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MONTHLY REVIEW
O f Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
RELEASED FOR PUBLICATION ON THE AFTERNOON OF NOVEMBER 30, 1937

FEDERAL

RESERVE

District Summary
Nov. 1, 1937, comp, with

Agriculture:
Yield 1935 1923-36 Av.
Estimated yield of 7 crops................. +63.4% + 9.4%
Oct. 1937, comp, with

Livestock:
Sept. 1937 Oct. 1936
Receipts at National Stock Yards.....— 3.0% — 6.5%
Shipments from aforesaid Yards...... — 7.3
+ 1.0
Production and Distribution:
Sales by mfrs. and wholesalers.......... —14.8
Department store sales.......................+ 2.6
Car loadings......................................... + 5.1
Building and Construction:
.
., . 1
f Number...— 5.2
Bldg.permits, incl. repairs j Cogt
_25.0
Value construc. contracts awarded....— 8.2
Miscellaneous:
n
• 1 { *i
S Number.......... + 18.8
Commercial failures } Liabilities...... I 68.5
Consumption of electricity................. — 7.2
Debits to individual accounts............ + 14.8

—20.3
— 2.0
— 0.9
—11.3
—71.1
— 17.2
—26.9
-5 4 .4
— 1.6
+ 0.1

Nov. 10/37 comp, with

Member Banks (24):
O ct.i3,’ 37 N o v .il/3 6
Gross deposits......................................— 1.7% — 7.8%
Loans.................................................... + 2.0
— 16.5
Investments......................................... .— 2.5
— 13.9

ECESSIO N ARY trends in general business
in the Eighth District, which began in the
' late summer, continued at an accelerated
pace during October and the first half of November.
Distribution of merchandise and activities at manu­
facturing establishments underwent sharp contrac­
tion from the recently high levels, and in a majority
of instances, fell below the rate prevailing at the
corresponding period a year ago. In contrast with
the first half of the year, purchasing by merchants
and the public was on a conservative and cautious
scale, and there was a general disposition in all quar­
ters to await developments before expanding com­
mitments. This attitude was emphasized by the de­
cline in commodity prices on both spot and future
markets and continued weakness in the security
markets. Of the wholesaling and jobbing lines in­
vestigated by this bank a large majority showed de­
creased in volume of October sales as compared
with the same month in 1936, also as contrasted with
the preceding month this year. Among those record­
ing declines in both comparisons were boots and
shoes, dry goods, drugs and chemicals, groceries

R




BANK

OF

ST.

LOUIS

and hardware. A relatively much more favorable
showing was made in retail trade than in wholesale
distribution, both in the large urban centers and
the country. October sales of department stores in
the principal cities were slightly greater than in
September, and only 2.0 per cent below the high
total of October a year ago. Retail sales of automo­
biles, while about one-fourth smaller than in Sep­
tember, were slightly larger than in October, 1936.
Activities in the iron and steel industry declined
sharply, reflecting curtailment of new orders being
placed with mills, foundries and machine shops.
Backlogs are being rapidly reduced, and manufac­
turers are adjusting their output accordingly. Pro­
duction of steel ingots at mills in this general area
recorded a new low for the year at mid-November.
Producers and distributors of building materials, in­
cluding lumber, glass, fire clay products, cement and
quarry products, reported demand for their goods
at the lowest ebb since the recovery period. Con­
sumption of electric power by industrial users in
the principal cities during October fell slightly be­
low the preceding month and a year ago. Production
of bituminous coal at mines of the district was 10.9
per cent larger than in September, but about 2 per
cent belowTthat of October, 1936. Contraction in the
industrial field wras reflected in a decline in employ­
ment and payrolls from September to October. As
reflected in the dollar value of building permits
issued in the leading cities, and contracts let, con­
struction in October showed declines, both as com ­
pared with the preceding month and a year earlier.
As a result of ideal fall conditions generally
throughout the district, crop prospects improved
further during October and the first half of Novem­
ber. Yields of all the major productions, according
to the U. S. Department of Agriculture’s report
based on November 1 conditions, exceeded those of
a year ago, and in most instances are larger than the
five-year (1928-1932) average. The estimate for cot­
ton for the E ighth, District on November 1 was
4,681,000 bales, an increase of 267,000 bales over the
October 1 forecast and comparing with 3,404,000
bales produced in 1936. Corn is also a bumper crop,
Page 1

