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FEDE" RESER v n ?UIS MONTHLY Kc.vie.W OF BUSINESS CONDITIONS IN EIGHTH DISTRICT Released for Publication On and After the Afternoon of November 30, 1927 WILLIAM McC. MARTIN Chairman of the Board and Federal Reserve Agent U SIN E SS in this district during the past thirty days was influenced in an unusual de gree by weather conditions. Throughout October and the opening days of this month temper atures were abnormally high over virtually the en tire Middle W est. These conditions had the effect of limiting distribution of fall and winter merchan dise both at retail and wholesale, also of preventing the expansion in trade which is ordinarily experi enced at this time of year. On the other hand the mild, open weather was extremely beneficial to late crops. Corn prospects, which earlier in the season were poor, improved substantially in October. This crop, as well as cotton, rice, tobacco and some less important products were harvested under the most ideal conditions which have attended these opera tions in recent years. Yields are turning out larger than expected, and due to the auspicious harvesting weather, quality in most instances is much higher than had been looked for. This combination of cir cumstances has improved matters in the agricultural areas and materially augmented purchasing power in the farming community. Reports from manufacturers and wholesalers in the chief centers of population indicate a lagging tendency and disposition to purchase with caution. O f the lines investigated a large m ajority showed decreases in the volume of October sales as com pared with the same month last year, also as com pared with the preceding month this year. A m ong the lines showing losses in both comparisons were hardware, groceries, dry goods, drugs and chemi cals, lumber, automobiles, furniture, electric supplies, millinery and railroad supplies. Gains over last year were recorded in clothing, boots and shoes, men’s hats, fire clay products, explosives and some branches of the iron and steel industry. Generally the iron and steel industry, however, exhibited re cessionary tendencies, with a further shrinkage in unfinished business and new orders booked. D e partment stores in the principal cities showed a B small aggregate gain in O ctober over a year ago, and increases were reported by mail order houses and five and ten-cent stores. There was a further decrease in freight loadings of railroads operating in this district, and a sharp recession in building permits. The employment situation, as reflected in re ports of the Employment Service of the U. S. D e partment of Labor, was less satisfactory than during the preceding month and the corresponding period in 1926. Fewer workers were employed in southern textile and lumber mills, and there was the usual seasonal falling off at cement plants and in the quar rying industry. Generally through the district there was an increase of unemployment among com m on laborers, most marked in the building industry. The mild weather, permitting of uninterrupted w ork on highways, gave employment to large numbers of workers, and public works relieved the situation in certain localities. Gains were reported in tobacco warehouses and factories, cotton products plants, glass factories and certain miscellaneous industries. Mild weather through October and this month adversely affected the coal market. Current con sumption was inadequate to take care of production, and in all the chief coal sections of the district rail road tracks were burdened with loaded cars for which no orders existed. Reports from the Illinois and Indiana fields, in which the miners’ strike ter minated on October 1, indicate that operations are on a relatively limited scale. Nevertheless output is in excess of demand, and operators are experienc ing difficulty in disposing of the coal lifted. A s has been the case for a number of weeks, steaming coal is especially quiet and weak. Numerous industrial concerns still have a considerable part of the reserve stocks accumulated in the belief that the strike would endure through this winter, and are burning these supplies before arranging for additional ton nages. The W estern Kentucky fields are feeling the effects of competition of the reopened union mines, and of the increased rate differential on shipments to Chicago and the Northwest, which recently went into effect. The dom estic coal trade is in need of cold weather to stimulate demand. Railroad buying is disappointing. A ccording to mine operators, at tempts to curtail output have been complicated by unevenness in demand as between different sizes of coal. For the country as a whole, production of bituminous coal for the year to Novem ber 5, ap proximately 262 w orking days, amounted to 445,208,000 net tons, against 472,182,000 tons for the cor responding period in 1926 and 425,193,000 tons in 1925. A further decrease in freight traffic as con trasted with the same time last year was reported by officials of railroads operating in this district. For the country as a whole loadings of revenue freight during the first 43 weeks of this year, or to October 29, totaled 44,459,425 cars against 45,101,716 cars for the corresponding period last year and 43,430,103 cars in 1925. