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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BUS!NESS CO N D m O N S !N FEDERAL RESERVE D)STR!CT No. S Released for Publication On and After the Morning of May 27, 192! W ILLIAM McC. MARTIN, CHAIRM AN OF T H E BOARD AMD FEDERAL RESERVE AGENT T^ROGRESS of genera! business in this district during the past thirty days has been marked by irregularity. In some !ines the improve ment noted in !ate March and through Apn! was continued, but several of the industries which showed the earlier improvement have lapsed back into quiescence and show a falling o# m volume of business done. Taken as a whole it can hardly be said that the recent gains were maintained. Lines which failed to improve earlier in the year, notably those based on iron and steel and such as depend upon the building industry and railroad purchasing for their prosperity, are in about the same posi tion as at the end of the preceding thirty day period. The financial situation has made a rela tively much better showing than the industrial. An easier tendency has appeared in interest rates, and the banking status is stronger in every way than in more than a year. The check in industry in this particular region may be in a measure ascribed to extremely unfav orable weather conditions. Heavy and continuous rains in late April and early May caused a slowing down in the distribution of commodities and activ ities of various kinds. Spring farming operations have been delayed, due to nooded fields, and in certain sections it has been necessary to reseed cotton, corn and other crops. Heavy roads have hampered the movement of farm products to rail road terminals, and prevented farmers from coming to town to do their shopping. Retail trade in the larger communities has also suffered to some extent from the excessive precipitation, and unseasonably low temperatures. Expectations of lower freight rates is another reason given for deferred buying in some lines. There are complaints of slack business from the typical fruit producing sections of the district, plans and programs having been altered by the almost universal destruction wrought in orchards by the spring frosts and freezes. Replies to some thing over 300 questionnaires sent to all parts of the district indicate that apples and stone fruit will be almost a complete failure. Some of the very late varieties of apples escaped and will make a partial crop, and in the extreme southern areas peaches were not entirely ruined, but otherwise prospects for fruit in all states of the district are probably the poorest on record. Price movements and changes during the past thirty days have been erratic and irregular, which fact has in many instances had a tendency to retard baying. In regard to manufactured goods, the tread was for the most part downward, while * aamber of raw materials and products oi the soil held steady or advanced. However, there were exceptions to the general statement in both classi fications. Cereals, especially wheat, advanced sharply in the St. Louis market, the upturn elimin ating in large part the heavy losses of the preced ing thirty days. Cotton responded to a better con sumptive demand from domestic sources, and recorded small gains. Sugar, on the other hand, was lower. In shoes, clothing, candy, drygoods, drugs and chemicals, hardware, furniture and some other lines the curve of prices showed a more or less acute downward deflection. In all lines of merchandizing and manufacture investigated reports agree that purchasing is being pursued with the utmost caution and almost ex clusively for immediate requirements. Aside from boots and shoes, drygoods and groceries, the proportion of future buying has shown no increase over earlier months this year. There is an insistance on proper prices and values, and economy is being practiced in both cities and the rural com munities. As an instance of the disposition to economize, wholesalers of drygoods and millinery make the comment that there has been a marked rise in recent weeks of purchasing of yard goods, which indicates that women are going back to making their own clothes, a practice which declined greatly during the period of extravagant spending and intensive employment during the war and after the armistice. One leading interest re ported its sales of yard goods during the past thirty days the heaviest in any like period in more than four years. Ready-to-wear dealers and manufac turers report that the "back to the needle" move ment is being reflected to some extent ia their business. Officials of railroads operating in this district report that the first weeks of May developed a slight improvement in offerings of freight The St. Louis Terminal Railway Association showed small gains in loaded cars received in April and early May over March, and numerically the move ment was considerably larger than a year ago, but this signifies little, as the outlaw switchmen's strike, which began April 8, !920, partially paralized trafKc through this gateway. The recent volume record would have made a much more fav orable showing but for the backwardness in ship ments of coal and iron and steel products. The labor situation with the transportation companies remains about as it was a month ago. Some addi tional employes have been let out, and most of the roads are negotiating