with per acre yields in Indiana and Illinois the high­
est since crop reporting began in 1866. The season
was especially auspicious for fruits and vegetables,
and final harvest returns indicate above average pro­
duction for virtually all species. Harvesting of
tobacco has been completed, and reports from a
majority of the chief producing sections indicate a
crop above average, both in point of size and quality.
Gauged by sales of department stores in the
principal cities, the volume of retail trade in October
was 2.6 per cent greater than in September and
2.0 per cent less than in October, 1936; cumulative
total for the first ten months this year was 8.9 per
cent in excess of that for the comparable period in
1936. Combined sales of all wholesaling and jobbing
interests reporting to this bank in October were
14.8 per cent and 20.3 per cent smaller, respectively,
than a month and a year earlier; for the first ten
months the aggregate was 9.1 per cent greater than
for the like interval in 1936. The dollar value of per­
mits issued for new buildings in the principal cities
in October was 7.4 per cent smaller than in Septem­
ber and about two-thirds less than in October, 1936;
cumulative total for the first ten months was 11 per
cent smaller than for the same period last year.
Dollar value of construction contracts let in the
Eighth District in October was 17.2 per cent and
8.2 per cent smaller than last year and last month,
respectively; cumulative total for the year was 14
per cent less than last year.
Freight traffic of railroads operating in this dis­
trict, according to officials of the reporting roads,
declined in more than the expected seasonal amount
during October and the first week of November. The
volume was slightly less than during the same
period in 1936, but still measurably greater than in
all other preceding years since 1930. Passenger traf­
fic of the reporting lines again showed a substantial
increase in October over the corresponding month
a year earlier. Estimated tonnage of the Federal
Barge Line between St. Louis and New Orleans in
October was 13 per cent less than in September, but
more than 9 per cent greater than in October, 1936;
for the first ten months this year the cumulative
tonnage show’s an increase of 4 per cent over the
same interval a year ago.
Reports relative to collections during October
and early November reflected less satisfactorily re­
sults than during preceding months this year. Re­
tailers in the rural areas, particularly in the south,
reported some slowing down in payments, ascribed
to the decline in prices of cotton. Wholesalers and
jobbers in the chief distributing centers reported
November 1 settlements somewhat below a year
Page 2




ago. Fewer customers were taking advantage of
cash discounts than heretofore. Questionnaires ad­
dressed to representative interests in the several
lines scattered through the district showed the fol­
lowing results:
Excellent

Good

Fair

Poor

October,
1937......7~2A% 35.1% 52.0% 10.5%
September, 1937....... 4.2
50.0
40.0
5.8
October,
1936....... 9.8
52.8
36.0
1.4
Commercial failures in the Eighth Federal Re­
serve District in October, according to Dun and
Bradstreet, numbered 19, involving liabilities of
$173,000, which compares with 16 insolvencies in
September with liabilities of $550,000, and 26 de­
faults for a total of $379,000 in October, 1936.

