S to c k .......... . 13.7 14.7 15.6 N et Profits A fter T a x e s ...................... Capital A ccounts to T otal Deposits . . . . . Tim e Deposits to T otal D eposits . . ............... Interest to Tim e D e p o sits................................ 1.13 1.23 1.28 p — Prelimin ar y Page 41 OF CURRENT CO N DITIO N S JLj ARLY RETURNS on February’s business pace in the Eighth Federal Reserve District indicated a continuation of January’s leveling off. Industrial production in Feb ruary generally held close to the high rate of recent months. New construction undertaken in the district in January was greater than the large amount contracted a year earlier, but in the first half of February, contract awards dropped sharply from year earlier levels. The demand for credit at district banks contracted about sea sonally during the four weeks ended February 22. How ever, the number of persons claiming unemployment in surance rose more sharply in February than a year ago in all of the district’s major cities. And, although district farmers were heartened by the much needed rain and snow fall in January and February, they were faced with the prospect of lower price supports on some major crops. Nationally, too, the leveling off of business activity in January apparently continued into February. Weekly in dicators of important segments of industrial production declined slightly during February, and insured unemploy ment rose from early January to early February, in con trast to a decline last year. On the other hand, construc tion contracts awarded and department store sales con tinued above year earlier levels. The fact that business activity has leveled off, after more than a year of fairly steady advance, raises the question as to whether the economy was at the peak of a business cycle, or whether it is merely pausing on its upward march. In time this question will, of course, be answered, but, even now, some indication of the future trend of business could be obtained by assessing recent trends. One of the chief generating forces in the rise in business activity during the past year was the expan sion in consumer spending. Rising income, an increased willingness to spend, and greater use of credit were fac tors in this growth of consumer outlays. Recent develop ments, however, indicate some modification in these fac tors. For example, in the fourth quarter, the rate of per sonal saving rose. Extensions of instalment credit, after seasonal adjustment, declined in the fourth quarter from the record rate in the third quarter of 1955. Thus, despite rising income in the final quarter of 1955, seasonally ad justed retail sales remained almost unchanged from Sep tember to January. In January personal income was affected by a somewhat lower dividend rate than in De Page 42 cember and by reduced earnings of factory production workers, reflecting cutbacks in the average work week. This latter influence, however, may have been moderated by increased wage and salary payments in nonmanufactur ing industries. Inventory building also added to demand last year, and some further inventory accumulation apparently continued in the first two months of 1956. In the first three quarters of 1955, inventories grew less rapidly than sales, but in the fourth quarter this relationship shifted. A continua tion of the fourth quarter accumulation would tend to an overbalance of stocks relative to sales. Thus, the stimulus to business activity in recent months derived from inven tory building may moderate in the months ahead. Other sectors of demand, however, continued to increase. Businesses plan to expand their expenditures on new plant and equipment, according to recent announcements and surveys. Contracts awarded in recent months indicate that construction activity will remain high, and perhaps even reverse its recent moderate downtrend. Furthermore, state and local governments are expected to continue to increase their outlays, reflecting the need for additional public facilities, such as schools and highways. /ndustry District industrial production generally continued close to recent levels in early February. Automobile assembly was at a reduced rate, reflecting the large dealer inven tories on hand. Southern pine output declined slightly, reflecting bad weather conditions. And crude oil output was a shade below earlier production this year, although the trend last February was upward. Slightly higher fig ures, however, were shown early in the month for steel ingot production and railroad freight interchanges at St. Louis, and for Southern hardwood lumber output. Trade sources reported that shoe production appears to be headed for a first quarter mark that may surpass last year’s record. Livestock slaughter in the St. Louis area declined seasonally but was