View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

MONTHLY REVIEW
O f Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District

R elea sed for P u b lic a tio n O n a n d A fte r th e A ftern o o n o f N o v em b er 3 0 ,1 9 3 4
JO H N S. W O O D ,
C hairm an and Federal Reserve A g en t

FEDERAL

RESERVE

N D U S T R Y and trade in the Eighth District
during O ctober and the first half o f N ovember
continued the improvement noted earlier in
the fall. The usual statistics and data em ployed in
gauging conditions reflected some spotty and irregu­
lar trends, but on the whole indicated distinct bet­
terment in actual business and sentiment as con­
trasted with both the similar period immediately
preceding and a year ago. Demand for commodities
is still in large volume, particularly consumer
goods. Production o f merchandise in this category
was at relatively high levels, a number o f lines
which ordinarily curtail output at this time of year
show ing less than the usual contraction. W ith few
exceptions, wholesale and jobbing lines investigated
b y this bank reported sales in excess of the like
periods during the four preceding years. In a num­
ber o f classifications October volume was greater
than in Septem ber; where declines were recorded
in this comparison they were mainly seasonal in
character and smaller than the average during the
past decade. A m on g the wholesale lines in this
area which showed increases in both comparisons
were boots and shoes, electrical supplies, hardware
and stoves. The volum e o f retail trade was also in
excess o f a year ago.
These results were achieved in spite of the
retarded movement o f seasonal merchandise caused
b y the mildest autumn weather experienced in ten
years. T he high temperatures also had the effect
o f reducing activities in certain manufacturing lines.
Operations at steel mills and certain grey-iron foun­
dries decreased, and smaller outputs were reported
b y manufacturers of glass, lumber, fire-clay prod­
ucts and some other building materials. On the
other hand, makers o f stoves, ranges, heating appa­
ratus and farm implements reported orders and
prospects the most favorable since the fall of 1931.
Production o f bituminous coal in fields o f this dis­
trict increased measurably from September to
O ctober, and tonnage lifted was moderately in
excess o f that in October, 1933. Consumption 6f
electricity by industrial Users iii the five largest
cities during O ctober declined slightly from Septem­

I




C . M . STEW ART,
Secretary and A ss't F ed eral R eserve A g en t

BANK

OF

ST,

J. V IO N P A P IN ,
Statistician

LO U IS

ber, but was approximately 2 per cent greater than
in O ctober last year.
W hile interfering to some extent with seasonal
merchandising, the clear, mild October weather
was ideal for agriculture. The condition of late
crops developed marked improvement, and harvest­
ing was accomplished with a minimum of loss in
quantity and quality. In the case of the most im­
portant productions, notably cotton, tobacco, pota­
toes, forage and pastures, marked betterment was
indicated between O ctober 1 and N ovem ber 1, ac­
cording to the U . S. Department of Agriculture’s
report based on conditions as of the latest date.
Prices o f agricultural products were sustained at
levels well above the average of the past several
years, and farmers purchasing power was aug­
mented by rental and benefit payments. In states
entirely or partly within the Eighth District the
amount of these benefits paid to farmers cooperat­
ing in the cotton, wheat, tobacco, and corn-hog
adjustment programs of the Agricultural A djust­
ment Administration, up to O ctober 1, was $72,468,443. This amount was exclusive o f payments by
the Government for the removal of surplus com ­
modities from the market.
A s reflected by sales of department stores in
the principal cities, retail trade in O ctober was 6.0
per cent less than in September and 5.6 per cent
greater than in October, 1933; cumulative total for
the first ten months this year was 16.8 per cent
larger than for the comparable period in 1933. Com ­
bined sales o f all wholesaling and jobbing firms
reporting to this bank in O ctober were 2.7 per cent
and 5*6 per cent greater, respectively, than a month
and a year earlier; for the first ten months the total
was 13.2 per cent above that of a year ago. T he
dollar value of contracts let for new construction in
the five largest cities in O ctober was 3.6 per cent
more than in September, but 7.1 per cent less than?
in October, 1933; cumulative total for the first ten
months fell 43 per cent below that for the same
time in 1933. Construction contracts let in the
Eighth D istrict in O ctober were 40.9 per cent great­
er than in September and 2 2 per cent more than the

October, 1933, tota l; for the first ten months the
aggregate exceeded that o f the like period in 1933,
by 36.8 per cent. Debits to checking accounts in
October were 18 per cent greater than in September
and 11.4 per cent in excess o f the October, 1933,
tota l; for the cumulative total this year the aggre­
gate was 11.2 per cent above that for the same period
in 1933.
A ccording to officials of railroads operating in
this district, the volum e of freight traffic decreased
moderately as contrasted with the corresponding
period a year ago. For the year to date, however,
the volum e exceeded that for the similar periods
in 1933 and 1932. For the country as a whole,
loadings of revenue freight for the first 44 weeks
this year, or to N ovem ber 3, totaled 26,452,745 cars,
against 24,861,297 cars for the corresponding period
in 1933, and 24,094,042 cars in 1932. The St. Louis
Terminal Railway Association, which handles inters
changes for 28 connecting lines, interchanged 72,060
loads in October, against 77,661 loads in September
and 74,384 loads in October, 1933. During the first
nine days o f Novem ber the interchange amounted
to 20,391 loads, which compares with 20,981 loads
during the corresponding period in October, and
19,954 loads during the first nine days o f November,
1933. Passenger traffic revenue of the reporting
lines in O ctober increased 3.14 per cent over the
same month in 1933. Estimated tonnage o f the
Federal Barge Line between St. Louis and New
Orleans, in O ctober was 100,000 tons, against
112,860 tons in September, and 97,407 tons in O cto­
ber, 1933.
Collections continue generally at the high levels
which have characterized the past several months.
Questionnaires addressed to representative interests
in the several lines scattered through the district
show the follow ing results:
Excellent