Detailed Survey
MANUFACTURING AND W H O LESALIN G
Net Sales
10 months 1937
Oct. 1937
comp, with same
compared with
period 1936
Sept. ’ 37 Oct. ’ 36
Boots and Shoes......... — 20.3% — 22.0%
+ 12.0%
Drugs and Chemicals.. — 7.2
+ 5.9
— 5.3
— 15.0
— 24.5
+ 1.4
+ 32.4
Electrical Supplies...... — 14.0
+ 0.2
— 18.4
+ 9.9
+ 18.1
+ 1.5
— 6.4
— 1^.5
— 20.2
— 12.2
+ 14.7
Lines of
Commodities

All above lines......... — 14.8

— 20.3

+

9.1

Stocks
Oct. 31, 1937
comp, with
Oct. 31, 1936
- 5.5%
h 7.8
-32.5
-27.0
-13.2
- 8.5
-24.4
+ 19.8

Automobiles — Combined passenger car, truck
and taxicab production in the United States in Octo­
ber was 329,876 against 171,203 in September and
224,688 in October, 1936.
Boots and Shoes — The decrease in sales of the
reporting firms from September to October, as
shown in the above table, was seasonal in character,
but considerably greater than the average during the
past several years. The decrease as compared with
a year ago is accounted for chiefly in the smaller
volume of advance ordering. Prices of finished
materials were practically unchanged, and contin­
ued measurably higher than a year earlier. Produc­
tion during October and early November showed
somewhat more than the usual seasonal decline.
Clothing — October sales of the reporting inter­
ests were 7 per cent smaller than during the pre­
ceding month and 2.5 per cent in excess of the Octo­
ber, 1936, total. Inventories continued to decrease
during October, stocks on hand as of November 1
being approximately 15 per cent smaller than a
month earlier, but 17 per cent in excess of those on
the same date in 1936. Purchasing of apparel for
spring distribution is reported generally disappoint­
ing, due to both price and style uncertainties. The
general price trend was downward in sympathy
with cotton and other raw materials.
Drugs and Chemicals — The general decline in
industrial activities since the late summer was re­

fleeted in a noticeable curtailment in demand for
heavy drugs and chemicals from the manufacturing
trade and was partly responsible for the smaller
volume in business of the reporting firms in Octo­
ber as contrasted with a month and a year earlier.
The unusually mild fall has held down the move­
ment of all descriptions of cold weather goods.
Dry Goods — A general slowing down in busi­
ness during October, both as compared with a
month and a year earlier, was reflected in reports
of firms in virtually all sections of the district. Un­
seasonably warm weather has militated against the
movement of seasonal items, and due to the sharp
decline in raw materials, notably cotton, advance
ordering has been reduced to relatively small pro­
portions. Demand for ready-to-wrear clothing and
some other specialties continues active, and equal
in volume to a year ago.
Electrical Supplies— For the sixteenth consecu­
tive month sales in this classification during October
exceeded those of the corresponding month a year
earlier, and the October total was the largest for
the month since 1929. Ordering of holiday goods
was reported in substantial volume and the movemement of household specialties and radio material
was maintained at, or near the high levels of recent
months. Outlet through the building industry
showed further narrowing tendencies.
Furniture — The increase from September to
October in sales of the reporting firms was contraseasonal in character and occasioned by settlement
of strikes which had existed at plants of important
firms during the earlier month. A considerable vol­
ume of business accumulated during the shutdowns
was released in October. Advance ordering of holiday goods was reported only slightly below the
same time in 1936.
Groceries — Decreases in sales of the reporting
firms in October as compared with a month and a
year earlier were quite generally distributed through
all lines, but most marked in canned goods and other
preserved foods. This was accounted for partly by
the unusually large quantities of fruits and vege­
tables which farm and other families were able to
put up because of large crops and relatively low
prices of these products.
Hardware — According to the reporting inter­
ests in this classification there was a rather marked
decline in demand for staple goods during October,
particularly in builders’ hardware and kindred lines.
The late fall has adversely affected the movement
of all descriptions of seasonal merchandise. Sales of
hunters' supplies, sporting goods and holiday spe­
cialties were reported in substantial volume.




