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MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication On and After the Afternoon of May 31, 1930 J O H N S. W O O D , Chairman and Federal Reserve Agent FEDERAL RESERVE HE moderate betterment in trade and in dustry, noted in the preceding issue of this report, failed to continue during the past thirty days. With the exception of retail trade in the chief centers of population, which showed a sub stantial gain over a year ago, virtually all lines in vestigated showed recessionary tendencies. Out put of most manufacturing lines was smaller in April than in March, and this curtailment extended to certain lines which ordinarily increase their pro duction at this particular time of year. Reports cov ering the first half of May reflect little, if any bet terment over the average daily rate prevailing in April. Extreme conservatism is the rule in purchas ing, both by the public and merchants. As a result of this policy, manufacturers are holding down their operations, and are making up only such goods as they are able to apply on orders actually booked or for which there is definite inquiry. T In a large majority of wholesaling lines investi gated, April sales were sharply below those of the same month in 1929, also under those of the preced ing month this year. A considerable part of the decrease in the yearly comparison was accounted for by smaller advance sales. Dry goods, millinery, clothing and boot and shoe interests attribute their decreased volume of sales partly to price uncertain ty and to unseasonable weather. In the country purchasing has been held down by the depression in values of wheat, corn, cotton and other agricultural products. As an indication of the disposition to pur chase only for immediate requirements, wholesalers cite the unusually large number of mail orders re ceived, also the numerous orders transmitted through the usual channels which specify immediate delivery. While retail stocks are universally small, merchants are hesitant about replenishing and com pleting their full lines. An important factor in the gain in department store sales in April over those a year ago was the fact that Easter was unusually late, and much shop ping ordinarily done in March was carried into the following month. Special sales involving price con C. M . STEW ART, Assistant Federal Reserve Agent BANK OF S T. J. V I O N P A P IN , Statistician LOUIS cessions, accompanied by extensive advertising cam paigns also figured in the increase. Distribution of automobiles decreased as compared with the pre ceding month and a year ago, and generally through the iron and steel industry activities were at a slightly lower rate in April than March. The melt of pig iron was smaller, and though shipments of finished materials decreased, the volume of unfin ished orders on May 1 was smaller than a month earlier. Taken as a whole the employment situation showed no marked change as contrasted with the preceding month. Gains in the number of workers engaged in outdoor occupations about offset in creased idleness occasioned by curtailed schedules in industrial plants. Conditions through April and early May were in the main very favorable for agri cultural operations, and spring farm work is consid erably ahead of the seasonal average. In some sec tions moisture was insufficient for promoting growth and development of planted crops, and the low prices of wheat, corn, cotton and other impor tant products tended to emphasize conservatism in the rural areas. Combined sales of all wholesale lines investi gated showed a decrease of 16.3 per cent in April sales under those for the same month in 1929. As reflected by sales of department stores in the prin cipal cities, the volume of retail trade in April was 9.8% larger than a year ago. The value of author ized new construction in the five largest cities in April was 145.3 per cent greater than in March, but 16.3 per cent smaller than in April, 1929. Debits to checking accounts in April, as reported by the large centers, were 2.0 per cent smaller than in March, and 11.5 per cent less than the April, 1929 total. The amount of savings deposits increased 1.6 per cent between April 2 and May 7, and on the latter date reached the highest figure this year. The total, however, was 3.4 per cent smaller than on May 1, 1929. The volume of freight traffic handled by rail roads operating in this district continued to run be low that of a year and two years earlier. The sea sonal increase in the movement of vegetables and fruits from the south was more than offset by de creases in all other classifications. The tonnage of forest products, coal and coke and ore was sharply below that of a year ago. For the country as a whole, loadings of revenue freight for the first 18 weeks this year, or to May 3, totaled 15,832,203 tons, against 17,194,605 tons for the corresponding period in 1929, and 16,510,556 tons in 1928. The St. Louis Terminal Railway Association which han dles interchanges for 28 connecting lines, inter changed 211,707 loads in April, against 220,296 loads in March, and 241,881 loads in April, 1929. During the first nine days of May the interchange amounted to 61,545 loads, against 64,523 loads dur ing the corresponding period in April, and 72,140 loads during the first nine days of May, 1929. Pas senger traffic of the reporting roads was 9.0 per cent smaller in April than in the same month a year ago. Estimated tonnage of the Federal Barge