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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication on Afternoon of March 29, 1940
FEDERAL
RESERVE
BANK
Scene at Limestone Quarry near Bedford, Indiana
OF
ST.
LOUIS
SUMMARY OF EIGHTH D IS TR IC T
F eb., 1940 comp, w ith
Livestock:
Jan., 1940 Feb., 1939
Receipts at National Stock Yards..........— 24.7%+ 13.7%
Shipments from aforesaid Yards............— 21.5 + 12.4
Production and Distribution:
Sales by mfrs. and wholesalers..............+ 5.6 + 9.4
Department store sales..............................+ 2.0 + 12.0
Car loadings............................................... — 8.2 + 5.5
Building and Construction:
i
. /N u m b er ... + 79.6 + 10.1
Bldg. permits, mcl. repairs \ Q o st.......... + 47.2 — 11.5
Value construction contracts awarded... + 19.3 — 11.0
Miscellaneous:
r•
•1 f
/ Number.............. — 29.7 — 33.3
Commercial failures { Liabilities............ - 42.4 - 53.2
Consumption of electricity......................— 2.6 + 11.9
Debits to individual accounts..................— 13.4 + 11.5
Life Insurance S a les................................+ 0.3 — 8.8
Mar. 13, ’40 comp, w ith
Member Banks (24):
Feb. 14,’40 Mar. 15/39
Gross deposits............................................. — 1.9%+ 9.7%
Loans........................................................... — 0.7 + 7.3
Investments.................................................+ 7.5 ■ 6.3
—
O M M ER C IA L and industrial activity in the
Eighth Federal Reserve D istrict during Feb
ruary was less in many lines than in January,
but practically all lines were ahead of the same
period last year. In March, stim ulated by the early
E aster date, distribution through retail channels, as
reflected by departm ent store sales, showed a de
cided increase.
D epartm ent store sales in the principal cities of
the district during February were 2.0 per cent more
than January and 12.0 per cent greater than Feb
ruary, 1939. For the first two m onths of this year
sales were 7.9 per cent larger than during the like
period of 1939. On M arch 1 inventories were 7.4
per cent larger than on the first day of March last
year. D uring February distribution through whole
salers and jobbers was 5.6 per cent and 9.4 per cent
larger, respectively, than a m onth and a year earlier.
Inventories were still much larger on M arch 1 than
on the corresponding date last year, and were 2.3
per cent more than on February 1. Retail sales of
passenger automobiles in the St. Louis area in Feb
ruary were 4.9 per cent less and 26.6 per cent more,
respectively, than in January and February last
year. Cumulative sales were 8.8 per cent more than
during the first two m onths of 1939.
Production at iron and steel plants decreased dur
ing the latter part of February and into early March
from 68 per cent of capacity to 55 per cent. In midMarch last year production was 60 per cent of
capacity. Current prices of pig iron have been re
affirmed for the second quarter of the year, and
buying has been very light. Shipments against con
tracts have improved but the February total was
C
Page 2
considerably less than a m onth and a year earlier.
Bituminous coal production at mines in this gen
eral area during February continued well ahead
of last year, but fell 15.6 per cent under output for
January of this year. Oil production in fields of this
district exceeded th at of last year by a considerable
margin, and during January production in Illinois
was the largest for any m onth during the threeyear boom in th at state.
D uring February value of construction contracts
let in the district was 19.3 per cent more than during
January, but 11.0 per cent less than during Feb
ruary last year. Cumulative value for the first two
m onths this year was 7.4 per cent less than during
the same period last year. In the larger cities of the
district the value of perm its for new building de
creased as compared w ith February last year, but
were more than one-fourth larger than during Ja n
uary, 1940. D uring January and February this year
the value of perm its issued decreased 25.5 per cent
under the same period last year.
Electric power consumption by industrial users
in the principal centers in February was 2.6 per cent
less than in January and 11.9 per cent more than
during February last year. Freight traffic of rail
roads operating in this district was less during Feb
ruary compared w ith the preceding m onth, but
greater than in the corresponding period a year ago.
Debits to individual accounts at banks in the report
ing centers were 13.4 per cent less in February com
pared with January, but 11.5 per cent more than
during February last year. For the first two months
of 1940 debits were 10.6 per cent larger than for the
first two m onths of last year.
Farm work in states of the E ighth D istrict was
slow in getting started, but w ith im provem ent in
the weather, progress has been made, and activity,
especially in the southern tiers of the district, is
now under way. February receipts of livestock at
m arkets were less than during January of this year,
but somew hat larger than during February last year.
W inter w heat in states of the district is coming up
in good shape. Some additional m oisture would be
helpful. T ruck crops in the southern parts of the
district are late because of the severe freezes of the
past winter.
Commercial failures in the E ighth Federal Reserve
D istrict in February, according to Dun and Bradstreet, numbered 26, involving liabilities of $288,000.
In January there were 39 defaults, w ith liabilities of
$500,000, and in February last year, 37 insolvencies
for a total of $615,000.
D E T A I L E D SU R V E Y OF D IS TR IC T
M A N U F A C T U R IN G A N D W H O L E S A L IN G
Lines of Commodities
N et Sales
Stocks
D ata furnished by Bureau of Census,
U . S. Dept, of Commerce.
February, 1940
compared w ith
Jan., *40 Feb., ’39
Feb. 29, 1940
comp, with
Feb. 28, 1939
A utom otive S u p p lies.........
