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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication O n and After the Morning of May 31, 1932 JOHN S. W O O D , Chairman and Federal Reserve Agent FEDERAL RESERVE U SIN E SS as a whole in the Eighth District failed to improve during the past thirty days, and save in a limited number of lines directly affected by seasonal influences, the volume was be low that of the similar period immediately preceding and at the lowest point in recent years. In cases where April volume was larger than for March, the increases were smaller than the usual average. The first half of May, also, has shown no marked better ment, though more favorable weather has tended to stimulate retail trade, besides proving favorable for farm work and the growth and development of all crops. The output at manufacturing establishments was smaller in April than in March, and this curtail ment extended to industries which ordinarily in crease their production at this time of year. There has been no noticeable deviation from the policy of extreme conservatism which has obtained in pur chasing by merchants and the public during the past eighteen months. The average volume of advance orders on books of wholesaling and manufacturing interests on May 1 was the smallest for that particu lar date in more than a decade. B The trend of com m odity prices continued dow n ward, with new lows being recorded by a number of important agricultural products, notably cotton, corn and hogs. In all wholesaling and jobbing lines investigated, April sales were substantially smaller than a year ago. Due to the sharp decline in prices during the past twelve months, however, the unit volume of merchandise moved made a considerably better showing than the dollar value. This was true particularly in the case of boots and shoes, drygoods and groceries. In lines for ordinary consumption, replacement requirements are making themselves more strongly felt, and demand for such goods is in relatively larger volum e than for com m odities of the heavier and more permanent sort, such as iron and steel, lumber and the entire classification of building materials. There was little change in the employment sit uation as contrasted with the preceding thirty days. C. M. STEWART, Assistant Federal Reserve Agent BANK OF ST. J. VION PAPIN, Statistician LOUIS Gains in the number of workers engaged in farming, highway construction and other out-door occupa tions were counterbalanced by increased idleness among clerical help, miners and factory workers. Throughout the agricultural areas there exists a large surplus of laborers and wage scales continued downward. Reductions in wages were general in all branches of industry, including the building crafts. W eather conditions through April and the first half of M ay were favorable for agriculture, and a con siderable part of the backwardness in spring opera tions, caused by the March freezes, was recovered. In the immediate past the movement of early fruits and vegetables has picked up, and is about on a par ity with a year ago. April sales of department stores in the principal cities of the district increased 4.7 per cent over March, but were approximately 27 per cent less than in April, 1931; for the first four months this year combined sales of these stores fell 19 per cent under the same period in 1931. Aggregate sales of all wholesaling and jobbing firms reporting to this bank decreased 5 per cent in April as compared with March, and 34 per cent as compared with April, 1931; for the first four months of the year there was a decrease of one-fourth under the corresponding period in 1931. The dollar value of permits issued for new construction in the five largest cities of the district in April was 22.5 per cent less than in March, and 91 per cent less than in April, 1931; for the first four months the total was 80 per cent small er than a year ago. Contracts let for construction in the Eighth District in April were 57 per cent greater than in March, but about one-half less than a year ago, and for the first four months this year the total was 60 per cent smaller than for the same period in 1931. There was an increase in individual checking accounts of 4 per cent in April as compared with March, but a decrease of 24 per cent under the April total last y ea r; for the first four months this year a decrease of 24 per cent is shown as compared with the same period in 1931. Between April 6 and May 4 there was an increase in the amount of saving’s accounts of 1.3 per cent, and on the latter date the total was 12 per cent smaller than a year ago. The volume of both freight and passenger traffic handled by railroads operating in this district con tinued to show a heavy falling off as compared with the corresponding periods during the past several years. There was a particularly heavy decrease in the movement of bituminous coal, due chiefly to strikes in the Illinois and Indiana fields. Merchan dise and miscellaneous freight failed to show the usual seasonal expansion. For the country as a whole, loadings of revenue freight for the first sev enteen weeks this year, or to April 30, totaled 9,568,760 cars, against 12,402,121 cars for the corre sponding period in 1931, and 15,055,063 cars in 1930. