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FEDERAL RESERVE BANK OF ST. LOUIS
MONTHLY REPORT ON
GENERAL BUS!NESS CONDITIONS
!N FEDERAL RESERVE D!STR!CT No. 8
Released for Publication On and After the Afternoon of November 29,1921
W IL L IA M McC. M ARTIN,
CHAIRM AN OF TH E BOARD AND FEDERAL RE8ERVE AGENT
E N E R A L business in this district during the
past thirty days, while holding recent gains,
failed to continue the pace of improvement
set during the preceding two months. In some
lines excellent progress was reported, but elsewhere
there was a decided slowing down. Gains about off
set losses, and taken as a whole the situation at the
end of the period under review may be described as
steady. A further slight reduction in the number of
unemployed is noted, and outside of industries
based on iron and steel, plant operation has in
creased over the average maintained during the
preceding thirty days. The banking and financial
position shows augmented strength, with ample
funds available for all legitimate commercial needs.
ftie principal barrier to broader distribution
of merchandise has been the radical decline in the
market price of farm products, particularly wheat,
com and oats. Merchants in the typical grain areas
report that farmers are cutting their purchases to
absolute necessities, and there are endless com
plaints of the disproportion existing between the
price of products of the soil and manufactured
goods. According to manufacturers of implements,
fall crops were put in this year with fewer new im
plements than has been the case in more than two
decades. Color is given to this statement by the
October sales of implement manufacturers and dis
tributors reporting to this bank, which show de
creases of from 45 to 90 per cent under the corres
ponding period in 1920.
In the South business through October held up
well, but with the slowing down in the demand for
spot cotton, and the decline in prices for that staple,
the movement in all lines has been considerably less
Keen. An enormous amount of cotton, both of this
year's crop and the carryover from 1920, was mar
keted at the advance, however, and in addition to
being able to liquidate a material part of its in
debtedness, including so-called "frozen credits," the
cotton territory finds itself in position to purchase
commodities on a scale which would have hardly
been thought possible ninety days ago.
W hat by merchants and manufacturers is
pointed out as the most hopeful feature at the mo
ment is the growth of buying for future delivery.
While the greatest caution and conservatism is still
being exercised, the percentage of orders for for
ward shipment has shown a gratifying increase dur
ing the last month. This manifestation is noted par
ticularly in dry goods, groceries, shoes, hardware
Rad clothing. Reporting interests in these lines
state that as high as sixty per cent of their current
orders are for shipment during late winter and early
spring. Results of the change in this regard are re
flected m greater confidence on the part of manuacturers, who are broadening their programs both
lor the purchase of raw material and preparation
of stock goods.
Unseasonably warm weather throughout Octo
ber had a derogatory effect on the movement of sea
sonal merchandise, especially heavy clothing and
fuel. Lmes which specialize in holiday goods report
that the first signs of ordering for the Christmas
season have been later in developing than for many
years past. Manufacturers and wholesalers of toys,
candy and other typical holiday goods report their
orders to date are considerably below normal, and
several give it as their opinion that the genera!
wave of economy and conservatism will result this
year in the buying for gifts of an unusually
heavy percentage of necessary articles rather than
things in the luxury classification. On the other
hand manufacturers of electrical supplies report a
decided improvement in the demand for specialties
since the first of November.
Save in a few instances, the decision of the rail
road labor unions not to strike had little effect on
business. Of considerably more importance than
the strike question, according to reporting business
interests, is rate adjustment. The waiting attitude
of numerous prospective buyers is due entirely to
expectations of lower prices later on, which they
believe will be made possible by reductions in trans
portation costs. This is true especially of heavy
materials, such as iron and steel, 6re clay products,
cement, lumber and fertilizers.
Despite the decline in prices of cereals, the
movement to market is holding up fairly well,
which is taken as an indication that farmers are
more reconciled to the change in values and con
ditions and are liquidating their stocks. Prices con
sidered, business in the grain areas is much better
than might be expected. In November the Decem
ber wheat option declined in the St. Louis market
to 96%c, a new low record on the crop, and the low
est point touched since October, 1915. December
com fell to 42%c and December oats to 31 %c. Cash
prices were correspondingly low, except in the case
of choice milling wheat, which has ruled relatively
strong because of the scarcity of prime offerings.
Through the month of October, according to
ofHcials of railroads operating in this district, the
movement of freight was well maintained and a fur
ther reduction recorded in the number of idle
freight cars. Coal loadings were stimulated by ap
prehension of a railroad strike, and this cause was
also accountable for requests for expedition in the
shipment of certain merchandise and raw materials.
Since the first of November there has been a slow
ing down on freight offerings to the roads, noted
especially in grain and grain products, coal and
coke and live stock. Lumber is moving in good vol
ume, and the same is true of miscellaneous mer
chandise. The St. Louis Terminal Railway Asso
ciation, which includes in its membership 36 rail
roads operating through this gateway, interchanged
191,762 loads in October; 161,168 loads in Septem
ber; 162,168 loads in August; 146,500 loads in July;
142,700 loads in June and 147,879 loads in May.