B oots and S h o es...................
Drugs and Chemicals
Dry G oods..............................
Electrical Supplies..............
Furniture................................
Groceries................................
H a id w a re..............................
Tobacco and its Products.
M iscellaneous.......................
— 4.2%
+ 2 4 .0
— 4.0
— 5.0
4- 9.7
+ 13.1
—
2.0
+
3.0
—
2.0
5.5
+ 32.4%
+ 64.4%
+ 7.3
+ 13.0
— 5.1
— 10.3
— 15.4
— 8.3
— 9.0
— 11.5
11.6
—
+ 8.8
+
6.0
+ 15.2
- 5.0
--7 8 .7
—
2 2.0
+ 8.5
— 15.8
--1 4 .5
F ebruary sales of all wholesalers and jobbers in
vestigated were higher than a year earlier, w ith
sales of boots and shoes, electrical supplies, furni
ture and hardw are showing increases over January
of this year. Inventories of all lines were larger on
M arch 1 this year than on the same date in 1939,
except in the case of drugs and chemicals, the com
posite increase being 16.0 per cent above the earlier
date and 2.3 per cent over F ebruary 1 this year.
Sales of reporting clothing firms during F ebruary
were 26.0 per cent and 16.4 per cent larger, respec
tively, than a m onth and a year earlier. Shoe pro
duction in the E ighth D istrict, as indicated by
prelim inary figures, decreased 2.4 per cent during
February.
Autom obiles—Com bined passenger car, truck and
taxicab production in the U nited States in F ebruary
totaled 403,627, as against 432,101 in January and
297,841 in February last year.
Iron and Steel Products — D uring F ebruary and
the first p art of M arch conditions in the iron and
steel industry in this area have been about the same
as in the corresponding period a m onth earlier.
T here has been very little buying of finished steel
by consum ers because of ample stocks on hand, due
to previous heavy comm itm ents. T he rate of ingot
production decreased from 68 per cent of capacity
at m id-February to 55 per cent in the second week
of M arch, due prim arily to a reduction in the num
ber of larger furnaces active during the period.
W arehouses in this area handling finished sheets,
bars and plates report business in February about
10 per cent and 22 per cent, respectively, ahead of
the previous m onth and February last year. Some
orders th a t had been placed for shipm ent in January
were held up until February on account of the
severe cold w eather during the earlier m onth. De
m and for galvanized sheets is about the same as
earlier in the year. Jobbers have not been required
to draw on mills for additional sheets as inventories
are sufficient to m eet present demands.
D ealers in scrap iron report new offerings from
the country are small, but w ith improvem ent in the
w eather scrap will be easier to handle and offerings
should increase. Mills are out of the m arket because
of com fortable inventories and commitments. S truc
tural fabricators in this area have been operating at
from 40 to 50 per cent of capacity and business has
been rather slow. M ost of the projects have been
small.
F or the entire country, total output of pig iron
in February, according to the magazine “Steel”,
am ounted to 2,947,795 tons, which compares w ith
3,593,354 tons in January and 2,060,183 tons in Feb
ruary, 1939. T he decrease during February was due
to the fact th a t nineteen more blast furnaces were
taken out of production and th at February was a
tw o-day shorter m onth than January. February out
put was the sm allest since last Septem ber both in
tonnage and average daily production. O utput of
steel ingots in the U nited States in February totaled
4,374,625 net tons, against 5,619,698 net tons in Ja n
uary and 3,347,288 net tons in February of last year.
M IN IN G A N D O IL
C oal— On F ebruary 1 stocks of bitum inous coal
held by industrial consum ers were 9.5 per cent less
than on January 1. Industrial consumption of b itu
minous coal during January rose 6.9 per cent above
the December total and, at 33,183,000 tons, was the
largest for any m onth since 1932, with the exception
of M arch, 1937.
W ith tem peratures continuing below normal dur
ing the greater p art of the first two m onths of the
year, the production record of the bitum inous coal
industry was very good. F ebruary output of soft
coal in the U nited States, according to the B itu
m inous Coal Division of the U nited States D epart
m ent of the Interior, totaled 39,270,000 tons, as
against 44,940,000 tons in January and 34,134,000
tons in February, 1939. A t mines in this general
area, production during F ebruary was 15.6 per cent
less than in January, and 15.4 per cent greater than
in February a year ago. F or the first two m onths,
output was 24.2 per cent greater than for the like
period in 1939.
A t Illinois mines 4,622,625 tons were lifted in
February, as against 5,522,343 tons in January and
4,390,462 tons in February last year. There were
117 mines in operation during February w ith 30,011
men on payrolls, against 116 active mines and 30,358
operatives in January.
P e tro le u m — In states of the Eighth D istrict,
January production of crude oil was 4.5 per cent
more than in December and 114.2 per cent greater
Page 3
than in January, 1939. These increases reflect exten
sive developm ent in the new Illinois fields, output
during January being the greatest for any m onth
in the boom, now three years old. Stocks on Ja n
uary 31 were 2.8 per cent and 8.1 per cent greater,
respectively, than a m onth and a year earlier. De
tailed production and stocks by states are given in
the following ta b le :
(I n thous.
of barrels)
Production
D ec., 1939 Jan., 1939
j an., 1940
2,141
10,732
247
449 f
.14,174
1,593
4,446
57
520
2,049
13,473
3,795
1,228
2,373
12,130
3,300
1,204
13,569
Arkansas . . . . 2,098
I l l i n o i s ............11,500
Indiana .........
