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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REVIEW OF B U SIN ESS CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Released for Publication On or After the Afternoon of March 29, 1924 W I L L I A M M cC. M A R T IN CHAIRMAN OP TH E BOARD AND FEDERAL RESERVE AGENT I N general business during the past thirty days fav orable and unfavorable factors have so evenly bal anced each other that no decided change in the trends indicated during the like period immediately preceding was discernable. Extrem e caution on the part of buyers of all classes is the outstanding feature. Ultimate consumers are taking only what they require currently and this attitude on the part o f the public is reflected in purchasing by retailers and wholesalers, and in turn influences raw material commitments by manufacturers. Consumption generally continues on a large scale, and both production and distribution of comm odities are being well maintained, but the v o l ume of forward buying is much smaller than during the same period in past seasons. T his factor, while considered a healthy sym ptom and indicative of pro longed activity, is depriving manufacturers and wholesalers of their usual backlog of unfilled orders and in many instances increasing costs by necessitat ing the carrying of larger stocks and assortments to supply the spot demand. W eather conditions were distinctly unfavorable, and in a number of lines retarded distribution. This was true particularly in the country, where impassa ble roads in many sections have kept farmers from com ing to town to do their shopping, and prevented salesmen from making their rounds. Prolongation of the winter has been detrimental to the movement of apparel, and the lateness of Easter also had a ten dency to cause postponement of spring purchasing in this general category. T h e sharp decline in prices of raw cotton constituted another element making for conservatism in ordering goods based on that staple. W ithal results during February in virtually all lines investigated were better than during the correspond ing month in 1923, and as contrasted with the first month of this year gains in sales were the rule, despite the fewer days in the later period. W hile there is little complaint of volum e of busi ness done, many important merchants and manu facturers make the com m ent that the ratio between sales and profits is decreasing and in some instances is less than satisfactory. This is attributed to g row ing keenness in com petition and generally higher costs of doing business. In manufactured goods price changes were not broad, but the downward trend in certain basic raw materials, notably cotton, cereals and fuel, has had the effect of causing uncertainty in the minds of consumers, w ho are looking for declines in the general run of finished merchandise. There is an almost complete absence of over-buying and stocks in all positions are of moderate proportions, and in the main well balanced. Between January and February there was dis tinct improvement in wholesale distribution in furni ture, clothing, groceries, millinery, stoves, dry goods, confectionery and fire clay products. Part of the gains shown by reporting interests in these lines can be accounted for by seasonal considerations, but this explanation does not cover the full extent of the bet terment. Manufacturers and distributors o f building materials report a continued brisk demand for their products, and goods based on iron and steel moved in satisfactory volume. T h e showing made by cloth ing, groceries, and other goods for ordinary consump tion would have been more favorable under auspi cious and seasonable weather conditions. The back ward season is reflected in delayed purchasing of supplies used by farmers, but these requirements still remain to be filled, and a period of dry, warm weather, it is believed, will result in a revival of business in the rural districts. Prices of leading farm products of this district were lower during the period under review, with the weakness particularly emphatic in cereals and cotton. Between February i5 and March 15, M ay wheat in the St. Louis market declined from $1.09^4 to $1.06% and cash wheat was Zy2c to 5y2c lower. Cash corn declined from y2c to 2y2z per bushel and oats were off lc to 1y2. M iddling cotton declined from 32y2 per pound on February 15 to 2 8 ^ c on March 7, and closed at 29c on March 15, a net loss for the period of 3 ^ c per pound. The trend o f live stock, on the other hand, was slightly upward, and there were signs of improvement in markets for the minor crops. Prices realized in the tobacco markets were in the main satisfactory, and rice continued in good demand at steady to firm prices. Labor conditions developed further improvement during February and early March. The number of idle workers in the large industrial centers was re duced by increased activities at factories and railroad shops. A ccording to the Em ploym ent Service of the U. S. Department of Labor the trend of employment showed unmistakable indications o f rapid absorbtion of all idle skilled and com m on labor as soon as weather conditions permit resumption o f outdoor activities. Skilled labor was in better demand* Com mon labor is still plentiful. Lead and zinc mining and railroad shops registered increased employment over January. Shoe factories, meat packing and other m ajor industries are em ploying normal forces for this season, but there is a surplus of male and female office help. Building workers were kept active at the recent high scales, and further advances were asked by certain trades in St. Louis. Unemployment still prevails among miners in the coal fields. The fuel situation developed no change worthy of note and was described on all sides as dull and discouraging from the viewpoint of producer and distributor. The Government’s report on reserves disclosed stocks well in excess o f immediate needs, and with the Jacksonville conference having banished fears of a strike in the Central Competitive Field this spring, consumers are content to play a waiting game. They take the attitude that it will be easy to obtain supplies when they need them, and at prices as good if not better than those which could be gotten by contracting for their future requirements at the pre sent juncture. The cold spell in