Line, be tween St. Louis and New Orleans, in April was 100,700 tons, the largest since last November, and comparing with 71,087 tons in March, and 134,747 tons in April, 1929. While continuing rather spotted and irregular, collections developed some improvement over the preceding thirty days. Large wholesaling lines, notably boots and shoes and dry goods, with which April is an important settlement month, reported payments during the last half of that month much better than indicated during the opening weeks, with the result that total returns compared favora bly with a year ago. Retailers in the large cities reported moderate improvement in April and during the first half of this month. In the country, how ever, there are still numerous complaints from retail ers of backwardness in collections, particularly in areas where farmers are intensively engaged in spring field work. In the iron and steel building material industries payments are still reported be low the seasonal average. Answers to questionnaires addressed to representative interests in the several lines scattered through the district showed the fol lowing results: E xcellent April, 1930...................1.5% March, 1930.................1.4 April, 1929...................2.6 G ood 12.4% 14.1 36.7 Fair 63.5% 59.2 50.6 P oor 22.6% 25.3 10.1 Commercial failures in the Eighth Federal Re serve District in April, according to Dun’s, num bered 128, involving liabilities of $4,114,163, against 133 failures in March with liabilities of $2,419,565, and 126 failures for a total of $1,992,932 in April, 1929. The average daily circulation in the United States during April was $4,518,000,000 against $4,534,000,000 in March, and $4,679,000,000 in April, 1929. M ANUFACTURING AND W H O LE SA LIN G Automobiles — Combined passenger car, truck and taxicab production in the United States in April was 442,630, against 401,378 in March, and 621,910 in April, 1929. Distribution of automobiles in this district dur ing April, according to dealers reporting to this bank, was smaller than in March, and dropped sharply below the total of April a year ago. With the exception of February, every month since last August has shown smaller sales than during the corresponding period a year earlier. During the past six years there has been no definite seasonal trend from March to April, three years showing gains and three losses. A considerable part of the decrease in the month-to-month comparison this year was accounted for by curtailed business of country dealers. In the yearly comparison, losses were fairly evenly spread over both country and city dealers, and extended to all descriptions of vehicles, though somewhat more pronounced in the more expensive makes. Country dealers report a general disposition on the part of owners to recondition their cars and make them serviceable as long as possible. This has been an important factor in the relatively large sales during the past sixty days of replacement parts and accessories. A number of firms specializing in parts report their sales during that period on a parity with the same time last year. Since May 1 there has been some improvement re ported in sales of passenger cars, and an increase in inquiries. Sales of trucks by reporting dealers in April were about the same as in March, but con siderably below a year ago. Both wholesale and retail dealers are purchasing conservatively and there was a further decrease in the number of new vehicles on hand. Stocks of new passenger cars on May 1 were 12.3 per cent smaller than on the same date in 1929, and 7.2 per cent smaller than on April 1 this year. Used car inventories also de creased moderately, stocks on hand on May 1 being 14.1 per cent larger than a year earlier, and 2.0 per cent smaller than on April 1 this year. Sales of new passenger cars by 320 dealers scattered through the district in April were 23.9 per cent smaller than for the same month in 1929, and 7.9 per cent below the April total this year. April sales of parts and acces sories were 2.1 per cent and 0.5 per cent smaller, respectively, than a month and a year earlier. A c cording to dealers reporting on that particular, de ferred payment sales in April constituted 55.9 per cent of their total sales, against 54.2 per cent in March, and 54.8 per cent in April, 1929. Boots and Shoes — April sales of the five re porting interests were 12.1 per cent smaller than in March, and 16.4 per cent less than the April, 1929 total. Stocks on hand on May 1 were 12.6 per cent smaller than a month earlier, and 9.6 per cent larger than those on May 1, 1929. Orders for future de livery are considerably smaller than a year ago, and retailers are purchasing chiefly for immediate re quirements. This fact is emphasized by the extra ordinarily heavy volume of mail orders received in recent weeks. Some slight improvement in orders booked by salesmen on the road is reported since May 1. Retail stocks are generally light, and manu facturers, with this fact in mind, have stepped up their operations, the rate at the middle of May being at from 85 to 90 per cent of capacity. There was no change in prices during the past thirty days, but the average is about 5 per cent below the same time last year. Clothing — The volume of purchasing of both men’s and women’s clothing during the past thirty days was substantially below the average at the corresponding period during the past several years. There was a marked hesitancy on the part of mer chants and the public