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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REVIEW OP GENERAL B U SIN E SS CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Released for Publication On and After the Afternoon of November 30, 1923 W IL L IA M M cC . M A R T IN CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT H E past thirty days have developed no sharp contrasts in general business in this district as compared with the similar period imme diately preceding. Irregularity continues to feature trade, reports from leading interests in certain lines indicating fair activity, while in other classifications there is a tendency to slow down. A lm ost univer sally the com m ent is made that purchasing of com modities is on an extremely cautious and conserva tive basis. The total volum e of distribution of merchandise is large, but orders being placed cur rently are for the most part small, and represent well defined needs. Stocks in all positions are in healthy condition and retailers in both the large cities and country are keeping up their assortments. The demand from ultimate consumers is holding up well, and the quality of merchandise called for is as a rule better than during the corresponding per iod a year ago. In the immediate past, however, there has been some reaction on the part of the public against price advances in textiles, particularly in the case of goods based on cotton. Uncertainty relative to styles is having a tendency to hold back purchasing of boots and shoes and wearing apparel. W holesalers show ing holiday goods report re sults in the main satisfactory, though the volume o f future ordering is somewhat under that of past seasons. T h e advent of cooler weather has served to stimulate the movement of typical winter mer chandise with the exception o f fuel, which continues dull. There were further recessions in output of certain manufacturing lines, notably iron and steel. In this classification shipments are in excess of new business and unfilled orders were materially re duced. Throughout October, purchasing of pig iron in this district was unusually backward, but further price concessions since the first week in Novem ber have resulted in the placement o f sub stantial tonnaees. A number of im portan t melters, who for several months past have held consistently aloof from the market, are now covering on their requirements for the balance o f this year and into the first quarter o f 1924. Changes in the employment situation were not marked, and largely seasonal in character. Leading industries, according to the Em ploym ent Service of the U. S. Departm ent o f Labor, are em ploying nor mal forces for this period of the year, although dullness prevails in some lines. There are sufficient building mechanics in the larger centers, except St. Louis, where construction operations are on a large scale. Road building and farm labor requirements are still a big factor in the call for unskilled labor, T although heavy rains have retarded outdoor work in some sections. In the lead and zinc mining areas activity was fairly well maintained, but the lack of demand for soft coal is reflected in further curtail ment of production in all fields of the district. Many mines in Southern Illinois have been w ork ing only two to three days per week. Consumption of electrical power by industrial users in the five largest cities of the district during O ctober showed a slight gain over the September total and was 14.7 per cent in excess of October, 1922. Marketing of farm products has been on a liberal scale, and while prices realized by producers were not uniform ly satisfactory, agriculturists in many sections are liquidating their indebtedness. The recent advance in cotton prices is reflected in increased optimism and actual purchasing o f com modities in the South. W holesalers in the chief jobbing centers report an unusually heavy volume of reordering by Southern customers. In many im portant cotton grow ing sections, however, the out put is very light, and the movement to market is slow, due to lateness of the crop and lack of demand from consumers. T obacco, both in the burley and dark sections, is being* stripped and prepared for the markets, which will open during the next few weeks. Cereal prices declined rather steadily dur ing the period under review, December wheat in the St. Louis market falling from $1.10% on O c tober 15 to $1.04 on N ovem ber 15 and Decem ber corn from 79V%c to 7 6 ^ c. December oats were down 2c per bushel, closing at 43}4c on N ovem ber 15. Values of cash grains were proportionately lower. W ith the exception of cotton, which deterior ated somewhat during October, the period under review brought no marked changes in crop condi tions. The N ovem ber 1 report of the U. S. Depart ment of Agriculture for the most part verified estimates of the preceding month for production of leading crops in states of this district. The outturn of corn will be larger in bushels than a year ago, but there are numerous complaints of poor quality, due to unfavorable weather and insect damage. According to the Department’s report, the average yields per acre of all crops combined in states wholly or partly in this district, duly weighted, compared writh the average for recent years, was 91.03 per cent, against 97.4 per cent last year, 103 per cent in 1921 and 93.2 per cent in 1920. Gen erally favorable conditions have attended gather ing and marketing of late crops, and weather has been auspicious for farm w ork and live stock. In the matter o f car loadings, the performance o f railroads operating in this district continues to surpass all previous years for this particular season. All roads reporting show gains over the preceding month, also over the corresponding period last year. A ccording to the American Railw ay A ssociation, total loading for the country as a w hole for the week ended O ctober 27 was 1,073,965 cars, a gain o f 1,084 over the preceding week and o f 74,247 cars for the corresponding week in 1922. T h e St. Louis Terminal Association, which includes in its mem bership 26 roads operating through this gateway, interchanged 226,242 loads in O ctober, the largest single m onth’s total on record, and com paring with 220,169 loads in