March had a tem p orary stimulating effect on the dom estic trade, and dealers, particularly in the large cities, were enabled to materially reduce their stocks. T he steaming de mand, however, continues slow, and the trend of prices is easier, with a number of specific reductions recorded, T h e domestic coke market remains quiet, with stocks in excess of demand, but there has been a fair m ovement of metallurgical coke, and sales to industrial users, particularly water gas manufact urers, showed improvement. Railroads operating in the district continue to accommodate an enormous volum e of freight traffic, and as compared with previous years the movement exceeds all seasonal records. For the country as a whole loadings of revenue freight for the week end ing March 1 totaled 945,049 cars, which figure ex ceeded by a considerable margin the loading for any single week in any January, February or March on record. Compared with the same week in 1923 this total represented a gain of 26,425 cars, and an increase of 151,934 cars over the corresponding period in 1922. Despite the enormous demand for transportation facilities, the surplus of freight cars available for use on February 29 showed an increase, and tonnages are being prom ptly moved, complaints of delays being at a minimum. The St. Louis Terminal Rail way Association, which includes in its membership 26 roads operating through this gateway, inter changed 204,866 loads in February, against 211,541 loads in January, 189,644 loads in Decem ber and 191,642 loads in February, 1923. For the first nine days of March 59,660 loads were interchanged, which compares with 64,721 loads during the first nine days of February and 67,545 loads for the corresponding period in March last year. Passenger traffic of re porting roads increased 3 per cent in February over the same month in 1923. Reports relative to collections reflected som e what less satisfactory conditions than during the pre ceding 30 days. February settlements with w hole salers were not up to expectations in a number of instances, and in certain localities backwardness is in evidence. Bad roads and storms have had an adverse effect on collection efficiency in the rural districts, and continued depression in the coal industry is a factor in delayed payments in the mining fields. There was good liquidation of accounts ow ed in the tobacco and rice areas, but generally through the cot ton sections conditions are irregular. In the larger centers of population retailers are for the m ost part getting in their money promptly. Answers to 409 questionnaires addressed to representative interests in various lines throughout the district show the fo l low ing resu lts: Excellent Good Fair Poor Feb. 1924......... 1.7% 27.1% 53.4% 17.8% Tan. 1924......... 1.7 25.2 63.0 10.1 Feb. 1923......... 1.1 50.0 45.7 3.2 Commercial failures in Eighth Federal Reserve District during February, according to D un’s num bered 97, involving liabilities of $1,489,558, against 143 defaults with indebtedness of $1,669,880 in Janu ary and 81 failures for $1,008,734 in February, 1923. The per capita circulation of the United States on March 1 was $42.85, against $41.77 on February 1, and $41.61 on March 1, 1923. M A N U F A C T U R IN G A N D W H O L E S A L E A utom obiles Combined production of automobiles and trucks for the country as a whole during February was 16.2 per cent larger than in January, in spite o f the fact that January contained 27 working days and the later period only 25. A s contrasted with the same month in 1923, February production increased 30.9 per cent. The total output of passenger cars in February by companies reporting direct or through the A utom o bile Chamber of Commerce was 336,284 against 287,211 in January. These same companies built 30,399 trucks in February as against 28,247 during the preceding month. Reports from 230 dealers in this district indicate sales during February about 4.5 per cent in excess of the same month in 1923. T he de mand for both new and old cars is reported good, and sales of accessories are holding up in excellent shape. There was a rather large increase in stocks o f new cars in both producers’ and dealers’ hands, but this is a seasonal development, the custom being to stock up at this time to meet the spring demand. The auto m obile show held in St. Louis in February was the most successful ever held here in point of attendance, and resulted in actual sales of 486 cars. A number of price changes were announced by producers. The tire business continues dull, with both production and stocks in dealers’ hands in excess of demand. Boots and Shoes Sales of the 11 reporting interests in February were 28.3 per cent larger than for the corresponding month in 1923 and 31.3 per cent under the preceding month this year. T he recession in business in Febru ary under January is accounted for largely by seasonal considerations. Generally through the line the demand continues good, though buying is confined to well defined needs. A s has been the case for a number o f months, specialties and w om en’s novelty goods are relatively more active than the more staple shoes, and factories turning out these goods are w orking at full time. Numerous style changes have stimulated the demand in w om en’s and children’s footw ear by ultimate consumers, but have also served to hold down future commitments by retailers. Prices, except on scattered numbers which makers are particularly anxious to move, were virtually steady with the pre ceding thirty days. Asking prices on raw materials are higher, but aside from calfskins, few actual ad vances were recorded. Factory operation was at from 80 to 100 per cent of capacity. The total number of pairs of shoes produced in this district during January was 8.7 per cent larger than for the preceding month, and for the country as a whole, January production increased 16 per cent over the Decem ber total. Clothing Generally through the trade small and numerous orders are the rule, with the aggregate volum e making a good showing. Inquiries during the period under review were large, and indicate small stocks in retail ers hands, but actual commitments for forward deliv ery are being cautiously made. Medium-priced light w eight lines for spring wear have been moderately active only, the continued cold weather militating against the movem ent of this class