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, han dled 133,955 loads in April, against 149,953 loads in March and 174,669 loads in April, 1931. For the first nine days of May the interchange amounted to 38,323 loads, against 39,569 loads during the same time in April and 53,434 loads during the first nine days of May, 1931. Passenger traffic of the report ing lines decreased 33 per cent in April as compared with the same month last year. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in April was 98,600 tons, against 112,694 tons in March, and 82,465 tons in April, 1931. General conditions considered, reports relative to collections during April and the first half of May reflect mainly satisfactory conditions. For the most part wholesalers and jobbers in the chief distribut ing centers report customers paying promptly, and show smaller actual losses from weak accounts than at the corresponding period last year. It will be re called, however, that such losses at this time in 1931 were in unusually large volume. Country merchants’ collections are being interfered with by preoccupa tion of farmers with spring work, also the low prices of farm products. There has been a considerable volume of liquidation in sections where early vege tables and fruits are important crops. City retailers note irregularity in settlements, with more back wardness than heretofore reported by time pay ment houses and others selling goods on the install ment plan. Questionnaires addressed to represen tative interests in the several lines scattered through the district show the follow ing results: Excellent April, 1932............... 0% March, 1932............... 1.6 April, 1931............... 0 Commercial failures in the Eighth Federal Re serve District in April, according to Dun’s, num bered 151, involving liabilities of $5,599,920, against 172 failures in March, with liabilities of $10,180,893, and 153 defaults for a total of $2,961,962 in April, 1931. The average daily circulation in the United States in April was $5,452,000,000 against $5,531,000,000 in March and $4,647,000,000 in April, 1931. M AN U FACTU RIN G AND W H O L E S A L IN G Boots and Shoes — April sales of the reporting firms were 6 per cent smaller than in March and 45 per cent less than in April, 1931. Stocks on May 1 were 6.3 per cent and 5.8 per cent smaller, respec tively, than a year and a month earlier. The heavy decrease in the yearly sales comparison was partly due to the decline in prices, which, according to the reporting firms, was approximately 16 per cent. There was a further decline in factory operations, the average being approximately 72 per cent of capacity. Clothing — Unseasonably, cool weather during April had a tendency to hold down sales of apparel of all descriptions. Advance ordering for summer distribution was in considerably smaller volume than a year ago. There was a moderate increase in demand for working clothes, but the volume was still substantially below the average at this period in recent years. The trend of prices continued dow n ward. Good Fair Poor Drugs and Chemicals — Sales of the reporting interests in April fell 25 per cent below those for the same month in 1931, and 6 per cent below the March total this year. Inventories continued to de cline, stocks on May 1 being 1 per cent and 8 per cent smaller, respectively, than a month and a year earlier. Seasonal increases in certain commodities were offset by smaller distribution of others, notably fertilizers, insecticides, and heavy drugs and chemi cals for the general manufacturing trade. Dry Goods — Follow ing the usual seasonal trend, sales of the reporting firms in April were 12 per cent below those of the preceding month. As compared with a year ago, April sales decreased 21 per cent. Stocks on May 1 were 5 per cent smaller than thirty days earlier, and about one-fourth less than on May 1, 1931. The sharp decline in prices was largely accountable for the decrease in April sales as contrasted with a year ago. A ccording to tw o important firms, the unit volume of goods sold this April was slightly in excess of a year ago. 16.1% 14.8 13.1 57.1% 59.4 63.1 26.8% 24.2 23.8 Electrical Supplies — April sales of the report ing firms showed a slight decrease as compared with the preceding month, and the total was less than half as large as for the same month last year. Stocks on M ay 1 were smaller by one-fourth and one-half, respectively, than a month and a year earlier. D e creases in the yearly sales comparison were general through the entire line, but most pronounced in the case of electrical installations in new buildings and radio materials. Advance sales of electric fans were smaller than at any similar period in recent years. Flour— Production at the twelve leading mills of the district in April totaled 377,465 barrels, against 232,282 in March and 301,429 barrels in April, 1931. Buyers generally were awaiting more definite news relative to the grow ing wheat crop before tak ing on additional supplies at the slightly higher pre vailing prices. Consumers are still seeking low grade flours, the higher grades and patents receiving