During the first nine days of November the inter
change amounted to 92,924 loads, against 83,864
loads during the corresponding period in October.
There has been no change worthy of note in passen
ger traffic as contrasted with the preceding thirty
days, but the volume is considerably under that of
a year ago.
Production of soft coal in the district and the
country as a whole showed steady increase during
October, due to impetus given by fears of a rail
road strike and seasonal considerations, but the out
put dropped sharply during the first week of
November. Producers and dealers report continued
quietness in the demand for steaming fuel, and con
tracting for winter needs of domestic consumers is
still much below normal. The recent cold snap,
however, has been marked by freer orders from
householders. The demand for metallurgical coke
shows virtually no improvement, and the trend of
prices is easier. Stocks of by-product coke are large
and moving slowly into consumption. Production
of soft coal during the first 261 days of the past five
years has been as follows: 1917, 467,164,000 tons;
1918, 501,507,000 tons; 1919, 402,152,000 tons; 1920,
460,217,000 tons and 1921, 347,565,000 tons. It will
be seen that 1921 is in round numbers 55,000,000
tons behind 1919 and 113,000,000 tons behind 1920,
and compared with the average of the four preced
ing years, it is 110,000,000 behind.
According to reports from 230 automobile
dealers scattered through the cities and small
towns of the district, business during October lost
much of the spontaneity noted in September. Sales
in the country are reported very slow, especially in
the grain sections. The market as a whole is feeling
effects of an unusually heavy burden of used cars,
prices for which are low and the demand poor.
Large numbers of these used vehicles were sold in
St. Louis during October at almost any figure they
would bring. Cuts in new cars, ranging from $100
to $800, were made by eleven manufacturers. Rela
tively the market for accessories is more active than
that for new cars. Tire dealers report a seasonal
decline in their business.
Collections generally throughout the district
continue satisfactory, especially on current accounts
which are for the most part being met promptly.
October settlements with the big wholesalers in
leading cities of the district were well up to expec
tations, and compare favorably with past years.
Some complaints of backwardness in settling bills
are heard from the grain regions, and during the
past two weeks there has been a slowing down in
liquidation to the South, due to the fact that cotton
has not been selling as freely as heretofore, and em
bargoes at certain points have hindered the move
ment. Answers to 378 questionnaires addressed to
representative interests in various lines in the
Eighth Federal Reserve District, asking for data
relative to collections, show the following results:
3.1 per cent excellent; 38.2 per cent good; 47 per
cent fair and 11.7 per cent poor.
The per capita circulation of the United States
on November 1, 1921, was $52.71 against $52.45 on
October 1, 1921 and $59.77 on November 1, 1920.
Commercial failures in the 12 Federal Reserve Districts during the months of September and October, with comparative figures for October, 1920 as compiled by Dun's were as follows:
District
Boston, First........................ ...........
New York, Second............. --------Philadelphia, Third............. ...........
Cleveland, Fourth............... ...........
Richmond, Fifth.................
Atlanta, Sixth...................... ............
Chicago, Seventh................. ...........
St. Louis, Eighth................. ...........
Minneapolis, Ninth............. ...........
Kansas City, Tenth........... --------Dallas, Eleventh................. --------San Francisco, Twelfth ...........
_______ NUMBER
Oct.
Sept.
1921
1921
135
124
350
317
77
63
177
118
85
153
125
230
179
88
80
70
57
76
61
109
104
139
153
Total............................... ...........1,713
1,466
Oct.
1920
L IA B IL IT IE S
September
October
1921
1921
October
1920
59
275
27
69
58
38
122
47
16
41
42
129
$ 1,550,137
17,525,697
7,890,928
2,613,018
1,511,141
5,271,140
5,853,226
1,117,815
1,833,103
2,000,108
2,455,126
3,437,220
$ 2,725,247
10,439,409
978,713
2,815,406
1,692,840
2,328,764
6,777,026
2,383,404
980,471
1,042,641
2,872,281
1,984,635
$
937,595
15,462,866
2,902,609
1,933,886
1,644,702
613,307
6,259,566
1,280,507
83,769
775,366
2,947,957
4,071,529
923
$53,058,659
$37,020,837
$38,914,659
M A N U F A C T U R IN G A N D W H O L E S A L E
Reports from leading manufacturing interests
of the district indicate somewhat varied results dur
ing October, and the same holds true relative to
wholesalers. Goods for common consumption con
tinue to move well, and in some lines, notably shoes,
drugs and chemicals and groceries, total sales and
shipments were larger than in August or Septem
ber, and with a number of important interests ex
ceeded those of the corresponding period a year
ago. Dry goods and clothing experienced fair activ
ity in October, but during the past two weeks buy-
ing has decreased, due in a measure to the unsea
sonably warm weather. A universal comment of
interests reporting is that while more confidence
seems to be felt in current prices, there is a decided
disposition to economy and conservatism. The pub
lic is insisting upon quality and what it considers
right prices. Retailers have disposed of the major
part of their high priced goods and in most in
stances have readjusted their prices to square with
reductions made by manufacturers and wholesalers,
but further progress in that direction must be made
to restore the norma! balance. Stocks of merchan
dise in retailers hands are light, and there is more
of a disposition to restock and All out assortments.