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines interchanged 224,460 loads in October, against 211,615 loads in September and 241,339 loads in October, 1926. During the first nine days o f N ovem ber the interchange amounted to 60,566 loads, against 63,678 loads during the cor responding period in O ctober and 68,350 loads dur ing the first nine days of November, 1926. Passen ger traffic of the reporting roads in O ctober de creased 10 per cent as compared with the same month last year. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans for October was 103,000 tons, against 89,396 tons in September and 103,960 tons in October, 1926. Collections generally through the district were more satisfactory than during the tw o preceding months, though about equal to those a year ago. In the South where cotton has begun to move, both merchants and bankers report improvement in liqui dation, and some betterment was noted in the rice and tobacco areas. Elsewhere in the country, h ow ever, spottiness was complained of, with backward ness in some parts of the grain belt and coal fields. In the large cities retailers, except certain depart ment stores, reported payments less prompt than heretofore, but wholesalers for the m ost part are getting in their m oney satisfactorily. Answers to questionnaires addressed to representative interests in the several lines through the district showed the follow ing results: Excellent October, 1927............... 1.3% September, 1927......... 1.4 October, 1926............... 1.4 Good 38.5% 31.5 26.4 Fair 52.5% 54.8 62.5 Poor 77% 12.3 9.7 Commercial failures in the Eighth Federal R e serve District during September, according to Dun’s numbered 63, involving liabilities of $1,345,463, against 53 defaults in September with liabilities of $184,910, and 67 failures for $801,234 in October, 1926. The per capita circulation of the United States on N ovember 1, 1927, was $41.25, against $41.35 on O ctober 1, 1927, and $42.53 on November 1, 1926. M A N U F A C T U R IN G A N D W H O L E S A L E Autom obiles — Combined passenger car and truck production in the United States during O cto ber totaled 221,292, which compares with 257,580 in September and 332,463 in October, 1926. The decline in distribution of automobiles of the past several months was continued during October and the first half of this month. The shrinkage in O ctober sales was too pronounced to be accounted for by the usual seasonal considerations, and was ascribed by dealers to a general disposition on the part of prospective purchasers to await the ‘appear ance of new models. W hile losses were quite gener al through all classes of passenger cars, the heaviest declines were in the low priced cars. Business in the country was relatively less satisfactory than in the large centers of population, there being a general inclination among farmers to postpone filling re quirements until next spring. Handlers of the more expensive makes in the large cities report lack of interest on the part of their customers in renewals, and universally owners are repairing and condition ing their cars to make them serviceable as long as possible. This policy is reflected in relative activity in parts and accessories. Demand for trucks and business automobiles holds up well, and tractor sales have shown improvement since the middle of September. O ctober sales of passenger cars by 320 dealers scattered through the district were 22.0 per cent less than during the same month in 1926, and 14.5 per cent under the September total this year. Accessories and parts sales of the reporting dealers in October were 4.2 per cent smaller than in Sep tember, and 0.5 per cent larger than in October, 1926. Stocks of new cars were larger than a month and a year earlier, but a further slight reduction in used car stocks was reported. O f the new cars sold 50.3 per cent were on the deferred payment plan, which compares with 52.2 per cent in Septem ber, and 58.3 per cent in October, 1926. B oots and Shoes — October sales of the 5 re porting interests were 5.3 per cent larger than for the corresponding month in 1926, and 0.8 per cent smaller than the September total this year. Stocks on N ovem ber 1 were 1.3 per cent larger than a month earlier, but 5.3 per cent in excess of those on N ovem ber 1, 1926. Demand generally through the entire line continued satisfactory, but movement of winter footwear through the retail trade was re tarded by the warm weather in October. Factory operations were slightly reduced in October, but were still above the average for that month during the past five years. Clothing — The movement into consumptive channels of seasonal apparel has been generally dis appointing, due to warm weather through October. Sales of both men’s and w om en’s clothing for spring, however, developed improvement, particularly in the south, and prices are reported firm. Demand for work clothes has fallen off somewhat as compared with the preceding thirty days, and is below that of the corresponding period last year. Sales of the 5 reporting clothiers in O ctober were 17.5 p e rc e n t larger than during the same month in 1926, and 171.1 per cent larger than the September