193
Kentucky . . .
383
T o ta ls.
Stocks
Jan. 3 1 /4 0 Jan. 3 1 /3 9
6,616
20,545
19,007
R E T A IL T R A D E
D epartm ent Stores — T he trend of retail trade in
the E ighth D istrict, as reflected in statistics of de
partm ent stores in the principal cities which report
to this bank, is shown in the following com parative
sta te m e n t:
0. 1 0 . Stock
1
Stocks
____
N et Sales
on H and
Turnover
February, 1940
2 mos. ’40 Feb. 29/40,
Jan. 1, to
compared w ith
to same comp, w ith
Feb. 29,
Jan., ’40 F eb., ’39 period ’3 9 Feb. 28, ’39 1940 1939
F t. Smith, A r k .. ..
L ittle Rock, A rk..
Louisville, Ky. . . .
Memphis, Tenn. . .
Pine Bluff, A r k ...
Quincy, 111...............
St. Louis, M o .. ..
Springfield, Mo. . .
A ll Other C itie s..
8th F . R. D istrict
+ 7.9%
+ 14.3
1.1
—
2.1
+ 11.4
+ 2 4 .1
+ 1.7
— 13.1
— 6.4
+ 2.0
+
+ 11.9%
+ 13.6
+ 11.7
+ 6.7
+ 12.4
+ 18.6
+ 13.3
— 5.6
+ 13.2
+12.0
+ 11.0 %
+ 10.2 %
+ 1 0 .4
+ 9.1
+ 4.6
6.1
+ 7.4
- - 3.1
— 9.7
--2 1 .4
+ 2.3
+ 7.7
+ 2.2
+ 6.4
+ 7.4
+
+ 8.1
+ 8.2
— 3.4
+ 1 4 .7
+ 7.9
.39
.48
.55
.51
.35
.52
.68
.36
.48
.60
.38
.46
.52
.54
.38
.47
.67
.40
.43
.60
Percentage of accounts and notes receivable out
standing February 1, 1940, collected during Feb
ruary, by c itie s:
Installm ent Excl. Instal.
Accounts
A ccounts
Installm ent E xcl. Instal.
A ccounts
A ccounts
39.0%
36.3
50.6
38.3
Fort Sm ith............, . 9
L ittle Rock . . 14.6
Louisville — . 15.3
Memphis ----- 24.0
Q uincy ......................... %
St. L o u is .............. 20.4
Other C i t i e s .... 17.7
8th F . R. D istrict 19.5
45.7%
52.4
41.4
47.1
Specialty Stores — F ebruary results in m en’s fur
nishings and boot and shoe lines are shown in the
following table :
Stocks
Stock
N et Sales
on H and
February, 1940
2 mos. ’40 Feb. 29/40.
compared w ith
to same comp, w ith
Jan., ’40 Feb., ’39 period ’39 Feb. 28, ’39
M en’s Furnishings. — 16.1% + 1 9 .5 %
B oots and S h o e s .. + 1 2 .9
+ 1.1
+ 1 6 .2 %
— 1.1
+ 1 9 .3 %
+ 7.9
Turnover
Jan. 1, to
Feb. 29,
1940 1939
.37
.77
.37
.86
Percentage of accounts and notes receivable out
standing February 1, 1940, collected during Feb
ruary :
M en’s F u rn ish ings................ 36.9%
B oots and S h o es...................36.5%
T R A N SP O R T A T IO N
According to officials of railroads operating in
this area, freight traffic handled during February
was less than during the previous m onth, but some
w hat larger than the same m onth last year. T he St.
Louis Term inal Railw ay Association, which handles
interchanges for 28 connecting lines, interchanged
78,686 loads in February, compared w ith 85,725
loads in January and 74,568 loads in February, 1939.
Page 4
T he interchange during the first nine days of M arch
am ounted to 25,290 loads, which compares w ith
25,097 loads during the corresponding period in
February and 23,720 loads during the first nine days
of M arch last year. D uring the first tw o m onths
of 1940 freight traffic handled was approxim ately
6.3 per cent g reater than for the same period a year
ago. Passenger traffic of the reporting lines in Feb
ruary increased 6.7 per cent in num ber of passengers
carried and 9.5 per cent in revenue as compared w ith
the same m onth in 1939.
F or the entire country, loadings of revenue freight
for the first ten weeks this year, or to M arch 9,
totaled 6,297,685 cars, against 5,754,446 cars for the
sim ilar period in 1939, and 5,521,875 cars in 1938.
E stim ated tonnage of the Federal Barge Line be
tw een St. Louis and New O rleans in F ebruary was
79,500 tons, against 83,457 tons in January and
124,168 tons in February, 1939; for the first tw o
m onths this year cum ulative tonnage was 163,100
tons, as compared w ith 307,617 tons for the same
tim e a year ago. Ice gorges in the river during this
period obstructed navigation.
W H IS K E Y
Of the 60 distilleries in K entucky, 39 were reported
in operation at m id-M arch, an increase of three over
the preceding m onth. A continued increase in the
use of bottled-in-bond w hiskey was reflected in the
fact th a t tax paym ents were 19 per cent higher for
January, 1940, than during Jan u ary of last year.