September, 217,651 loads in A ugust and 209,036 loads in October, 1922. D uring the first nine days o f N ovem ber 66,020 loads were inter changed, against 64,337 loads during the first nine days o f O ctober and 64,767 loads during the cor responding period a year ago. Passenger traffic o f reporting roads, while continuing to increase, showed a lower rate o f gain in O ctober than during September, the betterment being 6 per cent in O c tober against 17 per cent in September over the same months in 1922. Quietness and lack o f interest on the part o f consumers were the outstanding features in the fuel situation during most o f the period under review. There were reports o f additional mines closing down, and reductions of outputs by active pits. Demand centers largely in the cheaper grades o f coal for household consumption, and steaming users are not making their wants known. Con tracting is considerably under normal for this sea son, and yards are well stocked. B y-product coke manufacturers report slowness in the movement of both metallurgical and domestic sizes, and stores at ovens are augmenting in size. In the imme diate, past, cooler weather has stimulated the retail trade to some extent. Production o f bituminous coal for the country as a w hole during the first 260 working days o f 1923, or to N ovem ber 3, was 467,300,000 tons, against 322,588,000 tons for the corresponding period in 1922, 353,327,000 tons in 1921 and 499,955,000 tons in 1918. Production o f automobiles for the country as a whole during O ctober showed a continuance o f the large gains made each month during 1923 over the same periods last year, and com bined output of passenger cars and trucks increased 8.4 per cent M A N U F A C T U R IN G Boots and Shoes— Sales o f the 11 reporting interests during O ctober were 4.8 per cent larger than for the corresponding month in 1922, and 23.8 per cent in excess of the September total this year, the latter change largely seasonal. W h ile the policy of buying for immediate needs continues general, orders for future shipment are proportionately larger than earlier in the season. Prices were unchanged, save in the case of several interests which reduced quotations on certain lines in order to stimulate their movement. Some grades of leather were easier, but the general run o f raw materials holds steady. Orders received from sales over the September total. Manufacturers reporting direct or through the Autom obile Chamber o f Com merce built 334,244 passenger cars in October, against 298,600 in September. T h e O ctober pro duction of trucks totaled 29,638 against 27,841 dur ing the preceding month. A ccordin g to reports o f 230 dealers scattered through the district, dis tribution o f new cars in O ctober was about 10 per cent in excess of the same month in 1922, but slightly under the September total this year. Com ment is made upon the steadily grow ing demand for closed cars o f all makes, while touring models are being neglected. Trade in accessories is rela tively more active than in automobiles, which fact is partly attributable to special selling and advertis ing campaigns. Tires continue slow, both in the retail and fobbing departments o f distribution. U n certainty relative to prices has a tendency to hold down purchases o f dealers to absolute requirements. The used car market shows slight improvement, stocks being described as normal for this season, and less in number and value than a year ago. Reports relative to collections show rather spotted conditions, particularly with reference to locality. In the grain sections the liquidation o f crops has resulted in extensive settlements bv farm ers, and in the cotton sections pavments have been on a satisfactory scale. Some backwardness is noted in the minine fields, and retailers in the laree cities report a slowing- down as contrasted with the preceding: thirty days. O ctober settlements of wholesalers particularv boot and shoe and dry eoods. were lanre. and resulted in some reduction bv these interests of their commitments at the banks* Answers to 355 questionnaires addressed to representative interests in various lines throughout the district show the following- resu lts: 0.9 per cent excellent; 35.3 per cent g o o d ; 57.1 per cent fair and 6.7 per cent poor. Commercial failures in the Eighth Federal Reserve D istrict during- O ctober, according- to Dun's numbered 84, involving liabilities of $1,308,833 against 71 defaults with liabilities o f $536,652 in September and 91 failures for $1,661,606 in October, 1922. The per capita circulation of the United States on Novem ber 1 was $43.27, which compares with $43.45 on October 1 and $41.44 on N ovem ber 1, 1922. AND W H OLESALE men on the road during the opening weeks of November were reported satisfactory. Factory operation was at from 85 to 1*00 per cent o f capacity, Clothing— In contrast with a satisfactory demand for goods for nearby delivery, spring lines have met relatively poor response and business in the latter category booked for the season thus far is less than for the corresponding period last year, Spring lines being shown exhibit only m inor price variation as contrasted with current levels. W hile the demand in the main has been fully up to ex pectations, retailers and the ultimate consumers are being governed largely by prices in theifr pur- chasing, and this has resulted in a number o f manu facturers being obliged to absorb additional costs. The advent of cooler weather has stimulated the movem ent of finished w oolens and worsteds, but the com m ent is made that w om en’s wear is selling more satisfactorily than m en’s garments. O ctober sales o f 14 reporting interests were 14.4 per cent larger than for the same month in 1922, and 22.4 per cent under the preceding month this year, the latter change being largely seasonal. Labor is plentiful and factory operation was at from 80 to 100 per cent of capacity. Manufacturers of men’s hats report a seasonal decrease during O ctober and sales for that month as compared with a year ago show a decrease of 0.7 per cent. B ookings of straw hats for spring have exceeded the capacity of several manufacturers. Iron and Steel Products— A n easier trend in prices for both finished and raw materials in this classification