total this year. The gain in the month-to-month comparison was accounted for by seasonal considerations. Drugs and Chemicals — A s compared with the corresponding month in 1926, O ctober sales of the 9 reporting firms showed a loss of 5.1 per cent, and the total was 6.9 per cent smaller than that of Sep tember this year. Unusually warm weather in O cto ber held down the m ovement of seasonal goods, and reduced industrial activity has adversely affected demand for heavy drugs and chemicals from the manufacturing trade. Demand for the general line of drugs and miscellaneous items holds up well, and ordering of holiday goods has picked up markedly since the first of this month. Prices developed no change worthy of note as contrasted with the pre ceding thirty days. D ry Goods — October sales of the 8 reporting firms were 0.1 per cent under those of the same month in 1926, and 17.4 per cent below the Septem ber total this year. Stocks on N ovem ber 1 were 1.4 per cent less than on the same date in 1926, and 6.3 per cent below those on October 1 this year. Busi ness is reported uneven, with the movement of w in ter merchandise held down by unseasonable weath er. The response to showings of holiday goods has been under expectations. In the immediate past there has been some improvement in orders for spring delivery, and January and February ship ments are expected to be large. Electrical Supplies — A further recession in ac tivities in this classification was noted, October sales of the 5 reporting interests being 6.8 per cent less than for the same month last year and 6.4 per cent under the September total this year. Stocks on N ovem ber 1 were larger by 21.6 per cent than a month earlier and 24.7 per cent greater than a year ago. Buying by the building industry was less ac tive than heretofore, and demand from utility com panies was in smaller volume than during the past several months. Flour — Production at the 12 leading mills of the district in October was 376,675 barrels, against 370,450 barrels in September and 411,049 barrels in October, 1926. Stocks of flour in St. Louis on N ovem ber 1 were 0.3 per cent less than on October 1, and 5.1 per cent below the total on November 1, 1926. The last half of October was marked by a broadening in the domestic demand, particularly for soft wheat flours in the South. Since the first week of this month, however, a slowing down in new busi ness was noted, but shipping directions continue good. Some sales for export to Latin-American countries were made, but bids from Europe were generally out of line, and aside from a limited quan tity of clears and low grade flours, little business was booked. Mill operation was at from 55 to 60 per cent of capacity. Furniture — October sales of the 14 reporting interests showed a decrease of 4.3 per cent under the same month in 1926, and of 5.1 per cent under the September total this year. Stocks on N ovem ber 1 were 9.0 per cent smaller than thirty days earlier and 35.8 per cent less than on October 1, 1926. R e tail merchants in both the city and country are pur chasing closely and holding inventories unusually low. Sales of holiday goods have been generally be low expectations, though some improvement in this respect has taken place since the middle of October. Prices showed no change w orthy of note as com pared with the preceding thirty days. Groceries — Extremely conservative buying by retailers and competition from chain stores were mentioned as factors in a decline in October sales b f the 11 reporting interests of 11.7 per cent as com pared with the same month in 1926 and 2.4 per cent under the September total this year. Stocks on N ovember 1 were 6.1 per cent smaller than on the same date last year but 19.9 per cent greater than those on October 1 this year. Since the first of this month there has been improvement in demand for holiday goods, but sales in that category are below those at this time a year ago. Hardware — October sales of the 10 reporting firms showed a loss of 1.7 per cent under those of the same month in 1926 and of 18.5 per cent under the September total this year. Stocks on November 1 were smaller by 23.4 per cent and 5.7 per cent, respectively, than a month and a year earlier. A slowing down in purchasing of staple goods was noted, and seasonal merchandise is quiet, due to the late fall. Prices showed little change worthy of note as contrasted with the preceding thirty days. Sales of sporting goods, hunters supplies and holiday specialties were reported in satisfactory volume. Iron and Steel Products — Conditions in the iron and steel industry developed no special change as contrasted with the preceding thirty days. Busi ness is extremely spotted, with total volumes slight ly below that of the month before, and rather sharp ly below that of the corresponding period last year. A further reduction in unfinished orders was re ported by a number of important interests, and steel mills are still handicapped by lack of purchasing by the railroads. The outlet for ferrous materials through the building and automotive industries was not as broad as heretofore, and competition in virtu ally all com m odities has gained in intensity. On the other hand certain specialty makers report