Consum ption of bottled-in-bond whiskies, in the
country as a whole, increased 10 per cent during
Jan u ary this year com pared w ith January, 1939,
w ith the same situation existing in K entucky as to
consum ption of bottled-in-bond goods.
Continued purchases of whiskies have practically
exhausted stocks of distressed whiskies, which fact
is, no doubt, a factor in the strengthening of bulk
prices, all of which are now ifirm. K entucky distil
leries produced 4,221,000 gallons of whiskey in Ja n
uary, 1940, compared w ith 4,325,000 gallons in the
corresponding m onth of last year. T he decline in
the m ovem ent of case goods has not been as large
as was seasonally anticipated. Generally, the whole
tone throughout the industry is b etter and no price
changes are noted.
A G R IC U L T U R E
F arm ing Conditions— Farm w ork throughout the
district, which had been retarded by adverse w eather
conditions, is ju st gettin g under way. T he low tem
peratures of the past w inter destroyed m any insect
pests and the snow was beneficial to the surface
soil. How ever, the subsoil needs much more pres-
sure from the topsoil and, therefore, rain would be
beneficial to spring planting. Spring truck crops in
the southern tiers of the district have been delayed
and m arketing of the crops will proceed slowly.
Em ploym ent on farm s as of M arch 1, according to
the U nited States D epartm ent of A griculture, was
about 3.3 per cent m ore than a m onth earlier, and
2.1 per cent less than on M arch 1 last year.
Prices of farm products fluctuated som ew hat dur
ing the period under review. Follow ing a slight
increase the latter part of February, they decreased
to the lowest point since late December. As of the
week ended M arch 9, the farm products group of
the U nited States Bureau of Labor Statistics index
stood at 68.5 per cent of the 1926 average, which
compares w ith 68.9 per cent on F ebruary 10, and
68.0 per cent on M arch 11, 1939.
Cotton — Due to the inclem ent w eather during
m ost of February, little preparations were made for
the new cotton crop, but farm operations got under
w ay in early M arch. According to the National F er
tilizer Association, total fertilizer consum ption in
states of the E ighth D istrict during January and
February, as indicated by the sale of tax tags, was
21.5 per cent and 25.9 per cent larger, respectively,
than during the first tw o m onths of last year and
the corresponding period of 1938. In the St. Louis
m arket the m iddling grade ranged from 10.15c to
10.80c betw een February 15 and M arch 15, closing
at 10.25c on the latter date, which compares with
10.60c on F ebruary 15 and 8.10c on M arch 15, 1939.
Combined receipts at A rkansas and M issouri com
presses from A ugust 1, 1939, to M arch 15, 1940,
totaled 1,782,654 bales, against 1,549,197 bales dur
ing the corresponding period a year earlier. Ship
m ents during the period am ounted to 1,862,343 bales,
against 783,137 bales in the previous season. Stocks
on hand as of M arch 15 were 1,276,066 bales, com
pared w ith 1,582,181 bales on the corresponding date
in 1939.
Fruits and Vegetables — A ccording to reports of
the U nited States D epartm ent of A griculture, spring
truck crops in the southern states of this district
will be later than usual. Crops in M ississippi have
been delayed by w et and cold w eather. Arkansas
has experienced cold and cloudy w eather, but pros
pects are in the main good, as the rains and snows
fell rath er slowly, allowing the soil to retain a high
percentage of m oisture.
In the latter part of F ebruary straw berry plants
in A rkansas were still dorm ant in all but the south
w estern counties of the state, while in M issouri
abandonm ent of acreage has been very heavy and
the condition of the rem aining plants is poor. In
Tennessee plants were dorm ant. T he extrem e drouth
last summer and fall reduced stands and the Ja n
uary freeze killed m any of the w eaker plants. H ow
ever, if the spring is favorable, it is still possible to
secure a fairly good yield.
Planting of A rkansas potatoes was delayed by
cool, wet w eather, but is now in full sw ing in the
southern counties and will soon get under way in
the western p art of the state. In M ississippi some
have been planted but the ground is not yet in shape
for general planting.
It is too early to determ ine the full extent of the
damage to the 1940 peach crop from the freeze of
the past two m onths, but it appears prospects have
been drastically reduced in Indiana, Illinois, Mis
souri and northw est A rkansas. How ever, trees in
these states were not seriously injured.
Livestock — Adverse w eather conditions since the
first of the year have m easurably affected the con
ditioning of livestock. P astures were very short last
fall due to lack of m oisture, and indications are th at
they will be slow to s ta rt this spring even w ith
favorable w eather and rainfall. Supplies of hay and
feed grain are plentiful. There has been a m oder
ate recession in wholesale prices of m ost types of
livestock during February and early March.
The U nited States D epartm ent of A griculture
reports the early spring lamb crop in the principal
producing states this year will be about the same
as th at of last year. In states of this district condi
tion of the lamb crop is about average, but m arket
ings will be later than usual. In M issouri, the prin
cipal lam bing state, the ground was covered w ith
snow most of the w inter and sheep were closely
housed. Pastures are late and green feed largely
lacking.
Receipts of livestock at the National Stock Yards
during February were about one-eighth larger than
during February last year, but alm ost one-quarter
less than during January of this year. Milk produc
tion as of M arch 1 was about 2 per cent less than
on the corresponding date in 1939, and about 3.2 per
cent over the 10-year (1929-1938) average.