of goods. The com m ent is made that price buying is much in evi dence, the demand still centering in the cheaper gar ments. In addition to price considerations, style changes, actual and prospective, constitute an im port ant factor in current activities. Demand for w oolens and worsteds is featured by irregularity, with volum e of business placed thus far below expectations in many cases. W ith the exception of some specialties, prices on w oolen goods for fall wear are lower. Febru ary sales of the 11 reporting interests were 0.9 per cent under the same month in 1923, and 14 per cent in excess of the January, 1924, total. Drugs and Chemicals A further slow ing down in business in this classi fication marked the period under review. Sales of the 11 reporting interests in February were 5.8 per cent less than a year ago, and 8.0 per cent under the January total. Especially heavy decreases were reported in remedial drugs as contrasted with a year ago, which is attributed to less than the ordinary amount o f sickness during the winter. Sales of heavy chemicals to manufacturers were also in smaller v ol ume. Trade in sundries, on the other hand, was active, with the movement of cosmetics heavy. T he demand for soda fountain supplies continues active. Advance sales of insecticides and spraying materials are re ported about normal for this season. Price changes were of minor importance, advances about counter balancing declines. D ry G oods Business in primary lines continues light with trend of prices easier. The downward course of raw cotton prices has proven an unsettling factor and is largely responsible for the limited amount of advance business in cotton goods. Print cloths, sheetings and convertibles have held close to the low est prices of the year, with sales in some cases below current cur tailed production. There has been indifferent response to offerings of spring house dresses, with manufac turers w illing to shade prices in order to m ove stocks on hand. W ash goods show seasonal activity, but silks are in only fair demand. Sales of hosiery con tinue in large volume, but overproduction with conse quent easier prices form s the disturbing element in this category. Buyers are requesting concessions on fall knit underwear, with wholesalers disinclined to grant them at this time. M ost new business is on light w eight spring lines. Prevalent com m ent is that sharp com petition has made it difficult to m ove goods at a reasonable profit, even though volum e continues large. February sales of the 11 reporting interests exceeded those of the same month a year ago by 1.1 per cent and were 7 per cent in excess of the January, 1924, total. Sales of reporting milliners during Febru ary showed a decrease of 3.2 per cent as compared with the same month in 1923. Electrical Supplies Continued activity in the building industry and an excellent demand for household electrical appli ances and radio apparatus were the chief factors in the activity reported in this line. February sales of the 12 leading interests were 1.4 per cent under the same month in 1923 and 19.4 per cent in excess of the Jan uary total. H eavy orders for pole line construction materials for spring delivery have been placed, and purchasing by public utilities companies generally has been in good volume. E xcept on goods affected by the advance in copper, prices were steady. Supplies for mines and oil fields continue slow. Fire-Clay Products A ctivity am ong producers and melters of pig iron and other users of refractories is reflected in a contin ued brisk demand for relining and general repair pur poses. Production is well sustained, while prices are unchanged. H eavy specifications on old con tracts were reported and inquiries for materials for new undertakings include a number of important municipal vitrified jobs. Advance orders on books of manufacturers are permitting of plant operations at from 75 to 80 per cent of full acpacity. A number of sizeable orders have been placed for malleable bungs and arches. Sales of the 5 reporting interests in February exceeded those of the same month in 1923 by 8 per cent and were 4.4 per cent larger than the January, 1924 total. Flour Production of the 11 leading mills of the district during February was 357,539 barrels against 306,012 barrels in January, 323,695 barrels in December and 321,725 barrels in February, 1923. W hile there was no change for the better in export demand and new buy ing by the domestic trade continues slow, shipping directions on flour under contract were very satisfac tory, particularly from the South. Soft flours were relatively more active than those made from hard wheat, and demand centered in clears and low grades to the detriment of choice and extra fancy descriptions. B uying by bakeries was reported quiet and on a hand to mouth basis. Small sales of clears were made to Germany, and Latin-American countries took their normal quotas, but generally bids from abroad were too far out of line to result in workings. Prices of flour failed to follow the downturn in wheat, and were about steady as compared with the preceding 30 days. Mill operation was at from 65 to 70 per cent of capacity. Furniture Sales of the 27 reporting interests during Febru ary were 9.5 per cent less than for the same month in 1923, but 22.5 per cent over the January total this year. Stocks in dealers’ hands are light and the demand at retail is reported steadily improving. In spite of this, the disposition among distributors is to buy from hand to mouth, stock orders being scarcer than in recent years at this particular season. Prices of finished goods were steady, and manufacturers report that they have been obliged to absorb some recent slight advances in raw materials. Some improvement in the demand for office and school furniture was reported, and mis cellaneous goods, such as children’s carriages, cane furniture and toy vehicles are in better demand. The movement of floor coverings continues good. Groceries Announcem ent by the Brazilian Government that a maximum of only 35,000 bags of coffee would be exported daily brought a rush of buying of that staple that was almost immediately reflected in sharp price increases on all grades, from cheap to choice. T he sentimental effect of this rise has prompted buying o f other goods of the line, excepting sugar, which is dull and easier. Demand