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This monthly report on conditions is not to be released to the public until
on and after the morning of November 3, 1918, so PLEASE HOLD IT CONFIDENTIAL
William McC. Martin,
Chairman of the Board and Federal Reserve Agent,
Federal Reserve Bank of St. Louis.


The recent peace discussions have had little effect on business in this

Government work is being prosecuted with unslackened vigor, and marked

activity continues in all essential lines of industry.
Manufacturers of iron and steel products are operating at capacity, and
manufacturers of shces, clothing, etc., are also especially busy.

Wholesalers of

dry goods report an active demand for all classes of merchandise.

Some distribu­

tors are finding it difficult to fill orders on account of the shortage of many
of the staple articles. There is very little speculation going on.

The spirit cf

conservatism seemc to permeate all lines, and business men are moving carefully.
The influenza epidemic, and the measures taken to combat it, have had a
disturbing effect on certain branches of business in this district.


schools, churches, and other meeting places have been closed entirely, and some
cf the large atores have been compelled to open later and close earlier than
usual. This has especially handicapped retail trade, thcugh other lines have also
been affected.

Some activities have suffered considerably on account of the de­

pletion of their working forces through the contraction of the disease.
The abundance of money in the rural districts, where crops are being
marketed, and the high wages paid to labor in the cities, give premise of a large
business this season.
The outstanding feature in financial circles during the past month has
beta the successful flotation of the Fourth Liberty Loan.

This district over-

subscribed its quota of $260,00C,00r., being the first one to do so.
The demand for money has continued active in this district.

The redis­

counts of the Federal Reserve Bank of St. Louis have steadily increased, until on
October 19th it held $84,707,000. of paper discounted for member banks.

In the

larger cities the bank rate to customers remains firm at 6% for practically all
classes of loans, and in the country districts it is somewhat higher.
The commercial paper market has been exceedingly quiet, but now that
the Liberty Lean campaign is over, some revival is anticipated among brokers'.
The commercial paper rate continues at 6% for all names and maturities.
Practically all of the winter wheat has been sown in this district, and
reports indicate a larger acreage than last year. With few exceptions, the ground
has had sufficient moisture and the seed has been put in under the best conditions.
The present prospects of the corn crop in this district are more prom­
ising than a month ago.

Rain has helped the late corn materially, and it is said

to be yielding better than expected.
be better than last year.

In many sections the quality is reported to

The condition of the corn in the seven states in this

district was estimated by the Government on October 1st to be 66.7%* which is 3%
better than the estimate cf September 1st.

The condition of the corn in this

district on October 1st was estimated to yield 138,544,000 bushels, which is
40,000,000 bushels below last year's crop, but about equal to the average for the
past five years.
The oats crop continues to progress satisfactorily.

The condition of

oats in Indiana, Illinois and Missouri was estimated by the Government on October
1st to be 93.3%, which is 2.7% better than the estimate of September 1st and 7%
better than the average.
Reports indicate that only a fair crop of cotton will be picked in this

The condition of the cotton in Arkansas, Mississippi, Missouri and

Tennessee was estimated by the Government on September 25th to be 58.5%, which is

.7% below the estimate of August 25th and 9% below the tea year average.
The condition of the tobacco in Kentucky and Tennessee was estimated by
the Government on October 1st to be 64.5%, which is 1% better than the ten year

The condition of the tobacco in the two States named was estimated to

yield 422,333,000 pounds, which is 27,354,000 pounds more than the estimate of
September 1st, but 86,077,000 pounds less than the estimate for last year and
4,364,000 pounds less than the average for the past five years.
The report of the St. Louis National Stock Yards for September shows
substantial increases in the receipts and shipments of cattle, horses and mules,
both in comparison with the corresponding month last year and the previous month
this year.

The report also shows perceptible increases in the receipts and ship­

ments of hogs ih comparison with the corresponding month last year, but a slight
decrease in comparison with August of this year.
Postal receipts during September in St. Louis, Louisville, Memphis and
Little Rock,all show substantial increases in comparison with the same month last

With the exception of St. Louis, the receipts in the cities named during

September also show increases over August of this year.
Reports for September from leading cities in this district show percept­
ible decreases in the number of building permits issued and the estimated cost of
construction, both in comparison with the previous month and the corresponding
month last year.

Practically no building is going on in this district except for

Government needs and the extension cf essential factory buildings.