Good

Fair

Poor

October,
1934........ 7.6% 39.2% 48.9%
4.3%
40.2
49.4
6.9
September, 1934....... 3.5
October,
1933....... 7.0
25.6
64.0
3.4
Commercial failures in the Eighth Federal D is­
trict in October, according to Dun and Bradstreet,
numbered 36, involving liabilities o f $431,761,
against 33 defaults in September with liabilities of
$492,749, and 42 insolvencies for a total o f $ i ,019,098
in October, 1933.

M A N U F A C T U R IN G AND W H O L E S A L IN G
B oots and S h o es — O ctober sales o f the report­
ing firms were 3 per cent larger than for the same
month in 1933, and 14 per cent in excess o f the
September total this year. Inventories decreased
10.6 per cent between O ctober 1 and N ovem ber 1,
but on the latter date were 68 per cent greater than
a year earlier. T h e increase in the month-to-month



sales comparison was contrary to the usual season­
al trend, and reflects largely expansion in demand
in the rural areas, particularly in the south. W hile
improvement was noted in all descriptions of foot­
wear, interest centered chiefly in medium grades and
w orking shoes. Plants producing these goods were
operating on relatively high schedules.
Clothing — As contrasted with the same month
a year ago, O ctober sales of the reporting firms
showed a decrease of 22 per cent, but the total was
9 per cent greater than in September this year.
Stocks decreased approximately one-third between
O ctober 1 and N ovem ber 1, but on the latest date
were 3 per cent larger than a year ago. T he unusu­
ally mild weather in O ctober served to hold down
distribution of heavyweight apparel through retail
channels. Demand for work clothing continued the
steady increase noted during the tw o preceding
months. Ordering for spring distribution is reported
backward and somewhat smaller than at the corre­
sponding period last year.
Drugs and Chemicals — Largely as a result of
the mild fall, with consequent slack demand for
seasonal goods, O ctober sales of the reporting
interests reversed the usual seasonal trend and
showed a decrease of 4 per cent under the preceding
month. The total, however, was 15 per cent greater
than in October, 1933. Inventories decreased slight­
ly during October, but on N ovem ber 1 were 8 per
cent larger than a year earlier. Ordering of luxury
and holiday goods was reported in excess of this
time during the past three years. Increased sales
in this category and of medicinals and proprietary
preparations were offset by contracted purchasing of
% lieavy drugs and chemicals, denatured alcohol, anti­
freeze mixtures, etc.
D ry Goods — Sales o f the reporting firms in
O ctober showed a gain o f 9 per cent over the same
month in 1933, but were 9.5 per cent below the Sep­
tember total this year. Stocks on N ovem ber 1 were
12 per cent smaller than a month earlier, but 10
per cent greater than a year ago. The decrease in
the month-to-month sales comparison follow ed the
seasonal trend, and its extent was about equal to
the average during the past decade. W arm weather
has militated against the m ovement o f all seasonal
lines, particularly w oolen blankets, outings and kin­
dred items. Reports covering the first half o f
N ovem ber indicate som e betterment in demand for
cold weather goods.
E lectrical Supplies — Business in this classifi­
cation continued the improvement which has
marked previous months this year, O ctober sales
Showing an increase of 2 per cent over September
and o f 32 per cent over the O ctober, 1933 total.
Steady expansion in the demand for small m otors

for a variety o f uses is reported, and the recent
improvement in radio material, household appli­
ances and certain other lines was well sustained.
Inventories on N ovem ber 1 were 8 per cent and 31
per cent greater, respectively, than a month and a
year earlier.
Furniture — A further decline in activities in
this classification was indicated by the reporting
firms, O ctober sales decreasing 2 per cent from Sep­
tember, and about one-third from October, last
year. Inventories continued to recede, stocks on
N ovem ber 1 being 2 per cent and 15 per cent small­
er, respectively, than a month and a year earlier.
Ordering o f holiday goods is reported generally
below expectations.
Groceries — There was a slight falling off in
business in this classification, contrary to the sea­
sonal trend, and attributable to the unusually warm
weather throughout October. Since Novem ber 1
there has been a marked pick-up in purchasing by
retailers and ultimate consumers, with indications
that volum e for the entire month will exceed that
o f a year ago by sizeable margin. Ordering o f holi­
day goods and specialties is reported in considerable
volume. Prices as a w hole showed little change as
contrasted with the preceding thirty days, increases
about counterbalancing declines. O ctober sales of
the reporting firms were 1 per cent less than in
September, and 21.5 per cent greater than in O cto­
ber, 1933. Inventories on N ovem ber 1 were larger
by 7 per cent and 1.5 per cent, respectively, than
a month and a year earlier.
Hardware — O ctober sales o f the reporting
firms were the largest for any single month since
September, 1933. Improvem ent in crop conditions
follow ing the late August and September rains had
a stimulating effect on demand for com modities
used in the rural areas, the movement o f which as­
sumed large proportions. Purchasing o f paints and
other supplies used in connection with the repair
campaign, also, was a contributing factor in expand­
ing the sales volume. O ctober sales of the reporting
firms were 3.5 per cent greater than in September,
and 14 per cent in excess of the October, 1933, total.
Stocks decreased 6 per cent between O ctober 1 and
N ovem ber 1, and on the latest date were 7 per cent
less than a year ago.
Iron and Steel Products — The iron and steel
industry in this general area during O ctober and
the first half o f N ovem ber was marked by unusual
spottiness. Relatively the best show ing in point
o f melt was made by grey iron foundries, and more
especially by makers of stoves, ranges and heating
apparatus. Activities of farm implement manufac­
turers were well sustained, with a number of con­
cerns making up stock in anticipation o f calls for