to fill requirements, which attitude was emphasized by unseasonable weather. Advance buying for early fall and late summer was disappointing, and in smaller volume than a year ago. The trend of prices was downward. April sales of the reporting clothiers were 80.8 per cent smaller than during the same month in 1929, and 38.7 per cent smaller than the March total this year. Drugs and Chemicals — Sales of the six report ing firms in April were 2.1 per cent larger than in March, and 5.8 per cent less than in April, 1929. Stocks on May 1 were 0.9 per cent smaller than thirty days earlier, and 9.8 per cent larger than on May 1, 1929. Smaller sales of heavy drugs and chemicals to the manufacturing trade made up the major portion of the decrease in the yearly compari son. Purchasing of soda fountain supplies and equipment was measurably smaller than a year ago. Dry Goods — For the fifth consecutive month, April sales of the reporting interests in this classi fication were smaller than for the corresponding month a year earlier. Considerable irregularity exists in the different lines handled, some exhibiting sharp decreases, while others show only minor losses, and in some instances, gains. Silks, hosiery, wash goods and ready-to-wear garments were among the items showing sharp decreases, while gains were reported in domestics, percales, under wear and notions. Price declines since a year ago were a factor in the lower sales total in the yearly comparison. Since May 1 considerable improvement has developed in orders for both future and prompt shipment. April sales of the eight reporting firms were 13.1 per cent smaller than the same month in 1929, and 13.2 per cent below the March total this year. Stocks on May 1 were 2.9 per cent and 19.2 per cent smaller, respectively, than thirty days and a year earlier. Electrical Supplies — April sales of the five re porting interests were 19.6 per cent smaller than for the same month in 1929, and 20.9 per cent larger than the March total this year. Stocks on May 1 were 7.9 per cent and 9.9 per cent larger, respective ly, than thirty days and a year earlier. The gain shown in the month-to-month sales comparison was due in large part to seasonal influences. Sales of radio material were considerably smaller than last year, and there were also decreases in electrical installations in new buildings, and small motors. Advance sales of electric fans are disappointing. The trend of prices was easier in sympathy with the downturn in copper, zinc and other raw materials. Flour — Production at the twelve leading mills of the district in April was 360,684 barrels, the smallest since last June, and comparing with 388,661 barrels in March, and 350,575 barrels in April, 1929. Stocks of flour in St. Louis on May 1 were 3.2 per cent smaller than on April 1, and 12.0 per cent greater than on May 1, 1929. As has been the case for the past several months, business was quiet, and purchasing confined to absolute requirements. The drop in wheat prices to the lowest point on the crop tended to disturb buying psychology. Ship ping directions were fair, however, and at the ex treme decline, some sales were made for export. Mill operation was at from 50 to 55 per cent of capacity. Furniture — A slowing down in business in this classification as compared with a month and a year earlier extended to virtually all lines. De creases as compared with last year were marked in office furniture and equipment, radio cabinets and seating for theaters, etc. April sales of the 12 reporting interests were 21.0 per cent smaller than for the same month last year and 12.7 per cent be low the March total this year. Stocks on May 1 were 2.4 per cent smaller than thirty days earlier and 0.2 per cent less than on May 1, 1929. Groceries — Lowered demand for goods in the luxury class, coupled with reduced purchasing in some sections of the agricultural area, was partly responsible for a decrease in April sales of the 14 reporting interests of 7.5 per cent under the same month in 1929, and of 2.1 per cent under the March total this year. Stocks on May 1 were 14.9 per cent larger than on the same date in 1929, and 3.6 per cent smaller than on April 1 this year. The trend of prices continued downward, with the general average considerably below that at the correspond ing period a year ago. Hardware — Following the spurt of activity during March and early April, business in this clas sification sustained a decided slump in late April and the first half of May. The movement of seasonal goods was backward, and country dealers were hesi tant about replenishing stocks. Sales of sporting goods were in relatively small volume for this time of year, and demand for builders’ tools and hard ware was quiet. The trend of prices was downward, particularly in the case of merchandise in the manu facture of which steel and copper have an important part. April sales of the 12 reporting firms were 18.2 per cent smaller than for the same month in 1929, and 10.4 per cent smaller than in March this year. Stocks on May 1 were 15.1 per cent smaller than on the same date in 1929 and 2.5 per cent larger than on April 1 this year. Iron and Steel Products — Business in this clas sification during the past thirty days was in slightly smaller volume than during the similar period just preceding and considerably below that at the same time last year. Specifications on goods previously acquired were below expectations and new orders were being sparingly placed and covered