Iron and Steel Products — In virtually all sec­
tions of the iron and steel industry in this district,
the rate of activities during October and the first
half of November declined sharply from the similar
period immediately preceding and for the first time
in a number of months fell below that of the corre­
sponding time a year earlier. General purchasing of
finished steel was at a minimum, there being a gen­
eral disposition on the part of consumers to use up
inventories acquired earlier in the year. Schedules
at mills have been considerably reduced, despite
which fact the volume of unfinished orders has re­
ceded markedly. This is true particularly of makers
of sheets, plates, strip and other flat rolled materials.
Manufacturers of specialties, such as stoves, heating
apparatus, household appliances, etc., have also cut
their production in adjustment with smaller volume
of incoming orders. An exception was in the case of
farm implement and tractor makers who maintained
operations during October at, or about the high rate
which had marked the preceding several months;
however, since November 1 there has been some
slowing down even in this industry. Placement of
automotive castings has been disappointing, and
with miscellaneous work also declining, the rate
of operations at jobbing foundries averaged only
three to four days per week, as against five to six
days earlier in the year. Iron and steel jobbing and
warehouse interests reported October volume about
on a parity with September, but approximately 8 per
cent below the October, 1936, total. Demand for all
descriptions of oil country goods continues heavy
and has served to partly offset lessened require­
ments elsewhere. Steel ingot production at mills in
this general area underwent a further sharp decline,
the rate at mid-November being 15.1 per cent of
capacity, which compares with 60 per cent a month
earlier and the peak of 94 per cent at the middle of
May. Pig iron producers serving melters in this dis­
trict have reaffirmed current prices for first quarter
of 1938 delivery and most prices of finished steel
were unchanged. Iron and steel scrap, however, sus­
tained a further decline, heavy melting steel and
some other important items reaching the lowest
point in many months. For the entire country, ac­
cording to the magazine “ Steel” , production of pig
iron in October totaled 2,891,026 tons, the lowest
since September, 1936, and comparing with 3,417,960
tons in September and 2,991,794 tons in October,
1936. Production of steel ingots in the United States
in October amounted to 3,203,447 tons against
4,029,921 tons in September and 4,216,536 tons in
October, 1936.
Page 3

R E TA IL TR A D E

Department Stores — The trend of retail trade
in the Eighth District, as reflected in statistics of
department stores in the principal cities which re­
port to this bank, is shown in the following compar­
ative statement:
Stocks
___________ Net Sales_____________ on Hand
Oct. 1937
10 mos. 1937 Oct.31,’37
compared with
to same comp, with
Sept. 1937 Oct. 1936 period ’ 36 Oct.31/36
El Dorado, Ark.... .....+ 20.6 %
+ 3.2% + 9.0%
h 4.2%
Ft. Smith, Ark.... .....+22.1
— 4.0
+ 6.4
- 8.0
Little Rock, Ark... .... + 7.4
— 8.6
+ 4.9
-12.9
Louisville, K y......
— 2.0
+ 8.8
-12.0
Memphis, Tenn.... ....+ 19.6
— 6.6
-21.2
+ 8.0
Pine Bluff, Ark.... ....+ 16.6
— 13.1
+ 2.4
-14.9
St. Louis, M o...... .... — 4.3
+ 0.3
-12.1
+ 9.8
Springfield, M o.... . , +13.0
+ 0.4
+ 10.3
- 3.1
— 6.2
All Other Cities.... .... + 18.7
+ 3.0
-19.1
8th F. R. District. ....+ 2.6
— 2.0
+ 8.9
-13.5

Stock
Turnover
Jan. 1, to
Oct. 31,
1937 1936
2.37 2.25
2.17 2.21
2.21 2.48
3.32 3.52
2.55 3.74
2.02 2.33
3.20 3.41
2.09 2.18
2.46 2.62
2.98 3.18

Percentage of accounts and notes receivable
outstanding October 1, 1937, collected during Octo­
ber, by cities:
Installment Excl. Instal.
Accounts
Accounts
El Dorado... ............. % ..... ...... 51.3%
Fort Smith..
.......43.6
Little Rock. ...... 14.5 .... .......43.4
Louisville ......... 10.4 ..... ......46.4
Memphis ....
.......44.7