an im proved demand for their goods, and have been oper ating at, or close to capacity. Manufacturers of stoves and heating apparatus have booked a satis factory volum e of new orders, and their shipments have compared well with the average at this sea son for the past five years. Farm implements inter ests also report improvement in both actual sales and prospects for late fall and winter trade. Fenc ing, roofing materials, galvanized sheets, hoops, bands, cotton ties and other goods used extensively in the country are m oving in good volume. Rein forcing material has also sustained the activity noted in the past several months. Contracting for structural steel has fallen off, and fabricators in a number of instances have curtailed their working forces. Purchasing of bars, shapes, plates, and sheets was in smaller volum e than a year ago. The general trend of prices was lower, and in all quar ters there was a disposition to meet competition. P ig iron declined in price and purchasing was light, both of steel-making and foundry grades. Further sharp declines were noted in scrap iron and steel, many of the most important items touching the lowest levels since the war. Production of pig iron for the country as a whole in O ctober continued the descent which has marked the past six months. W hile the total of 2,810,231 tons was 27,731 tons more than in September, the daily average produc tion was 90,652 tons, a drop of 2,098 tons per day from the 92,750-ton rate of September. This output was the lowest for any month since August, 1925, when the daily rate was 87,328 tons. Production of steel ingots in the United States gained in October, the total for that month being 3,289,013 tons, against 3,232,108 tons reported in September, and 4,074,544 tons in O ctober, 1926. Lum ber — The past thirty days have developed no change w orthy of note from the dull conditions obtaining during the preceding two or three months. W hile the open weather of October stimulated de mand from the building industry and the rural areas, the volume of buying from those sources was not sufficient to affect the general situation. In this district some improvement developed in purchasing o f southern pine, but this was offset by smaller buy ing in other sections of the country, and values failed to advance. Southern hardwoods, with the exception of a limited number of items, continue dull, and prices have declined during the past sev eral weeks. Production has been curtailed some what, but further additions were made to stocks. The outlet through the automotive industry and manufacturers of railroad equipment continues narrow. R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statement showing activity at department stores in leading cities of the district: N et sales com parison O ct. 1927 10 m onths ending com p, to O ct. 31, 1927 to O ct. 1926 same period 1926 E vansville .........+ 3 2 .4 % + 18.9% L ittle R o ck ..... 1.9 — 4.1 — 0.3 Louisville ....... . + 1.5 . + 2.9 — 4.1 — 8.3 Q u in cy ........... .— 9.8 — 2.3 . + 0.8 — 8.4 Springfield, M o. 4- 1.9 — 2.4 8th D istrict.... . + 1.2 M en’ s S tock on hand O ct. 31, 1927 com p, to O ct. 31, 1926 + 15.6% — 0.2 — 11.3 — 12.0 — 8.1 — 3.5 + 6.0 — 5.2 N et sales com parison O ct. 1927 com pared to O ct. 1926 Sept. 192 7 1.0% + 1 6 .3 % furnishings........... ,.+ 0.2 + 3 2 .8 S tock turnover Jan. 1 to O ct. 31, 1927 1926 T73 1.87 1.96 1.95 2.43 2.65 2.30 2.24 1.80 1.72 2.73 2.75 1.30 1.39 2.50 2.55 Stocks on hand O ct. 1927 com pared to O ct. 1926 Sept. 1927 + 2 .1 % + 9.6 % + 3 4 .5 — 4.9 C O N S U M P T IO N O F E L E C T R IC IT Y Public utilities companies in the five largest cities of the district reported consumption of elec tric power by selected customers in O ctober as being 0.1 per cent less than in September, but 5.0 per cent greater than in October, 1926. T he de crease from September to October was attributed to the seasonal reduction in requirements of refrig eration plants. In the yearly comparison heavy gains were shown by cement, glass and some furni ture factories. Smaller loads were taken by iron and steel plants. Detailed figures fo llo w : O ct. O ct. Sept. O ct. 1927 1927 1927 com p, to 1926 Custom* K .W .H , * K .W .H . Sept. 1927 * K .W .H . ers 1,290 — 6.3 %T 1,192 1,272' Evansville .....40 1,622 — 9.4 1,487 1,843 L ittle R o ck ....35 5,724 + 2.3 6,127 6,266 Louisville ......83 1,555 + 2 4 .3 1,459 1,813 M em phis ........31 16,950 — 0.4 17,797 17,728 St. L ou is......110 28,486 T ota ls......299 ____ * I n thousands (000 om itted ). 28,498 — 0.1 27,141 O ct. 1927 com p, to O ct. 1926 — 7.6^o — 8.4 + 9.5 + 1 6 .6 + 4.6 + 5.0 T he follow ing figures com plied by the Depart ment o f the Interior show kilowatt production for lighting and industrial purposes for the country as a w h ole: B y water pow er September, 1927.................2,223,254,000 A ugust, 1927....................... 2,411,562,000 Septem ber, 1926................ 