has caused a hesitancy on the part of consumers, and there is a general disposition to purchase on an extremely conservative basis. Mills and foundries through the district report that new commitments have im proved in spots, but the total volume is still under shipments, which fact is re flected in a further reduction of unfilled orders. Ordering o f finished iron and steel for first quarter delivery is considerably under normal for this sea son, and' the same is true of pig iron. Throughout O ctober the pig iron market was dull and easier, additional price declines failing to bring out order ing. D uring the first tw o weeks of N ovem ber, however, there was an excellent revival in pig iron purchasing, larger tonnages being placed during the first half of the month than during the six to eight weeks immediately preceding. No. 2 Southern iron, 1.75 to 2.25 per cent silicon, declined to $18.50 per ton, furnace, and Northern iron of the same grade was obtainable at as low as $22.50. Buying by the railroads was somewhat more active, sales of track materials and materials for repairing, equipment and buildings being in fair volume. The demand from the autom otive industry, while under recent months, is well in excess o f a year ago. Fabricators o f building materials report a falling off in specifications, and no improvement in the demand for drilling and general materials for the oil fields was noted. In tin plate, where the price for the first quarter of 1924 has been reaffirmed, there has been g o o d ordering. E xcept for an ad vance o f 50c per day to moulders in job foundries in the St. Louis district, no change in wages was reported. O ctober sales o f stove manufacturers, 7 interests reporting, were 5.7 per cent larger than for the same month in 1922, and unchanged from the preceding month this y ear; wire products man ufacturers, 5 reporting, showed a decrease of 6.7 per cent in O ctober sales under a year ago and 3 per cent under the preceding month this y e a r ; rail way supplies, 5 reporting, gained 39.8 per cent over O ctober, 1922, and 8.2 per cent over September this year; farm implement makers, 6 reporting, gained 8 per cent over October, 1922, but showed a decrease of 2.4 per cent under September this year; manu facturers o f boilers, stacks, elevators and other mis cellaneous products, 8 reporting, gained 34 per cent over O ctober, 1922, but decreased 7.3 per cent under September this year. Fire-Clay Products— A ctivity in refractories has been stimulated by the recent lull in demand for steel, the consequent blow ing out of stacks being the occasion for relining a g ood ly number of open hearth furnaces. There has been a brisk demand for cement kiln lining blocks, and the lime industry has taken large tonnages. Bung arches and 9 inch straights have m oved in g ood volume, but square edge tile and special shapes are in only fair demand due partly, manufacturers say, to a lull in new construction on a large scale and to the depression in the oil industry. A $3 reduction in M issouri No. 1 brick, a similar cut in the intermediate grade and a $5 drop in M issouri high grade were effective the middle of October. Reports of five representa tive interests show O ctober business as 14.8 per cent in excess of the same month a year ago and 14.6 per cent over September, 1923. Orders booked by reporting firms during the first twenty days of N ovem ber indicate a total for that month approxi mately 12 per cent in excess of October. Hardware— O ctober sales o f the 12 reporting interests were 6.3 per cent larger than for the same month in 1922 and 4.8 per cent in excess of Sep tember this year. Current orders are reported sat isfactory, and in some sections retail merchants are increasing their commitments for forward delivery. Retail stocks are being kept up well, and seasonal goods are m oving in large volume. The demand for building hardware has slowed down somewhat, but is fully equal to this time last year. Some reordering o f hunters’ supplies is noted, and the call for roofing materials, paints and kindred lines is reported fair. Prices average about steady, de clines offsetting advances through the line. Electrical Supplies— Business under this classi fication is reported generally satisfactory, sales of the 12 reporting interests during October being 10.6 per cent larger than for the same month in 1922 and 5.8 per cent in excess of the September total this year. Ordering o f radio sets and fancy lamps has been stimulated by the approach of the holiday season. Some recession in the demand for special wiring devices is noted, and there is the usual sea sonal slow ing down in outside construction w ork by public utilities companies. Aside from a slight reduction in bare and insulated copper wire and cables, no price changes were reported. Flour— Production o f the 11 leading mills of the district during O ctober was 446,009 barrels, the largest in more than tw o years, and comparing with 411,018 barrels in September, 433,218 barrels in August and 365,841 barrels in October, 1922. Busi ness during m ost of the period under review was described as dull and unsatisfactory. Aside from routine orders from Latin-American countries, the export trade was almost at a standstill, Cable offers for export to Europe brought no replies or bids too far out of line to result in workings. The domestic demand was confined to small lots, mainly from regular customers of the mills. Plant operations were at from 65 to 90 per cent of capacity. D ry G oods— T he outstanding feature in this classification was a general upward revision through the list of cotton goods. Price advances affected virtually all the chief items and were particularly notable in sheetings, print cloths, denims and ducks. Higher quotations on finished materials were in sympathy with the sharp upturn in raw cotton, which touched a new high on the crop. Ordering for future delivery has been stimulated somewhat by the price advance, and another effect has been a disposition on the part of spinners and weavers to withhold quotations on goods for forw ard ship ment. Further downward adjustment in silk prices took place during early Novem ber, and the market for goods based on that staple continues unsettled. Ordering of holiday lines of