for canned goods continues active, particularly in sections where fruit crops were short last year. Stocks in hands o f retailers are som e what heavier than heretofore but not above normal for the season. February sales o f 22 representative interests exceeded those of the same month a year ago by 9.1 per cent and were 4.6 per cent in excess of the January, 1924, total. makers, 6 interests reporting, decreased 13.4 per cent under last February and gained 9.7 per cent over Jan uary; job foundries, 5 reporting, gained 3.9 per cent over February last year and 63.7 per cent over January this year; manufacturers of boilers, stacks, elevators, radiators and other miscellaneous products, 12 report ing, decreased 21.4 per cent under February last year and 16.1 per cent under January. Hardware Lumber A fair increase in business in this line was recorded in spite of unfavorable weather conditions and heavy roads. February sales o f the 12 reporting interests were 4.2 per cent larger than for the same month last year, and 3.7 per cent in excess of the January total. Prices generally through the line are strong, with a slight upward tendency in certain departments. The demand for builders’ hardware is particularly active, with a scarcity reported in some articles. Im provem ent was noted in sales of enamel ware and the general line o f shelf hardware. Poultry supplies, garden tools and spraying apparatus are m oving well, and sales of cutlery and sporting goods were fair. W hile weather conditions in this territory have held distribution from the retail yards in check, re ceipts of building lumber for stocking continue large, there is some increase in wholesale buying and much more indicated in the volum e of inquiries. The recent settlement of disputed points in the St. Louis building trades wage scale by contractors agreeing to the advances, has been helpful in clearing the w ay for the buying of lumber and millwork. The yards anti cipate quite a spurt in the demand as soon as the weather becomes sufficiently settled to permit build ing operations to go forward. The wholesale soft w ood markets, aside from such minor w oods as red cypress and California redwood, are weak and more or less price shading is required to induce business. Southern pine prices, however, are relatively better sustained than those on fir and western hemlock and spruce. Stocks among the larger southwestern pro ducers are in very poor assortment, with com m on grades pretty well cleaned up. Fir stocks are heavier and the pressure to make sales is greater. The hard w ood situation is steady, with a fair demand still pre vailing for all the more staple stocks and items. T en dency of prices is slightly downward, ow ing to the fact that the mills continue to run pretty strong and there is no wide margin of orders for them to work on. H o w ever, comparatively few manufacturers are trying to force the market in order to add to business on hand. Iron and Steel Products Activities at steel mills, iron foundries and machine shops were well sustained during the period under review. W hile new business placed represents more nearly exact needs than usual at this season, the aggre gate is large, and during the past several weeks pur chasing by the railroads has served to substantially augment total volum e o f orders. P ig iron production for the country as a whole in February exceeded the 100,000-ton daily mark, and despite the shorter month showed a gross gain of more than 50,000 tons over January. The output of steel ingots in February was also in excess of the January total, and on a daily aver age basis was the largest in history, with the excep tion o f last April and May. The trend of finished and semi-finished materials was slightly easier, and there was a rather sharp decline in scrap iron and steel prices, but pig iron held about steady with the preced ing thirty days. No. 2 Southern foundry iron, 1.75 to 2.25 per cent silicon, was quoted at $23.50 to $24 per ton, furnace, while Northern iron o f the same grade held firmly at $24.50. Purchasing of pig iron in this district was slow, due chiefly to the fact that users had filled their requirements for the first quarter, and are unwilling to make extensive commitments for the future until something more definite is known relative to second and third quarter developments. Fabrica tors of structural iron and steel report a continued excellent demand for small lots up to 150 tons. Makers o f radiators and heating apparatus generally are working at capacity, but stove builders complain o f lack of advance buying. W arehouse interests are purchasing from hand to mouth, but are keeping up their assortments and report a brisk current demand for their goods. Some improvement was noted in the demand for reinforcing concrete bars, and plates and shapes were well taken, though contracting for the latter materials continues on an ultra conservative basis. Tin plate prices are well stabilized and the demand steady. February sales of stove manufactur ers, 7 reporting, were 10.1 per cent under the same month in 1923 and 11.4 per cent larger than the Janu ary total this year; railway supplies, 5 reporting, de creased 30.1 per cent under February, 1923, but gained 14.2 per cent over the January total; farm implement Consumption of Electricity Data from reporting centers indicate a sustained demand from industrial users. The decline in St. Louis as compared with a year ago was due to shut dow n for repairs of a large cement plant. H eavy increases were noted here in loads taken by cordage manufacturers and steel producers. In other centers of the district increases are accounted for by aug mented operations of brick plants and foundries, while furniture manufacturers took smaller loads than during the same period in 1923. The decrease during February, 1924 as compared with January is accounted for by the smaller number of days in the later period. Detailed figures fo llo w : Feb. Jan. No. of custam- 1924 1924 ers *K.W.H. *K.W.H. 967 898 Evansville .......40 693 747 Little Rock.. .... 11 3,646 Louisville .......67 3,576 1,372 1,466 Memphis .... .....31 10,743 .....70 11,173 Feb. 1924 comp, to Jan. 1924 + 7.7% — 7.2 + 2.0 — 6.4 — 3.8 17,421 Totals.... ....219 *In thousands (000 omitted). — 2.5 17,860 Feb. Feb. 1924 1923 comp, to *K.W.H. Feb. 1923 939 + 3.0% 630 + 10.0 3,155 + 15.6 1,350 + 1.6 11,000 — 2,3 17,074 + 2.0 T h e follow ing figures, com piled by the Depart ment of Interior, give kilowatt production for both lighting and industrial purposes for the entire cou n try : By water power November, 1923...................... 