rela tively little attention. There was little change in the aspect of the export trade. Bids from Europe were mainly out of line, and export transactions were confined largely to routine business with Latin-American countries. Mill operations were slightly higher than during the preceding thirty days, being from 45 to 48 per cent of capacity. Furniture — April sales of the reporting inter ests were 39 per cent smaller than for the same month in 1931, and 17 per cent below the March total this year. Inventories continued to decline, stocks on May 1 being 10 per cent smaller than a month earlier, and one-third less than on May 1 last year. A ll lines were affected in the sales de creases, but heaviest declines were noted in house hold furniture and furnishings and office equipment. The trend of prices is downward and as compared with last year, averages close to 15 per cent lower. Groceries — Reduced purchasing power in the rural areas, unemployment in the industrial centers and a general disposition to econom ize on the part of the public were given as the chief reasons for a decline in April sales of the reporting firms of 5 per cent under the preceding month, and of 24 per cent under the same month in 1931. Stocks continued to decline, inventories of the reporting interests on May 1 being 4 per cent and 16.5 per cent smaller, respectively, than a month and a year earlier. Hardware— The reporting firms showed a slight increase in April sales as compared with March, but a decrease of 17 per cent as contrasted with April last year. Certain seasonal lines developed im prove ment, but the extent of this was less than in former years. Retail stocks continued light, but except in rare instances, there is little effort being made to replenish and fill out assortments. Stocks of the reporting firms on May 1 were 2 per cent larger than a month earlier, but 17 per cent smaller than on May 1, 1931. Iron and Steel Products — April and early May witnessed the lowest point in activities in the iron and steel industry in this district which has been reached in the present recessionary movement. Operations at mills, foundries, machine shops and other ferrous working establishments dropped to a small fraction of capacity. Less than 12 per cent of the openhearth furnaces were active, and jobbing foundries averaged not more than two days work per week during the period. As has been the case for the past several months, railroads, the building industry, oil fields and other important consumers of iron and steel materials were purchasing only the barest necessities. Requirements of smaller and mis cellaneous users failed to expand in any noticeable degree. Manufacturers and distributors of sheets, plates and the general run of rolled materials re ported new business being sparingly placed, and specifications on goods previously acquired were in disappointing volume. Specialty makers, notably of stoves, heating apparatus, farm implements and machine tools reported a further decrease in orders booked, with advance business the smallest for this particular time in more than a decade. Lettings of contracts for structural steel, reinforcing concrete bars and kindred lines were in small volume, and there were further reductions in operations and working forces by fabricating concerns. Demand for materials tp be used in highway construction, river improvement work and other outdoor engineer ing projects, was in fair volume, but failed to show the usual seasonal expansion. The movement of tin plate was relatively more active than other flat rolled materials, but due to price uncertainty and the heavy carryover of canned products from last season, canners are backward in filling their require ments. Iron and steel warehousemen and jobbers reported the volume of business in April considera bly below that of the same month in 1931, and the average during recent years. W ire and wire prod ucts, including nails and fencing materials, continue quiet, and the same is true of the general line of repair goods and finished commodities used chiefly in the rural areas. Prices of finished and semi-fin ished goods varied only slightly as contrasted with the preceding thirty days, and despite keen com peti tion, reports of shading under list quotations are relatively rare. Purchasing of pig iron and scrap during April was in smaller volume than in any other month this year. A further decline in scrap prices was noted, heavy melting steel and some other grades reaching new lows on the movement. For the country as a whole production of pig iron in April dropped to the low est point since figures have been compiled. Total output for the month was 855,734 tons, against 961,015 tons in March and 2,009,582 tons in April, 1931. Steel ingot production in the United States in April totaled 1,239,811 tons, the smallest since July, 1921, and comparing with 1,410,830 tons in March, and 2,722,479 tons in April, 1931. A U T O M O B IL ES Combined passenger car, truck, and taxicab production in the United States in April was 148,013 against 118,959 in March, and 335,708 in April, 1931. In accordance with the invariable trend during the past several years, distribution of automobiles in this district