Receipts and shipm ent a t St. Louis as reported by
the National Stock Y ards were as follows:
_________ Receipts________
Feb.,
1940
Jan.,
1940
Feb.,
1939
_____ Shipments_________
Feb.,
1940
Jan.,
1940
Feb.,
1939
Cattle and C alves......... 71,065 90,614 75,902
37,855 50,380 45,646
H ogs .............................. 243,896 325,511 188,623 157,186 201,991
121,190
Horses and M ules----- 2,099
1,598
3,253
6,207
2,205
3,444
Sheep ................................ 29,319 42,0,06 36,846
2,788
5,455 11,200
T o ta ls..............................346,379 459,729 304,624 204,036 260,031 181,480
Tobacco — T he burley m arkets are closed for the
year and reports indicate th a t 397,021,359 pounds of
Page 5
tobacco were sold at an average price of $17.46 per
cwt., compared w ith a little over 350,000,000 pounds
sold last year at $19.10 per cwt. Sales of Kentucky
burley tobacco totaled 295,380,292 pounds at an
average price of $17.65 per cwt. The crop was taken
in the main by m anufacturers and exporters, with
little being bought by dealers and speculators. As
compared w ith the 1938 crop, the present burley
showed an im provem ent in quality and sales con
tained a larger percentage of good quality lugs and
flyings than last year. The crop was probably
m arketed in record tim e considering its size.
It is estim ated th at the tobacco crop in the Green
River and stem m ing districts will be about 19,500,000 pounds. It is reported th at approxim ately
18,000,000 pounds have been m arketed at an aver
age price of $7.50 per cwt. This average is about
one-fourth less than during the comparable period
last season. A pproxim ately 30 per cent of the crop
has been received by the Growers’ Co-operative
Association.
W ith more favorable w eather conditions, sales in
the eastern dark fired m arkets have been in heavier
volume. Snuff interests are still making heavy pur
chases of well-fired leaf, but are not paying top
prices as heretofore. Sales at the Hopkinsville, Ken
tucky, m arket were 6,063,512 pounds at an average
of $9.33 per cwt., compared with 4,713,059 pounds
w ith an average price of $5.88 per cwt. last year.
T he tobacco sold consisted principally of fair and
good quality heavy leaf and low to good quality thin
leaf and lugs. T otal sales in the western dark fired
district of 10,200,000 pounds, representing about 50
per cent of the crop, were reported at an average of
$7.14 per cwt. A relatively large volume of the
tobacco m arketed was in doubtful keeping condi
tion as the prevailing w eather was warm and damp.
T he one sucker m arkets should close shortly. To
date 18,500,000 pounds of the crop have been sold
at an average price of $7.10 per cwt., compared with
total sales last year of 13,500,000 pounds at $6.00
per cwt.
W inter W heat — T he w inter w heat crop in states
of this district has apparently come through the
severe w inter in good shape. The snow covering is
gone from practically all parts of the district and
only a small am ount of the crop has been smothered
by ice or snow. Recent rains have provided addi
tional beneficial m oisture and plants are beginning
to green up in southern sections of the main w inter
w heat belt, but in the northern sections fields still
rem ain practically dorm ant.
According to the Commodity Credit Corporation,
Page 6
in states of this district, as of M arch 7, there were
under federal loan 259,251 bushels of w heat on
farm s and 11,492,452 bushels in warehouses, for a
total loan stock in the E ighth D istrict of 11,751,703
bushels.
C O M M O D ITY PR IC ES
Range of prices in the St. Louis m arket betw een
F ebruary 15 and M arch 15, 1940, w ith closing quo
tations on the latter date and on M arch 15, 1939,
follow s:
Close
H igh
W heat
*M ay.....................i
* J u ly ......................
*Sept......................
N o. 2 red winter
N o. 2 hard “
Corn
*M ay.....................
*J u ly ......................
*Sept......................
N o. 2 m ixed. . . .
N o. 2 w hite. .. .
Oats
*M ay.....................
* J u ly .....................
*Sept.......................
N o. 2 w hite. . . .
Flour
Soft p a te n t.. . . p erb b l..
Spring “ .........
“
M iddling Cotton per lb.
H ogs on H oof . .per cwt.
*Nom inal quotations.
Low
$ 1 .0 2 ^
1.00%
$ -97 /s
.95
.9 4 ^
1.04
1.03J4
lo o m
1.10
1.04
Mar. 15, 1940
$
.977/s
.9534
.9 5 ^
1 .0 4 ^
1.04
Mar. 15, 1939
$
.64*6
.645*
.65 Vs
.7 3 /z
.71*4
.5434
.55
.5534
.64
.66*4
.5 3 H
.5334
.54**
.58
.6 5 ^
•41H
.357/s
.337/s
A 6 /2
. 395/s
.345/s
.315/s
.4434
■
315/s
.45
.27*4
.2654
.25*4
.33
.6.85
6.25
.1080
5.25
5.90
5.75
.1015
5.08
5.95(§>6.65
5.80(g) 6.05
.1025
5.11
3.90,@ 5.25
5.25 @ 5.55
.0810
7.35
•43%
•44*4
.45 H
.4 sy 2
.51
.5 3Ys
.5334
.5 4 ^
.58^4
.66
•395^
. 345/s
B U IL D IN G
T he dollar value of perm its issued for new con
struction in the five largest cities of the district in
F ebruary was 27.8 per cent greater than in January
and 18.2 per cent less than in February, 1939.