with their men relative to wage reductions. The Mississippi Warrior Service, which oper ates a barge line between St. Louis and New Or leans, reports that in volume of freight transported and money returns, April was the banner month of its history. After deducting all overhead ex pense, depreciation, insurance and claims, earnings amounted to $30,000. The Service now has two regular sailings weekly, and reports capacity load ings in either direction. Coal dealers and producers report a shade bet ter demand from domestic and industrial sources. Consumers are being urged to cover their needs for later in the year, and slightly more interest is being taken in contracting, which however, con tinues far below normal for this season. Produc tion of soft coal continued to recover during the closing week of April and the two opening weeks of May, but despite this recovery the output is stil! at the lowest level touched at any time since April, 1914, except of course for the period of the great strike of 1919. The draft on consumers' reserve stocks of coal, which amounted to per haps 8,000,000 tons during the Arst quarter, still continued. Bituminous production for the year 1921 to date is not only more than 25 per cent behind the active years of 1917, 1918 and 1920, but is over 9,000,000 tons, or 6 per cent, behind 1919. The automobile and accessory business, which during late March and April took a decided turn for the better, has slowed down in a disappointing manner since the first of May. The change is ascribed by dealers to a return of uncertainty rela tive to prices among prospective purchasers caused by reductions announced about May 1 by two lead ing manufacturers. Unseasonable and inclement weather is mentioned as another factor militating against this line. Sales in the country continue pro portionately below those made in the larger centers of population. Combined automobile registration in Missouri, Illinois, Indiana and Arkansas for 1921 to May 1 is only 14,690 less than the full registra tion for those states in 1920, and exceeds the totals of 1919 and 1918 by 134,174 and 287,589 respec tively. Collections on current accounts during the past thirty days have showed improvement, and slightly better payments are being made on so-called "froz en accounts" in the cotton areas, and other sections where marketing of farm products has been back ward. Generally the feeling is more hopeful and more intensive efforts are being made by both merchants and their customers to pay up. Answers to 324 questionnaires addressed by this bank to corporations and individuals, requesting informa tion relative to the state of their collections showed 4.1 per cent excellent, 16.7 per cent good, 62.5 per cent fair and 16.7 per cent poor. The per capita circulation of the United States on May 1, 1921, was $55.40 against $56.60 on April 1 and $56.44 on May 1, 1920. Commercial failures in the twelve Federal Reserve Districts during the month of April, 1921, with comparative figures for the same period in 1920 were as follows: District 1921 145 229 104 118 154 136 178 115 39 50 98 Philadelphia, Third.. Cleveland, Fourth.__ Atlanta, Sixth.. Kansas City, Tenth.. Dallas, Eleventh___ 121 M87 1920 51 117 24 36 14 36 39 14 16 32 16 109 504 Liabilities 1921 $ 1,746,699 10,471,232 2,227,631 4,366,788 3,334,591 1,997,350 3,949,115 2,427,872 593,718 1,966,778 2,905,847 2,580,148 $38,567,769 Liabilities 1920 $ 982,320* 2,865,153 278,334 352,946 88,450 361,833 4,551,640 200,207 681,330 628,450 100,582 2,132,890 $13,224,135 MANUFACTURING A N D W H O L E S A L E Replies to questionnaires addressed to leading manufacturing and wholesale interests of the dis^ fx P fss some disappoint^ ^ of busmess to broaden and aug? A ** hscl acquired during March and Apnl Extremely !itt!e in the way ^ future buymg ,s be.ng done, and the genera! d i s p o s S and ^ ? merchants !s to avoid stocking up, and take only what they are obliged to have in order to accommodate their customers. Another genera! comment ts that the customary ratio berMtM 6<T Th Prices has not been restored. The pubhc has been advised of the dechne *n raw mater:a!s and manufactured goods and M unwilhng to purchase heavi!y unti! these reduc- ^ P ^ < * along to the ultimate con sumer Strenuous eKorts in the way of salesman° f temtory, and education are being undertaken to put goods into consumption. Num erous mvestgahons of retai! prices are being mad. by !arge manufacturers and wholesalers, and they are endeavoring to show the retailer that by rc uc ing his prices and turning over a greater vo uni of merchandise he can best increase his profits a restore prosperity to general business. Seaso activity in many lines has been retarded by . cold, wet weather, but during the past two w orders for goods in this category have provement. Effects of the late season are tn acutely felt in the rural districts, wh&r s** farm operations are backward. All reports cate that the public is in need of all kinds oi modities, and despite heavy unemployment, ^ a position to purchase. It is simply a . ,gg prices, and when full confidence in existing is restored, according to those reporting, M*ep lie will resume buying. Iron and steel goooj bricks, lumber and building materials ge ^ continue slow. There were additional repo the closing down of iron and steel plants, an of pig iron continue