during April, according to dealers reporting to this bank, showed a decline under the preceding month. This is accounted for partly by the fact that March distribution is usually stimu lated by results of the automobile shows and the introduction of new models during February. The decrease in sales this year in April was considerably larger than a year ago, and the average during the past eight years. The April total also showed a heavy decline under that of the same month in 1931. In both comparisons all classes of cars were affected, but the heaviest decreases were noted in the cheap priced makes, one important producer in that classi fication not being on full production of its new models. Taken as a whole, the intensive efforts of certain large producers in March to market their automobiles met with disappointing results. R e duced purchasing power in the rural areas, and the disposition o f the public generally to economize had a detrimental effect on the trade. Sales of new pas senger cars by the reporting dealers in April were only one-half as large as in March, and approximate ly 55 per cent smaller than in April, 1931. Dealers continue to purchase on an extremely conservative scale, many taking only enough cars to deliver on actual orders or fairly certain prospects. As a result of this policy, inventories on M ay 1 were the smallest for any similar date in recent years. The number of cars on the floors of the reporting dealers on May 1 was 4 per cent smaller than a month ear lier, and about one-third less than on May 1, 1931. Used car sales in April were 14 per cent smaller than in March and 32 per cent less than in April, 1931. Salable secondhand cars in stock on May 1 were 2 per cent less than a month earlier and about the same as a year ago. Service departments of the reporting dealers showed a large volume of business during April and sales of repair parts compared favorably with a month and a year earlier. Demand for trucks of all descriptions continued the decline of the preceding three months, and in April sales were approximately one-third smaller than for the same month last year. A ccording to dealers report ing on that item, deferred payment sales of passen ger cars in April constituted 53 per cent of their total sales, which compares with 54 per cent in March and 49.2 per cent in April, 1931. R E T A IL TR AD E The condition of retail trade is reflected in the follow ing comparative statements showing activities in the leading cities of the district: Department Stores Little Rock.. Quincy St. Lot Springfi< 8th Dis Stocks on hand Stock turnover Net sales comparison Jan. 1, to 4 months ended Apr. 30, 1932 Apr. 1932 Apr . 30, comp, to Apr. 30, 1932 to comp, to 1932 1931 same period 1931 Apr. 30, 1931 Apr. 1931 .58 .56 — 21.9% — 26.7% ‘ — 29.0% .68 .86 — 7.3 — 24.7 — 32.2 .85 .82 — 11.6 — 17.7 ..— 26.1 .93 .94 — 14.1 — 20.5 — 31.8 .86 .76 — 11.6 — 21.5 — 29.5 1.19 1.27 — 12.2 — 19.7 — 25.7 .48 .41 — 8.9 — 21.4 .— 24.1 1.03 1.10 — 12.2 — 19.3 — 26.9 Retail Stores Net sales comparison Stocks on hand Stockturnover Apr. 1932 4 months ended Apr. 30, 1932 Jan. 1, to Apr. 30, comp, to Apr. 30, 1932 to comp, to 1932 1931 Apr. 1931 same period 1931 Apr. 30, 1931 Men’s -3 6 .4 % Furnishings Boots and Shoes......— 29.3 — 31.89 — 14.8% .85 1.10 — 22.4 — 14.3 .86 .94 BU ILD IN G The dollar value of permits issued for new con struction in the five largest cities of the district in April was 22.5 per cent less than in March, and 91 per cent less than in April, 1931. A ccording to sta tistics compiled by the F. W . D odge Corporation, construction contracts let in the Eighth Federal Reserve District in April amounted to $9,502,305, which compares with $6,055,684 in March and $17,080,749 in April, 1931. Production of portland ce ment for the country as a whole in April totaled 5,478,000 barrels, against 4,847,000 barrels in March and 11,245,000 barrels in April, 1931. Building fig ures for April fo llo w : Evansville .. Little Rock Louisville .. Memphis .... St. Louis.... New Construction *Cost Permits 1931 1932 1932 1931 232 $ 27 $ 407 129 6 57 22 18 445 62 52 76 162 92 170 124 4,383 306 408 243 904 April totals 570 Mar. totals 497 994 626 Feb. totals 407 *In thousands of dollars (000 5,454 493 2,049 636 2,170 844 omitted). _______Repairs, etc.________ *Cost Permits 1932 1931 1932 1931 $ 11 $ 26 62 108 20 59 51 101 90 38 71 52 223 83 88 148 410 138 185 298 707 565 486 817 521 490 305 224 400 433 288 299 CON SU M PTIO N OF E LEC TR IC ITY Public utilities companies in the five largest cities of the district report consumption of electric current by selected industrial customers in April as being 2.3 per cent greater than in March and 24 per cent less than in April, 1931. Detailed figures fol low : April, March, No. of 1932 1932 Custom ers *K .W .H . * K .W .H . Evansville .... 40 1,784 1,958 ' Little Rock.... 35 1,063 747 5,213 Louisville .... 85 5,368 Memphis . ,,,, 31 1,294 1,441 12,600 St. Louis. 156 12,944 Totals. 22,457 21,959 April, 1932 April, April, 1932 comp, to 1931 comp, to Mar. 1932 * K .W .H , April, 1931 — 8.9% 2,008 — 11.2% — 26.9 + 4 2 .3 1,455 + 3.0 6,022 — 10.9 — 10.2 + 11.1 1,165 + 2.7 18,917 — 31.6 + 2.3 29,567 — 24.0 The follow ing figures, compiled by the U. S. Department of the Interior, show kilowatt produc tion both for lighting and industrial purposes for the country as a w h ole: By water power March, 1932..................... 