1,501,349,000 December, 1923...................... 1,682,183,000 January, 1924..........................1,697,107,000 t Largest on record. By fuels 3,336,181,000 3,274,288,000 3,479,877,000 Totals 4,837,530,000 4,956,471,000 t5,176,984,000 R E T A IL Generally during the period under review business in the retail section o f distribution continued active, though results in the large cities and towns were relatively much better than in the country. This latter fact was due m ore to severe weather and im passable roads than to reluctance on the part of per sons in the rural districts to purchase. T he protracted cold weather, however, enabled merchants to m ove a large volum e of winter goods which otherwise they would have been obliged to carry over. This belated movem ent of winter merchandise was particularly marked during the first three weeks o f March, during which time reporting firms sold large quantities of shoes, rubber goods and heavy clothing. W om en ’s coats and suits, as well as men’s and children’s apparel, are in active demand, except in sections where local conditions, such as lack o f employment in the mining districts and interference with communications in the country, have curtailed business. Seasonal clearance sales have met with excellent response, but due to the lateness o f Easter and the late spring, many sea sonal lines have received little attention. Chain store business continues at record levels. Reports from 3 interests operating 1,483 grocery stores showed a sales increase during February of 14.6 per cent as compared with the corresponding period last year. Department stores are also making a favorable showing, February sales o f the 22 reporting interests exceeding those of the same month a year ago by 6.3 per cent. Stocks are in an extremely healthy posi tion, as evidenced by the fact that the 6.3 per cent sales increase was accomplished with only a 3.5 per cent increase in stocks on hand. Assortments are being well maintained. Detailed department store figures fo llo w : Annual rate of Net sales comparisons Stocks on hand stock turnover Feb. 1924 Two months ending Feb. 29, 1924 For two months comp, to Feb. 29, 1924, to comp, to ending Feb. 1923 same period, 1923 Feb. 28, 1923 Feb. 29, 1924 + 7.4% — 1.2 % 1.86 Evansville .......+ 5.4% Little Rock.....— 0.8 4* 1.1 +14.0 2.17 + 5.8 4- 1.4 2.94 Louisville .......+ 3.9 Memphis ------ .+ 3.1 + 0.2 + 5.5 2.15 Quincy ...........+ 4.0 — 0.5 4- 4.0 1.90 St. Louis .......+10.5 + 9.2 + 1.3 3.10 Springfield ....—29.8 — 33.7 + 4.1 0.90 8th District ....+ 6.3 + 5 .5 + 3.5 2.72 Entire U. S....+ 12.6 4- 9.8 + 6.0 2.91 A G R IC U L T U R E Reports relative to the grow ing winter wheat crop were spotted and as a w hole reflected less fav orable prospects than existed earlier in the season. T he chief complaint is of damage from alternate freez ing and thawing, which is particularly acute East of the Mississippi River. Hessian fly is present in some sections, but the infestation is confined largely to early sown wheat and is not more serious than usual. Generally there has been abundant moisture, and soil conditions are such as should insure prompt response by the plant to good grow in g weather from this time on. In all states o f this district stocks o f wheat still in farmers’ hands as o f March 1, according to the U. S. Department o f Agriculture, were larger than on the same date last year. For the country as a whole, however, the amount of wheat on farms on March 1 was 138,871,000 bushels against 155,474,000 bushels on March 1, 1923. In the three principal corn producing states of the district, Illinois, Indiana, and Missouri, stocks of corn on farms on March 1 were considerably larger than a year ago, but were smaller in Kentucky, Tennessee, Mississippi, and Arkansas. The movement of corn to market continues in good volume, despite agitation among farmers in some sections to hold for higher prices. There are numerous complaints o f the poor quality of corn reaching market, and large quantities have had to be kiln dried. The U. S. Department of Agriculture, in its report as of March 1, 1924, gives stocks of principal com modities on farms in this district as follow s: CO RN Stocks on farms March 1 *Bu. *Bu. *Bu. " 1924 1923" 1922" Arkansas ..... 11,321 16,234 23,813 Illinois .......138,298 115,837 128,506 Indiana ....... 78,973 70,522 76,432 Kentucky .... 35,146 35,224 33,682 Mississippi .... 11,135 21,484 27,977 Missouri ..... 74,807 60,562 69,494 Tennessee .... 32,534 33,948 43,542 U. S.Total. ...1,153,175 1,093,306 1,305,559 W HEAT Stocks on farms March 1 *Bu. *Bu *Bu. 1922 1923 1924 6,555’ 7,760 9,376 Illinois .. 4,113 4,628 6,165 Indiana 761 897 999 Kentucky 5,243 5,435 6,830 Missouri 720 673 766 Tennessee U. S. Total.,133,871 155,474 134,253 Percentage of crop Farm price per bu. of merchantable February 15 _____ quality (cents) 1923 1922 1921 1924 1923 1922 83 73 92 62 * T lT 86 81 93 46 68 66 80 91 80 46 68 65 77 83 80 64 84 94 84 85 75 68 94 107 81 85 79 50 74 80 82 84 80 58 88 97 80.6 88.3 87.5 76.5 72.5 50.3 Percentage of crop shipped Farm price per bu. out of country February 15 where grown (cents) 1923 1922 1921 1924 1923 1922 ’ 70 - 6? 59 101 114 116 64 62 56 104 122 118 18 21 21 112 126 126 62 63 57 102 111 109 19 20 22 119 129 128 63.4 67.3 61.7 98.0 104.4 107.0 OATS Illinois ......... 44,583 31,903 Indiana ....... 13.634 8,223 Missouri ....... 10,350 3,840 U. S. Total.,444,810 421,118 *In thousands (000 omitted). 