chiefly materials for immediate needs. The general price situation developed further weakness, which fact had a tendency to hold down commitments by con sumers, particularly in the case of merchandise for future requirements. Pig iron was reduced 50c per ton, and scrap iron and steel continued to decline, with most important items, including heavy melting steel, recording new lows on the present movement. Among the finished products affected by the lower trend were wire and wire products, steel pipe, sheets, shapes and bars. Moderate improvement in the demand for iron and steel from the automotive industry was noted, but this was spotted, and did not counterbalance the failure of other consumers to take their usual seasonal quotas. Disappointment was felt at the disposition of railroads to hold back releases on track materials and equipment. The out let through the building industry, while somewhat broader than earlier in the year, failed to show the usual seasonal improvement. There is still a good call for materials going into highway construction, public utility improvements and similar enterprises, but the volume of iron and steel going into resi dential building and other forms of housing is rela tively light. Demand for sheets and plates was re ported the smallest for any similar period in more than five years. Oil country and refinery materials are quiet. Foundries specializing in gray castings reported a further reduction in unfinished orders. Since April 1 there has been noticeable improve ment in the business of stove manufacturers, with new orders and shipping directions the largest so far this year. Implement makers report smaller advance orders than a year or two ago, and attri bute the decrease to the depressed prices of cereals and cotton. Machinery and engine builders report spotted conditions, with tractors and road building machinery making a relatively better show ing than other descriptions. Distributors of iron and steel goods from warehouses report no change from the quiet conditions existing during the past three months. Individual sales are small in size, and al most exclusively for prompt delivery. Shipments of pig iron in April were slightly less than in March, and during the first half of May the average daily rate was about the same as in April. Production of pig iron for the country as a whole in April totaled 3,192,538 tons, which compares with 3,252,822 tons in March and 3,663,167 tons in April, 1929. Steel in got production in the United States in April was 4,143,312 tons, against 4,288,985 tons in March, and 4,938,025 tons in April, 1929. R E T A IL T R A D E The condition of retail trade is reflected in the following comparative statement showing activity at department stores in leading cities of the district : N et sales com parison Stocks on hand Stock turnover April, 1930 4 months ending A pril 30, 1930 Jan. 1 to com p, to A pr. 30, 1930 to com p, to A pril 30, A pril, 1929 same period 1929 A pril 30, 1929 1930 1929 — 4.4% + 2 3 .4 % .69 .80 Evansville .......... + 1 9 .5 % L ittle R o ck ........+ 3.5 — 7.9 — 5.6 .72 .76 Louisville .......... + 4.3 — 9.4 — 5.6 .97 1.06 M em phis ............ + 5.5 — 8.3 — 6.3 .99 1.01 + 5.9 + 2.9 .85 .85 Q uincy ................+ 1 8 .0 St. L ou is............ + 1 2 .0 — 3.8 — 2.1 1.32 1.32 Springfield, M o..— 1.7 — 10.2 — 17.1 .43 .43 8th D istrict........+ 9.8 — 5.3 — 3.4 1.13 1.15 N et sales com parison Stocks on hand A pril, 1930 com p, to A pril, 1930 com p, to April, 1929 M arch, 1930 A pril, 1929 M ar., 1930 M en ’s furnishings......... .” + 3 2 . 3 % 1 + 4 1 .7 % — 3.8% 1 — 4.5% B oots and shoes.................+ 6.2 + 2 1 .4 — 8.9 + 1.3 Department Store Sales by Departments — As reported by the principal department stores in Lit tle Rock, Louisville, Memphis, and St. Louis. P ercentage increase or decrease A pril, 1930 com pared to A pril, 1929 N et sales Stocks on hand for month at end o f month P iece g o o d s............................................. — 9.1% — 5.89 Ready-to-w ear accessories.................+ 1 7 .7 — 6.1 W om en and misses’ ready-to-w ear..+ 1 3 .8 — 17.1 M en’ s and b oys’ wear..........................4-28.1 — 2.4 H om e furnishings................................. — 16.7 — 5.2 CONSUM PTION OF E L E C T R IC IT Y Public utilities companies in the five largest cities of the district report consumption of electric current by selected industrial customers in April as being 3.3 per cent greater than in March and 2.8 per cent smaller than in April, 1929. In the yearly com parison decreases were general through all classes of industries. Seasonal increase in activity by certain manufacturers was responsible for the gain from March to April. Detailed figures follow : A pr. M ar. N o. o f 19 30 Custom1930 ers • K .W .H . #K .W .H . E vansville .... 40 1,663 1,687 L ittle R ock.. 35 1,597 1,466 L ouisville .... 87 6,097 7,183 M em phis ..... 31 1,319 1,714 St. L ou is......146 21,192 18,814 Totals......339 31,868 #In thousands (000 om itted). 30,864 A pr. 1930 com p, to Mar. 1930 — 1.4% + 8.9 — 15.1 — 23.0 + 12.6 + 3.3 A pr. 1929 • K .W .H . 1,676 1,781 8,115 1,522 19,702 32,796 A pr. 1930 com p, to A pr. 1929 — 0.8% — 10.3 — 24.9 — 13.3 + 7.6 — 2.8 The following figures compiled by the Depart ment of the Interior show kilowatt production for lighting and industrial purposes for the country as a whole: B y water pow er March, 1930....................... ..3,259,853,000 Feb. 1930............................... 