3,118,287,000 February, 1932..................... 2,972,069,000 March, 1931..................... 2,640,081,000 By fuels 4,202,630,000 4,025,168,000 5,247,632,000 Totals 7,320,917,000 6,997,237,000 7,887,713,000 AG RICU LTU RE Aside from somewhat frequent delays occa sioned by rains, farm work throughout the Eighth District made good progress during April and the first half of May. W eather was for the most part cool and dry, and almost universally the tilth of the soil was favorable. Conditions have been ideal for preparing ground for corn, but planting of that cereal was backward, due to cool weather. Spring grains were planted mainly on seasonal schedule, and while germination has been slow, top growth is uniform. A s a rule all plant growth is backward due to the March freezes and relatively low tempera tures prevailing through April and early this month. W hile precipitation has been quite general over the district, further rains are needed to produce best results, particularly in areas affected by the drouths of the tw o preceding years. Ow ing to their late start, hay crops and pastures are generally below average condition for this time o f year. Reserves of old hay on farms vary considerably in different localities, but as a whole are close to the average at this season during the past ten years. Fall sown grains, which had made excellent progress during the unusually mild winter, received a severe setback and actual damage in some sections, from the freezing weather in March. The low March temperatures also wrought considerable injury to fruits and vegetables, and the outlook for tree fruits is much below that of a year ago. In Arkansas, for example, the M ay 1 condition o f peaches was 17 per cent, against 76 per cent last year and a 5-year aver age (1924-1928) o f 68 per cent. Similar conditions are reported in Illinois, Missouri and Tennessee. Pears and early apples will be small crops, but about an average yield of late apples is indicated in most of the chief producing areas. Vegetables are late, but have been benefitted by higher temperatures during the past tw o weeks. The supply of farm labor continued heavily in excess of demand, with the trend of wages still downward. Generally through the farming com munities there is in evidence a disposition to adjust to present conditions. Farmers are making stren uous efforts to produce this season’s crops at a mini mum cost, and in all sections, but more particularly in the south, are endeavoring to raise everything possible for food and feed for livestock. Prices of farm products failed to improve during the past thirty days. H ogs, cotton and some other products recorded new lows on the present recessionary movement. W inter W heat— Based on the May 1 condition, the U. S. Department of Agriculture estimates the combined yield of winter wheat in states entirely or partly within the Eighth District at 71,990,000 bushels, which compares with 125,743,000 bushels harvested last year and a 5-year average (19241928) of 86,273,000 bushels. For the entire country the crop is estimated at 441,000,000 bushels, which is 347,000,000 bushels less than produced in 1931 and 108,000,000 bushels below the 5-year average. Fa vorable weather since May 1 has materially helped the crop in this area, and generally, stand and color are excellent. Corn — W hile preparations had been largely completed for planting corn toward the end of April, relatively little acreage had actually been sown, due to cool weather and delays caused by rains. Taken as a whole, planting was estimated to have been about ten days behind schedule at the middle of May. In the south early planted corn is generally up to a good stand, with prospects favorable. R e ports relative to acreage are still rather indefinite, but indications point to smaller plantings than a year ago, especially in the surplus states. Prices continued to decline, and in the first week of May reached the lowest point on the present crop, and in a number of years. Fruits and Vegetables — Ow ing chiefly to the unseasonably cold weather in March, the output of tree fruits in this district will be considerably small er than a year ago, and the ten-year average. In many sections the peach crop is a complete failure, and in more favored localities not above half an average crop is in prospect. Early apples and pears were severely damaged, but late apples escaped with relatively little injury. Cherries, plums, and apricots sustained considerable damage, and will be small crops. Less injury than at first estimated was sustained by berry fruits, and in some of the largest producing sections, shipments will be larger than a year ago. Grapes for the most part came through the March freeze without injury, and prospects are for one of the largest yields on record. Potatoes were planted late in most sections, but at the middle of May were in generally favorable condition. Vegetable gardens are universally late, from one to three weeks behind the usual schedule. The