Installment Excl. Instal.
Accounts
Accounts
Pine Bluff............... %. ...........32.9%
Springfield .............. . ..........30.3
St. Louis........... 19.1 ............54.9
Other Cities...... 15.1 ............48.1
8th F. R. Dist.,17.3 ,............50.3

Specialty Stores — October results in men’s
furnishings and boot and shoe lines are shown in the
following table:
Stocks
___________ Net Sales_____________ on Hand
Oct. 1937
10 mos. 1937 Oct.31,’ 37
compared with
to same comp, with
Sept. 1937 Oct. 1936 period ’36 Oct.31,’ 36
Men’ s Furnishings....+ 20.6 % — 3.7% + 5.6% + 1 7 .8 %
Boots and Shoes....... — 13.8
+ 5.4
+ 15.6
+ 22.8

Stock
Turnover
Jan. 1, to
Oct. 31,
1937 1936
2.08 2.19
5.48 5.76

Percentage of accounts and notes receivable out­
standing October 1, 1937, collected during October:
Men’s Furnishings............... 32.3%

Boots and Shoes........................39.1%

MINING

Stocks of bituminous coal continued to increase
during September, total reserve in the hands of in­
dustrial users and retailers on October 1 amounting
to 46,036,000 tons, an increase of 2,185,000 tons over
September 1 and comparing with 34,604,000 tons on
October 1, 1936. An increase in consumers’ stocks
usually occurs during the fa ll; in the present in­
stance the increase is superimposed on the relatively
large carryover from the first quarter of 1937, when
buying was heavy in anticipation of a strike on April
1. Estimated production of soft coal for the entire
country in October was 40,040,000 tons, against
39,055,000 tons in September and 43,321,000 tons in
October, 1936; for the first ten months this year
cumulative tonnage amounted to 367,102,000 tons as
against 346,435,000 tons for the comparable period
in 1936. At mines in this general area October out­
put was 11 per cent smaller than in September and
2.1 per cent greater than in October, 1936; for the
first ten months tonnage lifted was greater by 3.6
per cent than during the like interval in 1936. Illi­
nois mines produced 4,651,359 tons in October
Page 4




against 4,087,467 tons in September and 4,799,164
tons in October, 1936. There were 147 mines in
operation in October and 35,695 men on payrolls,
which compares with 138 active mines and 33,172
operatives in September.
AGRICULTURE

Combined receipts from the sale of principal
farm products and Government payments to farmers
in states including the Eighth District during the
periods January-September, 1935, 1936, 1937, and
during September, 1936 and 1937, are given in the
following table:
_____ January-September
(In thousands
of dollars)
1935
1936
1937
Indiana................... $180,236
$197,483$223,754
Illinois.................... 281,954
331,589
367,653
Missouri.................. 169,536
180,063
200,249
Kentucky................
95,422
78,435
117,230
70,623
65,767
86,693
Tennessee...............
Mississippi..............
68,263
68,109
92,419
60,993
52,566
74,477
Arkansas.................
Totals.................. 927,027

974,012 1,162,475

September
1936
1937
$ 23,455 $ 25,589
32,305
35,628
23,437
27,706
7,963
8,804
9,544
9,895
27,564
26,072
15,366
17,128
139,634

150,822

Quite generally through the district October
and early November weather was mild and very
favorable for maturing and harvesting fall crops.
According to the U. S. Department of Agriculture
and the agricultural departments of the several
states, indicated yields as of November 1 for the
principal productions were considerably above a
year ago; in many instances greater than average.
Killing frosts were late and in only a limited number
of localities precipitation was sufficiently heavy to
hamper harvesting operations. Among the crops
especially benefitted by the auspicious weather con­
ditions were cotton, corn, tobacco, rice, soybeans
and a number of fruits and vegetables. In addition
to improving the status of crops, the auspicious
weather permitted of good progress of fall farm
work of all kinds, though in some areas plowing
was delayed by hard soil early in the autumn and
interruptions from rains during the first three weeks
of October. Generally, however, farm schedules are
well up to the seasonal average.
For the entire country, excluding cotton, crop
yields are expected to average about 5.1 per cent
higher than the 1923-1932 average, but they will be
about one-fourth above the very low average of the
last four years.
As an offset to the high production in the mat­
ter of returns to farmers has been the sharp decline
in prices of many important products, new low
levels for the season being recorded during the period
covered by this review. As of November 6, the farm
products group of the Bureau of Labor Statistics
Price Index stood at 77.7 per cent of the 1926 aver­
age, which compares with 82.7 per cent on October
9, 84.2 per cent on November 7, 1936, 77.5 per cent