Buying for forw ard delivery has picked up more
during the past thirty days than during the three
months preceding. Lines based on iron and steel
and the non-ferrous metals show no improvement
over the dull conditions existing heretofore. There
is a general tendency to defer purchasing until
freight rates have been reduced and labor costs in
the building industry lowered. Manufacturers of
specialties, such as stoves and farm implements,
report dull conditions, with the usual seasonal in
crease in their business failing utterly to develop.
Shoes— O ctober sales of 11 reporting interests
ranged from 32 to 40 per cent larger in numbers
of pairs than a year ago, while the dollar was from
8 per cent less to 12 per cent larger than in O ctober,
1920. Orders arriving since N ovem ber 1 indicate
that this m onth will make a still m ore favorable
showing. T h e new business includes a heavy show
ing for future shipment, ranging from 42 to 60 per
cent. Prices o f the finished product were unchanged
during the past month, and are from 35 to 45 per
cent under the same time in 1920. Raw materials are
plentiful, with the trend of prices slightly higher.
T h e demand centers principally on moderate and
low -priced shoes, and factories producing such
grades are operating at full capacity.
C lothing— T h rou gh ou t O ctober, according to
reports of 23 leading interests, the m ovem ent of all
lines o f cloth ing was brisk, and above expectations.
B uying, how ever, received a sharp check toward
the end of the month, and the first weeks o f N ovem
ber have been extrem ely dull. Prices continue the
dom inant consideration, and this applies to
w om en's w ear as well as men's. Several leading
m anufacturers of men's suits have announced re
ductions running from 5 to 15 per cent on spring
lines. T h e m ovem ent o f heavy suits and overcoats
has been backw ard, due to the warm weather dur
ing the past six weeks. Sales of the reporting inter
ests in O ctob er were from 4 to 12)^ per cent over
the preceding month, and from 7 per cent less to
16 per cent better than a year ago.
Iron and Steel Products— Sales of pig iron in
the district during the past month were the smallest
for any similar period this year. T h e dullness was
accom panied b y a weakening in prices, No. 2
ern (1.75 to 2.25 per cent silicon) dropping to
base, w ith small tonnages going at a slight ctmcession under that figure. Job foundries f^por
e
demand fo r castings at a low ebb, while the large
steel plants are operating at only a small fraction oi
capacity. W areh ouse interests are carrying lbera
stocks and report the m ovem ent o f their good s into
consum ption as slow as at any time since t e s ump
set in last fall. Stove foundries com plain o f l ^ k
orders, the seven reporting interests show ing O cto
ber sales 4 to 10 per cent under those m September,
and 10 to 25 per cent under the corresponding
month in 1920. Boiler makers and manufacture^
of machinery and tools show heavy decreasesm
volume of business in October as contras
the like period a year ago. High railroad rates and
uncertainty relative to future prices are delaying
the placing of contracts for all sorts oi metal goods.
Hardware— Business by the 12 reporting inter
ests during October is described as steady with the
preceding month, but the tendency is for purchasing
to slow down in the grain sections. Several Arms
report increases over the corresponding month last
year, but make the comment that it was about this
month in 1920 that results of the depression began
to be felt. The trend of prices continues downward.
T he demand for building hardware is gradually im
proving, and sales of seasonal sporting goods con
tinue in good volume. Shelf hardware and articles
for use on the farm are moving slowly.
Flour— Prices of all grades of Hour have de
clined from 50c to 75c a barrel during the period
under review, and generally business has been irreg
ular and unsatisfactory from the selling viewpoint.
Th e domestic demand continues in fair volume, but
is on a hand to mouth basis, ordering for future de
livery or in quantity being almost nil. There is
some export business, mainly to Western Europe,
but this is not sufficient to change conditions. Com
plaints are made of the poor quality of wheat offer
ings, it being necessary to pay premiums for good
milling grades. Operation of mills in the district
during the period under review was at from 50 to 60
per cent capacity. Buying by the Government for
Russian relief is expected to stimulate business dur
ing the next few months. Mills in this district wil!
be benefited by the decision of the committee to
purchase part Arst hard clears, instead of 100 per
cent soft wheat flour, as was the original plan.
Candy— A ccording to the 11 reporting firms,
business in October failed to maintain the gains
recorded in September. The demand for all grades
is slow, and considerably below norma! for this time
o f year. Plans being made for holiday trade are on
a smaller scale than in previous years. Plant opera
tion was curtailed, ranging from 50 to 85 per cent,
against 70 to 90 per cent of capacity in September.
Drugs and Chemicals— Measured in dollar
va!ue, business of the 7 reporting interests was from
10 to 16 per cent under October, 1920, but about
steady in point of volume. Orders received during
the first tw o weeks of November show a good in
crease over the same period in October. Chemicals
for use in manufacturing are m oving in better vol
ume, and some sundries for the holiday trade are
being ordered. Prices averaged close to steady, as
the list o f changes, which includes 22 articles,
shows 10 advances and 12 declines.