According to statistics compiled by the F. W . Dodge
Corporation, construction contracts let in the E ighth
D istrict in February am ounted to $15,411,000, which
compares w ith $12,923,000 in January and $17,324,000 in February, 1939. Building figures for Feb
ruary follow :
______N ew Construction
(C ost in
thousands)
Permits
1940 1939
E van sville.........
L ittle R ock.
L ou isv ille.........
M em phis............
St. L o u is.........
Feb. T o ta ls. . .
Jan. T otals. . . .
* R evised figure.
11
34
58
280
195
578
320
8
18
72
288
185
571
454
______ Repairs, etc.______
Cost
1940
1939
$ 119
156
358
422
731
1,786
1,398
$
20
40*
1,517
363
577
2,517
1,758
Permits
1940 1939
71
96
30
116
140
453
254
61
56
28
115
105
365
443
1940,
Cost
1939
$ 21
32
34
50
531
668
269
$ 39
12
22
61
122
256
331
C O N SU M PT IO N OF E L E C T R IC IT Y
Public utilities companies in six large cities of the
district report consum ption of electric current by
selected industrial custom ers in February as being
2.6 per cent less than in January and 11.9 per cent
greater than in February, 1939. D etailed figures
follow :
Jan.,
N o. of
Feb.,
C ustom• 1940
1940
(K .W .H .
in thous.)
ers
K .W .H . K .W .H ,
3,647
3,765
E v a n s v ille .. ___ 40.
1,991
2,006
L ittle R ock. . , , 35
, , , 82
9,762
9,897
2,540
2,528
, . . . 31
1,078
, . . . 20
1,183
21,270,
22,004
. . . 427
40,288
41,383
Feb.,
1939
K .W .H .
2,865
1,802
8,332
2,181
944
19,866
35,990
February, 1940
compared with
Jan., 1940 Feb., 1939
+ 2 7 .3 %
— 3.1%
— 0.7
+ 10.5
+ 17.2
— 1.4
+ 16.5
+ 0.5
+ 14.2
— 8.9
— 3.3
+ 7.1
— 2.6
+ 11.9
B A N K IN G A N D F IN A N C E
Dem ands for credit during the m onth of February
and the first part of M arch were about the same as
in the corresponding period a m onth earlier. Due to
delayed farm operations in the rural areas, credit
needs for this year’s crops are slow in being antici
pated. New loans as a whole about offset liquida
tions. Loans to grain handlers and flour milling
interests were unchanged during the period. Bank
ers dollar acceptances outstanding as of February
29 were 31.5 per cent and 15.6 per cent less, respec
tively, than a m onth and a year earlier.
M ember Banks — E ighth D istrict reporting mem
ber banks, as of M arch 13, reported total loans and
investm ents 3.6 per cent larger than on the corres
ponding report date a m onth earlier, investm ents
increasing 7.5 per cent during the period, while
loans were off 0.7 per cent. Loans were 7.3 per cent
larger than on the corresponding report date in 1939
due prim arily to the increase in commercial, indus
trial and agricultural loans which were 8.2 per cent
more than on M arch 15, 1939. Gross deposits were
1.9 per cent less than the all tim e high recorded last
m onth, but were still 9.7 per cent more than on the
corresponding report date last year. Reserve bal
ances of reporting m em ber banks decreased each
week during the four-week period under review and
on M arch 13, were about one-fifth less than on Feb
ruary 14, but 35.2 per cent more than on the midM arch report date in 1939.
Statem ent of the principal resource and liability
items of the reporting m em ber banks follow s:
Change from
Mar. 13, Feb. 14,
Mar. 15,
(I n thousands of dollars))
1940,
1940
1939
C om m ercial,industrial,agricultural lo a n s...$ 1 9 2 ,7 1 9 — 1,651
+ 1 4 ,5 5 7
Open market paper..............................................
10,910 —
131
+ 7,720
5,160 +
644
—
514
Loans to brokers and dealers.........................
Other loans to purchase and carty securities. 12,152 —
109
+
127
Real Estate lo a n s.............................. .................... 52,118 +
416
+ 2,648
Loans to ban ks.....................................................
1,219 —
131
— 4,047
Other lo a n s.............................................................. 56,417 — 1,511
+ 1,942
Treasury b ills.........................................................
42,715 + 2 6 ,6 8 6
+ 1 5 ,0 6 5
T teasury n o tes.......................................................
32,762 — 1,60.9
— 32,603
U . S. bon ds.............................................................. 139,111 —
275
— 20,000
O bligations guaranteed by U .S . Government 71,657 + 1,107
+ 7,919
Other securities....................................................... 104,272 + 1,377
+ 3,360
Balances with dom estic ban ks......................... 194,402 +
352
+ 5 1 ,3 7 4
Demand deposits— adjusted*............................ 479,875 — 7,098
+ 3 7 ,4 1 0
Time deposits......................................................... 189,732 +
122
+
712
U. S. Government deposits.............................. 17,114 —
552
— 2,924
Inter-bank d e p o s its .............................................. 361,572 — 14,495
+ 6 0 ,5 4 4
B o r r o w in g s ....................... .....................................................................................................
*Other than inter-bank and Government deposits, less cash items on
hand or in process of collection.