at a minimum. On the other hand, factories turning out articles for personal consumption, have increased their operations and unemployment in these lines is considerably less than a month ago. Boots and Shoes — Orders for immediate ship ment are coming in in excellent shape, and the past three weeks have developed a slight improvement in future buying. Interests reporting say their sales during the period under review were 10 per cent greater in numbers of pairs, as contrasted with the corresponding time last year, though from 24 to 40 per cent less in dollar value. Unfilled orders were 30 to 40 per cent less than last year, but 10 to 20 per cent larger than the preceding month. As contrasted with the corresponding period in 1920, prices average about 40 per cent lower, and declines for the month range from 5 to 10 per cent. The demand centers chiefly in cheaper shoes and specialty goods, and the frequent change in styles makes the situation difHcult for the manu facturer. Raw materials are steady in the main, with calfskins and seasonal goods firmer. Collec tions are fair to good. Plant operation during the past 30 days was maintained at from 90 to 100 per cent of capacity against 80 to 90 per cent the month before. Clothing — As a general rule the 21 interests reporting indicate that their sales were about on a parity with the preceding month, but that the unfavorable weather has had a deterimental effect on business. Virtually nothing is being done in the way of future buying, and manufacturers con tinue to pursue the policy of making up only such goods as they have orders for. Prices, which range from 60 to 75 per cent under the corresponding period last year, sustained a further decline of from 2 to 6 per cent during the past thirty days. Electrical Supplies — Increases of from 1 to 22 per cent in the volume of sales was recorded by the 8 reporting interests as contrasted with the preceding thirty days, but decreases under the same time in 1920 ranged from 11 to 35% per cent. The comment is made that public utilities are find ing it easier to finance their needs and are planning improvements and extensions. The movement of seasonal goods, such as electric fans, is backward. Iron and Steel Products — Goods under this classification continue dull, with prices weak and declining. Mills and foundries report a dearth of new business, and old orders about worked off. Uncertainty relative to values is causing custom ers to defer their needs, and there were further *^Pjn*ts of closing and curtailment of operations at "Mils, foundries and machine shops. Several stove ^ have resumed operations, but others yhidi had planned to start up on May 1 have ecided to put off doing so until early in June. Un employment in the metal industries is more marked wan in any of the other basic lines. Sales and ^ ^ iron in this district are at a low and the price of No. 2 foundry iron, 1.75 to 3 per cent silicon, has declined to $23 per ton low on the movement. Implement antuacturers and dealers report light sales, and , y that their agents throughout the country find **nBers are determined to produce the present crops with the expenditure of as little as possible for new equipment, and supplies. Hardware — Analysis of the replies of 12 re porting firms shows a falling off in sales during the past thirty days of from 3 to 12 per cent as compared with the preceding month this year. Unfavorable weather, the rigid economy being practiced in the rural districts, and general busi ness depression are given as the reasons for the decrease. High freight rates and uncertainty as to prices were other factors making for lighter sales. Some seasonal goods are moving in fair volume, and there is a demand in the country for nails, wire, rope, and other materials used for re pair work. A shade more activity is noted in build ers hardware. Flour — Due to low stocks in the hands of retailers and consumers generally, sales of Hour have been making a somewhat better showing during the past few weeks. Trade as a whole, how ever, is far below normal, and the erratic fluctua tions of wheat futures have a tendency to seriously disturb the psychology of buyers. Export business, on the other hand, has evinced decided symptoms of improvement. Within the last two weeks the Nor wegian Government has placed an order for 25,000 sacks of hard winter Hour, which is the largest amount bought in this district for several months. Other foreign customers have purchased, and on clears and low grades the demand calls for ship ments up to August. Prices are from 75c to $1 higher than a month ago. Mill operation during the past thirty days was at from 40 to 50 per cent of capacity. There was another cut of $3 per week in wages of mill labor, making $6 since the first of February. Candy — Sales of the 7 reporting interests show a slight increase in pounds over the corres ponding period a year ago, but a heavy loss in dollar value. The situation has improved to the extent that surplus stocks in both first and second hands have been liquidated, which permits of stead ier factory operation. The demand is described as good where prices and quality square with con sumers* ideas of cheapness, but very poor on goods which are being held at the old high price levels. Factory operation is at about 60 per cent of capac ity, an increase of 10 per cent for