2,677,235,000 M arch, 1929......................... 3,138,290,000 B y fuels 4,904,227,000' 4,946,711,000 4,850,922,000 T otals 8,164,080,000 7,623,946,000 7,989,212,000 BUILDING The dollar value of building permits issued for new construction in the five largest cities of the district during April was 145.3 per cent larger than in March, and 16.3 per cent smaller than in April, 1929. According to statistics compiled by the F. W . Dodge Corporation, contracts let in the Eighth Federal Reserve District in April amounted to $28,330,977 against $23,705,343 in March and $54,362,947 in April, 1929. As contrasted with the preceding thirty days, there was no notable change in building costs, prices of building materials and labor schedules remaining constant. Production of Portland cement for the country as a whole in April totaled 13,521,000 barrels, against 11,225,000 barrels in March, and 13,750,000 barrels in April, 1929. Building figures for April follow : Evansville .. Little R ock Louisville .. M em phis .... St. Louis.... N ew Construction _________ Repairs, etc.________ Perm its *£ ost Permits *d!ost 1930 1929 1930 1929 1930 1929 1930 1929 341 452 $ 244 $ 427 89 98 $ 36 $ 53 61 62 120 377 117 76 134 28 156 217 635 1,381 95 99 109 144 621 473 2,678 959 69 86 71 150 456 690 2,233 3,730 490 368 345 325 A pr. totals 1,635 1,894 Mar. totals 1,031 1,786 Feb. totals 937 861 * I n thousands of dollars $5,910 $6,874 2,409 5,242 2,127 3,457 (000 om itted ). 860 857 618 727 693 354 $ 695 675 545 $700 708 303 AGRICULTURE Taken as a whole, the season thus far has been auspicious for field work, and at the middle of May farm operations generally through this district were further advanced than on that date for a number of years. Virtually all crops were planted on or close to seasonal schedule, and in most instances growth and development has been good. A further factor in the advanced condition of soil preparation and planting has been an abundance of farm labor, the supply in most sections being in excess of actual requirements. Generally through the district moist ure has been below average, and this has caused backward growth in scattered areas. At the middle of May soaking rains were generally needed to ob tain best results both in field and garden crops. Hay crops and pastures are in somewhat lower con dition than a year ago, and lack of precipitation has made necessary the reseeding of certain crops, though this condition is by no means universal. Scattered reports indicate that injury from the unusually cold winter and the frosts and freezes in March is more extensive than had been believed. Serious damage was done to young trees in or chards, and the peach crop is practically a complete failure in this district. In Arkansas, for example, the condition of the peach crop on May 1 was 2 per cent of normal, as compared with 80 per cent on the same date in 1929 and 67 per cent in 1928. In areas where snow protection was lacking, stands of fall sown grains are thin, with considerable abandon ment of acreage in some counties. Cane fruits and berry crops were adversely affected, and latest re ports from southern Illinois, Missouri and the gen eral Ozark region, reflect an unusually heavy drop of apples. Winter Wheat—According to the U. S. Depart ment of Agriculture’s May 1 report, the estimated yield of winter wheat in states partly or entirely within the Eighth Federal Reserve District is 76,991,000 bushels, which compares with 85,085,000 bushels harvested in 1929, and a 5-year average (1924-1928) of 85,017,000 bushels. In all these states the condition of the crop on May 1 was below that on the same date last year, also below the 5-year average. Acreage abandonment was high, particu larly in Indiana and Illinois, and due to injury from winter kill and scant moisture this spring, the growth has been slow. In many sections wheat has not stooled properly, and stands are thin. No more than the usual damage from hessian fly and other insect pests is indicated. For the country as a whole the condition on May 1 was 76.7 per cent, against 83.6 per cent last year and a 10-year average of 83.3 per cent. Indicated yield is 525,070,000 bushels, against 578,336,000 bushels harvested last year, and a 10-year average of 550,636,000 bushels. Corn — Planting is far advanced generally through the district, and in the south the crop has made good progress, stands and color being fine. In Missouri, Indiana and Illinois the spring has been ideal for seeding, and the crop is from three to five weeks ahead of the usual seasonal schedule. Generally fields have been worked well, and are clear of weeds and grass. While moisture is needed on most sections, the appearance of the crop is con siderably better than expected when the poor quali ty of last season’s seed is considered. Stocks of old corn in farmers’ hands are large, especially in the surplus counties, and considerable difficulty is being experienced in disposing of them with profit to producers. Oats — The U. S. Department of Agriculture’s May report makes the condition of oats in Arkansas and Mississippi below a year ago, also under the May 1, 1928 condition. In the northern stretches of the district the crop was planted at an earlier date than usual, and acreage is slightly larger than a year ago. Prospects are generally good, though growth was hampered by drought, and some dam age was done by cold weather. Fruits and Vegetables — The general condition of fruits in the district is below average, with the