move ment of early truck crops was in smaller volume than at the corresponding period in 1931. Live Stock — Generally the condition of herds on May 1 was fair to good, and since that date con ditions throughout the district have been auspicious. W arm weather, accompanied by scattered precipi tation, has helped growth of pastures, which had been checked earlier in the year by unseasonably low temperatures. The movement to market of cat tle, sheep and hogs has been held down by the low prices and heavy cooler stocks of dressed meats. Milk production per cow , according to the U. S. Department of Agriculture, was lower on May 1 than the average on that date during the past five years. W hile the number of milk cows on farms is larger than a year ago, milk production was lower. The reduced production is due chiefly to curtailed feeding of grain resulting from unfavorable market conditions. Hens in farm flocks were laying fewer eggs per hundred hens on M ay 1 this year than last. The price of eggs during April and early May fell so low that little, or no profit was realized by their pro ducers. The condition of tame hay on May 1 was gener ally below the average on that date during the past ten years. Stocks o f hay on farms in states includ ing the Eighth District on May 1 totaled 2,403,000 tons, against 863,000 tons a year ago, and the 5-year average (1924-1928) of 2,936,000 tons. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follow s: Receipts Apr. Mar. Apr. 1932 1932 1931 Cattle and Calves...... 84,890 82,454 90,132 Hogs .............................251,387 219,319 278,046 Horses and Mules...... 3,416 5,703 3,496 Sheep ............................ 58,300 36,756 54,753 Shipments Apr. Mar. Apr. 1932 1932 1931 45,207 44,634 57,881 179,386 154,689 217,685 3,131 5,729 3,700 17,990 10,907 23,078 Cotton — Planting of the new crop had been virtually com pleted at the middle of May, and re ports generally indicated satisfactory germination and growth. Universally, moisture conditions are good, and for the most part fields are well worked and free o f weeds and grass. In the southern tier of counties chopping is well under way, and to date indications point to less replanting than in past years. Taken as a whole, the crop in this district is lrom eight to ten days late. Advices from virtually all sections are to the effect that this year’s crop will be produced at smaller cost than in any recent year. Less fertilizer is being used, and planting and culti vating is being accomplished with a minimum of hired help. Demand for raw cotton continued quiet, with the trend of prices lower, a new low for the 1931 crop being reached in the first week of May. In the St. Louis market the middling grade ranged from 5c to 5.75c per pound between April 16 and May 16, closing at 5.25c on the latter date, which compares with 5.75c on April 16, and 8.90c on May 15, 1931. Receipts at Arkansas W arehouses from August 1, 1931, to May 13, 1932, totaled 1,498,042 bales, against 821,529 bales for the corresponding period in 1931. Stocks on hand May 13 totaled 406,220 bales, against 501,383 bales on April 15, and 138,511 bales on the corresponding date in 1931. Tobacco — Due to the backwardness of the sea son, tobacco plants are not as far advanced as usual at this time of year. There are numerous complaints of cutworms and other insect pests destroying plants, and transplanting will probably be from two to three weeks later than the average. V ery little of this work has been done, and even under favorable conditions not much can be accomplished until after June 1. In the dark-fired markets, sales have been large and low grades have been responsible for the low prices prevailing. H owever, throughout the sea son there has been an active demand for decided types of tobacco with good color. Stocks of leaf tobacco in the United States owned by dealers and manufacturers amounted to 2,373,761,000 pounds on April 1, as against 2,150,778,000 pounds a year earlier. CO M M O D IT Y PRICES Range of prices in the St. Louis market between April 15, 1932, and May 16, 1932, with closing quo tations on the later date and on May 15, 1931, fo llo w : Wheat High May ..................... per bu..$ .5 8 ^ $ July ....................... " .61 Sept......... ............... “ .63% Dec......................... “ .66^4 No. 2 red winter “ .59 No. 2 hard “ “ J8% Corn .3 4 ^ May ..................... “ July ..................... “ .36% No. 2 mixed .... “ .33 No. 2 white ...... “ .32j% Oats No. 2 white ...... “ .2 4 ^ Flour Soft patent......... per bbl. 3.75 Spring patent...... “ 4.50 Middling Cotton....per lb. .0575 Hogs on hoof........per cwt. 4.20 Close Low May 16, 1932 -51% $ .53$i .53 .55H .5654 .5 7M .59 H .60$4 .52% $ .5 3 ^ @ .54 $ .5 4 ^ . 