the month. Drugs and Chemicals — Sales of the 9 firms canvassed show decreases of from 2 to 16 per cent in sales during the past thirty days as compared with the month before. The comparison with the year before makes an unfavorable showing for the principal reason that April, 1920, was the largest month ever experienced by the drug and chemical trade in this district. Retailers are confining their purchases to immediate requirements, and they ate disposed to eschew fancy goods and luxuries, bulk of their orders being for staples. Manufacturers are dxtremely conservative in their purchasing. Bargain sheet goods are moving well. The trend of prices is downward. Woodenware — A slight slowing down in new orders is reported by the five reporting interests. Production, however, made a slight gam over the preceding month, and prices were steady. Stocks in retailers hands are light, and the public is m need of goods. The proportion of future orders on manufacturers books is larger than at any time this year. Lumber— In the last half of April, the demand for structural lumber showed marked expansion. Reports of the Southern Pine Association indicated the heaviest volume of orders of yellow pine booked within a similar period in more than a year; Doug las Rr demand showed similar expansion. Virtu ally all of this business was based on building activity and represented sales to retail yards, largely for dwelling construction. Since May 1 there has been a lull in the demand, due largely to labor disturbances in the building field. At pres ent the activity is not in excess of that of early April. Prices had in some instances recovered slightly and have, thus far, retained these gains with no immediate prospects of slump. Some of the trade ascribe the present dullness to expectation on the part of the public of lower freight rates and consequent deferred buying. Trade in hard woods has improved considerably during the per iod. Demand from consuming industrials is grad ually increasing. The principal buying, however, has been from flooring manufacturers and makers of millwork, whose business has been increased by the increase in building. Heavy rains in the South have greatly retarded hardwood manufactures and are a bullish factor. The tendency of prices of high grade hardwoods is decidedly upward, lower grades continuing weak and unsteady. Furniture — Gains of from 15 to 20 per cent in volume and dollar value of goods sold are re ported by the 13 interests canvassed. These re sults, however, were accomplished only by inten sive effort, and concessions in prices. High grade goods are in relatively better demand than the cheaper sort. About 60 per cent of the factory capacity of the district was active during the per iod under review, a gain of 10 per cent over the month before. Collections arc in the main better, but spotted. R E T A IL A survey of fifteen leading department stores of the district discloses a slight increase in sales during April over those in March, while stocks on hand dwindled to the extent of about 10 per cent. There has been an appreciable increase in orders placed for new goods and the annual rate of turn over has tended toward an increase. Reports from smaller retail merchants throughout the district indicate marked conserva tism on the part of their customers. This is par ticularly true of grocery and clothing lines. Col lections in some instances are slower than hereto fore, though on the whole shopkeepers are getting m their money in fair shape. Virtually all lines report a tendency to stiffen credit allowances. The general report is that progress has been made in the direction of marking goods to a replacement cost basis and that sales are being made on a closer mar gin .of profit than in many months. Seasonal de mands are manifest in sporting goods, which are movmg m good volume, though distributors in this hne have to cope with the problem of high prices Articles usually purchased in quantity by the smali boy customer, such as league balls, leather gloves, etc., are boosted to almost prohibitive levels by im position of the war tax. An unusual inquiry for golf goods is reported this season, which is ascribed by dealers to the phenomenal growth of interest in that sport. The scarcity and high prices of hickory and persimmon woods is given as the chief cause for the advance in the price of golf clubs. The opening weeks of May have brought rather disappointing results in general clothing lines, due in a measure to unfavorable climatic conditions. A rather general comment among retailers is that high living costs, particularly exorbitant rents, are responsible for curtailed buying of clothing and luxuries in an even greater degree than the present wave of unemploy ment. Reduction in the price of gasoline and sea sonal consumption by motorists has caused a good increase in sales of distributing agencies. The re cent cold weather has retarded the movement o Southern garden truck, and the usual price reduc tions of vegetables has not been as m a rk e d as ex pected. Grocers report the destruction of fruit pects caused by the spring freezes has stimulate the demand for canned goods, particularly fruits. Figures on retail trade as indicated by reports from representative department stores for April, 1921, are as follows: ^ St. ^ . Louis Percentage increase (or decrease) in net sales-------jhHing April over or under sales in April, Percentage increase in net sales from January * ^ 1st through Apri! 30, 1921 in comparison with sales during the same 4 months of 1920...... 