Furniture— Sales of 14 reporting interests were
slightly in excess of September, and averaged 20 per
cent under the same month in 1920. Buying contin
ues almost exclusively for immediate shipment, but
a better demand is reported for household furniture.
Prices for finished goods were steady during the
month, but some raw materials, notably !umber,
were higher.
Lum ber— A heavy demand for structural lum
ber, m ost pronounced in yellow pine, and great im
provem ent in demand for hardwoods, marked the
four weeks ending November 15. Prices have ad
vanced in all items of yellow pine and in the princi
pal hardwoods, and though the yellow pine demand
has declined to some extent in the last ten days of
the period, the market is strong and bids fair to go
through the usual winter lull without pronounced
weakness. Some of the upper grades of yellow
pine have advanced 60 to 70 per cent over low levels
of three months ago, and the general level of this
species has shown a gain of about 25 per cent. A l
though yard buying has diminished in volume, de
mand from other sources is increasing, railroad car
material and maintenance of way material being in
greater requirement and the wood consuming in
dustries having increased their buying in many
directions. Mill stocks are badly broken and re
plenishment is slow, due to continued restriction
of output. Shipments have been heavy, with a plen
itude of cars. Increased foreign demand for the
hardwoods has been simultaneous with a much bet
ter domestic movement. Furniture factories and
flooring mills have been in the market with heavy
requirements. The upper grades of oak and gum,
the principal commercial woods of the Southwest,
are in very active demand at substantial advances
in prices. There has also been a great improvement
in demand for low grade materials and, in spite of
almost prohibitive freight rates, these stocks are
now moving at a small proAt to the producers.
IN D U S T R IA L P O W E R C O N SU M P TIO N
fell 7.7 per cent behind September. Louisville, on
the other hand, seems to be improving rapidly, as
that city's September figures were 33.5 per cent off
from the September, 1921, totals, while the lag in
October behind the same month in 1920 was only
15.5 per cent, and as compared with September,
October shows a gain of 11 per cent.
October statistics of the four leading electric
power companies, located in the four largest cities
of the district, reflect an upward trend. While the
combined figures are 17.8 per cent under last year,
there are marked gains in the two largest centers
over the preceding month this year. Little Rock,
the only center showing an increase over last year,
The October figures follow:
Percentage Inc. or Dec.
1920_________Sept.
Representative
CONSU M PTIO N IN K .W .H .
Customers_______ Oct. 1920____________ Oct. 1921____________ Sept. 1921
7,865,534 k.w. h.
8,865,679 k. w. h.
8,153,658 k. w. h.
St. Louis______68
9,933,295
"
7,119,890
"
Memphis —
31
694,505
"
632,935
"
640,357
"
Little Rock.. 11
1,666,000
"
2,190,000
"
1,849,600
"
Louisville ___81
Location
Total______191
21,621,909
17,763,505
"
10,126,039
3.6
-8.0
-28.3
1.1
-15.5
-7.7
11.0
-17.8
"
R E T A IL
communities. As in the case of wholesale distribu
A rather sharp recession in activities at the
tion, retail trade in the typical grain sections is be
ultimate end of distribution during the past thirty
ing adversely affected by the decline in the market
days is attributed in a large part by retailers
value of cereals. A rather universal comment with
throughout the district to unseasonably warm
weather and a general disposition on the part of
retailers reporting to this bank is that holiday buy
ing is unusually backward this season. Jewelers in
the public to take only what it absolutely needs.
The latter factor is working more particularly in
the large cities report a radical falling off in their
the country, though city merchants also comment on
business. While in isolated cases gains are shown,
the wave of economy. The demand for heavy cloth
the average for the district is about 20 per cent un
ing has been very disappointing, and large stocks
der the preceding month. Hardware merchants say
of both women's and men's wear, which it had been
that while their general line is quiet, that they are
hoped to move before this, are still on retailers'
selling large quantities of ammunition and other
shelves. While bargain goods are moving in fair
supplies for hunters. Sporting goods generally are
volume, department stores are not finding the re
holding their own, with seasonal goods, such as
sponse to advertised sales noted heretofore. Sales
football and basketball supplies, moving in heavy
of cotton fabrics, trimmings, and other materials in
volume. Hand implements, and shelf hardware are
this classification are relatively heavy, as are, also,
dull. Printers report their business about steady
purchases of paper patterns, which is interpreted
with a month ago, but less active demand from cus
as meaning a continuance of the practice of making
tomers conducting selling campaigns. Railroads
more dresses at home. In the southern sections the
are furnishing more work for the printing shops.
activity in retail trade which accompanied the rise
The disposition to economize is reflected in de
in raw cotton prices, has subsided in a noticeable
creased receipts of places of amusement, and in
degree. Collections of retailers in that region, how
sales of candy shops, florists and other purveyors of
ever, have been excellent, especially in the rural
luxuries.
Figures on retail trade as indicated by 21 representative department stores for October, 1921, were
as follows:
^
Net Sales:
St.