their products next spring. W hile the stove and
range interests also produced some stock for inven­
tory, they were engaged chiefly on business actually
booked. The character of their orders, com ing large­
ly from mail order houses and country distributors,
indicates a revival of buying by ultimate consumers
in the rural areas, especially in the south. M oder­
ate betterment was reported by certain makers of
engines and miscellaneous machinery. Jobbing
foundries report spotty conditions, some showing
substantial gains while others reduced their working
schedules. Steel mill activities underwent little
change from the low levels which have obtained
since the end of last summer. Purchasing by the
railroads continued on a necessity basis, and while
inquiries from the automotive industry have in­
creased in the immediate past, actual orders for
castings and other finished materials were disap­
pointing. Outlet through the building industry
showed no broadening tendencies. Fabricators of
structural iron and steel are dependent chiefly on
public works projects. October sales of iron and
steel warehouse and jobbin g interests exceeded the
September aggregate, but fell slightly below the
October, 1933, volume. Deliveries of pig iron to
melters during O ctober exceeded the total of the
preceding month, and were the largest since last
summer. The downturn in scrap iron and steel
prices, which had been steadily in progress since
the end o f July, was halted in October. For the
country as a whole production of pig iron in O cto­
ber, according to the magazine “ Steer’, totaled
951.540 tons against 899,075 tons in September and
1.358.540 tons in October, 1933. Steel ingot produc­
tion in the United States in O ctober totaled 1,461,932
tons, against 1,251,630 tons in September, and
2,084,894 tons in October, 1933.
A U T O M O B IL E S
Combined passenger car, truck and taxicab pro­
duction in the United States in October, was
132,488, against 168,872 in September, and 138,485
in October, 1933.
A s has been invariably the case during the past
decade, distribution of automobiles in this district,
according to dealers reporting to this bank, declined
from September to October. T he extent of the de­
cline this year, however, was considerably smaller
than the average during the period covered by the
reports. The O ctober total showed a fair increase
over the same month in 1933. Business was som e­
what spotty, with relatively the best results shown
by dealers in the rural areas and larger centers of
population in the south, reversing conditions exist­
ing a year earlier. Demand continues to center
chiefly in the low priced field, approximately threefourths o f the O ctober aggregate sales being in that

category. Demand for trucks holds up well and
further into the season than usual. Requirements
for highway construction and other outdoor engi­
neering projects continue in substantial volume.
October sales of trucks fell slightly below a year
ago, but were 2 per cent larger than in September.
Sales o f new passenger cars by the reporting
interests in O ctober were 4 per cent less than for
the preceding month, but 12 per cent greater than
a year ago. Conservative purchasing by dealers
from the manufacturers has been emphasized by
the nearness o f the season for new models. Stocks
of new cars on dealers’ floors as of N ovem ber 1
were 8 per cent smaller than a month earlier, and
22 per cent larger than a year ago. Sales of used
cars in O ctober fell 4 per cent and 7 per cent, respec­
tively, below a month and a year earlier. Stocks of
salable secondhand cars held on N ovem ber 1
showed little change from the month before and
were 6 per cent larger than on N ovem ber 1, 1933.
A ccording to dealers reporting on that item, de­
ferred payment sales in O ctober constituted 48 per
cent of their total sales, against SO per cent in Sep­
tember, and 46 per cent in O ctober, 1933.

R E T A IL T R A D E
T h e condition of retail trade is reflected in the
follow ing comparative statements showing activi­
ties in the leading cities of the district:

D epartm ent S tores
Stocks
Net sales comparison
on hand
Oct. 1934 10 months ended Oct. 31, 1934
Oct. 31, 1934 to
comp, to
comp, to
Oct. 1933 same period 1933 Oct. 31, 1933
El Dorado, Ark.., . + 6 .3%
+ 3 6 .5 %
+ 1&.2%
— 11.7
+ 7.9
Evansville, Ind.... - 9.5
+ 2 3 .2
— 9.4
Fort Smith, Ark.. h 3.9
+ 0.3
+ 2 7 .7
Little Rock, Ark. - 2.5
— 4.8
+ 7.8
Louisville, Ky....... - 0.3
+ 2 2 .5
+ 3.9
Memphis, Tenn..... -12.5
— 5.7
+ 15.4
- 4.8
St. Louis, Mo.
— 8.0
+ 2 6 .8
h 14.5
Springfield, M
-25.9
+ 2 7 .7
— 2.0
+ 16.8
— 3.6
b 5.6

Stock
turnover
Jan. 1, to
Oct. 31,
1934 1933
2.15 1.70
1.56 1.47
1.85 1.64
1.94 1.79
2.61 2.51
2.67 2.41
2.98 2.82
1.59 1.29
2.39 2.06
2.70 2.53