almost one-fifth above that during the comparable period of 1955. Coal output increased slightly. Construction January reports on new construction undertaken in the district were favorable, but in the first half of February contracts awarded in the St. Louis territory of F. W. Dodge Corporation dropped sharply from year earlier levels. Reflecting the high rate of awards in the three months ending in January, the most recent seasonally ad justed index of construction contracts awarded in the Eighth Federal Reserve District rose from the preceding period and was about one-eighth higher than a year earlier. In comparison with a year ago, residential con struction lagged both in January and in the first half of February. In January this lag, however, was more than made up by larger amounts of other construction. Trade Consumers maintained a high rate of buying at district department stores in January and the first part of Feb ruary. The seasonally adjusted index of sales in January was 126 per cent of the 1947-49 average, compared with 125 in December and 123 in January 1955. In the first three weeks of February, sales were 6 per cent ahead of the corresponding weeks last year. Automobile sales in the nation picked up in the first ten days of February, partially reflecting seasonal trends, but continued to lag the record rate set last year. In January, dealer sales of new autos had declined and were moderately below the record of a year ago. Labor Markets The recent slowdown in some industries augmented the usual seasonal layoffs in the district's major metropolitan areas. As a result, insured unemployment in the four largest cities rose more in the four weeks ended February 18 than in the comparable period a year ago. The in crease in St. Louis and Evansville was large enough to raise the number of insured unemployed above that of a year ago. On the other hand, for the nation and in Louisville and Memphis the number claiming unemploy ment insurance was less than a year before. In Evansville, which was declared a surplus labor market area in January, Whirlpool-Seeger Corporation took possession of the plant formerly owned by Inter national Harvester and began installation of machinery. About 500 were at work there already and more will be employed when operations begin. The general leveling off in business activity was also indicated by the absence of change in seasonally adjusted employment in nonagricultural establishments in the na tion in January. Nevertheless, employment was at a record level of 50.2 million, 1.8 million higher than a year ago. Manufacturing employment actually declined' in January and the average work week also fell more than usual. The reduction in manufacturing employment was offset by gains in trade and some other lines. Agriculture Growing conditions improved during the last half of January and early February as a result of much needed precipitation. Some moisture fell over most of the district states, bringing relief from a prolonged late fall and early winter drouth. Greater than normal rainfall fell at most weather stations in the southern district states. The amount of snow and rain falling in other district states varied widely but was generally sufficient to meet cur rent crop moisture needs. As a result of the precipitation, prospects improved for both fall seeded crops and spring plantings. Grain crops in the northern district states have good prospects for winter survival, having suffered only light damage from soil heaving. Pastures in the southern part of the district made good growth after a slow beginning, but were still not in condition to support much grazing. Winter is traditionally a period of planning for the farmers. This year their plans will be shaped, in part, by the recently announced Federal support levels for major crops. In early February, the support level for 1956 corn crop was announced as 11 per cent below last year. Sup port prices for other feed grains were changed little, how ever, and those for oilseed were raised about 5 per cent. The support price for wheat, which was announced earlier, will be 13 per cent less than in 1955. Average prices of district agricultural products declined slightly for the four-week period ending February 24. A fourteen per cent decline in hog prices led the downward move. Broiler, cattle, tobacco, and rice prices also weak ened. Offsetting the general decline were price increases for milk, eggs, cotton, soybeans, corn, wheat and oats. Banking During the four weeks ended February 22 the de mand for credit at district banks indicated that business activity remained at a high level. Total loans (excluding interbank lending) at weekly reporting banks contracted $19 million, or 1 per cent. Most of the contraction was of a seasonal nature. Businesses, accounting