Louis
Oct., 1921, compared with Oct., 1920_______-9.5
Period July 1 to Oct. 31, 1921 compared with
same period in 1920___________________ -12.7
Stocks at end of October, 1921:
Compared with same month in 1920________-10.3
Compared with stocks at end of Sept., 1921..- .7
Ratio of stocks to sales--------------------------------- .408.7
Ratio of-outstanding orders to last year's
purchases_____________________________ 6.3
Note: -Denotes decrease.
Louisville
Memphis
Little
Rock
Evansville____ Quincy
8th District
-7.1
-6.3
-7.2
-17.3
-8.3
-8.7
-11.1
-18.2
-11.1
-21.7
-10.8
-13.0
-11.6
5.7
643.8
-29.1
.7
567.0
-13.5
.9
380.5
- 2.4
1.4
858.3
-12.5
- 1.8
521.1
-12.5
.5
461.9
4.4
14.2
6.4
4.1
5.3
6.8
AG RICU LTU RE
Husking of corn throughout the Eighth Fed
eral Reserve District has made rapid progress and
a considerable portion has already been cribbed.
Reports from most sections where corn is raised in
quantity indicate that the crop is well matured, and
the yield both for silage and grain good. Unseason
ably warm weather, however, has retarded curing,
and there are complaints of damage from mold and
ear worm. Pretty general precipitation furnished
much needed moisture to the winter wheat crop,
which is making excellent progress. There is good
root and upper growth, and the plant is in prime
condition to enter the cold weather. UnoHicial re
ports indicate that the acreage will be slightly un
der that of last year. Due to observance of immune
planting dates, Hessian Hy manifestations are less
in evidence this season than in a number of years.
In Missouri corn averages 30 bushels to the acre,
against 32 bushels last year, and the total yield
184,590,000 bushels, which compares with a five
year average of 170,354,000 bushels. Total pro
duction of corn in the district is estimated at
436,180,000 bushels, against 441,118,000 bushels
in 1920. Recent advices are to the effect that
the tobacco crop is better than expected, and
markets are opening in certain sections, with prices
satisfactory. The decreases in the size of the crop
is due chieHy to reduced acreage. In Kentucky,
the largest producing State in the district, quality
is reported at 84 per cent, against 80 per cent last
year. Present indications point to successful opera
tion of the cooperative marketing plan in the burley
tobacco belt. Pastures have been beneRtted by
recent rains, and are generally in flourishing con
dition. The protracted warm weather has enabled
farmers to postpone placing their stock on prepared
feeds to an unusually late date. Threshing returns
from Arkansas indicate yields of rice higher than
expected. In Illinois and Indiana the Irish potato
crop has been harvested, and the yield is variable
both as to quantity and quality.
The U. S. Department of Agriculture, in its report as of November 1, gives the condition of com and
tobacco in States of this district as follows:
CORN
Yield per Acre (bu.)
1921
10 yr.
Prelim. Av.
....22.0
19.7
Arkansas
.-.35.2
33.7
Illinois __
36.4
-36.0
Indiana __
27.3
Kentucky
-25.6
17.7
Mississippi ____________ 18.0
26.0
Missouri ______________ 30.0
25.3
Tennessee _____________ 26.5
'P R O D U C T IO N S Bu.
1921
1920
l^lg-13
Prelim.
Av.
Dec. est.
45,224
60,742
44,967
346,330
304,550
294,168
163,620
184,072
178,777
100,650
97,735
85,325
63,733
63,680
85,968
198,880
170,354
184,590
84,834
93,100
92,512
QU ALITY
1 6 2 f 1929
%
%
&4
83
78
82
71
88
74
78
84
85
80
80
82
84
PRICE NOV. 1
...... NR "BBT
cents cent#
46
iii
35
77
75
36
58
99
112
65
37
80
59
103
TOBACCO (Pounds)
Kentucky ______________ 850
858
Tennessee _____________ 800
771
'I n thousands, i. e., 000 omitted.
327,250
60,800
467,500
85,410
440,280
81,453
84
90
80
78
ic
of prices on typical products in the St. Louis grain market between October 15 and Novem
ber 15, with closing quotations on each of these dates:
December wheat__________Per bu.
May wheat________________ _"
December corn___________ _"
May corn_________________ _"
December oats____________ _"
May oats__________________ __"
No. 2 red winter wheat__ __"
No. 2 hard wheat.________ __"
No. 2 corn ______________ __"
No. 2 white corn_________ __"
No. 2 white oats____________"
Flour: soft patent_______ Per bbl.