Percentage of collections in O ctober to accounts
and notes receivable first day o f O ctober, 1934.
PERCENTAGE OF COLLECTIONS BY CITIES
El Dorado, Ark-................... 39.2%
Memphis, Tenn.......................46.1%
Fort Smith, Ark................... 42.4
Springfield, Mo.......................26.1
Little Rock, Ark......... ..........37.5
St. Louis, Mo........................53.4
Louisville, K y .........................52.3
All Other Cities.....................33.9
8th F. R. District....................... 49.5%

R e ta il Sto res
Stocks
Net sales comparison
on hafad
Oct. 1934 10 months ended Oct. 31, 1934
comp, to
Oct. 31, 1934 to
comp, to
Oct. 1933 same period 1933 Oct. 31, 1933
Men’s
— —
— <
—
*
Furnishings ......+ 1.8%
+ 2 1 .8 %
+ 1 7 .0 %
Boots and
Shoes ...____ _ + 2.2
_
— 2.5
— 7.5

Stock
turnover
Jan. 1, to
Oct. 31,
1934 1933
1.94

2.05

2.48

2.34

B U IL D IN G
T he dollar value o f permits issued for new con­
struction in the five largest cities of the district in
October was 3.6 per cent greater than in September
and 7.1 per cent less than in O ctober, 1933. A ccord ­
ing to statistics com piled by the F. W . D odge Cor­
poration, construction contracts let in the Eighth



Federal Reserve District in O ctober amounted to
$10,734,338 which compares with $7,616,894 in Sep­
tember, and $10,507,619 in October, 1933. Building
figures for October, fo llo w :
^
New Construction
Permits
46>st
1934
1934
1933
1933
Evansville
1
150
25
$
4 $
Little Ro< k
21
46
2
16
Louisville ..
37
29
137
177
Memphis ... 136
108
197
45
... 195
179
370
563
»..~390
482
$ 754
728
Sept.
298
488
Aug.
318
475
690
*In thousands (000 omitted).

$ 812
475
3,877

Repairs, etc.
dost
Permits
1934 1933
1S>34
1933
50
$ 146 $ 12
331
80
32
11
149
25
50
71
49
147
131
112
83
180
88
66
19*
869
1,044 ;
807 »

466

666

522

$ 428 $ 243
550
460
210
261

C O N SU M PT IO N O F E L E C T R IC IT Y
Public utilities in the five largest cities of the
district report consumption of electric current by
selected industrial customers in October, as being
about 1.7 per cent larger than in September, and
0.7 per cent less than in October, 1933. Detailed
figures fo llo w :
Sept.,
No. of
O ct.,
Oct. 1934
Custom­
1934
1934
comp, to
ers
* K .W .H . * K .W .H . Sept. 1934
1,590
1,851
— 14.1%
Evansville .... 40
— 7.8
1,702
1,846
Little Rock... 35
+ 1.3
7,047
6,956
Louisville .... 83**
1,867
+ 10.8
Memphis ..... 31
1,685
16,428
+ 3.8
17,056
Totals ....382
29,262
*In thousands (000 omitted).
••Revised figures.

28,766

+

1.7%

Oct.,
1933
*IQW .H'.
1,505
l;547
7,384
1,427
17,605

Oct. 1934
comp, to
Oct. 1933
+ 5.6%
+ 10.0
— 4.6
+ 3 0 .8
— 3.1

29,4)68

— 0 .7 %

A G R IC U L T U R E
Generally throughout the E ighth4 District
weather during O ctober and the early Jpart of
N ovem ber was favorable for all description^ of agri­
cultural operations, including harvesting, 1
housing
and m oving of late crops. Reflecting these condi­
tions, improvement in prospects, w hich commenced
with the late August and September rainfc, was
carried further, and final results for the district as
a whole are expected to be considerably betted than
was thought possible earlier in the season, when
extensive areas were suffering under the record
spring and summer drouth. Betterment extended
to food and feed crops, excepting corn, and esti­
mates for the district’s tobacco and cotton crops
increased between O ctober 1 and N ovem ber 1.
Lateness o f the dates for killing frosts and freezes
permitted o f unusually late development in the
case o f certain fruit and vegetable crops, including
white potatoes. Conditions for preparing the seed
bed and planting winter wheat and other fall sown
grains were almost ideal; stands and grow th o f
wheat are in the main satisfactory. Improvement
in pastures since the middle o f September has been
remarkable. In Missouri, for example, the condi­
tion on N ovem ber 1 was 64 per cent o f normal,
which compares with 48 per cent on O ctober 1, and
only 18 per cent on September 1. T h e indicated
acute shortage of feed, pasturage and forage has
been measurably reduced, and in many sections the
mild fall has permitted farmers to conserve supplies