for about half of total borrowings, made smaller reductions in their indebtedness than the average decline of corresponding weeks in recent years. By major industry classification, the pattern varied as some borrowers showed strength while others made more than the usual amount of net repay ments. Producers of metals and metal products and petro leum, coal, chemicals and rubber added more to their loans outstanding than the average increase of the like weeks of 1952-55. Processors and distributors of agricultural prod ucts made smaller than usual net repayments. On the other hand, sales finance companies made sizable reduc tions in their outstanding indebtedness probably indicating continued financing in other markets. Contractors also repaid on balance perhaps reflecting the smaller number of housing starts in recent months. “Other,” largely consumer, loans at reporting district banks declined less than the average contraction during the corresponding weeks of recent years. Loans to finance the purchase or carrying of securities were up in the period. Real estate loans, however, contracted moderately. Page 43 <7 V A R IO U S IN D IC A T O R S O F IN D U S T R IA L A C T IV IT Y com pared with Dec. 1955 Jan. 1955 Jan. 1956 Industrial Use o f E lectric Power (thousands o f K W H per w orking day, selected industrial firms in 6 district c itie s)......................................................................................... Steel Ingot Rate, St. Louis area (operating rate, per cent o f c a p a city )...................... C oal Production Index— 8th Dist. (Seasonally adjusted, 1 9 4 7 - 4 9 = 1 0 0 ) .................... C rude Oil Production— 8th Dist. (D aily average in thousands o f bbls.) Freight Interchanges at RRs— St. Louis. (Thousands o f cars— 25 railroads— Term inal R. R. A ssn .)......................................................................................... Livestock Slaughter— St. Louis area. (Thousands o f head— w eekly a v e ra g e ).......... Lum ber Production— S. Pine (Average w eekly production— thousands o f bd. ft.) . Lum ber Production— S. H ardwoods. (Operating rate, per cent o f c a p a city )............ N.A. 99 86 p 381.1 N.A. — 4 — 2 + 3 108.5 138.2 208.3 92 — + + N.A. + 22 + 8 + 11 -0 6 4 3 + 9 + 31 + 10 + 12 * Percentage change figures for the steel ingot rate, Southern hardw ood rate, and the coal production index, show the relative per cent change in production, not the drop in index points or in percents o f capacity, p Preliminary. N.A. Not available. Jan. 1956 (In m illions) Jan. 1956 com pared with D ec. Jan. 1955 1955 $ — 2% Six Largest Centers: East St. Louis— National Stock Yards, 111. .............................................. Evansville, Ind. .......... Little R ock, Ark........... Louisville, K y................ Mem phis, Tenn. St. Louis, Mo. T otal— Six Largest Centers .................... 130.6 184.1 200.0 875.9 7 95 .7 2 ,4 1 9.9 + -o5- — 11 — 3 — 1 $ 4 ,6 06 .2 Other R eporting Centers: Alton, 111.......................... C ape Girardeau, M o .. El D orado, Ark. Fort Smith, Ark. Greenville, Miss. H annibal, M o. H elena, A rk................... Jackson, Tenn. Jefferson City, M o. O w ensboro, Ky.............. Paducah, Ky. ............... Pine Bluff, Ark. Q uincy, 111. ................. Sedalia, M o. .............. Springfield, M o ........... Texarkana, Ark. 3% —11% 11.1 — — — + + 88.0 20.9 + 3% + 6 + 16 + 22 + 5 + 15 3 9.0 17.5 3 2.3 5 7.6 31.2 10.4 29.9 89.7 55.4 27.9 38.9 41.1 16.4 (I** M B A N K D E B IT S1 ti ±1 4 18 14 36 1 —6 — 14 + 3 + 2 + 6 +14% + 10% + 5 + 2 + 5 — 10 + 13 + 7 + 27 + 22 I 1 ? + 12 + 8 + 13 + 12 + 12 Total— Other Centers .................... $ 6 07 .3 + 1% +11% Total— 22 Centers $ 5 ,2 1 3 .5 — 3% + 13 *? IN D E X O F BANK D E B IT S — 22 Centers Seasonally A djusted (1 9 4 7 -1 9 4 9 = 100) Jan. D ec. Jan. 1956 1955 ” 1955 164.1 165.5 145.0 1 Debits to dem and deposit accounts o f individuals, partnerships and corporations and states and political subdivisions. CASH F A RM IN C O M E Percentage Change Tan. thru N ov. Nov. ’55 1955 (In thousands Nov. from com pared with o f dollars) ______________________ 1954 1955 N ov. ’54 1953 Arkansas . $12 7 ,5 9 5 + 4 0 % + 9 % +10% Illinois — 12 — 9 — 10 Indiana . . — 14 — 10 — 10 Kentucky 4 3 ,6 6 6 + 18 — 5 — 10 Mississippi 125 ,27 0 + 44 — 15 + 7 Missouri . 107,031 + 13 — 5 — 5 Tennessee — 6 — 10 6 3,317 + 19 A SS E T S A N D p Preliminary D IST R IC T M E M B E R B A N K S W eekly R eporting Banks C hange from Jan. 25, Feb. 22, 1956 1956 Assets Loans* Business and Agricultural . Security ............ Real Estate ........................... Other (largely consum er) U. S. Governm ent Securities Other Securities ...................... Loans to Banks ........................ Cash Assets ................................ Other Assets ............................. Total Assets ......................... 226.2 335.8 175.3 2 34.7 331.1 190.0 * Based on three-m onth m oving average (centered on m id-m onth) o f value o f awards, as reported by F. W . D od g e C orporation. LIA B ILIT IES E IG H T H (In Millions o f Dollars) $1,564 808 55 274 4 50 919 235 7 848 45 $ 3,618 A ll M em ber Banks Change from Jan. 25, D ec. 28 1956 1955 $— 19 — 13 -0 — 1 — 5 — 24 — 1 — 4 — 20 — 1 $— 69 $2,533 $— 15 1,940 489 — — 22 8 1,412 69 $ 6,433 — 164 + 1 $— 208 Liabilities and Capital Dem and Deposits o f Banks .. $— 44 $ 638 $ 731 $— 74 Other Dem and Deposits ............... 2 ,0 7 0 — 40 3,949 — 140 Tim e Deposits 1,214 5 63 + 4 + 3 76 Borrowings and Other Liabilities 81 + 4 + 7 Total Capital A c c o u n t s ................. 271 468 — 1 + 4 $ 6,4 43 Total Liabilities and Capital $ 3,6 18 $— 69 $— 208 1 For w eekly reporting banks, loans are adjusted to exclude loans to banks; the total is reported net; breakdowns are reported gross. For all m em ber banks loans are reported net and include loans to banks; breakdown o f these loans is not available. Stocks on Hand RETAIL FUR N IT U RE S T O R E S Percentage o f A ccounts Stocks- and Notes R eceivable Sales Outstanding Jan. 1, ’ 56 Ratio collected during Jan. Excl. Instal. Installment Accounts A ccounts 8th F.R. District Total . — 5 7 % 17 48 + 3% M onthly stocks and — 4 Fort Smith Area, A rk .i. — 64 38 + 4 stocks-sales ratio data 43 Little R ock Area, A r k .. . — 59 12 not available in tim e — 8 Quincy, 111......................... — 61 for publication in the — 62 Evansville Area, Ind. + 1 M onthly Review. Data 19 " 50 L ouisville Area, Ky., Ind. — 63 + 1 will be supplied upon — 23 Paducah, Ky...................... — 62 request. 20 53 + 4 St. Louis Area, M o., 111. — 54 + 12 — 62 Springfield Area, M o. -0 39 1.5 ' M emphis Area, Tenn. . — 58 — 60 All Other Cities" + 7 1 In order to perm it publication o f figures for this city (or area), a special sample has been co n structed which is not confined exclusively to department stores. Figures for any such nondepartm ent stores, how ever, are not used in com puting the district percentage changes or in com puting depart ment store indexes. 2 Fayetteville, Pine Bluff, Arkansas; Harrisburg, Mt. Vernon, Illinois; Vincennes, Indiana; D a n ville, H opkinsville, M ayfield, O w ensboro, Kentucky; Chillicothe, Missouri; Greenville, Mississippi; and Jackson, Tennessee. IN D E X E S O F SALES A N D STOCKS— 8TH D IS T R IC T Jan. D ec. Nov. 1956 1955 1955 94 p 149 208 Sales (daily average), unadjusted3 ............................................... 126 p 125 124 Sales (daily average), seasonally adjusted3 ................................ N.A. 120 147 Stocks, unadjusted4 ............................................................................ N.A. 130 133 Stocks, seasonally adjusted4 ........................................................... 3 D aily average 1 9 4 7 - 4 9 = 1 0 0 4 End o f M onth average 1 9 4 7 -4 9 = 1 0 0 N. A . N ot available. Outstanding orders o f reporting stores at the end of January, 1956, were 16 per cent larger on the corresponding date a year ago. Trading days: Jan., 1956— 2 5; D ec., 1955— 26; Jan., 1955— 25. Seasonally adjusted T o t a l............ 255 .8 p Residential 318.1 p A llO th e r 2 26 .8 p 7 States. . . $ 68 7 ,5 2 0 + 12 — 5 — 8 __ 2 8th District $406,481 + 25 — 6 Source: State data from US D A preliminary estimates unless otherwise indicated. New figures not available. D EP A R T M EN T ST O R E S Net Sales Jan., 1956 com pared with D ec. *55 Jan. ’ 55 IN D E X O F C O N S T R U C T IO N C O N T R A C T S A W A R D E D E IG H T H FEDERAL RESERVE D IST R IC T * (1 9 4 7 -1 9 4 9 = 1 0 0 ) D ec. 1955 Nov. 1955 D ec. 1954 Unadjusted Total 198.4 p 200.8 176.1 Residential 254 .5 p 281.4 268.6 All Other . 172.4 p 163.4 133.2 Jan. 1955 92 123 105 121 than Net Sales Inventories Jan. 1956 Jan. 1956 com pared with com pared with D ec. ’ 55 Jan. ’55 D ec. '5 5 Jan. ’55 8th Dist. Total* . St. Louis Area . . L ouisville Area M emphis Area Little R ock Area Springfield Area — 50% — 52 — 45 — 47 — 54 — 44 — — — — + — 5% 6 2 14 28 12 + + + + 2% * 6 * 4 2 + 13% ★ 7 + + 34 + 6 * Not shown separately due to insufficient coverage, but included in Eighth District totals. 1 In addition to follow in g cities, includes stores in Blytheville, Fort Smith, Pine Bluff, Arkansas; O w ens boro, Kentucky; G reenw ood, Mississippi, and Evans ville, Indiana. Note: Figures shown are preliminary and subject to revision. 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 SALES Cash Sales Credit Sales T otal Sales Jan. 1956 14 ^ D ec. ’55 14% 100" 100% 86 86 Jan. ’55 15% 85 100%
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