Flour: spring patent________ "
Close October 15
$1.15%
1.19%
.45%
.51%
.33%
.37%
1.32
$1.14 @ 1.22
.44 @ .45
.44%
.33
6.00 @ 7.00
6.80 @ 7.40
High
$114%
1.18
.46%
.52%
.34
.38%
1.30
1.12
.47%
.48%
.34%
7.00
7.40
Low
$ 96%
102%
42%
.48%
.31
.35
1.14
.97
.43%
.43%
.31%
5.75
6.10
Close Nov. 15
$1.00%
105%
.45%
.50%
.32%
.37
1.19
1.06
.47%
.48%
.33%
$5.75 @ 6.75
6.30 @ 6.75
The following table, compiled from commercial sources for the Government marketreport, shows
the cotton movement from August 1 to October 28:
BALES
1921_____________________ 1920
Port receipts___________________________________________________________ ..2,052,952
1^19,779
Port stocks-------------------------------------------------------------------------------------------- 1,551,377
1,120,134
Interior receipts-------------------------------- ---------------------------------------------------- 2,719,536
1,792,610
Interior stocks__________________________________________________________ 1,380,236
1,217,067
Into sight______________________________________________________________ 3,528,896
2,880,827
Northern spinners' takings--------------------------------------------------------------------- 528,548
362,550
Southern spinners' takings----------------- :---------------------------------------------------- 927,949
606,252
W orld's visible supply o f American cotton------------------------------------------------4,519,489
3,519,062
B U IL D IN G
official agencies to induce labor to reduce its scale.
A further broadening in building activities
In St. Louis pledges have been obtained to start
throughout the district was noted in October. R e
$9,250,000 in building construction in the four
ports from scattered sections show considerable
months follow in g January 1 providing organized
grow th in the construction of new homes, with the
crafts will accept a 20 per cent reduction in wages
rural districts and smaller towns taking a much
from $1.25 to $1 an hour. Extensive road-building
more important part in the movement. There have
program s are being pressed in M issouri, Arkansas
been some further minor reductions in building
and Illinois. T h e mild autumn has permitted of
material costs, affecting chiefly clay products,
considerable progress on this work.
cement and metal goods, but lumber prices have
advanced. E fforts are being made by private and
Comparative figures for O ctober in leading cities of the district fo llo w :
1921
New Construction
Permits
Cost
$1,350,158
St. Louis............ ...........604
722,600
Louisville .......... ...........179
897,780
Memphis .......... .......... 254
87
284,150
Little Rock........
. 55
100,400
Evansville .........
1,179
Total..........
$3,355,088
OCTOBER
1920
New Construction
Repairs, etc.
Cost
Permits
Cost
Permits
441
$207,015
411
$824,015
87
99,600
50,900
43
48
23,760
145
312,345
44
72,650
168
45,486
46
6,235
50
92,345
790
$333,396
693
Repairs, etc.
Permits
Cost
382
$231,715
153
76,800
52
22,600
112
76,586
49
9,647
$1,400,955
748
$417,348
C O M M O D IT Y M O V E M E N T
R eceipts and shipments of important com m odities at St. Louis during O ctober, 1921 and 1920, and
September, 1921, as reported by the Merchants' Exchange, were as fo llo w s:
Oct. 1921
Flour, barrels.........................
589,380
Wheat, bushels....................... 3,510,165
Corn, bushels......................... 2,369,094
Oats, bushels......................... 2,477,225
Lead, pigs....
199,090
Zinc and Spelter, slabs......... 213,880
Lumber, cars
13,560
Meats, pounds....................... 20,787,900
90,900
Fresh Beef, pounds..............
Lard, pounds......................... 4,133,100
Hides, pounds....................... 6,462,000
RECEIPTS
Sept. 1921
621,390
5,457,000
1,855,100
2,437,260
221,960
219,810
11,724
20,182,600
3,216,300
4,403,000
SH IPM E N TS
Oct. 1921
Sept. 1921
709,705
815,520
3,522,410
4,369,230
1,938,945
1,171,790
1,919,300
1,724,990
113,610
91,050
303,780
317,520
11,191
9,783
25,273,600
25,465,600
24,139,100
22,765,900
6,564,700
8,973,100
7,761,000
6,682,800
Oct. 1920
335,490
3,584,849
1,259,700
2,200,055
210,700
490,240
12,239
5,337,700
1,346,200
1,507,300
2,057,700
Oct. 1920
366,960
2,597,450
694,960
1,146,100
127,790
657,580
8,735
25,774,600
22,244,900
6,221,800
4,072,200
L IV E STOCK
A s reported by the St. Louis National Stock Yards, receipts and shipments o f live stock in O ctober,
with com parisons for October, 1920, were as fo llo w s :
Cattle & Calves
1921
1920
129,877
131,882
81,760
65,124
1921
241,267
161,524
H ogs
1920
212,944
114,306
Sheep
1921
1920
41,699
41,548
12,287
8,935
Horses & Mules
1921
1920
8,229
7,075
7,091
6,613
L A B O R S IT U A T IO N
OCTOBER
Replies received from questionnaires addressed
to 210 leading employers in 21 of the largest cities
in the Eighth Federal Reserve District with an
estimated normal complement of 203,219 workers,
asking for employment data developed in the fol
lowing results:
Number of
Date
Wage Earners
Pay Roll
Oct. 1,1920
Men
186,890
Women
20,843
Oct. 1,1921
Total
207,733
Men
Women
148,492
18,753
$17,834,620.38
Total
167,245
$12,572,533.84
From the above tabulation it will be noted
that the number of employees of the reporting
interests decreased 40,488 or 19.5% between the
dates October 1, 1920 and October 1, 1921. On
October 1, 1920 the number was 4,514 or 2.2%
above normal and on October 1, 1921, the total
was 35,974 or 17.7% under normal. Wages figured
bn a semi-monthly basis decreased $5,262,086.54
of 29.5% between October 1, 1920 and October 1,
1921.