for winter use b y grazing their livestock further
into the season than is ordinarily the case.
Rainfall has been well distributed and abun­
dant, supplying all immediate needs for livestock
water and grow ing crops, also, partially correcting
the deficiency in subsoil moisture, caused b y suc­
cessive years o f subnormal precipitation. Though
in much of the district, the year w ill be one of
reduced crop yields, elsewhere, notably in the south,
many crops will closely approximate, and in some
instances, exceed average. Expressed as a percent­
age o f the ten-year (1921-1930) average, combined
yield per acre o f 33 important crops in states of
the Eighth District as of N ovem ber 1, according
to the U. S. Department of Agriculture, was as
fo llo w s : Indiana, 79.9; Illinois, 62; Missouri, 47.7;
Kentucky, 104.1; Tennessee, 111.4; Mississippi,
108.8 and Arkansas, 92. F or the United States the
percentage was 78.7.
Rental and benefit payments in states includ­
ing the Eighth Federal Reserve District paid up to
O ctober 1, to farmers cooperating in the cotton,
wheat, tobacco and corn-hog adjustment programs
of the Agricultural A djustm ent Administration
w ere as fo llo w s: Arkansas, $15,368,771; Illinois,
$8,847,124; Indiana, $10,385,217; Kentucky, $2,995,304; Mississippi, $14,745,384; Missouri, $13,980,032;
Tennessee, $6,146,611; totaling $72,468,443. The
total as o f O ctober 1, represents an increase of 26.1
per cent over the $57,460,366 paid up to September 1.
C om — A notable exception to the late im­
provem ent in crop prospects was in the case of corn,
the harvest of which appears m ore discouraging as
husking progresses. Based on Novem ber 1, condi­
tions, the U. S. Department o f Agriculture esti­
mated the Eighth District yield at 159,780,000 bush­
els, a decrease of 5,944,000 bushels under the O cto­
ber 1, forecast, and com paring with 296,955,000
bushels harvested in 1933, and an 11-year average
(1923-1933) o f 346,344,000 bushels. T h e greatly
reduced yield resulted primarily from the prolonged
drouth, which was supplemented by widespread
dam age from ichinch bugs, ear-worm and other
detrimental factors. A n unusual number of barren
stalks and chaffy or poorly filled ears are com m on
over a large part o f the m ost important producing
sections. T he crop matured prior to the first killing
frost, and under favorable weather conditions, con­
siderable progress has been made in husking and
cribbing. A larger acreage than ever before in this
district was cut for fodder,
W in ter W heat — Eighth District production of
all wheat in 1934 is estimated by the U. S. Depart­
ment o f A griculture at 44,855,000 bushels, against
38,556,000 bushels produced in 1933 and an 11-year
average (1923-1933) o f 49,448,000 bushels. Under




extremely favorable weather conditions during the
fall, soil preparations and seeding o f the new crop
made rapid headway, and these operations were
completed somewhat in advance of the usual season-*
al schedule. A lm ost universally the plant is up to a
good stand, and in strong position for entering the
cold weather.
Fruits and Vegetables — Improvement in pros^
pects for fruits and vegetables in this district, indi+
cated in the U. S. Department of Agriculture’s re­
port based on conditions as o f O ctober 1, was con­
tinued during the month o f October. T h e rains in
late August and September reversed conditions in
many sections, converting virtual failures to fair
yields, and permitting of the planting and maturing
of certain late vegetable crops. In the district proper
the estimated yield o f white potatoes as o f N ovem ­
ber 1 was 9,499,000 bushels, an increase o f 516,000
bushels over the O ctober 1, forecast, and comparing
with 9,107,000 bushels in 1933, and an 11-year aver­
age of 13,967,000 bushels. This crop escaped serious
frost injury, and quality is turning out much better
than was thought possible earlier in the season.
Prospects for apples also bettered materially as a
consequence of the moisture and mild fall. In states
entirely or partly within the Eighth District the
apple crop is estimated at 9,246,000 bushels, of
which 3,956,000 bushels represent commercial pro­
duction, against 12,784,000 bushels in 1933, o f w hich
5.044.000 bushels were commercial crop, and a
5-year average (1927-1931) o f 15,181,000 bushels,
with 6,653,000 bushels commercial crop. In these
states the sweet potato crop is estimated at 17,975,000 bushels, an increase of 917,000 bushels over the
October 1 forecast, and com paring with 15,960,000
bushels harvested in 1933 and a 5-year average of
15.873.000 bushels; pears, 2,067,000 bushels, against
the virtual failure of 883,000 bushels in 1933, and
a 5-year average of 1,706,000 bushels; grapes 36,101
tons, against 33,136 tons in 1933 and a 5-year aver­
age of 29,341 to n s; peanuts, 42,090,000 pounds, the
largest on record, and com paring with 36,845,000
pounds in 1933 and a 5-year average o f 27,701,000
pounds.
L ive Stock — Reflecting improved pastures and
the mild fall weather, the condition o f herds gener­
ally through the district improved further from Sep­
tember to October. A ccordin g to the U. S. Depart­
ment of Agriculture’s N ovem ber 1 report, milk pro­
duction per milch cow on hand was slightly above
that on the same date last year. M uch less grain
was being fed per head, but low producers and dry
cows have been drastically culled out, so that the
number of milch cow s on hand is probably 3 to 4
per cent below a year ago. N ovem ber 1, eg g pro­
duction per hen was 9 per cent greater than the

small production on that date in 1933, and 2 per
cent greater than the S-year November 1, average.
W hile tame hay production is short, the defici­
ency has been partly compensated for by late forage
crops. In states of the district the yield of soybeans
and cowpeas picked and threshed is placed at
13,564,000 bushels, against 9,783,000 bushels in 1933
and 8,634,000 bushels for the 5-year (1927-1931)
average.
Receipts and shipments, at St. Louis as reported
by the National Stock Yards, were as follow s:
_________Receipts________
Oct.,
Sept.,
Oct.,
1934
1934
1933
Cattle and Calves......166,746 289,680 140,475
Hogs ..................... ....... 270,264 220,176 182,880
Horses and Mules.... 9,273 10,238
9,281
Sheep ........................... 83,011 68,941 49,438

Shipments
Oct.,
Sept.,
Oct.,
1934
1934
1933
102,061 178,078 69,880
166,348 115,410 134,481
10,022
9,204
9,327
28,417
18,744 10.259