toys and neckwear is reported only fair, retailers being disposed to post pone purchasing as long as possible. O ctober sales of the 11 reporting interests decreased 6.8 per cent under those of the same month in 1922, and were 20.4 per cent below the September aggregate this year. Milliners report a slight slowing down in business, which they ascribe to uncertainty relative to prices and styles. Their O ctober sales fell 12.7 per cent below the same month last year. Groceries— Reports from different sections of the district exhibit striking irregularity, but in the aggregate business in this line is better than at any time since last spring. Canned goods are m oving in satisfactory volum e in spite of large fruit and vegetable crops in many sections. Coffee is in ex cellent demand, with prices firm, except in the lower grades. Sugar is weak, due largely to in-* creased offerings of Louisiana and western beet sugars at slight concessions. Many retailers have increased stocks in anticipation of holiday demand, but withal the quantity of goods in retailers’ hands is not above normal for this season. O ctober sales of 20 representative interests exceeded those of the same month a year ago by 4.5 per cent and were 8.6 per cent in excess of the September, 1923, total. Drugs and Chemicals— O ctober sales of the 11 reporting interests were 7.2 per cent in excess of the same period in 1922, and 7.9 per cent larger than the preceding month this year. Routine sales were supplemented by the opening of an unusually large number of new retail drug stores, the past three months witnessing more activity in this direc tion than noted during the past several years. Gen erally through the list of drugs and chemicals, the tendency was toward greater stabilization in values. An exception was Japanese products, some of which have sustained sharp advances since the earthquake. A slowing down was noted in the demand for heavy chemicals from manufacturers. Furniture— Reports indicate extremely spotted conditions, some cities showing gains while others exhibit losses as compared with a year ago. Univer sally the comment is made that buying is on a hand-to-mouth basis, and has decreased perceptibly in volume since the end o f October. M any retailers are holding off in anticipation of low er prices, par ticularly on household furniture. Raw materials hold very firm, particularly lumber and glass, which continue in large demand from the automotive in dustry. Stocks in all positions are low , there being a disposition to hold down inventories, both on the part of jobbers and retailers. Sales of the 24 re porting interests in O ctober were 2.3 per cent less than for the same month in 1922, and 3.5 per cent in excess of September this year. Lumber— The situation in this industry has un dergone seasonal change since the preceding issue of this report. There was a premature decline in the autumn wholesale demand for building lumber, de spite the good and continued retail distribution. H ardwood buying has decreased sharply since N o vember 1. L og gin g conditions and the log supply have been good for several weeks, and production and shipments of hardwood are running large. Prices have weakened in sympathy with decreased buying. N ot a great deal of stock is being pushed for sale. The great bulk of offerings in building lumber is made up of transit cars and surplus items of Southern pine. These are being dumped, rather than sold, on the market and prices obtained bear little relation to those prevailing for mixed cars, or that the mills would quote on a line of stock. Except vertical grain flooring, m ajor items in the W estern fir list are also more or less affected in price by the present slack demand. Y ellow cypress is exhibiting further weakness in the upper grades. Industrial P ow er Consumption— The demand for electricity for industrial purposes, which during September exhibited a 7.1 per cent decrease under the preceding month, the first such decrease since last February, has again turned upward. O ctober not only showed an increase as compared with Septem ber, but a gain of 14.7 per cent over October, 1922. September’s increase over the corresponding month last year was 11.7 per cent. Evansville .. Little R o c k .. Louisville . . . Memphis . . . St. Louis........ T o ta l.. Representative Customers 40 11 67 31 68 217 Oct. 1923 1,053,868 k.w.h. 852,853 “ 4,282,760 “ 1,146,220 “ 14295,947 “ 21,631,648 “ Sept. 1923 1,043,358 k.w.h. 808,314 “ 4,414,647 “ 1,002,960 “ 14,097,981 “ 21,367,260 “ Oct. 1923 comp, to Sept. 1923 + 1.0% + 5.5 - 3.0 +14.3 + 1.4 + 1.2 1 Oct. 1922 882,476 k.w.h. 626,606 “ 3,562,968 “ 1,007,280 “ 12.776,949 “ 18,856,279 “ Oct. 1923 comp, to Oct. 1922 +19.4% +36.1 +20.2 +13.8 +11.9 +14.7 Retail— The condition o f retail trade is reflected in the following statement, compiled from reports of 22 representative department stores: Evans ville (Percentages) Little Rock Louis ville . St. Memphis Quincy* Louis Spring- 8th held District Net Sales: Period July 1 to Oct. 31, 1923, compared with same period in 1922............................................................. Stocks on hand at end of Oct., 1923: Compared with Oct., 1922................................................. Compared with stocks at end of Sept., 1923................. Average stocks on hand at end of each month since July 1, 1923, to average monthly sales during same period .... Outstanding orders at close of Oct., 1923, compared with purchases for calendar year 1922............................ +20.8 +L8.2 +10.3 + 7.1 + 9.7 + 9.2 + 7.6 + 9.0 +13.6 +22.3 + 5.6 + 8.6 +14.3 +10.2 +17.5 +10.8 + 8.3 + 8.9 +28.9 + 7.1 + 5.1 +12.4 +22.4 + 5.5 +12.4 + 4.1 + 15.0 + 3.5 +23.3 + 3.0 +16.1 + 5.7 725.8 649.0 510.4 561.1 509.8 426.3 522.3 493.2 3.7 6.9 5.8 11.9 6.6 6.6 7.4 ♦Disparity in Quincy figures as compared with a month ago i due to failure of one firm there to report. A com parison of October iigures with September indicates that retail demand is hardly m aintaining its pace of the past few months. In crease in net sales during September as com pared with a year ago was 10.1 per cent versus 9.0 per cent fo r October. Norm al seasonal upturn in demand, however, has enabled merchants to quicken their turnover from 509.3 fo r September to 493.2 fo r October. Heavy deliveries o f goods on order in anticipation o f fa ll and holiday buying has reduced outstanding orders from 9.8 per cent for September 30 to 7.4 per cent at end of October. A G R IC U L T U R E Reports relative to the winter wheat crop are in the main favorable. T h e plant has a g ood stand and color, and with ample moisture in the soil will g o into the winter in a strong position. Immunity dates from Hessian fly were closely observed in seeding, and m ore attention has been given to seed quality than in past seasons. U nofficial estimates place the acreage at from 10 to 15 per cent under last season. H usking and cribbing of corn is m aking good progress, but is backward, due to lateness of the crop and heavy autumn rains. Reports relative to quality reflect very uneven conditions, there be ing a large amount o f low grade and m oist corn in a number of important producing areas. In Illinois the merchantable quality of the crop is 79 per cent, com pared with 90 per cent of the 1922 crop and the average o f 83 per cent. The proportion mer chantable in M issouri is 81 per cent, which is below last year. In Arkansas the yield per acre was 15.5 bushels and total production 32,782,000 bushels, which was only about half the crop of 1917 and other favorable years. Corn of merchantable qual ity in Arkansas is estimated at 68 per cent of the total output, and will not meet the needs of live stock within that state. O f the total crop of 185.300.000 bushels in Indiana, 78 per cent, or 144.534.000 bushels, is of merchantable quality. The Kentucky corn crop was slightly larger in size than that o f 1922, but quality this year is 80 per cent against 83 per cent last season. Late fruits have turned out better than ex pected, especially in point o f quality. During the final weeks o f the season conditions were favorable for developm ent o f apples, particularly in Illinois, and yields in well cared for orchards have been high as a rule. The Illinois state apple crop is estimated at 7,357,000 bushels, which compares with the average o f 4,779,000 bushels, and the commer cial crop is placed at 981,000 barrels. The total apple crop in Indiana is estimated at 5,035,000 bushels and the commercial crop at 252,000 barrels, [n M issouri the total yield was smaller by 17 per cent than last year, with the commercial crop total ing 706,000 barrels against 1,250,000 barrels in 1922. In Arkansas the crop is 55 per cent o f normal and commercial production 544,500 barrels. The yield o f white potatoes in the principal producing states o f the district was much in excess of last year, and quality as a rule is high. In Illinois the total output was 10,948,000 bushels against 7,497,000 bushels in 1922; in Missouri 9.207.000 bushels against 5,400,000 bushels in 1922; in Indiana, 7,875,000 bushels against 5,624,000 bushels in 1922 and Tennessee, 2,880,000 bushels against 2,560,000 bushels in 1922. Sweet potatoes and peanuts have turned out well, and marketing of these products is proceeding on a generally sat isfactory basis. The total production of tobacco of all types in Kentucky is estimated at 476,280,000 pounds, against 446.250.000 pounds in 1922, and the yield per acre, 840 pounds against 859 pounds the year before. The Tennessee tobacco crop totals 111,540,000 pounds against 94,250,000 pounds in 1922, and the yield per acre 780 pounds this year against 772 pounds in 1922. Indiana produced 19,800,000 pounds against 16,200,000 pounds in 1922. For the first time in many years tobacco was grow n commer cially in Boone and Benton counties, Arkansas. In Missouri tobacco yielded 1,100 pounds to the acre, or 7,700,000 pounds against 4,500,000 pounds in 1922. Quality in many of the leading grow ing areas is somewhat under that of last season, due to unfavorable weather during the planting and grow ing seasons, and damage from wild fire and other sources. The leaf is being stripped and pre pared for the great markets, which will open within the next few weeks. Approxim ately 90 per cent o f the rice crop in Arkansas has been harvested and shocked, and threshing is now in progress. Some damage was done to this crop by early frost, but weather has been favorable for harvest and threshing and rice being stored or marketed is in excellent condition. Demand is strong and marketing conditions all that could be desired. Prices range from $1.10 for low grades to $1.35 per bushel for the best varieties. Farm labor supply is reported adequate through the district. In the Northern sections, fall opera tions on farms have been delayed somewhat by wet weather, but generally the average amount o f w ork completed is normal for this season. Sporadic out breaks of hog cholera are reported, but nowhere has the disease gotten beyond control. Generally the condition of livestock is good. The U. S. Department of Agriculture gives the condition of corn and tobacco as follow s: Corn Illinois ......... . Indiana ........ . Kentucky . . . . Mississippi... . Missouri........ . Tennessee.. . . Yield Per Acre 1923 Prelim. 10 yr. av. Bu. Bu. 33.5 37.5 38.5 36.0 26.9 28.5 17.6 14.5 26.1 30.0 24.5 24.9 P roduction * 1923 Prelim. Bu. 337,312 185,300 89,632 35,960 191,880 73,941 Harvested 1922 Bu. 313,074 176,3*05 88,060 51,065 175,275 75,440 F a r m P rice 5 yr. av. 1917-21 Bu. 338,259 181,607 94,542 57,601 186,377 89,033 Quality 1923 1922 % % 79 78 80 76 81 80 90 88 83 82 84 81 83 83 88 88 P er B u . 1923 cents 74 70 88 110 85 100 1922 cents 56 54 70 81 63 76 T ob acco Kentucky . . . . Tennessee.. . . Lbs. 840 780 Lbs. 476,280 111,540 Lbs. 859 772 Lbs. 445,022 85,308 Lbs. 446,250 94,250 *In thousands (000 omitted). C O M M O D IT Y P R IC E S Range o f prices on typical products in the St. Louis market between O ctober 15 and N ovem ber 15, 1923, with closing quotations on each of these dates, and on Novem ber 15, 1922: Per bu. $1.10% 1.13# 1.08# .7 7 # 1 .14# 1.08J* .8 0 # 77Vs Low $1.03% 1.08# 1.04 .72% .70% ,7 5 # .4 3 # .76% .44 .4 6 # 1.18 1.10 1.11 1.14 .4 6 # 6.25 6.35 .3 3 # 7.90 .4 1 # .4 6 # 1.09 1.05 .90 .92 .4 2 # 5.25 5.75 .2 9 # 5.00 .7sy2 . . . . . $1.17 1.10 1.09 1.10# Perbbl. “ “ Per lb. Per cwt. .4 5 # 5.25 6.10 6.50 @ High $1.10% Close Oct. 15 December wheat............... May wheat........................... July wheat......................... December corn ............... May c o r n ....................... July corn ............................ December oats ................. May oats ........................... No. 2 red winter w heat.. No. 2 hard wheat............. No. 2 corn........................... No. 2 white corn............... No. 2 white oats............... Flour: soft patent............. Flour: spring patent......... Middling co tton ................ Hogs on hoof..................... 1.20 1.12 1.09# 1.12 .46 6.25 6.20 29# 8.25 .71# Close Nov. 15 $1.04 1.09 1.04# .7 6 # .7 3 # .7 3 # .4 3 # .46 $1.10 @ 1.13 1.05 @ 1.05# 1.02 1.03 .45 5.25 @ 6.25 5.85 @ 6.00 .3 3 # 5.25 @ 6.90 Close Nov. 15,1922 $1.18# 1.16# 1.06# .7 0 # .7 0 # ,7 0 # .45 .4 4 # $1.27 @ 1.31 1.21 @ 1.22 .72 .7 2 # @ .7 1 # @ .7 3 # .4 5 # .4 5 # 6.00 @ 7.00 6.45 <2 6.50 .2 6 # 7.00 @ 8.40 C O M M O D IT Y M O V E M E N T Receipts and shipments of important commodities at St. Louis during October, 1923, and 1922, and September, 1923, as reported by the Merchants’ Exchange, were as follow s: Flour, ba rrels..................... Wheat, bushels ................. . Corn, bu sh els..................... . Oats, bushels ..................... . Lead, pigs ........................... Zinc, slabs ......................... Lumber, cars ..................... Pork products, pounds..,. Dressed beef, pounds----Lard, pounds ..................... Hides, pounds ................... . Oct. 1923 524,460 3,141,130 1,997,527 3,580,000 118,520 196,390 21,834 25,691,800 3,762,600 7,291,200 9,967,100 Receipts Sept. 1923 438,600 3,028,086 2,406,714 3,184,320 132,820 157,860 18,172 23,564.800 1,069,300 6,311,800 5,466,800 Oct. 1922 417,850 3,945,936 2,524,600 2,820,000 372,350 244,140 13,659 22,967,100 102,900 5,247,200 4,790,100 Oct. 1923 630,380 2,454,520 1,110,410 2,745,560 176,290 184,130 14,986 35,140,000 32,523,100 9,734,600 12,166,500 Shipments Sept. 1923 527,920 2,962,030 1,473,980 2,312,320 151,410 136,380 12,815 31,363,000 24,446,000 10,019,700 8,960,300 Oct. 1922 638,450 3,069,580 2,066,690 2,084,905 288,190 270,120 10,834 31,319,300 21,949,800 10,868400 6.550,300 L IV E STO C K M O V E M E N T As reported by the St. Louis National Stock Yards, receipts and shipments o f live stock in October, 1923, and 1922, and September, 1923, were as fo llo w s: Cattle and Calves................... H o g s ............................................ Sheep .......................................... Horses and Mules................... Oct. 1923 197,147 479,708 52,714 13,366 R e c e i p t s _______________ Oct. 1922 Sept. 1923 165,388 207,283 374,760 295,819 59,854 53,861 7455 13,798 Oct. 1923 116,891 314,690 25,257 11,564 Shipments Sept. 1923 117,264 259,647 33,275 7,941 Oct. 1922 129,420 185,872 22,889 13,236 B U IL D IN G T he value of permits for new construction issued in the five largest cities of the district during October showed a sharp decrease as compared with the September total, also as compared with October, 1922. O nly once before this year, in July, was the monthly total under that of the corresponding period in 1922. The total for the first ten months of 1923, $63,582,330, represents an increase of 30.2 per cent over the $48,832,337 aggregate for the corresponding period in 1922. Numerically the permits issued in O ctober were greater than either September this year or October, 1922, indicating that small residential construc tion continues to head the list of new building enterprise. W ork on buildings under w ay has been pushed under favorable weather conditions, and labor in the building industry continues well employed. Production of portland cement for the country as a whole in O ctober established a new high record, the total being 13,350,000 barrels, against 13,109,000 barrels in September and 12,286,000 barrels in October, 1922. Comparative figures for O ctober follow : New Construction Cost Permits St. Louis................. Louisville ............... Memphis ................ Little Rock............. Evansville .............. Oct. totals............... Sept. totals............. Aug. totals.............. 1923 968 313 391 92 142 1,906 1,739 1,869 1922 785 262 341 67 58 1,513 1,461 1,539 1923 $1,711,270 766,094 988,260 252,565 269,320 $3,987,509 8,012,187 6,329,872 3922 $2,683,245 690,725 2,137,360 161,750 219,527 $5,892,607 4,919,432 4,725,260 Repairs, etc. Cost Permits 1922 1923 1923 $400,425 578 635 82,168 136 103 28,990 70 83 74,133 193 153 15,040 75 86 $600,756 979 1,133 533,764 912 1,029 588,249 933 1,075 1922 $274,038 ‘ 53,575 41,460 66,526 25,431 $461,030 464,610 691,337 F IN A N C IA L The trend o f interest rates is easier, accom m oda T he demand for credits for general purposes, tions by commercial banks to customers averaging while somewhat less brisk than heretofore, con about one-fourth of one per cent lower than thirty tinues fairly active, and total loans of member banks days ago. Between O ctober 15 and N ovem ber 15 increased slightly during the period under review. there was an increase of $823,506 in the amount of Country banks have materially reduced their com paper discounted by this bank for its members and mitments with city correspondents, reflecting ex a gain of $290,000 in Federal Reserve notes in cir tensive marketing o f crops and settlements by farm culation. T otal reserves carried against Federal ers. In the large cities o f the South loans have Reserve note and deposit liabilities decreased 0.6 increased, due to heavy seasonal requirements for per cent, standing at 54.5 on N ovem ber 15. m oving the cotton crop. Needs for financing the Commercial Paper— An active demand through tobacco crop are making themselves felt, and are reflected in heavier borrow ings in Louisville and out the month resulted in O ctober sales of report elsewhere in the tobacco belt. There has been no' ing brokers show ing an increase o f 71.3 per cent change w orthy of note in grain and milling require over the same period in 1922 and a gain of 18.2 per ments, though the heavier movement of corn in the cent over the preceding month this year. Banks in immediate past has resulted in some borrow ing on the large cities, particularly St. Louis, were large that account. T he demand for funds from mer buyers, and while country institutions were