2,074,147,000 B y fuels 4,336,586,000 4,249,728,000 4,092,444,000 Totals 6,559,840,000 6,661,290,000 6,166,591,000 B U IL D IN G The dollar value of building permits issued for new construction in the five largest cities of the district during O ctober was 41.1 per cent less than in the preceding month, and 31.9 per cent under the total for October, 1926. A ccordin g to figures com piled by the F. W . D odge Corporation, building contracts let in the Eighth Federal Reserve District in O ctober totaled $41,404,547, which compares with $32,572,662 in September and $40,981,236 in October, 1926. There was no change w orthy of note in labor wages or the price of materials during the past thirty days, but the average cost of build ing is approximately 3 per cent lower than a year ago. Production of portland cement for the country as a whole during O ctober totaled 17,174,000 bar rels, against 17,505,000 barrels in September, and 16,596,000 barrels in October, 1926. Building fig ures for October, fo llo w : E vansville .. L ittle R ock L ouisville ... M em phis .... St. Louis.... N ew Construction Perm its 4Cost ' 1927 1926 1927 1926 522 ' 463 $ 221 $1,205 52 52 86 186 142 264 801 1,671 290 446 803 964 570 800 1,590 1,640 O ct. totals 1,576 2,025 $3,682 Sept. totals 1,502 1,885 6,253 A u g. totals 1,800 H.965 8,381 * I n thousands (000 om itted ). $5,405 6,716 5,835 _______ Repairs, etc. *Cost Permits 1927 1926 1927 1926 97 98 $ 27 $ 27 91 92 29 28 125 71 99 84 164 110 120 70 938 414 1,672 468 1,415 873 862 785 887 1,148 $1,947 571 763 $677 956 1,244 A G R IC U L T U R E W eather throughout O ctober was mild and ideal for maturing fall crops, and indicated yields on Novem ber 1 of virtually all the principal pro ducts were above those a month earlier. Freezes and killing frosts were delayed considerably beyond their usual date, and in only a limited number of localities was precipitation sufficiently heavy to seriously hamper harvesting operations. A m ong the crops especially benefitted by the auspicious weather conditions were corn, potatoes, sweet pota toes, rice, grain sorghums, tobacco, peanuts, cotton and some late fruits and vegetables. In addition to specific betterment to crops, the fine weather per mitted of excellent progress in the matter of fall farm w ork o f all kinds. Breaking of land for next year’s crops has progressed rapidly, and seeding of winter wheat was com pleted under the most favor able conditions in recent years. Pasturage and forage are abundant, and reports from all sections of the district indicate that live stock is doing well. A ccording to the U. S. Department of A gricul ture, on November 1 the com posite of crop yields in states entirely or partly within the Eighth Federal Reserve District was 95.9 per cent. This indicates that, considering all important crops, yields per acre are expected to be 4.1 per cent below the aver age yields during the past ten years. This com posite of yields is 4.9 per cent above the com posite of crop yields and condition on O ctober 1, but 14.6 per cent below the com posite of yields per acre last year. The supply of farm labor was universally ade quate to demand, and in some sections where public work has slowed down, an excess of farm help was reported. C orn — Based on the N ovember 1 condition, the yield of corn in this district is estimated at 337,972,000 bushels, which compares with an indicated yield of 316,160,000 bushels on October 1, and 393,007,000 bushels harvested in 1926. In addition to increasing the prospective yield, the ideal weather of October will result in much higher quality than had been expected earlier in the season. Practically all the crop matured in October and the first week of this month, which was prior to the first general killing frost, which occurred on N ovem ber 6. The grain has dried out well, and an unusually small quantity of soft corn will be included in the late crop. Husking is well under way and cribbing has begun in some sections. For the country as a whole the corn crop is estimated at 2,753,249,000 bushels, which compares with 2,646,853,000 bushels har vested in 1926 and a 5-year average of 2,766,561,000 bushels. W inter W heat — Open weather for field work through October permitted of excellent progress in seeding the winter wheat crop, and brought out considerably more of the intended acreage than had been thought possible six weeks or two months ago. Planting was in progress in scattered areas up to November 1. Generally soil conditions are all that could be desired, and seldom in recent years have prospects been more promising at this particular season. Early seeded wheat is up to a good stand, and rains since the first of this month have material ly assisted germination and growth of late planted grain. Indications are for a heavier acreage than was planted last fall. The total output of all wheat in this district in 1927 is estimated at 66,600,000 bushels, against 69,715,000 bushels harvested the year before. Fruits and Vegetables — W hile some improve ment in prospects for certain late fruits and vege tables took place during October, general results with these crops in 1927 were below those of the preceding year and the 5-year average. Unfavorable weather conditions during the crucial periods of the grow ing season, coupled with the presence of insect and fungus pests in unusually large numbers, are being reflected in quantity and quality of yields. Prospects for apples deteriorated further in October, due to heavy drop and failure of fruit to reach the