Cotton — A s was the case with the country as
a whole, Eighth District cotton prospects improved
from September to October. In its report based on
conditions as of November 1 the U. S. Department
of Agriculture estimates production in this district
at 2,036,000 bales, an increase of 79,000 bales over
the October 1 forecast, and comparing with 2,554,000
bales harvested in 1933 and a 10-year average
(1923-1932) of 2,705,000 bales. Weather was unusu­
ally auspicious during October and picking and gin­
ning progressed rapidly, with practically no losses
of open cotton in the fields. Other contributing
causes to the advanced harvest were early opening
of bolls, an ample supply of labor, smaller acreage
and balage that did not tax gin capacity. Since
November 1 weather has continued favorable for
picking the remnant of the crop, and little cotton
remains in the fields. Killing frost occurred at a
later date than usual, and practically all of the crop
had matured prior to the low temperatures. Gin­
ning returns show a large amount of high grade
staple. W ith considerable cotton stored in compress
warehouses, shipments since August 1 are measura­
bly below those of the same period a year ago. M ore
of the crop is going into the 12c loans by the Com­
modity Credit Corporation than into the market.
Prices fluctuated within a relatively narrow range
during October and the first half of November, but
throughout the period continued well above a year
and tw o years earlier. In the St. Louis market the
middling grade ranged from 11.65c to 12.15c per
pound between October 16 and November 15, clos­
ing at 12.15c on the latter date, which compared
with 12c on O ctober 16, and 9.75c on November 15,
1933. Receipts at Arkansas compresses from August
1 to November 9 totaled 637,685 bales, against
711,799 bales in the corresponding period a year
a g o ; shipments 243,123 bales against 352,011 bales
last year. Stocks on hand as of November 9 totaled
652,404 bales, against 557,111 bales on October 12,
and 614,307 bales on the corresponding date in



1933. Sales of fertilizer tags in states of the Eighth
District for the period January-October, inclusive,
this year, according to the National Fertilizer A sso­
ciation, totaled 577,506 tons, against 389,399 tons
and 341,801 tons, respectively, for the corresponding
periods in 1933 and 1932.
Tobacco — Fall conditions have been excep­
tionally favorable for tobacco in this general area.
Prospects since the end of August having bettered
to the extent o f more than 7,000,000 pounds. In its
report as of November 1 the U. S. Department of
Agriculture estimates the Eighth District yield at
238,054,000 pounds, which compares with 277,750,000 pounds harvested in 1933 and an 11-year aver­
age (1923-1933) of 304,854,000 pounds. Seasonable
weather has permitted tobacco of all types to cure
satisfactorily, however, since the middle o f October
stripping has been delayed by less auspicious mete­
orological conditions. Indications point to a gen­
erally high quality crop. Opening date for the
burley and dark-fired markets is scheduled for
December 3, and for the Green River market,
November 27.

CO M M O D ITY P R IC E S
Range of prices in the St. Louis market be­
tween October 15, 1934, and November 15, 1934,
with closing quotations on the latter date and on
November 15, 1933, follow s:
High

Low

Close
Nov. 15, 1933
Nov. 15, 1934

Wheat
,per bu..$1.02
$ .94*£$
May .................. ... “
1.02
.9354
No. 2 red winter “
1.03
.97
No. 2 hard “
1.08*4 1.02
Com
•Dec...................... ... “
.83
.73*4
... “
.84**
.75*1
.75*6
.8 3 ^
*July ................... ... “
.80
No. 2 mixed .. ... "
.86*4
No. 2 white ... ... “
.86
.93J4
Oats
.55
No. 2 white .. ... "
.57*4
Flour
6.50
Soft patent....... ..perbbl. 7.20
7.20
Spring “ ...... ..
“
7.65
Middling Cotton..per lb.
.1215
.1165
2.00
Hogs on hoof......per cwt. 6.10
•Nominal quotations.

1.01

1.01
$
1.00*4
.94 @
@ 1.01*4
1.07*4
.98*4 @

.82*4 @ .82 Vs
.84
.83*4@ .83*4
.86*4
.93*4

,
.47*4
.5 3 ?*@ .54
.5 5 *4 ® * 5 5 .#
.43
.50*4

.57*4
6.70
7.40
3.00

@ 7 .0 0
@ 7.65
.1215
@ 6 .1 0

.89**
.93
.94*4
.98*4

.37*4
6.45
6.45
3.60

@ 6.95
@ 6.95
.0975
@ 4.25

F IN A N C IA L
Eighth District banking and financial conditions
during the past thirty days were marked by a fur­
ther moderate improvement in demand for credit
from general borrow ing sources. There was some
increase in commitments of mercantile concerns,
reflecting partly needs in connection with invento­
ries of holiday goods. Agricultural demand also
broadened to some extent, particularly in the tobac­
co, rice and cotton sections. Deposits of the com ­
mercial banks continued to mount, and at midNovem ber recorded a new high on the present up­
ward movement. Liquidation continued on a large
scale, both at city and country banks. In the case;
of country banks in the south a favorable develop­
ment was the paying-off entirely or reduction o f
many loans o f long standing. These institutions