outlook for certain varieties the poorest in a num ber of years. Peaches were badly damaged by the sub-zero temperatures, and the commercial crop this year will be practically nothing. Cherries and plums are estimated at about half an average crop, while the output of cane fruits will be short. A large crop of grapes is looked for in the Ozark region, and generally prospects for this crop are considerably more promising than some other varieties. Ship ments of strawberries started early this month, and while the total crop will be small, relatively, prices are markedly higher than at the same time last year. Prospects for apples are less favorable than earlier in the season, latest reports indicating a heavy drop, occasioned by the March freeze. Garden truck was held back by inadequate moisture in April and cool weather. Early potatoes have made a good start, though there are complaints of irregular stands. In Mississippi the condition of potatoes on May 1 was 72 per cent and in Arkansas, 77 per cent, as com pared with 78 per cent in each state last year. Live Stock — The May 1 condition of hay and pastures in all states of the district was below that on the same date in 1929, also below the 10-year average. Stocks of hay on farms in states partly or entirely within the district on May 1 totaled 2.788.000 tons, against 2,232,000 tons last year and 3.586.000 tons on May 1, 1928. Live stock is reported generally in good condition. Both egg and milk pro duction showed a slight reduction in April from the rate in that month last year. The season has been favorable for young lambs and pigs, and the crop is large. Demand for stocker and feeder cattle is fair. Receipts and shipments at St. Louis, as reported by the National Stock Yards, were as follows : A pril, 1930 Cattle and calves........ 94,484 § ° £ s ............... V......... 339,050 H orses and m ules...... 3,498 Sheep ............................ 46,638 R eceipts Shipments M ar., A pril, April, Mar., A pril, 1930 1929 1930 1930 1929 79,627 81,881 56,114 50,764 46,197 306,178 319,092 283,550 263,597 231,809 10,163 5,170 4,206 9,725 4,898 29,029 25,810 27,205 16,221 14,484 Cotton — Generally through the district crop prospects are favorable, with planting unusually well advanced, and fields almost universally well cultivated and clean. March and April devel oped less than the usual precipitation, but aside from backward growth in limited areas, no serious injury resulted from the drouth. Rains have been abundant since the last week in April, particularly in the Mississippi Delta and Eastern Arkansas. Due to absence of flood conditions, plantings in the river bottoms have been larger than at this time in recent years. Reports relative to the use of fertilizer vary, but indicate no great change as compared with the total last season. Demand for cotton continued in moderate volume during the past thirty days, but prices advanced slightly, due chiefly to technical market conditions. In the St. Louis market the middling grade declined from 15j4c per pound on April 12, to 14.85c on April 22, later advancing to 15.85c on May 12, and closing at 15^4c on May 15, which compares with 17%c on May 15, 1929. Stocks of cotton in Arkansas warehouses on May 16 totaled 155,448 bales, against 201,020 bales on April 12, and 61,156 on the corresponding date in 1929. Tobacco — Protracted dry weather during late March and April caused considerable delay in prep aration for the crop, and tobacco plants in all dis tricts sustained more or less serious damage. In many sections it was necessary to haul water and sprinkle plants to keep them alive. Recent rains, however, have materially assisted moisture condi tions, but general precipitation was much needed at the middle of May. Setting of plants is generally backward. Clarksville, Springfield, Hopkinsville and May field have postponed closing their markets to await proper conditions for disposing of the unsold por tion of the 1929 crop. Recent prices on all grades have been high, prime grades bringing the highest prices of the season. Rice — Farmers have made rapid progress in planting the crop, about 85 per cent of the intended acreage having been seeded by the middle of May. Soil conditions are mainly good, and less than the usual amount of reseeding will be necessary. The 1929 crop is practically all out of farmers’ hands. Demand for clean rice continued active, with prices firm. Commodity Prices — Range of prices in the St. Louis market between April 13, 1930 and May 15, 1930, with closing quotations on the latter date and on May 15, 1929. Close W heat H igh L o w M ay 15, 1930 M ay 15. 1929 $ .99 $1.00 $1.0414 M ay ..................... per bu.$ 1.06 July ..................... “ 1.07*4 .99 1,02 1 07*2 Sept........................ “ 1 . 10 1.01 l 05y8 l lift N o. 2 red winter “ 1.19 1.10 $1.16 @ 1.18 $1.24 @ 1.25 N o. 2 hard........... 1.09 1.00*4 1.03 @ 1.03*4 1.08*4 @ 1.11 Lorn M ay ..................... “ .84 .78*3 .79 87*4 July ..................... ” .85*4 .7BH .S0H .90H Sept........................ .83 -79M .80*4 .92H D e c......................... “ .86*4 .73H .86 ................. .1 N o. 2 m ixed........ “ .84f*4 .78 .81 @ .82 .91 @ .91*4 N o. 2 w hite......... " .84*4 .82 .83 @ .83*4 .93 @ .93*4 Oats N o. 2 w hite......... “ .45 .42 .42*4 @ .43 .48 Flour Soft patent........per bbl. 6.50 6.25 6.25 @ 6.50 6.50 @ 6.75 Spring patent...... “ 5.80 5.40 5.40 @ 5.50 5.50 @ 5.75 M iddling cotton....per lb. .15.85c .14.85c .15 £4 .17J4 H o g s on h o o f........p ercw t.10.55 8.65 9.00 @ 10 .2 0 9.00 @ 11.0(T FIN AN CIAL Funds were in ample supply throughout the district during the past thirty days, and there was a further slight recession in demand from general commercial and industrial sources. The trend of deposits was upward and there was a considerable volume of liquidation of loans, notably by mercan tile and manufacturing interests. Investments of the banks increased rather markedly, and demand for commercial paper was more active than has been the case in a number of months. Country banks, which thirty days earlier had fairly well liquidated their borrowing from city correspondents, have in creased their commitments in the immediate past in order to accommodate agricultural requirements. This is true particularly in the south, where prepara tions for the new cotton crop have made good head way. Generally the demand from agricultural sources is exhibiting the usual seasonal increase, and agri culturists are finding less difficulty than anticipated in financing their needs. There was a heavy reduc tion in commitments of flour millers and grain handlers, but due to the sharp decline in cereal prices, there is a disposition on the part of holders to retain their stocks for a more favorable market. In sections where early vegetables and fruits are important crops, there has been a considerable vol ume of liquidation, and the movement of spring lambs and wool to market has resulted in extensive settlements with country banks. Banks specializing in the financing of live stock, however, report a con tinued active demand from that class of borrowers. Loans of the reporting member banks continued the downward trend which has been in operation since January, and at the middle of May were at the lowest point this year. Borrowing by member banks from the Federal reserve bank increased slightly in late April and early this month, but throughout the period were considerably smaller than at the corresponding time last year. The trend of interest rates continued down ward, and at the middle of May averaged lower than at any time in the past two years. Current rates at St. Louis banks were as follow s: Prime commercial loans, 4 to Sy2 per cent; collateral loans 5 to 6 per cent; loans secured by warehouse receipts, 4% to 5^2 per cent; interbank loans 5 to 5}% per cent, and cattle loans 5^2 to 6% per cent. April 16, 1930. Deposits decreased 0.9 per cent be tween April 16, 1930 and May 14, 1930 and on the latter date were 0.1 per cent larger than on May 15, 1929. Composite statement follows: ♦May 14, 1930 t24 N um ber of banks reporting............ Loans and discounts (incl. rediscounts) Secured by U . S. Govt, obligations and other stocks and bonds............ $228,317 A ll other loans and discounts.... 276,462 * A pril 16, 1930 t24 *M a y 15, 1929 28 $234,306 281,766 $241,304 282,621 Total loans and discounts.................$504,779 Investm ents U . S. Government securities...... 39,388 Other securities............................... 120,251 $516,072 $523,925 39,609 113,526 71,251 105,753 T otal investments................................$159,639 Reserve balance with F. R. bank 43,793 Cash in vault......................................... 6,146 Deposits N et demand deposits..................... 381,585 T im e deposits.................................. 228,917 Governm ent deposits.................. 602 $153,135 49,646 5,468 $177,004 44,656 386,280 228,898 1,704 377,357 232,325 1,173 T otal deposits......................................$611,104 $616,882 $610,855 Bills payable and rediscounts with Federal Reserve B ank................... 3,119 3,450 20,445 * In thousands (000 om itted ). tD ecrease due to consolidation. These 24 banks are located in St. L ouis, Louisville, Memphis, Little R ock , and Evansville, and their resources represent 53.1 per cent o f the resources of all m em ber banks in this district. Debits to Individual Accounts — The following table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included. ♦April, 1930 East St. Louis & Natl. Stock Yards, 111..$ 46,391 El Dorado, A rk ..... 7,574 Evansville, In d ..... 30,480 Fort Smith, Ark... 13,043 Greenville, Miss.... 4,259 Helena, A rk ............ 4,916 Little R ock, Ark... 75,511 Louisville, K y ........ 177,648 Memphis, T enn..... 143,427 Owensboro, K y .... 6,328 Pine Bluff, A rk . , 8,893 13,402 St. Louis, M o ........ 732,273 Sedalia, M o............ 4,481 Springfield, M o ..... 15,675 **Texarkana, A rk .-T e x .......... 14,236 ♦Mar., 1930 ♦April, 1929 $ 40,994 7,404 27,686 13,589 5,249 4,817 80,039 181,365 162,689 7,064 10,013 13,453 736,277 4,587 15,983 $ 68,556 8,792 43,886 14,357 3,827 3,529 80,886 198,707 165,176 6,107 10,809 14,459 810,565 5,169 15,351 14,042 16,579 A pril, 1930 com p, to Mar. 1930 A pr. 1929 1-13.2% - 2.3 -10.1 - 4.0 -1 8 .9 + 2.1 - 5.7 - 2.0 -11.8 -1 0 .4 -1 1.2 - 0.4 - 0.5 - 2.3 - 1.9 — 32.3% — 13.9 — 30.5 — 9.2 + 11.3 + 3 9 .3 — 6.6 — 10.6 — 13.2 + 3.6 — 17.7 — 7.3 — 9.7 — 13.3 + 2.1 + — 14.1 1.4 T otals........$1,298,537 $1,325,251 $1,466,755 - 2.0 — 11.5 #In thousands (000 om itted) ♦Includes one bank in Texarkana, T exas not in Eighth District. Federal Reserve Operations — During April the Federal Reserve Bank of St. Louis discounted for 213 member banks, against 206 in March and 225 in April, 1929. The discount rate remained unchanged at 4 per cent. Changes in the principal assets and liabilities of this institution as compared with the preceding month and a year ago appear in follow ing table: Bills discounted.. ♦May 21, 1930 .