expected size. In states w holly or partly within this district the apple crop is estimated at 10,967,000 bushels, a decrease of 623,000 bushels from the October 1 prospect, and comparing with 33,532,000 bushels in 1926. The commercial crop this year is estimated at 1,472,000 barrels, against 2,949,000 bar rels in 1926. Sweet potatoes bettered their condition in October, and the indicated yield in these states is 21,958,000 bushels, against 20,949,000 bushels in 1926, and a 5-year average of 17,650,000 bushels. Peaches, pears, grapes and a number of other fruits show heavily reduced yields as compared with the preceding year and a 5-year average. In the Eighth Federal Reserve District the output of white pota toes is estimated at 14,071,000 bushels, against 13.239.000 bushels a month earlier and 13,003,000 bushels harvested in 1927. Gardens throughout the district underwent surprising improvement under influence of the mild weather. Live Stock -— Reports from scattered sections of the district indicate that pasturage and forage are abundant, and that live stock is doing well, there being unusually little disease among herds. Slightly fewer cattle are on feed than last year, but the improved corn propsects have resulted in an in crease of the number of hogs fattening in many localities. Milk production showed the usual fall decline, and output of eggs continued the downward trend of the preceding thirty days. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follow s: O ct. 1927 Cattle and Calves......159,738 H ogs .............................248,161 Horses and Mules.... 11,134 Sheep ............................ 42,013 Receipts Sept. O ct. 1927 1926 152,045 163,112 243,684 286,357 7,231 4,631 53,320 67,303 Shipments Oct. Sept. Oct. 1927 1927 1926 110,530 109,988 109,530 183,620 186,967 213,262 9,186 7,174 4,569 17,032 23,085 40,902 Cotton — The indicated yield of cotton in this district, based on the November 1 condition is 2.295.000 bales, an increase of 71,000 bales over the October 1 estimate, and comparing with 3,349,000 bales harvested in 1926. W eather was rarely more favorable for harvesting than during all of October and the first few days of this month. Rapid progress was made in gathering the crop, and these opera tions were attended with much less than usual loss in yield and quality. The movement to market is in satisfactory volume, and prices, while falling below the high point of the season, averaged well above those at the corresponding period last year. Stocks of cotton in Arkansas warehouses on November 11 were 322,442 bales, against 212,414 bales a month earlier and 575,437 bales at the corresponding time last year. For the country as a whole the crop is estimated at 12,842,000 bales, against 17,977,000 bales produced in 1926. T obacco — The loose-leaf tobacco markets are scheduled to open between the fifth and tenth of December. Ideal curing weather has prevailed and tobacco has been in good handling order. Farmers have taken advantage of these conditions to prepare their stock for market and considerable quantity will be ready for delivery on opening dates. Reports in dicate a wide variation in quality of this year’s crop, due to unseasonable weather for late planting. H o w ever little damage was caused by frost, the greatest injury being from premature cutting. Buying of the dark fired crop continues in the Clarksville, Spring field and western districts, with a reduction of quan tity purchased, but prices, quality considered, are as high as at the opening of the season. The output of tobacco in this district, based on the November 1 condition, is 187,641,000 pounds, a betterment for the month of 2,162,000 pounds, and comparing with 304,603,000 pounds in 1926. Rice — The rice harvest was conducted under ideal weather conditions, and as a result large quan tities are being threshed and offered to the mills. Pressure of offerings has caused a slight recession in prices during the past thirty days. Quality of rice in Arkansas is the best in many years, and yields larger than looked for earlier in the season. The 1927 output in Arkansas and Missouri is estimated at 7,664,000 bushels, against 10,062,700 bushels in 1926, and a 5-year average of 7,751,000 bushels. Com m odity Prices — Range of prices in the St. Louis market between October 15, 1927 and N ovem ber 15, 1927, with closing quotations on the latter date and on November 15, 1926. Close H igh L ow N ov. 15, 1927 N ov. 15, 1926 ...per bu.