N O T E : On July 1, 1921, the total number of
wage earners was 27.4 per cent under normal and
on August 1,1921, 23.1 per cent under normal.
SEPTEM B ER
Replies received from questionnaires addressed
to 210 leading employers in 21 of the largest cities
in the Eighth Federal Reserve District, with an
estimated normal complement of 193,720 workers,
asking for employment data developed in the fol
lowing results:
Date
Sept. 1,1920
Sept. 1,1921
Number of
W age Earners
Men
191,285
W om en
17,940
Total
209,225
Men
W omen
145,163
16,742
Total
161,905
Pay roll
$17,948,421.81
$12,020,275.96
From the above tabulation it will be noted
that the number of employees o f the reporting
interests decreased 47,320 or 22.6 per cent between
the dates September 1, 1920, and September 1,
1921. On September 1, 1920 the number was 15,505
or 8 per cent above normal and on September 1,
1921, the total was 31,815 or 16.4 per cent under
normal. W ages figured on a semi-monthly basis
decreased $5,928,145.85 or 33 per cent between
September 1, 1920 and September 1, 1921.
F IN A N C IA L
Little change w orthy o f com ment has taken
place in the genera! financial and banking status of
the district during the past thirty days. Th e trend
of things noted in the preceding issue of this report
continued with considerable evenness, resulting in
but slight variation in figures covering the princi
pal items denoting financial fluctuations. Liquida
tion o f com m ercial indebtedness made further pro
gress, with paym ents in the South making a par
ticularly favorable showing. Some slow ing down
in collections was reported in the typical grain
areas, which is accounted for by the decline in mar
ket prices o f wheat, corn, oats and live stock.
Opening o f the tobacco markets is reflected in the
beginnings o f liquidation o f loans based on that
staple. Initial prices paid by tobacco buyers have
been good . T h e rice market has not opened suffi
ciently to materially affect the situation in sections
where that cereal is a leading crop. The demand
for m oney is reported holding up well, and com m er
cial banks are still able to place all their loanable
funds. Generally m oney is more plentiful, consider
able amounts being made available by com pletion
o f the m ovem ent and marketing of a large part of
the crops. A good portion of the slack thus created,
how ever, is being absorbed in loans for live stock
purposes, the demand from that source continuing
strong. Rates charged by the com mercial banks
have eased off, due to the less urgent demand. O c
tober settlements with com m ercial houses in the
large cities were heavy, and have resulted in cur
tailment o f banking com m ittm ents o f these inter
ests. T h e financial m ovem ent during the past
thirty days is reflected in the follow ing record o f
operations of the Federal Reserve Bank of St.
L o u is: Between O ctober 15 and N ovem ber 15 earn
ing assets decreased $14,252,000; net deposits de
creased $1,378,000; Federal Reserve notes in circu
lation decreased $829,000 and the reserve carried
against com bined Federal Reserve note and deposit
liabilities gained 2.7 per cent, standing at 65.6 per
cent on November 15 and 62.9 per cent on October
15. Between the same dates there was a decrease of
$4,908,062 in the amount of accommodations
granted member banks by this institution.
Dullness prevails in the market for commercial
paper, with conditions reversed as compared with a
few months back. Then there was ample paper and
few buyers, while now there is a scarcity of paper,
especially of the prime sort, and plenty of buyers.
A s is usually the case when rates decline, country
banks have withdrawn as buyers, and brokers rely
chiefly on the city financial institutions. Investors
are turning to bonds and other investments yield
ing better returns. Rates range from 5% to 6 per
cent, but relatively little paper is going at the major
figure o f the range, and some has been placed as
low as 5% per cent.
The market for bonds continues, with the de
mand described as better than at any time since
1916. Prices o f bonds have advanced from 2 to 12
per cent during the last sixty days, and bond
houses report difficulty in finding securities to fill
the demand. Several recent flotations of corpora
tion bonds of large size have been readily ab
sorbed, and the same is true of issues of South
American cities and countries. There has been no
diminution in the demand for U. S. Government
obligations of all sorts. This bank's quota of the
U. S. 4 % % Treasury Certificates, dated November
1, was $8,000,000 and subscriptions thereto were in
excess o f $22,780,000.
T he market for bankers acceptances during the
past thirty days has developed more activity than
for several months. Corporations with idle money
and desiring a quickly convertable investment, have
purchased fair amounts, and city banks have also
figured as buyers. Virtually all the bills figuring in
the negotiations have emanated from outside the
district. Rates on acceptances reflect the generally
easier tendency, ranging from 4% to 4%} per cent.
IN T E R E S T RATES
B etw een O ctober 16 and N ovem ber 15 the high, low and customary interest rates prevailing in St.