on November 9, 1935 and 55.6 per cent on Novem­
ber 11, 1933.
Corn — Based on the November 1 condition, the
yield of corn in this district is estimated at 371,275,000 bushels, an increase of 14,157,000 bushels over
the October 1 forecast and comparing with 202,726,000 bushels harvested in 1936 and the 14-year (19231936) average of 327,361,000 bushels. In Illinois, the
principal corn producing state of the district, the
yield of 46 bushels per acre is the highest since crop
estimating records began in 1866. Average yield in
Indiana of 45 bushels per acre is also the highest of
record for that state. Husking returns indicate gen­
erally high quality, with less than the usual mois­
ture content. Damage from frost was negligible.
C otton— Further improvement in cotton pros­
pects during October and early November practical­
ly insure the largest yield of record in this district.
The season from planting time has been generally
favorable, and with few interruptions weather con­
ditions have been auspicious for harvesting the crop
and getting it to the gins. On October 23 heavy to
killing frost and freezing temperatures occurred,
stopping further growth. Most of the unpicked cot­
ton as of November 1 was open and subject to
weather damage, but conditions during the first half
of November favored getting out this part of the
crop. Prices receded further, reaching a new low for
the season in the first week of November. In the
St. Louis market the middling grade ranged from
7.19c to 8.15c per pound between October 15 and
November 15, closing at 7.80c on the latter date,
which compares wTith 8.05c on October 15 and 13.20c
on November 16, 1936.
In its report as of November 1 the U. S. De­
partment of Agriculture estimates Eighth District
production of cotton at 4,681,000 bales, an increase
of 267,000 bales over the October 1 forecast and
comparing with 3,404,000 bales harvested in 1936
and the 14-year (1923-1936) average of 2,763,000
bales. As indicating the rapidity with which the
crop is moving, receipts at Arkansas compresses
from August 1 to November 12 totaled 1,237,065
bales against 1,030,369 bales during the correspond­
ing period a year ago. Stocks on hand as of Novem­
ber 12 totaled 885,502 bales against 667,365 bales on
the corresponding date in 1936.
Fruits and Vegetables — Latest harvesting re­
turns tend to better estimates of yields of fruits
and vegetables made earlier in the season. Harvest­
ing of apples was about completed in the third week
of October, and the movement to market has been
in considerable volume, despite less favorable prices.
In states including the Eighth District, the apple




crop is estimated by the U. S. Department of Agri­
culture in its report as of November 1, at 26,669,000
bushels, against 5,590,000 bushels in 1936 and the
5-year average (1928-1932) of 15,199,000 bushels.
In these states the peach yield is estimated at
10,238,000 bushels, against 3,422,000 bushels in 1936
and the 5-year average of 7,265,000 bushels; grapes
44,300 tons, against 25,060 tons in 1936 and the 5year average of 33,010 tons; sweet potatoes, 19,813,000 bushels, against 15,031,000 bushels in 1936 and
the 5-year average of 17,483,000 bushels. Production
of white potatoes in the district proper is estimated
at 12,694,000 bushels, as against 8,333,000 bushels in
1936 and the 14-year average of 13,562,000 bushels.
Livestock—Universally throughout the district
the condition of livestock was reported in better
condition than in any similar period during the past
several years. Favorable fall weather and abundant
supplies of feed and forage have contributed materi­
ally to the wellbeing of herds. While most animal
prices declined during October, the average was still
considerably higher than a year ago. Poultry and
dairy products were slightly higher than a year ago.
Developments in the cattle feeding situation
during October continued to point to a considerable
increase in feeding in the Corn Belt States in the
winter and spring of 1937-1938 over a year earlier.
The number of lambs fed this winter probably will
be larger than a year ago in the Corn Belt States,
owing to larger and lower-priced feed supplies.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
_________ Receipts_______
Oct.,
Sept.,
Oct.,
1937
1937
1936
Cattle and Calves..... 161,253 181,185 154,266
Hogs ......................... 186,406 141,084 232,203
Horses and Mules..... 3,820
4,451
6,673
Sheep ........................ 67,134 104,832 54,408
Totals................... 418,613 431,552 447,550