46,262 17,896 15,895 411,934 43 44 52 45.4 44 32 43 32 52 37 42.4 34.7 44 37 45 33 46 36 1110 11 24.7 25.0 23.9 W eather has been very unfavorable for field work and preparation of land for new crops is backward. In some sections of the cotton grow ing area pre liminary operations have been hampered by a short age of labor. Seeding of oats is being pushed as rapidly as soil conditions will permit, but is not as far advanced as usual at this season. Reports from the South are to the effect that the ground has been too wet to plant truck crops, and little has been accom plished in the way of putting in gardens. There are scattered complaints of injury to peaches from cold weather, some localities reporting the crop damaged as much as 90 per cent. The price paid to farm labor is slightly lower than at the corresponding period last year. T he trend of farm land values is lower. The condition of live stock is in the main good, complaints of disease am ong herds being scattered and fewer than usual at the close of the winter. Ship ments of cattle, hogs and sheep to market continue large, and prices have been favorably affected by a broader demand from Eastern finishers and a firmer tone in the fresh meat market. Live Stock M ovement Receipts and shipments of live stock at St. Louis, as reported by National Stock Yards, were as follow s: Feb. 1924 Cattle and calves...................... 69 Hogs ..................................... ..453 Horses and mules...................... 8 Sheep .................................... *In thousands (000 omitted). *Receipts Jan. Feb. 1924 1923 '"92* ~J2 499 15 28 382 11 19 * Shipments Feb. Jan. Feb. 1924 1923 1924 TT 46 "T T 296 256 284 15 13 9 11 13 5 The independent loose-leaf tobacco markets in both the burley and dark tobacco districts are rapidly nearing the close of the season. In the dark-fired dis trict, however, both pooled and unpooled tobacco deliveries are considerably behind those of last year at this time, due to unfavorable road and weather condi tions. Prices are satisfactory and while the quality is inferior there has been a good demand for every thing offered. Approxim ately 85 to 90 per cent of burley tobacco pooled with the Cooperative Marketing Association has been delivered, which is much in ex cess of deliveries of the pooled dark tobacco. Reports indicate that the greater part of the undelivered dark tobacco represents the better grades of the 1923 crop. Grading of tobacco by the Burley and Dark Tobacco Growers Cooperative Associations has been satisfac tory, also prices received for leaf marketed by these organizations. The unsold stock in Louisville on March 1 of both burley and dark tobacco was 1,831 hogsheads, which was the smallest stock unsold on that date in many years. Deliveries of rice by producers have been heavy, and only a small part of the crop remains on farms. The movement of clean rice is on a very satisfactory basis, with the general demand good and prices firm. The prevailing quotation for best grades has been about $1.30 per bushel, with the average price on all grades approximately $1.10 per bushel. Present in dications are for a slightly increased acreage over last year. P low ing is in progress, but has been de layed by excessive rainfall. There is a better demand for good quality seed rice than during past seasons. The demand for cotton during the period under review was described as slow, and sales have been relatively light. The sharp decline in prices has dis couraged holders from marketing their stocks, and there is a disposition to hold for better returns. W eather has been against early farm work, except in the extreme southern part of the district. Active efforts towrard boll weevil control are being made in all sections. Com m odity M ovem ent Receipts and shipments of important commodities at St. Louis, as reported by the Merchants’ Exchange, were as follow s: Feb. 1924 249 Beef, lbs...................... Corn, bu...................... 5,393 Flour, bbls.................. 457 Hides, lbs.................... 6,699 Lard, lbs.................... 8,187 Lead, pigs.................. 226 Lumber, cars.............. 20 Oats, bu...................... 3,092 Pork, lbs...................... 17,569 Wheat, bu.................. 2,260 Zinc, slabs.................. 285 *In thousands (000 omitted). Com m odity Prices Range of prices on typical products in the St. Louis market between February 15, 1924, and March 15, 1924, with closing quotations on the latter date, and on March 15, 1923: Close Wheat High May ................ •$1.1256 July ................ 1.11 September .... 1.12 No. 2 red win r.. “ 1.20 No. 2 hard...... 1.12 Corn May ................ “ •825$ July ................ .82*$ September ..... .82 No. 2 ............ .79 No. 2 white..... .80 Oats « May ................ .51y2 No. 2 white.... . . . .51 Flour Soft patent....... .per bbl. 6.50 Spring patent.. 6.40 .per lb. .32 .per cwt. 7.75 Low ]Mar. 15, 1924 Mar. 15, 1923~ $1.05 $1,065$ $1,185$ 1.05 1.06^$ 1.11% 1.06 1.06% 1.10 & 1.0954 1.12 1.35 1.06K$1, a 1.19 .7854 79^ .775$ .7954 .7954 .76 .77 .77% .77 •77Vs ■76U .73H •475% •4734 .4854 . @ A7H *8^ A6y2 .45 54 .47 5.40 5. 5.80 5. .28^4 4.50 5. •74% •7934 • @ 6.50 @ 6.20 .29 @ 7.50 74y2 6.00 6.00 6.00 » @ 7.00 @ 6.40 .31 @ 8.65 B U IL D IN G Value of February building permits issued in the five leading cities of the district showed a slight de crease under the preceding month, also under the corresponding month last year. During the period under review work on buildings in course of construc tion was retarded somewhat by inclement weather, and heavy snow and rain storms seriously interfered with road building. Extensive plans for construction in all parts of the district are waiting opening of the building season. The demand for all varieties of building materials holds up well, and prices show lit tle change w orthy of note. The trend of wages of both skilled and unskilled workers in the building trades continues upward, and in St. Louis higher scales are being demanded by some crafts. Produc tion of portland cement for the entire country during February totaled 8,588,000 barrels, against 8,788,000 in January and 8,210,000 in February, 1923. Building figures for February fo llo w : Evansville.. .... Little Rock.. .. Louisville ...... .. St. Louis .... , New construction Permits *(?ost 1924 1923 1924 1923 70 66 $ 114 $ 446 98 70 249 164 239 203 786 1,058 2,000 386 323 2,163 594 426 2,017 2,115 Feb. totals.... .,1,383 1,092 $5,329 $5,783 Jan. totals.... .. 