Louis, L ouisville, M em phis and Little R ock, as reported by banks in those cities were as follow s:
St. Louis______ Louisville______ Memphis______ Little Rock
H L C
H L C
H L C
H L C
Customers Prime Commercial Paper:
„
^
^ ^
0 ^ 7
0 7 7
30 to 90 days.................................................................. 8 5% 6%
7 6 6
8 6 7
8 7 7
4 to 6 months.............................. .................................. 7 5% 6%
7 6 6
8 6 7
8 7 7
Prime Commercial Paper purchased in open market:
„ , ^
^
f.,/
6 5% 5%
...............................................
30 to 90 days............................................... - ................. 6 5% 6
4 to 6 months.................................................................<3 5/^ 5/^
6 5% 5%
Loans to other banks........................................................... ^ 6 6/2
6 6 6
Bankers' Acceptances of 60 to 90 days:
^ ^ ^
Endorsed ..............- ........................................................4 ^ 4 ^
6 6 6
................ ................................
Unendorsed .....................................................................4% 4%; 4%
6 6 6
.....................
Loans secured by prime stock exchange collateral or
other current collateral:
R 7 R
y —
< -------------------------------------------------- —
i
Cattle Loans-------------------------------------------------------------- S ^
Commodity paper secured by warehouse receipts, etc— 7/2 o
Loans secured by Liberty Bonds and Certificates---------7 6
%
s
L/
0/^
6/%
^
?
o
:
6 6
^
:
r
r
8 6 7
7 6 7
r
{
?
8 7 8
8 7 8
!
C O N D ITIO N OF B A N K S
The condition of banks in this district and changes since a month ago and last year, are reflected in
the following comparative statement, showing the principal resources and liabilities of member banks
in St. Louis, Louisville, Memphis, Little Rock and Evansville:
Nov. 9,1921
Number of banks reporting................................................
37
Loans and Discounts (including bills rediscounted with
F. R. Bank):
Secured by U. S. Govt. Obligantions.............................$ 18,840,000
Secured by stocks and bonds other than U. S. Bonds.. 122,220,000
AH other loans and discounts.......................................... 297,871,000
Total loans and discounts..................................................... $438,931,000
Investments:
U. S. Government Bonds................................................ 29,642,000
U. S. Victory Notes................................- .......................
1,540,000
U. S. Treasury Notes.......... ............................................
185,000
U. S. Certificates of Indebtedness.................................
3,265,000
69,697,000
Other bonds, stocks and securities................- ..............
Tota! !oans, discounts and investments (including biHs
rediscounted with F. R. Bank)....................................... $543.260.000
Reserve Balance with F. R. Bank.....................................
40,309,000
Cash in vault..................—.................. - ...............................
7,574,000
Net demand deposits on which reserve is computed....... 294^362,&&0
Time deposits........................................................................ 148,964,000
Government deposits.........- .................................................
8,881,000
Oct. 12,1921
37
Nov. 12,1920
35
$ 19,220,000
118,549,000
300,952,000
$ 31,940,000
127,261,000
$438,721,000
$-
27.164.000
2.069.000
1.859.000
3.277.000
68.118.000
$541,208,000
38.121.000
7,168,000
285.854.000
147.066.000
15.539.000
29,805,000
2,735,000
"4*077^000
$595,510,000
40.350.000
10.066.000
301.465.000
129.563.000
571,000
D EBITS T O IN D IV ID U A L A C C O U N TS
The following table gives the total debits charged by banks to checking accounts, savings accounts
and trust accounts of individuals, Arms, corporations and U. S. Government and also certificates of deposit
paid, in the leading cities of this district during the past month and corresponding period a year ago.
Charges to the accounts of banks and bankers are not included. These figures are considered the most reli
able index available for indicating actual spending by the public during the periods which they cover.
Debits to depositors accounts for four weeks ending:
N O VEM BER
Nov. 16,1921
S t Louis..
............................$477,753,000
Louisville _
............................ 86,852,000
Memphis
............................ 126,295,000
Little Rock ...
----------------------- 44,035,000
East St. Louis & Nat. Stock Yards.. 34,607,000
Evansville --------------------------------- 20,981,000
Springfield --------------------------------- 11,119,000
Quincy -------------------------------------8,477,000
COM PARISON
November with October
Oct. 12,1921
% Inc.
or Dec.
$491,736,000
- 2.9
84,786,000
2.4
117,332,000
7.6
51,305,000
-14.1
31,541,000
9.7
19,628,000
6.9
11,203,000
- .7
7,970,000
6.3
C O M PAR ISO N
Nov. 1921 with Nov. 1920
Nov. 17,1920 % Inc.
or Dec.
-16.8
$574,349,000
108,283,000
-19.7
126,630,000
- .3
44,311,000
- .6
...
21,811,000
- 3.8
____
F E D E R A L R E SE R V E O P E R A T IO N S
In October the Federal Reserve Bank of St. Louis discounted $121,338,578 of paper for 320 member banks, which is a decrease of $8,092,669 under the amount discounted in September and a decrease of
5 m the number of banks accommodated. Acceptances purchased in October amounted to $753,948, a de
crease of $1,897,386 under the preceding month.
Effective November 3 this bank reduced its discount rates on all classes and maturities to 5 per
cent
(Compiled November 19, 1921)
@FedFRASER