$16,932 ,. 9,198 „ 19,268 Municipal Warrants.. Condition of Banks — Loans and discounts of the reporting member banks on May 14, 1930 R atio o f reserve to deposits and F. R. N ote Liabilities.... showed a decrease of 2.2 per cent as contrasted with *In thousands (000 om itted). (Compiled May 22, 1930) ' 6,010 ♦April 24, ♦May 21, 1929 1930 $49,587 $14,406 1,142 11,628 13,625 19,268 15 ,$45,398 . 75,764 79,458 $45,317 78,640 79,025 $64,354 57,843 76,827 . 76.8% 77.5% 59.7% BUSINESS CONDITIONS IN THE UNITED STATES PRODUCTION — Production in basic industries in April was slightly larger than in March and the Board’s index, which makes allowance for the usual seasonal changes, shows an increase of about 2 per cent, offsetting a large part of the decrease in March. Output of automo biles showed the usual seasonal expansion. Steel output de clined seasonally in April and the early part of May. The output of silk textiles was considerably reduced and woolen mills curtailed operations, though less than seasonally. Cot ton mills were more active in April, and there was some increase in stocks. In the first half of May, however, a program of curtailment was instituted in the industry. In larger than is accounted for by the late Easter holiday. The value of foreign trade decreased further in April, and for first four months of the year exports were about 20 per cent smaller than .a year ago, when trade was exceptionally active. In part, this decline reflected the lower level of wholesale prices. WHOLESALE PRICES — An increase in wholesale prices in the first week in April was followed by a substan tial decline, which continued into May and brought the level of prices to the lowest point in a number of years. Prices of important raw materials, such as wheat, cotton, and silk, declined during most of the period, but steadied somewhat PER CEKT PERCENT 14U 120 IrACT0RY EMPLOYMENTANC>PAYROLLs A 110 A V; LW p * ~ \c PayrollsA W 100 Y rN n h \ 110 too Emplay merit 90 80 80 70 70 1925 comparison with the first four months of 1929, a year of exceptionally active business, production was smaller in almost all major branches of industry, with the exception of tobacco. In comparison with 1928, however, output was larger in the automobile, petroleum, and silk industries, slightly smaller in steel and coal and considerably smaller in cotton and wool textiles, flour, meat packing, automobile tires and lumber. Building contracts awarded during April, according to the F. W. Dodge Corporation, were six per cent larger than in March, reflecting further expansion in awards for public works and utilities and some increase in residential con struction, largely seasonal in character. In the first two weeks in May there was a further increase in building activity. In comparison with 1929, awards in the first four 1926 1927 1928 1929 1930 M onthly averages of w eekly figures for reporting m ember banks in leading cities. Latest figures are averages of first two weeks in May. months of the year were 17 per cent smaller, reflecting chiefly the continued small volume of residential building, which more than offset increases in public works and utility constructions. EMPLOYMENT AND PAYROLLS — Factory em ployment, which had been decreasing since last September, declined by about 1 per cent in April, which represents the usual development for that month, while the reduction in factory payrolls from March to April was smaller than usual. DISTRIBUTION — Department store sales increased during the month by an amount estimated to be slightly 90 1926 1927 1928 1929 1930 In d ex numbers o f factory em ploym ent and payrolls, w ith adjustment for seasonal variations. (1923-25 average = 1 0 0 ) . Latest figures, A p ril: Em ploym ent, 9 2.1 ; payrolls, 96.7. around the middle of May, while prices of silver, hides, and coffee were comparatively staple. There were fairly continuous price declines in steel, sugar, raw wool, and the textiles. Copper prices were reduced further early in May, but recovered somewhat following large purchases for domestic and foreign consumption. BANK CREDIT — Loans and investments of member banks increased by about $140,000,000 in the latter half of April, but declined in the first two weeks in May, both movements reflecting chiefly fluctuations in loans on securi ties. Investments increased further, while “all other loans” continued to decline, and on May 14 at $8,560,000,000 were the smallest in more than two years. The volume of reserve bank credit declined further by $125,000,000 between the weeks ending April 19 and May 17, largely as a result of 1926 1927 1928 1929 1930 M onthly rates in the open market in N ew Y o r k :— Com m ercial paper rate on 4 to 6 m onth paper. A cceptance rate on 90-day bankers' acceptances. Latest figures are averages of first 20 days in M ay. the addition of about $65,000,000 to the stock of monetary gold and of a further substantial reduction in the volume of money in circulation, which reflected chiefly smaller volumes of payrolls and declines in retail prices. The sys tem’s holdings of bills declined, while United States securi ties and discounts for member banks showed little change. Money rates on all classes of paper declined further in May. The discount rate of the Federal Reserve Bank of New York was reduced from Zy2 to 3 per cent on May 2, and at the Federal Reserve Bank of Boston from 4 to 3y2 per cent on May 8.
@FedFRASER