987 1,390 6,147 7,450 Dec. totals.,.. .,1,015 918 6,635 9,267 *In thousands of dollars (000 omitted). Repairs, etc. *Cost Permits 1923 1924 1923 1924 $ 9 23 25 $ 5 45 135 45 68 269 94 72 67 52 27 37 66 323 550 387 423 652 540 540 651 745 735 $673 380 390 $746 485 847 F IN A N C IA L A s contrasted with the preceding thirty days, credit conditions during the period under review developed only minor changes. W hile borrow ing for general purposes was in fair volume, the demand from commercial sources was somewhat less active than heretofore. Commercial banks in both the large cities and smaller communities found themselves with ample funds on hand to easily meet all demands made upon them. Liquidation reported was scattered, both as to locality and class of loans affected. March settlements with leading wholesale interests in the large centers were generally up to expectations, and in some in stances relatively larger than a year ago. The sea sonal reduction of grain and flour stocks by the mill ing industry has resulted in a curtailment of loans in that category, and further liquidation of a substantial character has taken place in the tobacco districts. There is a fair demand for financing live stock opera tions, but recent heavy marketing of cattle, sheep and hogs have served to offset new borrow ings and hold the total loans for this purpose stationary. Deposits fluctuated rather broadly, and were affected in some measure by incom e tax payments. A further slight increase was recorded in savings accounts. Interest rates charged by the commercial banks showed a slightly easier trend, but actual quotations were unchanged. Subscriptions in this district to the issue of LT. S. Treasury one year certificates of indebted ness, dated March 15, and bearing 4 per cent interest, were considerably in excess of the amount ultimately allotted. Due to earlier closing of the books than expected, however, the total subscriptions did not equal the original quota. Between February 15 and March 15 accommodations granted by this institution to member banks decreased $3,684,109. Between the same dates Federal reserve note circulation of this bank decreased $680,000. Commercial Paper Debits to Individual Accounts Business of reporting commercial paper brokers during February showed slightly more than the usual seasonal decline under the preceding month, on a per centage basis the loss being 22.3 per cent. A s com pared with February, 1923, there was a decrease of 1.2 per cent. During the first tw o weeks of March sales were well in excess of the corresponding period last year. Country banks, particularly in the South, were the best buyers, with banks in the larger cities purchasing virtually nothing for their own accounts. The supply of paper was fairly plentiful, and included a large number of choice borrowers. Rates were un changed at 4 to 5 per cent. *For four weeks ending Mar. 1924 Mar. 1924 Mar. 12, Feb. 13, Mar. 14, comp, to comp, to 1924 1924 1923 Feb. 1924 .Mar. 1923 E. St. Louis and $ 36,930 $ 36,133 _ 3.7% — 3.7% Nat’l. Stock Yards, 111..$ 34,791 6,585 6,139 El Dorado, Ark...... ...... + 7.3 — 18.9 26,119 .... 33,688 + 4.6 Evansville, Ind.............. 27,312 — 1.9 11,011 0.2 Fort Smith, Ark...... ...... 10,986 11,204 4,331 — 14.9 3,344 22.8 Greenville, Miss...... ...... 3,931 4,544 — 14.0 4,322 Helena, Ark........... 5,024 — 4.9 54,327 — 3.1 Little Rock, Ark.... ...... 56,118 57,891 + 3.3 156,025 2.1 — 1.4 154,911 Louisville, Ky........ ...... 152,809 — 11.9 130,571 Memphis, Tenn........ ..... 121,752 138,268 — 6.8 6,221 — 11.8 6,013 6,816 — 3.3 Owensboro, Ky........ ...... 9,151 9,894 11,338 + 8.1 — 12.7 Quincy, 111............... ...... 589,138 584,922 + 0.5 St. Louis, Mo......... ...... 592,216 + 1-2 3,484 Sedalia, Mo............. ...... 3,569 + 2.4 — 12.3 11,271 .... 127m Springfield, Mo....... ...... 11,153 1.0 Savings Deposits Number of banks reporting Evansville .... 4 Little Rock.. 5 Louisville ..... 7 Memphis ..... 5 St. Louis....... 12 *Amount of savings deposits Mar. 5, Mar. 7, Feb. 6, 1924 1924 1923 & 9,065 7,616 25,951 18,978 74,319 Totals....33 $135,929 *In thousands (000 omitted). $ 9,024 7,462 25,987 19.063 73,489 $ 8,956 7,350 22,746 16,451 70,271 $135,025 $125,774 Mar. 1924 Mar. 1924 comp, to comp, to Feb. 1924 Mar. 1923 + 0.5% + 1.1 + 1.29 -f- 3.6 + 14.1 + 15.4 + 5.8 + 0.7 + 8.1 + — 2.1 0.1 — 0.4 Totals.......... .....$1,040,864 $1,049,262 *In thousands (000 omitted). R E SO U R C E S *Mar. 19, 1924 Gold with Federal Reserve Agent.............. $ 65,584 Gold redemption fund with U. S. Treasury 4,111 *Feb. 20, 1924 $ 69,304 2,487 *Mar. 21, 1923 $ 68,084 2,770 Gold held exclusively against F. R. notes..$ 69,695 Gold settlement fund with F. R. Board....... 13,602 Gold and gold certificates held...................... 4,920 $ 71,791 14,366 4,587 $ 70,854 6,509 3,097 Total gold reserves..................................... $ 88,217 Reserves other than gold.............................. 13,283 $ 90,744 13,732 $ 80,460 21,846 Total reserves............................................. $101,500 Non-reserve cash............................................. 3,921 Bills discounted: Secured by U. S. Government obligations 11,914 Other bills discounted................................ 22,812 $104,476 4,639 $102,306 5,176 10,883 27,357 10,594 14,885 Total bills discounted................................$ Bills bought in open market.......................... U. S. Government securities: Bonds ......................................................... Treasury notes............................................. Certificates of indebtedness...................... 34,726 6,734 $ 38,240 2,740 $ 25,479 11,997 ....... 4,515 1,489 1,514 893 7,312 10,812 10,300 Total U. S. Government securities.....$ 6,004 $ 2,407 $ 28,424 Total earning assets..............................$ 47,464 Uncollected items........................................... 38,638 Bank premises................................................. 1,648 All other resources......................................... 163 $ 43,387 35,230 1,493 188 $ 65,900 38,606 926 365 ...$193,334 $189,413 $213,279 .$ 69,003 $ 69,223 $ 85,916 ... 71,959 1,157 392 69,815 1,899 374 70,546 2,605 580 ....$ 73,508 .... 35,027 .... 5,074 $ 72,088 32,399 5,055 10,072 576 $ 73,731 38,203 4,914 9,665 850 $189,413 $213,279 TOTAL RESOURC Changes in the condition of banks in this district are reflected in the follow ing statement showing prin cipal resources and liabilities of reporting member banks in Evansville, Little Rock, Louisville, Memphis and St. L o u is: Number of banks reporting.................... Loans and discounts (incl. rediscounts) Investments U S. pre- Surplus .... All other liabilities.. 650 TOTAL LIA B IL IT IE S................ MEMO— Contingent liability on bills purchased for foreign correspondents.. 474 Ratio of total reserves to deposit and F. R. note liabilities combined......... .... 