for the most part continue to occupy a liquid posi­
tion, which will be augmented with the marketing
o f tobacco. In some sections bankers report a fair
demand for purchasing and conditioning livestock
for market.
Reporting member banks in the principal cities
showed an increase in total loans of 2.7 per cent
between O ctober 17 and Novem ber 14, but on the
latter date the aggregate was still 6 per cent smaller
than a year ago. Deposits increased 3.4 per cent,
and at $574,756,000 on N ovem ber 14 recorded a
new high for the year, an increase of more than
one-fifth as contrasted with the corresponding re­
port date in 1933. Reserve balances also scored a
new record high, the m id-N ovem ber total of
$101,737,000 representing an increase o f 11.6 per
cent and o f 88 per cent, respectively, over a month
and a year earlier. Investments increased moderate­
ly, due entirely to heavier holdings of U. S. Govern­
ment securities. Borrowings of all member banks
from the Federal Reserve bank showed little change
during the four-week period, but continued meas­
urably under the corresponding time a year ago.
The amount o f savings deposits held by selected
banks on N ovem ber 7 was 2 per cent larger than on
O ctober 3, and 19 per cent in excess o f the total on
Novem ber 1, 1933.
Interest rates continued at or around the low
levels o f recent months. A t St. Louis banks, as of
the week ended N ovem ber 15, current quotations
were as fo llo w s : Customers’ prime commercial
paper, 1 to 5y2 per cen t; loans secured by ware­
house receipts, 1J4 to 6 per cen t; collateral loans,
4 to 6 per cent and cattle loans 5 to 6 per cent.
Condition o f Banks — Loans and discounts o f
the reporting member banks on N ovem ber 14, 1934,
showed an increase o f 2.7 per cent as contrasted
with O ctober 17, 1934. Deposits increased 3.4 per
cent between O ctober 17, 1934 and Novem ber 14,
1934 and on the latter date were 21.2 per cent great­
er than on N ovem ber 15, 1933. Composite state­
ment fo llo w s:
•Nov. 14,
1934
19
Number of batiks reporting............
Loans and discounts (incl. rediscounts)
Secured by U . S. Govt, obligations
and other stocks and bonds....$ 69,164
All other loans and discounts.... 155,508
Total loans and discounts.................$224,672
Investments
U . S. Govt, securities...................$189,521
Other securities.............................. 115,965

•Oct. 17,
1934
19

$ 87,055
152,000

$218,830

$239,055

$184,515
115,196

$142,356
101,687

Total investments................................ $305,486

$299,711

$244,043

Reserve balance with F. R. Bank..$101,737
Cash in vault......................................
8,906
Deposits
Net demand deposits.................... ,$387,373
Time deposits.................................. 167,266
Government deposits..................... 20,117

$ 91,179
7,967

$ 54.112
8,993

$365,923
166,410
23,315

$289,714
158,694
25,700

Total deposits.......................................$574,756
$555,648
$474,108
Bills payable and rediscounts with
^Federal Reserve Bank...................................
...............
180
•In thousands (000 omitted).
The total, resources of these, banks comprise approximately 62.0%
of all member banks in this district.




the Federal Reserve Bank of St. Louis discounted
for 10 member banks against 8 in September and 64
in October, 1933. Changes in the principal assets
and liabilities of this institution appear in the fol­
lowing table:
•Nov. 17,
1934

•Oct. 17,
1934

•Nov. 17,
1933

Bills discounted
Bills bought .....
U . S. Securities..
Participation in Inv. Foreign

93,200
115

” 93,200

Total Bills and Securities.....

..$ 93,783

$ 93,913

$ 94,978

..$213,951
.. 158,393
.. 143,961

$206,813
151,772
141,594

$167,126
99,843
143,813
5,795

70.8%

70.5%

68 . 6 %

468

Total Reserves ........ .........................
Total deposits ....................................
F. R. Notes in circulation..............
F. R. Bank Notes in circulation..
Ratio of reserve to deposits
and F. R. Note Liabilities..

1

59?

122

$

1,381
242
93,200
155

•In thousands (000 omitted).

Discount rates charged by this bank remain
unchanged as follow s:
2 % per cent on advances to member banks on eligible paper
and/or collateral, whether rediscounts or member bank promis­
sory notes, under Sections 13 and 13a.
4 Y* per cent on advances to member banks on their promis­
sory notes secured by ineligible paper and/or collateral, under
Section 10b.
4 y2 per cent on advances to banks and other financing insti­
tutions on obligations of established industrial or commercial
businesses, for working capital, under Section 13b.
x i per cent flat for commitments not exceeding six months
/
on obligations of established industrial or commercial businesses,
for working capital, under Section 13b.
5 Yi per cent on direct advances to established industrial or
commercial businesses, for working capital, under Section 13b.
4 Y* per cent on direct advances to individuals, firms or cor­
porations (including nonmember banks), secured by direct obliga­
tions of the United States, under Section 13.
S y per cent on direct advances to individuals, partnerships
and corporations (excluding nonmember banks) on eligible paper,
under Section 13.

Debits to Individual A ccounts — T he follow ing
table gives the total debits charged by banks to
checking accounts, savings accounts, certificates o f
deposit accounts and trust accounts o f individuals,
firms, corporations and U. S. Government in leading
cities o f the district. Charges to accounts of banks
are not included.