63 Percentage decrease in stocks on hand at the end of April, 1921, in comparison with stocks on hand at the end of April, 1920.__ __ _______ -12 5 Percentage increase in stocks on hand at the^end o f April, 1921, in comparison with stocks on hand at the end of March, 1921_____________- 1.0 Percentage of average stocks on hand at the end of each month since January 1, 1921 to aver age monthly sales during the same 4 months ...369.f Percentage of outstanding order on April 30, 1921, to tota*! purchases of merchandise (cost price) during the calendar year 1920________ 7.7 Note: -demotes decrease. Louisville Memphis Little Rock Evansville District - 2.6 - 11.1 -29. 6.4 -.9 -4.9 -8.4 -16.4 -5.9 2.4 - 20.6 -8.5 - 20. -4.1 - 12.6 -.2 1.5 - 2.8 -.4 397.7 381.8 4.4 4.1 2.7 265. 826. .4 379.6 6.6 A G R IC U L T U R E Condition of the growing winter wheat crop in this district is still favorable, despite the fact that growth has been checked somewhat by the recent cold, wet weather. This weather has proved benefi cial, in that it has diminished the danger of Hessian 8y damage. Green bug activity is on the wane. Corn planting in the Xorth has been retarded by the excessive moisture, and due to the same cause considerable replanting has been required to the South. Soil conditions are fine, and a few weeks of sunshine and high temperatures would rapidly repair any injury thus far sustained by corn pros pects. There are reports of poor stands of oats in Illinois and Indiana, attributable to frost. Plant ing, cultivation and replanting of cotton has been seriously delayed by the overabundant precipita tion. Answers to questionnaires indicate that stands are poor and growth slow. Much planting still re mains to be done in Arkansas, Missouri and Tennes see. Reports relative to acreage vary considerably, and it is still too early to form any accurate idea of how the total will compare with last season. The Arkansas Cotton Trade Association estimates the acreage reduction in that State will amount to 35.3 per cent. Tobacco markets are practically all closed for the season, leaving a large amount of the leaf in farmers' hands, most of which is of inferior qual ity. Tobacco beds are reported in good condition, and awaiting favorable weather for planting. The acreages to be planted is generally reported short. Pastures are in prime condition, having been im mensely benehtted by the recent rains. Clover and alfalfa are recovering from frost damage, and other hay crops are in healthy condition. According to a large majority of reports received, livestock is in prime health. There was some mortality among young pigs and lambs due to the unseasonably cold weather, and from sections of Illinois come reports of hog cholera, but otherwise advices are uniformly optimistic. The strawberry crop of the district is estimated to be from 30 to 40 per cent less than normal. The U. S. Department of Agriculture, in its report as of May 9, 1921, gives the condition of winter wheat in States of the Eighth Federal Reserve District as follows: ACREAGE % Abandoned Arkansas ............ ............ 4.0 Illinois ................ ............ 2.3 Indiana ............... ............ 3.0 Kentucky ........... ............ 3.5 Mississippi ......... ............ 20.0 Missouri ............. ............ 2.0 Tennessee ......... ............ 2.0 United States ............ 4.6 Acres Remaining to be Harvested 127,000 2,413,000 1,894,000 603,000 6,000 2,764,000 461,000 38,721,000 CONDITION May 1 10 yr. 1921 1920 av. 86 83 90 94 69 81 90 65 82 93 71 86 88 80 86 91 75 86 91 73 87 88.8 79.1 86.8 Forecast 1921 May 1 Condition 1,398,000 46,952,000 32,899,000 7,851,000 94,000 42,256,000 5,243,000 629,287,000 Final Estimate 1920 1,197,000 35,720,000 23,400,000 5,610,000 100,000 32,500,000 4,028,000 577,763,000 Price May 1 1921 1920 125 228 120 250 118 254 139 260 133 271 116 255 141 270 110.7 251.3 The following table, compiled from commercial sources for the government market report, shows the cotton movement from August 1, 1920 to May 6, 1921: 1920-21 Port receipts.........................................- ............... ... ... .................................... —...5,358,204 Port stocks .................................................. - ................................................. 1,492,837 Interior receipts.................................... - ................................................................ 6.437,800 Interior stocks............................................... - ................ ........................- ............ 1,545,200 Into sight............................................... ... ..................... —................... — .