$1.29?6$1.21 56 $1.28*6 $1.35*6 .... " 1.35 1.41 1.345* 1.26*4 N o. 2 red winter 1.48 1.39 $1.42@ 1.45 $1.34*4 @ 1.35 N o. 2 hard...... .... " 1.32 1.25% 1.31 @ 1.32 1.37 @ 1.38 Corn .... “ .8654 .84% .68*6 .80% .... “ .93 .87% .78% .9256 N o. 2 mixed.... ,, “ .87 .80% ........... .8 3 @ .85 N o. 2 white.... .... “ .91 .80 .69 .8 4 @ .8 5 % .68 @ Oats N o. 2 white....,.... " .5354 .48 .53 .4554 Flour Soft patent..... ...per bbl. 7,25 6.25 @ 7 .0 0 6.75 @ 7.50 6.20 Spring patent.. .... “ 6.80 6.4 0 @ 6 .6 5 6.90 @ 7.10 6.25 M iddling cotton.. ..per lb. .20% .19 J4 .1954 .1254 H o g s on h o o f...... ..per cwt.11.85 8 .0 0 @ 9 .5 0 10.50 @ 12.05 7.90 W heat F IN A N C IA L The general banking and financial status in this district during the past thirty days developed no important change as contrasted with the similar period immediately preceding. A s contrasted with the same time last year, the principal change was in loans of reporting member banks, which moved up ward to a new high in the week of N ovem ber 12, while in 1926 there was a sharp downward m ove ment beginning in the middle of November, and continuing through December. Deposits of these banks declined during the final weeks of October, but recovered the loss early this month, and on November 16 reached the high point of the year. Demand for credit for general commercial and in dustrial purposes has been well sustained as a whole, but is spotted, both with reference to the various lines and localities. Through the south requirements for financing the cotton, tobacco, rice and some lesser crops showed the usual seasonal increase, but in the im mediate past there has been good liquidation in the cotton sections, and country banks have substantial ly reduced their borrow ing from correspondents and the Federal Reserve Bank. In the grain and live stock areas settlements have also been large, but new borrow ing has also been of sizeable propor tions, being stimulated by purchasing of animals to fatten incident to the improved corn prospects. Flour millers have reduced their commitments, and due to high premiums of wheat, are carrying rela tively small stocks. Grain loans showed little varia tions as compared with a month earlier, but the vol ume is below that of a year ago. There was little variation in the volum e of loans based on stocks and bonds, the total at the middle of Novem ber be ing approximately the same as thirty days earlier. B orrow ing from the Federal Reserve Bank by member banks decreased during the period under review and reached the lowest point since the end of last April. Federal reserve notes in circulation increased sharply, and attained a new high for the year early this month. Interest rates averaged about the same as during the month before, but the trend was slightly easier. A t the St. Louis banks current rates were as follow s: Prime commercial loans, 4 to 5 per ce n t; interbank loans 4J4 to 5 per ce n t; col lateral loans, Ay2 to 5 per cent; loans secured by warehouse receipts, 4 % to 5 per cent and cattle loans, SV2 to 6 per cent. for 109 member banks, against 198 in September and 232 in October, 1926. The discount rate re mained unchanged at 3y2 per cent. Changes in the principal assets and liabilities of this institution as compared with the preceding month and a year ago appear in the follow ing ta b le: Bills u. s, Ratio of reserves to deposits and F. R. N ote liabilities.......................... * In thousands (000 om itted ). 1927 $28,260 3,700 36,900 1926 $37,077 9,415 19,798 , 64,295 , 53,348 , 90,470 68,860 51,225 86,182 66,290 46,492 81,534 59.5% 57.5% 53.7% Debits to Individual Accounts — The follow ing comparative table gives the total debits charged by banks to checking accounts, savings accounts, cer tificates of deposit accounts, and trust accounts of individuals, firms, corporations and U. S. Govern ment in leading cities o f the district. Charges to accounts of banks are not included. *Oct. 1927 *Sept. 1927 *O ct. 1926 $ 50,267 9,285 47,857 14,022 3,670 5,083 82,316 185,510 180,208 5,366 13,119 12,600 700,930 4,825 14,922 $ 50,924 11,807 43,671 16,031 5,681 6,306 102,616 199,840 182,049 4,801 17,050 12,834 801,380 5,184 15,862 ,478,132 $1,329,980 om itted). $1,476,036 E. St. Louis & N at’ l.i. Stock Yards, 111..1& 49,475 El Dorado, Ark.... 10,104 Evansville, In d ...... 47,706 F ort Smith, Ark.... 17,838 Greenville, Miss.... 4,233 6,684 Helena, A rk ........... Little R ock, Ark.. 99,742 Louisville, K y ........ 195,450 Memphis, T en n ...... 218,819 5,351 Owensboro, K y ..... Pine Bluff, Ark.... 18,796 Quincy, 111.............. 12,556 St. Louis, M o ........ 770,389 Sedalia, M o ............ 4,873 Springfield, M o ..... 16,116 Oct. 1927 comp, to Sept. 1927 O ct. 1926 — 1.6% 4- 8.8 — 0.3 + 2 7 .2 + 15.3 + 3 1 .5 + 2 1 .2 + 5.4 + 2 1 .4 — 0.3 + 4 3 .3 — 0.3 + 9.9 + 1.0 + 8.0 — 2.8% — 14.4 + 9.2 + 11.3 — 25.5 + 6.0 — 2.8 — 2.2 + 2 0 .2 + 11.5 + 10.2 — 2.2 — 3.9 — 6.0 + 1.6 + 11.1 + 0.1 Condition of Banks — Loans and discounts of reporting member banks on November 16 showed an increase of 0.3 per cent compared with October 19, and an increase of 0.02 per cent as contrasted with November 17, 1926. Deposits increased 3.7 per cent between October 19 and November 16, and on the latter date were 9.1 per cent larger than on November 17, 1926. Composite statement follow s: Number o f banks reporting........................ Loans and discounts (incl. rediscounts) Secured b y U . S. G ov’ t obligations.... Investment U. S. Gc Other se< *N ov. 16, *O ct. 19, *N ov. 17, 1927 1927 1926 31 31 31 ...$515,712 $514,319 $515,613 ... 126,416 75,585 126,049 62.170 117,874 $201,634 48,613 7,715 $180,044 48,510 7,750 407,177 237,689 5,968 399,221 218,019 1,480 $650,834 $618,720 15,700 527 9,932 14,852 ... 430,232 Tim e deposi Government 6,791 194,842 313,980 4,233 207,656 302,430 4,996 ... 6,413 $ $ ... 303,244 ...$ Reserve balance with F. R. Cash in vault.....................'........ . Deposits Bills payable and rediscounts with with F. R. Bank Federal Reserve Operations — D uring October A ll other................................. . the Federal Reserve Bank of St. Louis discounted * In thousands (000 om itted). (Compiled Nov. 21, 1927) 1927 .$16,238 , 5,340 . 42,717 3,905 B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Industry and trade w ere less active in October than in the preceding m onth and were in smaller volume than a year ago. T h e general level o f wholesale com m odity prices show ed a further slight advance. P R O D U C T IO N — Production o f manufacturers de clined in O ctober contrary to the usual seasonal tendency, while the output o f minerals remained in practically the same volum e as in September. In O ctober and Novem ber activity o f iron and steel mills and of automobile plants was smaller than at any previous period of the year. There were also decreases during O ctober in cotton consumption and in the production o f building materials, crude petroleum in sales that usually occurs in N ovem ber and D ecem ber, but at the end o f the month they w ere no larger than a year ago. Freight car loadings declined in O ctober and the first part o f N ovem ber and were smaller than in the cor responding period of last year for all classes o f freight except grain and grain products. PR IC E S — W holesale com m odity prices increased slightly in O ctober continuing the advance which began early in the summer, and the Bureau o f Labor Statistics index for O ctober was higher than for any previous month o f this year. The advance in the average was higher than for anv previous month o f this year. T h e advance in the Ind ex o f U nited States Bureau of L abor Statistics (1 9 2 6 = 1 0 0 , base adopted b y Bureau). Latest figures, O ctober 97.0. Latest figures, O c to b e r: manufacturers, 102; minerals, 105. and boots and shoes. The output o f bituminous coal and the number of hogs and cattle slaughtered increased by less than the usual seasonal amount. Production of flour, copper and anthracite coal show ed increases in October. Building contracts awarded increased considerably ow ing to unusual large awards in N ew Y ork and Chicago in the last w eek o f the month. The increases were largest in contracts for residential and com m ercial buildings. Un usually favorable weather during O ctober in agricultural states resulted in increased yield for late fall crops. The indicated production o f corn, according to the N ovem ber crop report o f the D epartm ent o f Agriculture, was placed at 2,753,000,000 bushels, an increase of 150,000,000 bushels, over the estimate o f the previous month and 106,000,000 bushels over the yield a year ago. Larger yields as com pared with the previous m onth’s estimates were also indi cated for cotton, tobacco, and potatoes. M onthly averages of daily figures for 12 Federal Reserve Banks. Latest figures are averages for first 23 days of Novem ber, than the usual seasonal increase in O ctober compared with O ctober a year ago. W holesale trade in all leading lines, except meats and drugs, was smaller. Departm ent store sales were approximately 3 per cent smaller than in O ctober, 1926, while those o f mail order houses and chain stores w ere som ewhat larger. Inven tories o f merchandise carried by wholesale firms were smaller in all reporting lines at the end o f the month than in Septem ber. Com pared with a year ago, stocks were smaller^ in all lines except drugs. Stocks o f department stores increased in O ctober in anticipation o f the growth average for all com m odities from September to O ctober re flected increases in the prices o f livestock, meats and dairy products. Prices o f corn, cotton, coal, metals, paint mater ials and autom obile tires, on the other hand, declined. D ur ing the first three weeks in N ovem ber, there w ere increases in the prices o f grains, cattle, copper, hides and rubber, and decreases in hogs, cotton, silk, coal, petroleum and iron and steel. B A N K C R E D IT S — T otal loans and investments o f mem ber banks in leading cities increased by nearly $300,000,000 during the latter part o f O ctober and the first half o f N ovem ber and on N ovem ber 16 w ere the highest ever reported. Investm ents increased b y m ore than $200,000,000, re flecting in large part purchases o f Treasury certificates is sued on N ovem ber 15, and loans on securities increased by about $125,000,000. Loans chiefly for com m ercial and agri cultural purposes declined during the period from the sea sonal peak reached early in O ctober. T here was a con- M onthly averages o f w eekly figures fo r banks in 101 leading cities. Latest figures are averages ifor $rst!i ^ e £ k ly report dates in N ovem ber. tinued increase in the dem and f o f reserve bank credit between O ctober 19 and N ovem ber 23, aris^n$ chiefly out o f further exports o f gold. D iscounts from m em ber banks declined somewhat, while acceptances and holdings o f United States Governm ent securities increased. Conditions in the m oney market remained m oderately easy in N ovem ber. Call loan rates remained at the level reached in the latter part o f O ctober, and rates on prime com m ercial paper and bankers’ acceptances w ere unchanged.
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