A bove figures are for 24 member banks in St. Louis, Louisville, M em
phis, L ittle Rock and Evansville. Their resources comprise approximately
62.0% of the resources of all member banks in this district.
T he aggregate am ount of savings deposits held
by selected m em ber banks on M arch 6 was slightly
more than on February 7, and 1.9 per cent more
than on M arch 1, 1939.
A t downtown St. Louis banks interest rates as of
M arch 16 rem ained unchanged. Rates charged were
as follows: Custom ers’ prim e commercial paper, 1H
to 5H per cent; collateral loans, 2% to 6 per cent;
loans secured by warehouse receipts, 13 to 5H per
A
cent and interbank loans, 2H to 5H per cent.
Federal Reserve Operations — The volume of the
m ajor operations of the Federal Reserve Bank of St.
Louis, during February, 1940, is indicated below :
(Incl. Louisville, M em phis, L ittle Rock branches)
Pieces
Am ounts
Checks (cash item s) han dled ........... .................... 5,213,517 $1,074,346,076
Collections (non-cash item s) handled..............
56,502
29,433,850
Transfers of fu nds.......................................................
4,059
260,710,887
Currency received and cou n ted ....................... ...
7,732,224
25,631,512
Coin received and counted....................................... 10,245,678
1,045,689
Rediscounts, advances and com m itm ents.........
1
60,750
N ew issues, redemptions, and exchanges of
securities as fiscal agent of U . S. Gov’t., etc..
15,941
33,475,360
Bills and securities in custody— coupons clipped
8,122
Changes in the principal assets and liabilities of
this bank appear in the following- table :
Mar. 19,
(In thousands of dollars)
1940,
Industrial advances under Sec. 1 3 b . . . . $
15
119
Other advances and rediscounts................
Bills bought (including participations) . .
111*031
U . S. securities..................................................
T otal earning a sse ts.................................. . 111,165
Change from
Feb. 19, Mar. 18,
1940
1939
__
-0 6
—
69 +
19
2
—“ ” 60 — 9,258
—
129 —■ 9,247
407,327
Total reserves....................................................
Total deposits..................................................... . 321,259
F. R. N otes in circulation........................... . 192,431
— 37,045
— 39,978
+ 1,723
+
+
+
58,326
36,789
12,932
Industrial commitments under Sec. 13b.
Ratio of reserve to deposit
and F. R. N ote liab ilities....................... ,
-0-
__
311
— 1.2%
151
+ 4.1%
Following are the rates of this bank for accom
modations under the Federal Reserve A ct:
79.3%
Advances to banks, secured by direct obligations of
the United States, under paragraph 13 of Section 13.
Advances to member banks, under paragraph 8 of Sec
tion 13, secured by direct obligations of the U nited
States or by such Government guaranteed obliga
tions as are eligible for collateral thereunder..................
Rediscounts and other advances to member banks
under Sections 13 and 13a.....................................................
Advances to member banks under Section 10b..................
Advances to individuals, firms, and corpotations, other
than banks* secured by direct obligations of the
U nited States, under paragraph 13 of Section 1 3 ___
Rediscounts, purchases, and advances to member
banks, nonmember banks, and other financing insti
tutions, under Section 13b:
(a) On portion for which such institution is obligated
(b ) On remaining portion..................................................
Commitments, not exceeding 6 months, to member
banks, nonmember banks, and other financing insti
tutions, to iediscount, purchase, or make advances,
under Section 13b.......................................................................
Advances to established industrial or commercial
businesses under Section 13b................................................
.1
% per annum
,1
% per annum
1 54 % per annum
,2
% per annum
.4
% per annum
3
4
% per annum
% per annum
. Vi % flat
4 % to
5 j2 % per annum
/
Since February 29 the F irst Sate Bank of Mounds,
Illinois, the Helena National Bank, Helena, A rkan
sas, and the Farm ers and T raders Bank, California,
Missouri, became members of the System.
Debits to Individual Accounts — T he following
comparative table of debits to individual accounts
reflects spending trends in this d istric t:
(In thousands
of dollars)
_
Feb.,
1940
East St. Louis and N a t:
1
Stock Yards, 111...$ 30,539
4,842
El Dorado, Ark.........
30,065
Evansville, In d ..........
Fort Smith, A rk .. . .
11,150
5,328
Greenville, M iss.........
1,726
Helena, A rk................
Little Rock, A rk .. . .
34,673
Louisville, K y ............ 153,137
Memphis, Tenn......... 126,431
6,669
Owensboro, K y ..........
6,574
Pine Bluff, Ark.........
Quincy, 111. ................
7,785
St. Louis, M o........... 518,317
2,282
Sedalia, M o..................
12,967
Springfield, M o..........