— — —— 9,340,595 Northern spinners* takings.............................. - .......... - ------------------------------- 1*540,038 ______________________ 2,308,526 Southern spinners* takings............................. ____ ...............................4,472,895 World's visible supply of American cotton.. BALES 1919-20 6,371,225 1,147,304 6,491,083 1,130,441 10,847,453 2,491,496 3,127,659 4,287,880 Range of prices on typical products in the St. Louis grain market between April 15 and May 14, with closing quotations on each of these dates: Close April 15 May July May July wheat ..........................Per bu. wheat______________ " corn ______ " corn September corn ............. .... .... " May oats _______________ __" July oats _______________ __" September oats _________ __" No. 2 red winter wheat__ __" No. 2 hard wheat _______ __" No 2 corn ______________ __" No. 2 white corn _______ __" No 2 white o a ts ________ __" Plour: soft patent_______ Perbbl. F!oar: spring p a ten t____ " $ 1.2 1 1.05 .54 .58 .61 .36% .36% 38 $1.29 @ L31 1.30 .54% .56 .38 6.50 e 7.00 7.25 e 7.50 High $1.51% 1.17% .60 .62% .65% .40% .41% 42% 1.62 1.57 .62 .64% .41% 8.00 8.90 Low $119% 1.01 .61 .36% .38 .37% 1.32 1.33 .56 .59 J7% 6.50 7.25 Close May 14 1.14 .58 61% .63% .40 .40 .41 $1.58 @ 1.59 1.51 .62 .64 ^ jx % 7.25 @ &00 775 $ 8 4 5 LABOR The comment is made that in some sections spring farm operations have given employment to sufRcient workers to take up the slack created in manu facturing, with the result that measured in the num ber of unemployed the situation remains unchanged. The Federal Director of Labor of Indiana makes the comment that "the increase in efHciency of those employed is responsible to a great extent for the existent labor surplus." Universally there is an overplus of common labor, and the same is true of railroad workers. In the rural districts there is more insistance upon the part of farmers on the experience qualification, and this demand is being met by an exceptionally good class of workers. Responses to questionnaires addressed to State, Federal and private tabor agencies in the several states of the district are unanimous in reporting a surplus of workers in all branches of industry, in cluding agriculture. Another point on which all agree is that the trend of wages continue sharply downward. The following are among the specific industries in which further wage cuts have taken place during the past thirty days: lumber, Hour mill ing, cooperage, plumbers' supplies, farm imple ments, stoves, automobile bodies, candy, and in some localities, the building trades. General unrest is noted, and there are scattered strikes, particu larly in the building trades and printing industry. BUILDING Building permits issued in the five largest cities of the district in April show an increase numerically over the same month in 1920, but quite a sharp decrease in dollar value represented. Reports from builders, architects, and contractors indicate that little new construction work is being undertaken. In scattered sections there is some improvement in the direction of erecting inexpen- sive homes, but nowhere is the housing situation better than earlier in the year. Investigations of this problem are being undertaken in St. Louis and other parts of the district. During the closing week of April an "O w n Your Home Exposition" was held in St. Louis, the object of which was to stimulate home building, Comparative figures for April in leading cities of the district follow: ______________ 1921___________________ A P R IL ______________________ 1920__________ iNew Construction Repairs, etc. New Construction* Repairs etc7 - _ . Permits Cost Permits Cost Permits Cost Permits Cost St. L o^s ......................... _564 $878,740 513 $248,415 503 $1,469,525 520 $421,425 Lomsv!!le ............. ............. 94 470,550 330 83,650 93 925,550 201 84,550 .......................... 191 395,292 56 31,020 199 923,590 50 129,770 Memphis Little Rock----- ------------- - 69 205,825 145 46,124 61 260,250 118 50,759 Evansville ---------------------- 44 33,504 72 10,437 . ....... LIV E STOCK Receipts of cattle continue light, though the total for April was heavier than in that month last year, due to the switchmen's strike, which began April 8, 1920. During the latter part of April the lowest prices in years prevailed, but since the first of May an advance has been in progress, which restored values about to the levels of early April. The demand for stocker and feeder cattle is fair. Rather unusual conditions obtain in the hog mar ket ; prices for top and bulk were about steady, but the spread between good heavies and mixed and butcher hogs on the one hand, and light hogs and pigs on the other, has narrowed to 15 @ 30c from 60 @ 85c a month ago. ascribed to light receipts and a more evenly distri buted demand. Prospects for increased hog pro duction are bright, especially to the South where farm programs contemplate heavier corn acreages. Sheep and lambs have fluctuated in a narrow range, with the trend of prices lower. The of the market is the spring lamb trade, which is Choice spring lambs are bnngnow at its height. neignt. i^noice ing as high as $12.50. Reports from many parts of the district indicate an increased supply 0 ovine stock this summer and fall. Cheaper an abundant feeds figure conspicuously in this calcu lation This change is National Stock Yards, receipts and shipments of live stock in April, ""th comparisons for April, 1920, were as foHows: Catt!e & Catves_______________Hogs — 1921 ---------------274,480 Shipments ----------- 32,145 1920 228,721 26,381 _____________ Sheep____________ Horses & Mules 1Q21 1Q20 1921 1920 1921 1920 180,145 142,642 28,140 14,216 20,388 6,155 3,664 5,308 8,524 10,719 AUTOMOBILE LICENSES i" reporting States of the Eighth Federal Reserve District for the years from 1918 to 1920, inclusive, and up to May 1, 1921,is as foHows: Arkansas Illinois Indiana .. Missonri Jan. 1 to May 1.1921 — 50,576 — 528,798 -322,407 -282^12 1920 59,085 568,759 332,707 238,132 1919 49,490 478,438 277,255 244,636 1918 41,453 389,761 277,160 18%040 COMMODITY MOVEMENT Receipts and shipments of important commodities at St. Louis during April, 1921 and 1920 and March, 1921, as reported by the Merchants' Exchange were as follows: RECEIPTS SHIPMENTS April, 1921 Mar. 1921 April 1920___________ April 1921 Mar. 1921 April 1920 Flour, barrels ........................ 