5 5 ^ @ .5 5 ^ .27% .31 .30 .30 .22 3.00 4.20 .05 2.25 .31 .32i% .32 @ .33 .31 % @ .32% .22)% @ .2 2 ^ 3.00 4.20 2.40 @ 3.40 @ 4.50 .0525 @ 3.50 May 15, 1931 ......................... $ -5 8 ^ -58% .......................... .80 @ .80% .80 @ .8 0 ^ ......................... .5 8 ^ .5 8 ^ .58 .58 @ .5 7 % @ .30^4 @ .31 4.90 4.20 5.60 @ 5.20 @ 4.50 .0890 @ 7.00 FIN AN C IA L The principal developments in the banking and financial situation in the Eighth District during the past thirty days have been a continued decline in loans and deposits of the commercial banks, a m od erate increase in investments of these institutions, a further easing of the credit situation as a whole and a lower trend in interest rates. Calls on the banks for agricultural financing were less in evidence than in past years, due to the fact that farmers are pro ducing this year’s crops at smaller cost than usual and because their needs are being partly supplied by Governmental and other agencies. Generally through the district, but more particularly in the South, bor rowings of country banks from their city corre spondents are in smaller volume than a year ago. W ithdrawals from savings accounts was at a much reduced rate, and for the first time in a number of months, the amount o f such accounts held by selected banks showed an increase during April. Loans of the reporting member banks continued the steady decline which began in the middle of March and on May 11 were approximately 6 per cent and 23 per cent smaller, respectively, than a month and a year earlier. Deposits also pursued the downward course of earlier in the year, reaching a new low point on May 11. Between April 13 and May 11, investments of these banks increased slightly, but were still 7 per cent smaller than on the corresponding date in 1931. Borrowings of all member banks from the Federal reserve bank re ceded rather sharply during the period, and touched a new low point for the year at the middle of May, though still at a considerably higher level than a year ago. H oldings of Government securities by the Federal reserve bank, which had been fairly constant earlier in the year, turned upward in late April, and at the middle of May represented the highest aggre gate in recent years. A t St. Louis banks prevailing interest rates were as fo llo w s : Prime commercial loans 4y2 to SJ /2 per cent; collateral loans, Al/ 2 to 6 per cent; loans secured by warehouse receipts, Ay2 to 5^4 per cent; interbank loans, 5 to 6 per ce n t; cattle loans, 5 to 7 per cent. Condition of Banks — Loans and discounts of the reporting member banks on May 11, 1932 showed a decrease of 5.8 per cent as contrasted with April 13, 1932. Deposits decreased 2.7 per cent be- tween April 13, 1932 and May 11, 1932 and on the latter date were 21.3 per cent smaller than on May 13, 1931. Composite statement follow s: *May 11, 1932 Number of banks reporting............ 24 Loans and discounts (incl. rediscounts) Secured by U. S. Govt, obligations and other stocks and bonds.. ..$131,346 All other loans and discounts.. .. 203,011 * April 13, 1932 24 *May 13, 1931 25 $141,318 213,617 $170,343 264,324 Total loans and discounts.............. ..$334,357 Investments U. S. Government securities.... 80,956 Other securities............................. .. 132,309 $354,935 • $434,667 89,073 119,638 73,682 155,105 Total investments.............................. .,$213,265 Reserve balance with F. R. Bank 35,851 Cash in vault....................................... .. 6,488 Deposits Net demand deposits................... .. 288,236 Time deposits................................ .. 210,095 Government deposits................... .. 6,907 $208,711 37,793 6,548 $228,787 46,096 7,039 303,922 210,102 5,344 388,142 250,852 2,632 Total deposits.................................... ..$505,238 $519,368 $641,626 Bills payable and rediscounts with Federal Reserve Bank................. 2,576 300 1,097 *In thousands (000 omitted). These 24 banks are located in St. Louis, Louisville, Memphis, Little Rock, and Evansville, and their total resources comprise approximately 52.6 per cent of all member banks in this district. Debits to Individual Accounts — The follow ing table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included. *Apr. 1932 atl. ,$ 21,968 3,790 El Dorado, Ark Evansville, Ind. . 16.861 Fort Smith, Ark..... 8,199 Greenville, Miss..... 2,829 Helena, Ark. . 1,073 Little Rock, Ark... 21,717 Louisville, K y....... . 107,742 Memphis, Tenn.... . 81,107 Owensboro, Ky.... 2,724 Pine Bluff, Ark,.... 4,925 Quincy, 111............ .. 6,595 St. Louis, M o....... , 477,317 Sedalia, Mo............ 1,615 Springfield, Mo.... . 10,046 **Texarkana, Ark.-Tex........ 6,511 *Mar. 1932 *Apr. 1931 $ 20,665 3,279 15,929 7,537 2,988 1,200 19,346 101,464 85,501 2,938 4,854 6,072 456,324 1,309 9,879 $ 33,144 5,130 24,603 10,065 3,243 2,742 27,393 141,908 99,279 4,944 7,383 9,893 627,307 3,686 14,757 5,629 10,145 Apr. 1932 comp, to Mar. 1932 Apr. 1931 + 6.3% + 15.6 + 5.9 + 8.8 — 5.3 — 10.6 + 12.3 + 6.2 — 5.1 — 7.3 + 1.5 + 8.6 + 4.6 + 2 3 .4 + 1-7 — 33.7% — 26.1 — 31.5 — 18.5 — 12.8 — 60.9 — 20.7 — 24.1 — 18.3 — 44.9 — 33.3 — 33.3 — 23.9 — 56.2 — 31.9 + 15.7 — 35.8 .$775,019 $744,914 $1,025,622 + 4.0 — 24.4 *Tn thousands (000 omitted). **Includes one bank in Texarkana, Texas not in Eighth District. Federal Reserve Operations — During April the Federal Reserve Bank of St. Louis discounted for 230 member banks against 245 in March and 173 in April, 1932. The discount rate remained unchanged at Zy2 per cent. Changes in the principal assets and liabilities of this institution appear in the follow ing table: Bills bought ............................................. U. S. Securities....................................... Federal Inter. Cr. Bk. Debentures.. *May 13, 1932 ,.