Texarkana, A rk .-T ex._ 6,813
T otals......................... 959,298
(Completed March 23, 1940)
Jan.,
1940
$ 35,070
6,315
35,551
11,881
5,707
1,921
39,894
179,475
151,601
7,475
6,826
8,282
595,060
2,045
13,672
7,272
1,108,047
Feb.,
1939
$ 28,786
4,458
23,438
10,235
4,811
1,148
32,636
138,198
100,422
6,513
6,318
6,263
478,183
1,691
11,235
6,245
860,580
comp, with
F eb.,’40 i
Jan.,*40 F eb .,*39
— 12.9%
— 23.3
— 15.4
— 6.2
— 6.6
— 10.2
— 13.1
— 14.7
— 16.6
— 10.8
— 3.7
— 6.0
— 12.9
+ 11.6
— 5.2
— 6.3
— 13.4
- 6.1%
b 8.6
-28.3
- 8.9
-10.7
-50.3
- 6.2
-10.8
-25.9
- 2.4
- 4.1
-24.3
- 8.4
-34.9
-15.4
- 9.1
(-11.5
Page 7
N A TIO N A L SUMMARY O F B U S IN E S S CO N D ITIO N S
B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E SY ST E M
INDUSTRIAL PRODUCTION
Index of physical volum e of production, adjusted for sea
sonal variation, 1923-1925 average = 100. Durable man
ufactures, nondurable manufactures, and minerals expressed
in terms of points in the total index. B y months, January,
1934, to Feburary, 1940.
FREIGHT CAR LOADINGS
POINTS IN TOTAL INDEX
POINTS IN TOTAL INDEX
Index of total loadings of revenue freight, adjusted for
seasonal variation, 1923-1925 average = 100. Miscellan
eous, coal, and all other expressed in terms of points in the
total index. B y months, January, 1934, to February, 1940.
WHOLESALE
P RICES
Index compiled by the U nited States Bureau of Labor
Statistics, 1926 = 100. B y w eeks, 1934 to week ending
March 9, 1940.
M ONEY
RATES
IN
NEW
YORK
CITY
PER CENT
4
For w eek i ending January 6, 1934, to March 16, 1940.
Page 8
Industrial activity showed a further sharp decline in February and a less
marked reduction in the first half of March. Wholesale commodity prices
generally were steady, following some decline in January and early February.
Production—In February the Board’s seasonally adjusted index of indus
trial production was 109 per cent of the 1923-1925 average as compared with
119 in January and 128 in December. A further decline at a slower rate is
indicated for March on the basis of data now available. In August, 1939,
the month prior to the outbreak of war, the index was 103.
Steel production, which had risen sharply in the latter part of 1939 and
then decreased considerably in January, showed a further marked reduction
in February to 69 per cent of capacity. In the first half of March output
was steady at a rate of about 65 per cent. Plate glass production declined
further in February and output of lumber, which had dropped sharply in
January, showed less than the usual seasonal rise. Automobile production in
February was maintained at the high level prevailing in January. Dealers’
stocks of new cars rose to high levels in this period, notwithstanding the fact
that retail sales of cars were in large volume for this time of the year. In
the first half of March output of automobiles showed less than the customary
sharp increase. In some industries not included directly in the Board’s pro
duction index, particularly the machinery, aircraft, and rayon industries,
activity continued at high levels.
Changes in output of nondurable goods were largely seasonal in February
except at textile mills and sugar refineries. At cotton textile mills activity
declined somewhat from the high levels prevailing since early last autumn.
Activity at woolen mills, which had decreased considerably in December and
January, declined further in February and output of silk products was re
duced to an exceptionally low level. Sugar refining showed less than the
sharp rise usual at this season.
Mineral production declined in February, owing chiefly to a considerably
reduction in output of anthracite. Bituminous coal production declined some
what, following a rise in January, while output of crude petroleum increased
to new high levels.
Value of construction contract awards in February showed little change
from the January total, reflecting a further decrease in contracts for public
construction and a contraseasonal increase in private contracts, according to
figures of the F. W. Dodge Corporation. The increase in private residential
awards nearly equalled the decline that occurred in the previous month when
severe storms curtailed building operations in many areas.
Distribution — Retail distribution of general merchandise showed little
change from January to February and remained somewhat below the high
level of the latter part of last year, with due allowance for seasonal changes.
Sales at variety stores and mail-order houses showed about the usual seasonal
rise in February, while at department stores, where some increase is also
usual at this time of year, sales remained at about the January level.
Freight-car loadings declined considerably from January to February,
reflecting for the most part a sharp reduction in coal shipments and some
further decrease in loadings of miscellaneous freight.
Foreign Trade — Exports of United States merchandise in February
declined less than seasonally from the high levels reached in December and
January. The principal decreases were in shipments of cotton, copper, and
aircraft, which had been exceptionally large in previous months. Exports to
Japan fell sharply and there were declines also in shipments to the United
Kingdom, the Netherlands, and Russia, while exports to Belgium and the
Scandinavian countries increased.
There has been little change in the rate of gold inflow. The monetary
gold stock increased by $246,000,000 in February and by $109,000,000 in the
first two weeks of March.
Commodity Prices — Prices of nonferrous metals advanced from the
middle of February to the middle of March, while steel scrap and textile
materials declined somewhat further. Most other commodities showed little
change and in the week ending March 9, the general index of the Bureau of
Labor statistics was at 78.3 per cent of the 1926 average as compared with
78.5 a month earlier.
Government Security Market — Following a relatively steady market
during February, prices of long-term Treasury bonds increased sharply after
the announcement by the Treasury early in March that its operations during
that month would be limited to the issuance of a five-year note to refund a
note maturing next June.
Bank Credit — Total loans and investments at reporting member banks
in 101 leading cities rose during the six weeks ending March 13, largely as
a result of increases in investments at New York City banks. Following a
reduction during January, commercial loans increased, mostly at banks in
cities outside New York. Bank reserves and deposits continued to increase
during the period.