306,360 347,490 149,640 330 840 423,970 148,100 Wheat, bushels ...................... 3,203,547 2,696,397 774,994 2,753,565 2,545,780 458,450 Corn, bushels .......................... 1,301,300 3,318,900 1,837,550 1,188,385 2,469,680 713,070 Oats, bushels .......................... 1,458,000 2,652,000 1,804,000 1,261,720 2,203,660 1,095,630 Lead, pigs ............................... 176,420 154,650 120,660 103,390 98,950 67,320 Zinc and Spelter, slabs........... 114,540 180,950 255,420 217,620 244,550 370,210 Lumber, cars .......................... 10,211 10,893 6,803 8 148 8,593 4,875 Meats, pounds ........................12,181,300 6,469,200 7,449,200 20,067^400 24,143,500 17,690,600 Fresh Beef, pounds................ 2,003,500 1,718,200 674,000 19,786,700 20,370,100 16,962,900 Lard, pounds............................ 1,483,600 2,389,800 3,098,000 5,926,100 10,750,600 5,991,900 2,420,700 739,200 3,290,800 Hides, pounds ........................ 2,570,300 5,543,800 1,729,000 FINANCIAL Strengthening in the general financial and banking position, noted in the preceding issue of this report, continued steadily during the past thir ty days, except in certain localities in the South. Fair progress was made in the liquidation of mer cantile accounts, and merchants and manufactur ers were able to further bring down their indebted ness at the banks. As a result of these settlements accommodations granted to member banks by the Federal Reserve Bank of St. Louis decreased $5,251,594 between April 14 and May 14. This decrease was accompanied by a reduction of $2,302,000 in Federal Reserve notes in circulation and an increase of $623,000 in the net deposits of this bank. During the preceding month deposits decreased $3,153,000. On April 14 total reserve carried against deposit and Federal Reserve Note hability was 59 per cent, while on May 14 it stood at 61 per cent. The past few weeks have developed a shade better demand for cotton, and sales of that permitted of scattering liquidation in the South. While reporting an easier trend in Money, bankers report no general reduction in jnterests rates. The demand from the country in financing spring agricultural operations, while less than at the same time last year, is still suiEciently large to take up any surplus created by diminution in requirements elsewhere. The commercial banks report that they have ready dis^ ^ ^ their loanable resources. The market for bankers' acceptances in the past month has been more sustained than for some ^ the better position of \ banks and to a more active demand for such bills from private investors and corporations aving surplus funds to invest. Formerly private investors and corporations demanded indorsed bank bills but as they become more familiar with such investments they buy unindorsed bills. Prime names are selling an eighth to a quarter of one per cent off prices of a month ago, thus reflecting eas ier money conditions. Brokers are selling unin dorsed bills from 5 ^ to 5% per cent. The investment bond market is described as irregular. The demand for the highest grade issues is quite active, with a scarcity of certain special ties wanted by individual investors and corpora tions. Conservatism and caution seem to be the chief motif in the situation at the moment, and bonds other than municipals or those backed by undoubted values are moving slowly, even where interest returns offered are exceptional. Little if any change from the recent dull con ditions in the commercial paper market were noted during the past month. Paper brokers report their business materially under that of the same time last year, and about on a parity with the preceding two or three months. Buying is confined almost entirely to country banks, the large city institu tions purchasing sparingly. Rates are lower, rang ing from 7 to 7^2 per cent, with a few choice sig natures at 6% per cent. This compares with 7% to 7% per cent the month before. The W ar Finance Corporation has issued its Circular No. 1, which outlines in a general way the requirements of the corporation in connection with applications for advances to American ex porters and financial institutions to be used in assisting the exportation of domestic products. Copies of the circular may be had by application to this bank or to the War Finance Corporatoin, Treasury Building, Washington, D. C. INTEREST RATES Between April 15 and Mav 15 the high, low and customary interest rates, prevailing in St. Louis, ouisville and Little Rock, as reported by banks in those cities were as follows: ' ^ ^ - T . T Little Rock Louisville St. Louis C L H L C H c L Customers Prime Commercial Paper: H 8 7 8 6 6 7 6% 7 30 to 90 days......................... ..................................... 