also in cantile sources is follow in g the routine course noted the market, the demand from that source was spotted and less active than during the preceding at this particular season. O ctober settlements with thirty days. A slow ing down in business has taken wholesale and jobb in g interests were heavy, and place since N ovem ber 1, due more to lack of offer there was some increase in deposits, though this ings than to any recession in the demand. Prevail item is under the level o f the corresponding period ing rates on commercial paper during O ctober a year ago. A feature o f the activities of this insti tution during the past month has been the large ranged from 5 to 5}4 per cent, but since N ovem ber 1, the trend has been lower, some choice names volum e o f bill o f lading drafts, largely covering selling at per cent. cotton shipments, discounted for member banks. SA V IN G S D E P O S IT S St. Louis............... Louisville ............. Memphis .............. Little Rock........... Evansville ............. Total............... ♦Decrease due to Number Banks Reporting 12 7 5* 5 4 33* consolidation. Nov. 7,1923 Number Amount Savings Savings Accounts Deposits 256,817 $73,216,000 148.573 24,725,000 66,169 17,736,000 7,102,000 27,819 24,465 8,962,000 523,843 $131,741,000 Oct. 3,1923 Number Amount Savings Savings Deposits Accounts 256,062 $72,315,000 163,375 23,559,000 67,722 18,131,000 27,370 7,125.000 24,462 8,998000 $130,128,000 538,991 Nov. 1,1922 Amount Number Savings Savings Deposits Accounts $67,204,000 243.362 21,447.000 141,568 14,503.000 57,930 6,332.000 25,014 8,572,000 22,215 $118,058,000 490,089 D E B IT S T O IN D IV ID U A L A C C O U N T S For four weeks ending Nov. 14,1923 E. St. Louis and Natl. Stock Yards, 111........ $44,755,000 6.884.000 El Dorado, Ark 28,558,000 Evansville, Ind. . Fort Smith, Ark. 14,489,000 Greenville, Miss. 3,915,000 Helena, Ark.......... 6,363,000 Little Rock, Ark. 65,567,000 Louisville, Ky. . 140,914,000 Memphis, Tenn. 154,880,000 Owensboro, Ky. 5,022,000 Quincy, 111............ 9,734,000 St. Louis, M o ... . 642,794,000 Spring'fi^y, Mo. 14.203,000 Totals. . . . For four weeks ending Oct. 17, 1923 $43,347,00*0 7,362,000 29,680,0*00 13,699,000 3.420,000 4.999,000 63,321,000 143.334,000 135,925,000 5,597,000 10,029,000 636,143,00*0 14,232,000 Nov., 1923 comp, to Oct., 1923 + 3.2% — 6.5 — 3.8 + 5.8 +14.5 +27.3 + 3.5 - 1.7 +13.9 — 10.3 — 2.9 + 1.0 — 0.2 T “0 For four weeks ending Nov. 15. 1922 $40,397,000 28,986.000 14,066.000 4,130.000 8,318,000 61,703.000 130,022.000 161,199,000 4,646,000 9,358.000 572,923,000 12,324,000 Nov., 1923 comp, to Nov., 1922 +10.8% — is " + 3.0 — 5.2 -2 3 .5 + 6.3 + 8.4 — 3.9 + 8.1 + 4.0 +12.2 +15.2 + 7.9 Condition o f Banks—-The condition of banks in this district and changes since a month ago and last are reflected in the follow ing comparative statement showing the principal sources and liabilities of reporting member banks in Evansville, Little R ock, Louisville, Memphis and St. L ouis. 3^ear, Nov. 7, 1923 Number of banks reporting................................................................ *35 Loans and discounts (including rediscounts)............................... Secured by U. S. Government obligations........................... $ 12,756,000 Secured by stocks and bonds other than U. S. Bonds.. . 142.925.000 All other loans and discounts................................................... 316.367.000 Total loans and discounts.................................................................. $472,048,000 Investments U. S. pre-war bonds....................................................................... 15.192.000 U. S. Liberty bonds....................................................................... 23.433.000 U. S. Treasury bonds.................................................................. 6,808,000 U. S. Victory notes and Treasury notes................................. 17.862.000 U. S. Certificates of Indebtedness........................................... 5.325.000 Other bonds, stocks and securities........................................ 85.212.000 Total investments..................................................................................... $153,832,000 Reserve Balance with Federal Reserve Bank............................. 37.054.000 Cash in vault........................................................................................... 8.304.000 Net demand deposits on which reserve is computed................ 330.855.000 Time deposits............................................................................................. 192.297.000 Government deposits............................................................................. 4.220.000 Bills payable and rediscounts with Federal Reserve Bank Secured by U. S. Government obligations............................. 14.134.000 All other.................................................... . . . . ................................ 35.648.000 ^Decrease due to consolidation. F E D E R A L R E S E R V E O P E R A T IO N S Oct. 10, 1923 *36 Nov. 8, 1922 37 $ 12,679,000 141.626.000 315.253.000 $469,558,000 $ 15,957,000 132.666.000 294.269.000 $442,892,000 15,204,0001 22.487.000 \ 8.726.000 J 18.594.000 5.790.000 83.061.000 $153,862,000 38.706.000 8.220.000 333.924.000 189.230.000 7,888,000 52.557.000 14.864.000 3.561.000 86.874.000 $157,856,000 41.510.000 10.384.000 341.210.000 176.443.000 4.992.000 6.593.000 9.605.000 13.552.000 34.068.000 ^ D u r in g O cto b e r the F ederal R eserve B ank of St. L o u is discounted for 287 o f its 626 m e m b er ban ks, w h ich com pares w ith 271 o f its 626 m em ber banks accom m odated in S ep tem ber. T h e discou n t rate o f this bank rem ains unch an ged at A-T /2 per cent on all classes and m aturities of paper. C han ges in the assets and liabilities of the Federal R eserv e B an k o f St. L o u is since a m on th a go and last y ear are sh ow n in the fo llo w in g com parative statem en t (in thousands o f d o lla rs) : R E SO U R C E S Nov. 14 1923 .$ 74,995 L IA B IL IT IE S Oct. 17 1923 $ 70,657 Nov. 15 1922 $104,212 9,775 10,067 8,887 Total Cash Reserves......... $ 84,770 Discounts secured by Govt obligations........................... ’’ 20,934 Discounts otherwise se cured and unsecured..... 