71.2% *In thousands (000 omitted). *Mar. 12, *Feb. 13, *Mar. 14, 1924 1924 1923 .....t35 t35 36 .$ 9,918 . 151,701 . 305,850 $ 9,779 148,746 314,445 $ 18,033 137,061 304,248 .$467,469 $472,970 $459,342 14,991 23,556 6,242 16,714 7,451 89,584 15,323 24,826 9,587 24,393 3,034 88,923 $158,538 43,559 8,773 364,079 201,805 4,186 $166,086 44,499 8,158 380,804 183,487 3,852 3,237 14,108 2,733 6,162 . . . . . . Treasury bonds.. 14,981 22,689 6,221 17,183 6,866 89,203 .$157,143 . 42,288 7,299 . 355,584 Time deposits.......................................................... 201,768 Government deposits............................................. 4,186 Bills payable and rediscounts with F. R. bank 4,767 All , 11,797 *In thousands (000 omitted), tDecrease due to consolidation. Total investments............ Reserve balance with F. Cash in vault.................... COST OF L IV IN G Cost of living in the United States on February 15 had decreased 0.4 per cent from the level of Janu ary 15, according to the National Industrial Conference Board. During that period there was an increase in the cost of clothing and decreases for fuel and food. The decrease in food prices was more than 1 per cent, but the other changes noted were not over 0.5 per cent. Detailed figures follow : Item L IA B IL IT IE S F. R. notes in actual cir Deposits: Member banks-reserve U. S. Government......... Other deposits.............. — 2.5 Condition of Banks Federal Reserve Operations D uring February the Federal Reserve Bank of St. Louis discounted for 246 of its 630 member banks, which compares with 264 of its 629 member banks accommodated in January. T he discount rate of this bank remains unchanged at Ay2 per cent. Changes in the assets and liabilities of the Federal Reserve Bank of St. Louis since a month ago and last year are shown in the follow ing statem ent: — 1.5 Food* Fuel and light.. Relative Percentage of increase impor in the cost of living tance above average prices July, 1914 to-----family July, Jan., Feb., budget 1920 1924 1924 119 49 47 ...43.1 80 80 58 77 ...13.2 166 76 75 75 , 5.6 66 (92) (92) (91) ...(3.7) ...(1.9) (15) (43) (43) 74 20.4 85 74 Percentage of decrease in the cost of living on February 15, 1924, from average prices in July, Jan., 1920 1924 32.9 1.3 No change 13.9** 33.4 0 .2** 5.4** No change (0.5) (0.5) (24.3)** (No change) No change 5.9 Weighted average 19.9 0.4 104.5 64.6 63.9 of all items......... 100.0 *Food price changes are from the United States Bureau of Labor Statistics. **Increase. The purchasing value of the dollar based on the cost of living in February, 1924 was 61 cents as con 73.9% 64.1% trasted with one dollar in July, 1914. (Compiled March 22, 1924) 825 1,251 B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Employment at industrial establishments increased in February and the output of basic commodities was slightly larger. Distribution, both wholesale and retail, continues large. Wholesale prices were somewhat higher, and there was a further increase in the volume of borrowing for com mercial purposes. Production The Federal Reserve Board’s index of production in basic Index of 22 basic commodities corrected for seasonal variation. Latest figure, February=121. industries, adjusted to allow for length of month and other seasonal variation, increased less than 1 per cent in February. Production of pig iron, steel ingots, and flour increased, while mill consumption of cotton and production of cement and lumber declined. Factory employment advanced 1 per cent in February, fol lowing successive decreases during the three preceding months. Increases in working forces were reported by most industries and were particularly large at iron and steel plants, automo bile factories, and textile finishing establishments. Fuller employment through reduction of part-time work is indicated by an increase of over 5 per cent in average weekly earnings. Building activity was slightly less than in January, though contracts awarded were 7 per cent larger than a year ago. Latest figure, February= 9 9 . Trade Railroad shipments in February were in greater daily volume than in January and car loadings of practically all important commodities were larger than a year ago. The daily average volume of wholesale business increased about 5 per cent in February but was slightly smaller than a year ago. Sales of meat, dry goods, and hardware were larger than in February, 1923, while sales of shoes were smaller. Department store sales in February averaged about the same daily volume as in January and 8 per cent more than a year ago, while merchandise stocks at these stores at the end of the month were 6 per cent above last year’s level. Business of mail order houses and chain stores also showed increased activity in comparison with January. Prices Wholesale prices, as measured by the index of the Bureau of Labor Statistics, advanced slightly in February. Prices of fuel, metals and building materials increased, while prices of farm products, clothing, and chemicals declined. Latest figure, February=152. During the first two weeks in March price declines occurred in wheat, cotton, silk, hides, and rubber, and price advances in hogs, copper and crude petroleum. Bank Credit The volume of borrowing for commercial purposes at member banks in leading cities in the early part of March continued the increase which began in the latter part of Janu ary and on March 12 total loans of reporting banks were higher than at any time since the seasonal peak at the turn of the year, and about $275,000,000 higher than a year ago. At the Federal reserve banks during the four week period ending March 19 a further decline in the volume of discounts for member banks and of acceptances was offset by an increase in the holdings of U. S. securities, so that total earning assets were at about the same level as in February. Latest figure, March 19. Federal reserve note circulation continued to decline, while the total money in circulation increased. Easier money conditions were reflected in a slight decline in rates for commercial paper to per cent and also in lower rates for bankers’ acceptances and reduced yields on Trpacnrv I prtinrJitpQ The March offering of $400,000,000 of one year Treasury Certificates bearing interest at 4 per cent, as compared with 4% per cent on a similar issue sold in December, was over subscribed.
@FedFRASER