•Nov. 15,
1933
19

$ 70,085
148,745

Federal Reserve Operations — During O ctober

•Oct.,
1934
East St. Louis and Natl.
Stock Yards, 111..$ 21,713
El Dorado, Ark.....
3,948
Evansville, Ind..... 16,857
Fort Smith, Ark....
9,100
Greenville, Miss....
5,257
Helena, Ark..........
3,207
Little Rock, Ark.., 27,335
Louisville, K y........ 126,437
Memphis, Tenn..... 142,718
Owensboro, K y.....
3,560
Pine JBluff, Ark....
8,684
Quincy, 111.............
5,908
St. Louis, Mo........ 458,700
Sedalia, M o............
1,615
Springfield, M o..... 11,196
••Texarkana.
Ark-Tex........
5,875
Totals

.....................$852,110

•Sept.,
1934
$ 21,816
3,609
15,751
7,630
3,844
2,341
22,342
115,491
103,037
3,668
6,853
5,431
392,720
1,541
10,789

•Oct.,
1933
$ 20,230
3,375
14,124
8,326
4,063
2,115
18,596
115,144
130,252
2,634
6,695
5,036
418,292
1,300
9,165

Oct., 1934 comp, to
Sept. 1934 Oct. 1933
— 0 .5 %
+ 9.4
+ 7.0
+ 19.3
+ 3 6 .8
+ 3 7 .0
+ 2 2 .3
+ 9.5
+ 3 8 .5
— 2.9
+ 2 6 .7
+ 8.8
+ 16.8
+ 4.8
+ 3.8

5,281

5,225

+ 11.2

+ 12.4

$722,144

$764,572

+ 18.0

+ 11.4

•In thousands (000 omitted).
••Includes one bank in Texarkana, Texas not in Eighth District.

(Com piled November 23, 1934)

h 7.3%
hi 7.0
K19.4
b 9.3
h-29.4
1-51.6
[-47.0
h 9.8
h 9.6
-35.2
-29.7
-17.3
- 9.7
-24.2
-22.2

BUSINESS CONDITIONS IN T H E U N IT E D STA TES
Volume of industrial production and factory employment,
which usually shows little change at this season, increased in
October, reflecting chiefly the resumption of activity at textile
mills. Wholesale commodity prices, after declining in September
and October, advanced in the first half of November.
IND USTRIAL PRODUCTION AND EM PLOYM ENT —
Activity at industrial establishments, as measured by the Board’s
seasonally adjusted index, showed an increase from 71 per cent

D ISTRIBU TIO N — The number of freight cars loaded per
working day decreased from September to October. Department
store sales showed a seasonal increase and were at about the same
level, on a seasonally adjusted basis, as in most other months
since March. Rural sales of general merchandise, as reported by
the Department o f Commerce, increased by less than the usual
seasonal amount following an unusually lar,ge increase in Sep­
tember.

o f the 1923-1925 average in September to 73 per cent in October.
A m ong the industries producing durable manufactures, output at
steel mills increased from 23 per cent of capacity for the month
o f September to 25 per cent for October, while output of automo­
biles and lumber declined. In November activity at steel mills
continued to increase and in the week ending November 24 was
at about 28 per cent of capacity. Automobile production has
declined further in connection with the preparation of new models.
The production of non-durable manufactures in the aggregate
showed a considerable growth in October, reflecting sharp in­
creases at cotton, woolen, and silk mills, offset in part by a decline
in activity at meatpacking establishments. The increase in output
at textile mills after the strike in September brought output to a
higher level than in August. Am ong the minerals, daily output
of crude petroleum declined in October and that of anthracite
increased by an amount smaller than is usual at this season.

CO M M ODITY PRICES — Wholesale commodity prices,
as measured by the Bureau of Labor Statistics* weekly index,
declined from 77.8 per cent of the 1926 average in the week end­
ing September 8 to 76.0 per cent in the week ending November 3
and then rose in the following two weeks to 76.7 per cent. The
decline was largely in prices of farm products and foods but
there were also some decreases in the prices of textiles and build­
ing materials. Increases in the first half of November were large­
ly in the prices of farm products. The price o f scrap steel also
advanced, while lead and zinc declined.
BANK CREDIT — Excess reserves o f member banks were
about $1,910,000,000 on November 21, showing an increase of
$150,000,000 in the preceding five weeks. The increase in reserves
held was $200,000,000, of which $50,000,000 covered a growth in
required reserves. Additions to reserves resulted mainly from

Federal Reserve Board's index of factory employment adjusted for seasonal
variation. (1923*1925 averager; 100). Latest figure, October, preliminary 77.

Wednesday figures for reporting member banks in 90 leading cities.
Latest figures are for November 14.

Factory employment and payrolls in the country as a whole
increased considerably between the middle of September and the
middle o f October. Sharp increases were reported at mills pro­
ducing textile fabrics, while in the automobile, shoe, and canning
industries there were declines of a seasonal nature.
The value o f construction contracts awarded was somewhat
larger in October than in any other recent month. There was an
increase in residential work as well as in publicly-financed projects.
AG RICULTURE — Department of Agriculture estimates,
based on November 1 conditions, indicate a cotton crop of 9,634,000 bales, 26 per cent smaller than the 1933 crop, and a corn crop
of 1,372,000,000 bushels, 41 per cent smaller than last season and 45
per cent smaller than the 1927-1931 average. The tobacco crop
is also considerably smaller than usual, while the white potato
crop is also slightly above the five-year average.

Loans and investments of reporting member banks in leading
cities declined somewhat in the four weeks ending November 14,
following an increase in the previous month. Substantial declines
were shown in loans on securities and in holdings o f securities
other than those o f the United States Government. Other loans,
which had increased considerably in previous months, also showed
some decline, while holdings o f direct obligations o f the United
States Government and o f securities fully guaranteed by the
Government increased considerably. Customers’ deposits contin­
ued to increase, while Government deposits declined.
There was a further decline in open-market rates on bankers’
acceptances at the end o f October to an offering rate o f % per
cent. Yields on short-term Government securities and other
short-term open-market money rates showed little change.