52,810 Bills bought in open market........................... 29 U. S. Govt, securities.. $ 80,724 $113,099 22,684 13,721 F. R. Notes in circulation. . 49,260 18,281 7 9,730 22,215 F. R. Bank Notes in circulation ......................... Total Earning A s s e ts ....$ 73,773 Uncollected items........ . 44.358 Other R e s o u r c e s ...... . 8,741 $ 71,951 47,450 8,023 $ 63,947 51,611 5,766 Other Liabilities................... Total Resources.................$211,642 .$211,642 $208,148 $234,423 Combined Res. Ratio........ Gold Reserves................... Legal Tender Notes— Silver, etc....................... . Oct. 17 1923 Nov. 14 1923 Capital paid in..................... ,$ Surplus ................................. Deposits ................................ Deferred availability items . 5,003 $ 5,016 Nov. 15 1922 $ 4,801 9,665 9,665 9,388 70,655 70,336 67,701 76,843 76,004 95,792 2,456 47,992 45,816 53,234 1,484 1,311 1,051 Total Liabilities............... $211,642 $208,148 $234,423 55.2% 69.2% 57.5% C H A N G E S IN C O ST O F L IV IN G Cost of living in the United States on October 15 was 64.1 per cent more than for the pre-war month of July, 1914, according to the National Industrial Conference Board. This was, however, 19.8 per cent less than for the peak month of July, 1920. Changes between Sept. 15, and Oct. 15,^1923 resulted in an increase of .4 per cent during that period. There were increases of .7 per cent in the cost of food, .6 per cent for cloth ing and 1 per cent for fuel. Wages changes during the month ending November 14 reveal a greater number of increases granted than any month since June. Detailed changes are shown in the table following: ITEM Food....... ..................................... Shelter.......................................... Clothing....................................... Fuel and Light........................... (Fuel)................................... (Light)........................... Sundries....................................... Weighted average of all items.. ^Increase. Relative Importance in Family Budget 43.1 17.7 13.2 5.61 (3.7) (1.9) 20.4 100.0 P erce n tag e of I n crease in t h e C ost of L iv in g A bove A v e r a g e P rices in J u l y , 1914, to — July, 1920 119 58 166 66 (92) (15) 85 104.5 September 1923 49 75 75 76 (92) (46) 73 63.4] (Compiled Nov. 21, 1923.) October, 1923 ' 50 75 76 78 (94) (46) 73 |64.1 P e r ce n t ag e of D ecrease in t h e C ost of L iv in g on Oc t o b e r 15, 1923, from A v e r ag e P rice s in — July, 1920 31.5 10.8* 33.8 7.2* (1.0)* (27.0)* 6.4 19.8 September, 1923 0.7* No Change 0.6* 1.1* (1.0)* (No Change) No Change’* 0.4* INDEX O f P R O D U C TIO N IN SASIC IN D U S T R IE S COMBINATION Or 22 INDIVIDUAL SERIES CORRECTED fo r seasonal VARIATION PEBCtNT *>E* £tnr 1601--------- !--------- ;-(H>9*tO0> -------- ;--------- t--------160 I . 1 4 --------- *-------- 1 . 1 — ..—.......6 1 . ; ! j ! ! ..........._ ! _ ..........J i ; ; . ! I -------------------2 jU TES T njGUSE- I I I : 1919 1920 1921 i 1922 L 1923 BUSINESS CONDITIONS IN THE UNITED STATES (Compiled by Federal Reserve Board, November 26, 1923) Production of basic commodities and retail trade increased during October and the volume of freight shipments as well as wholesale trade continued large. The level of wholesale prices and the volume of employment showed but little change. Production— The Federal Reserve Board’s index of production in basic in dustries advanced 3 per cent during October after having declined for four months. The increase for the month, while due in part to the resumption of anthracite coal mining, also reflected increases in textiles, lumber, sugar and most other in dustries included in the index. Employment at industrial establishments showed practically no change be tween September and October. Contract awards for new buildings increased throughout the country con siderably more than is usual at this season and were 25 per cent larger than for September. Residential building formed a larger proportion of the total than in any previous month of the year. Crop estimates by the Department of Agriculture on November 1 indicated a substantial reduction from the September forecast in the yield of cotton, but larger yields of corn, potatoes and apples. Trade- Heavy movement of miscellaneous merchandise and livestock during October resulted in the largest railroad shipments of any month on record. Wholesale trade was 12 per cent larger than a year ago and sales in all leading lines except shoes showed increases. Department stores sales were 13 per cent larger than last October while sales of mail order houses were the largest of any month since 1919. Prices— Wholesale prices declined less than one per cent in October, accord ing to the index of the Bureau of Labor Statistic and stood approximately at the level of a year ago. The principal changes for the month were declines in the pr ees of fuel, clothing, metals and animal products, while wholesale prices of crops, particularly cotton, increased. During the first half of November the prices of wheat, hogs, pig-iron and hides receded while prices of cotton, cotton goods, cement, and copper advanced. Bank Credit— Since the middle of October there has been a slight decline in the demand for credit for commercial and agricultural purposes at member banks in leading cities. Considerable decreases in borrowings for these purposes in the New York and Chicago districts were partially offset by increases in other districts. Loans secured by stocks and bonds increased somewhat, while investments continued to decline, reaching a new low point for the year. Total member bank accommodations at Federal Reserve Banks declined be tween October 17th and November 21st, and on the latter date was the lowest since the middle of the year. The total volume of Federal Reserve Bank credit outstanding, however, re mained relatively constant because of increased purchases of bills in the open market. The volume of Federal Reserve note circulation declined by about $50,000,000 during the same period, while other forms of money in circulation increased. Money rates showed an easier tendency, and during the early part of Novem ber the open market rate on commercial paper in New York declined from 5 @ 534 to 5 per cent.
@FedFRASER