7 7 8 8 6 6 7 6% 7 4 to 6 months...............................................................8 Prime Commercial Paper purchased in open market: 7 8 7% 7% 30 to 90 days...............................................................7% 7 — — — 7 8 7% 4 to 6 months...............................................................7% 7% 7% 7 7 8 6 6 7 7 6 Loans to other banks......................................................7 Bankers' Acceptances of 60 to 90 days: 5% 5% 5% 5% 5M Endorsed ...................................... ............................ 6 6 — 5% 5% Unendorsed .............. ................................. - .............6 5% 6 ^ a n s secured by prime stock exchange collateral or other current collateral: 7 8 8 6 6 7 7 6 Demand ___________________ __________________ 8 7 8 8 6 6 7 7 3 months _____________________________________ 7% 6 7 8 8 6 6 7 , 3 to 6 months ________________________________ 7% 6% 7 6 6 6 7 attle L oa n s_____________________________ _________ 7% 7 8 8" 7 7 6 7 unmodity paper secured by warehouse receipts, etc—7% 6% 7 8 8 7 6 6 7 7 6 *M secured by Liberty Bonds and Certificates-------7% CO N D ITIO N O F B A N K S The condition of banks in this district and changes since a month ago and last year, are reflected in the following comparative statement, showing the principal resources and liabilities of member banks in St. Louis, Louisville, Little Rock, Memphis and Evansville: May 11.1921 Number of banks reporting.......................................... . 37 Loans and Discounts (including bills rediscounted with F. R. Bank): Secured by U. S. Govt, obligations...........................$ 20,570,000 Secured by stocks and bonds other than U. S. bonds 118,708,000 All other loans and discounts....- ................................ 320,095,000 April 8,1921 37 May 7,1920 35 $ 23,480,000 120.513.000 328.774.000 $ 39,030,000 156,433,000 $459,373,000 $472,767,000 27.706.000 2,142,000 10.077.000 66.331.000 28,226,000 2,105,000 735,000 65,690,000 29,874,000 3.034.000 13.579.000 $565,529,000 41,111,000 7.629.000 310.899.000 143.636.000 4.707.000 $569,523,000 42,323,000 9.019.000 314.376.000 143.190.000 6.200.000 $649,492,000 43.945.000 10.433.000 333,930,000 123.748.00 3,214,000 Investments: Total loans, discounts and investments (including bills Time deposits ----------- DEBITS TO IN D IV ID U A L A C C O U N T S The following table gives the tota! debits charged by banks to checking accounts, savings accounts and trust accounts oi individuals, Arms, corporations and U. S. Government and also certificates oi deposit paid, in the leading cities of this district during the past month and corresponding period a year ago. Charges to the accounts of banks and bankers are not included. These figures are considered the most reliable index available for indicating actual spending by the public during periods which they cover. Debits to depositors accounts for four weeks ending: May 11,1921 St. Louis ....................... - ........................................... ..$454,317,000 Louisville ...............- ................................................... 89.947.000 Memphis ..................................................................... 81.636.000 Evansville ............................................................. !!.... ^ 18]9%000 East St. Louis and National Stock Yards....................... 34,915 000 Little Rock ..................................................... 36,638,000 SprmgAeld - .... ............. ....................... .................. 10,309,000 Q""*cy ........... ............. ........................................................ 9,475,000 May 12,1920 $599,913,000 143.429.000 134.812.000 22,871,000 April 13,1921 $456,126,000 89.287.000 74.965.000 18.407.000 31.449.000 34.665.000 11.378.000 10.973.000 39,037,000 FE D E R A L R ESE R V E O P E R A T IO N S In April this bank discounted $134,975,985 of paper for 315 member banks, which represents a de crease of $19,541,978 under the amount discounted in March and an increase of 9 in the number of banks accommodated. Acceptances purchased in April amounted to $1,813,067, an increase of $213,084 over the preceding month. May 21 the Federal Reserve Bank of St. Louis increased its discount rate on paper secuMKj Bonds or Victory Notes from 5% per cent to 6 per cent. It also changed its progressive rate y Mtabhshing a- Hat rate of 7 per cent on all borrowings in excess of a member bank's basic line. This mean that member banks will pay on their commercial rediscounts up to and including their basic lines, 6 per cen , and on borrowings m excess of their basic lines, 7 per cent. The normal discount rates effective May 21, 1921, were as follows: ^ 15 days 16 to 60 days 61 to 90 days Member Banks' Collateral Notes: Secured by Bills Receivable or Bonds or Notes oi the United States 6% Rediscounts: Commercial Paper or Paper Secured by Bonds or Notes of the United States 6% 6% 6% Rediscounts: Agricultural or Livestock Paper.............. ...... 6% 6% 6 % Rediscounts: Trade Acceptances............. ................ 69? 6% 6% Rediscounts: Bankers' Acceptances.-..... .......................... 5%/y 5%% 5%% Bankers A^eptances purchased in the market, subject to agreement. Discount is calculated on basis of 365 days to year on maturity value. (Compiled May 21, 1921) 91 days to 6 months 6%
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