$13,248 514 , 35,346 ’T o i l ........38 ,$50,113 ,.108,902 .. 90,438 .. 62,925 $50,123 110,898 90,454 63,206 $41,362 114,061 73,366 74,562 ,. 71.0% 72.2% 77.1% 1,005 Total reserves.. Ratio of reserve to deposits and F. R. Note Liabilities.. *In thousands (000 omitted). (Compiled May 23, 1932) *Apr. 13, *May 13, 1932 1931 $17,002 $ 6,688 9,194 1,136 25,442 30,974 BUSINESS CONDITIONS IN T H E U N ITED STATES Industrial activity and factory employment declined substan tially from March to April, although usually little change occurs at this season. Purchases of Government securities by the Federal reserve banks have continued during April and the first three weeks of May and there has been a considerable growth in the reserves of member banks. PRODUCTION AND EM PLO YM ENT—Volume of indus trial production, as measured by the Board’s seasonally adjusted index, decreased from 67 per cent of the 1923-1925 average in W H O L E SA LE PRICES — Wholesale prices of commodities declined from 66 per cent of the 1926 average in March to 65.5 per cent in April, according to the Bureau of Labor Statistics, and in the first three weeks of May further decreases in the prices of many leading commodties were reported. Downward move ment in textiles, nonferrous metals, and imported raw materials as well as in most domestic agricultural products except wheat, were offset in part by increases in the prices of coffee, petroleum, and petroleum products. Index number of industrial production, adjusted for seasonal variation, (1923-1925 averages 100). Latest figure April, 64. Indexes based on three month moving averages of F. W . Dodge data for 37 Eastern States, adjusted for seasonal variation, (1923-1925 averages 100). Latest figure April, 26. March to 64 per cent in April. Reductions in activity were re ported for many leading industries, with sharp declines at cotton and woolen mills and at bituminous coal mines; in the automobile industry output increased from the low level of March by more than the usual seasonal percentage and in the steel industry, where activity had declined from early February to the middle of April, production increased somewhat between the middle of April and the third week of May. The number of wage earners em ployed at manufacturing establishments declined further between the middle of March and the middle of April and there was a sub stantial reduction in factory payrolls. Large decreases in employ ment were reported for the iron and steel, machinery, and textile industries, while the volume of employment in the food and leather industries showed the usual seasonal changes. Daily average value of building contracts awarded during April and the first half of May, as reported by the F. W . Dodge Corporation showed a sea sonal increase over the first quarter. A substantial increase was BANK CREDIT — Further purchases of U. S. Government securities by the Federal reserve banks were made during April and the first three weeks in May, and on May 18 total holdings were $1,466,000,000. The funds placed in the market through these purchases between April 6 and May 18 were used to the extent of $170,000,000 in a further reduction of member bank indebted ness to the reserve banks; and to the extent of $122,000,000 in meeting a demand for gold from abroad; at the same time member banks accumulated reserve balances considerably in excess of legal requirements. During May the demand for currency, which had declined in April, increased somewhat, contrary to usual seasonal movement. Loans and investments of reporting member banks in leading cities, which had declined continuously until the middle of April, showed little net change between April 13 and May 18. The banks’ investments increased by nearly $300,000,000 chiefly in New York City; while loans declined by about an equal 1927 1928 1929 1930 1931 1932 Monthly averages of weekly figures for reporting member banks in leading cities. Latest figures are averages of first three weeks in May. Monthly averages of daily figures for 12 Federal reserve banks. are averages of first 23 days in April. reported for pubic works and public utilities, while residential building continued at the low level of the first quarter, showing none of the usual seasonal expansion. DISTRIBUTION — Freight-carloadings of merchandise showed little change in volume from March to April, continuing at the level prevailing since January, although increases are usual during this period. Sales by department stores increased con siderably in April. amount. There was also a growth in net demand deposits, which reflected in part an increase in bankers’ balances deposited in New York City banks. Money rates in the open market continued easy. Rates on commercial paper were reduced about one-half per cent to a range of 2^4 — 3 per cent for prime names, and the offering rate on 90-day bankers’ acceptances, which had advanced to 1 ^ per cent in the first week of May, declined on May 11 to the previously prevailing rate of % of one per cent. Latest figures
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