______ Shipments________
Oct.,
Sept.,
Oct.,
1937
1937
1936
111,123 122,151 83,278
115,086 91,383 149,062
3,374
4,273
5,963
21,421 52,849 10,219
251,004 270,656 248,522

Rice — Harvesting and threshing of rice in Ar­
kansas were somewhat retarded by rains in the first
and third weeks of October. Prospective yield on
November 1 remained the same as was indicated on
October 1, or 54 bushels per acre. The yield is esti­
mated at 8,640,000 bushels as compared with 7,950,000 bushels in 1936 and the 5-year average (19281932) of 8,502,000 bushels.
Tobacco— Based on November 1 conditions the
U. S. Department of Agriculture estimates the
Eighth District tobacco yield at 278,916,000 pounds
an increase of 3,072,000 pounds over the October 1
forecast and comparing with 176,784,000 pounds
harvested in 1936 and the 14-year (1923-1936) aver­
age of 287,796,000 pounds. Reports as of midNovember indicate that there has been only a partial
Page 5

season for handling of tobacco, preventing taking
down any great quantity; however, farmers are
watching closely and taking down all the tobacco
that is at all in condition and stripping of burley is
being done in a limited way. The early and middle
cuttings of burley are practically cured and will be
stripped on the very first season, but late burley is
reported not faring so well. Some progress has been
made in the air-cured dark districts toward bulking
and stripping the crop. It appears that quality, color
and length of the leaf are coming up to earlier
expectations.
In the eastern fired districts, some of the early
tobacco has been taken down, is practically cured
and shows high quality. The second cutting is not
thoroughly cured, and will acquire an additional
week or ten days to complete the process. In all
districts farmers are making extraordinary efforts to
have their tobacco ready for the opening of the
markets early in December.
COM M ODITY PRICES

Wheat
*Dec.................
*May .............
*July .............
*No. 2 red wit
*No. 2 hard
Corn
*Dec.................
*May .............
*July .............
*No. 2 mixed
*No. 2 white
Oats
*Dec.................
*May .............
*July .............
*No. 2 white
Flour
Soft Patent....
Spring “ ....

Low

..per bu..$l.0 0 /2 $ .8 5 ^
“
1.0034
.8 6^4
“
.985$
.824
sr “
1.03^4
.93
...
...

1.05

...
...

...
...
...
...
...
...
...

.5934
.61

“
“
“

.33H
.33H
.32H

.325/8
.284
.305/8

“

.34^2

.32

..per bbl. 5.85
..

“

6.95

.5334
.5 7 4

.5354
.5 7 #
.5 7 ^
.5254
.5 4 ^

.5 7 y
.52*4
.54

4.65
6.05

.per lb.
.0815
.0719
.per cwt.11.15
7.75
*Nominal quotations.

.8 9 ^
.9054
.8 4 ^
.99

1.00

.94

“
“
“
“
“

.66
.68
.69V2

Close
Nov. 15, 1937
Nov. 16, 1936
$

$

1.1824

1.155/8
1.027/s
1.23 y
1.23 4
1.05 H

.98/g
■94H
1.12
1.09

.3234

.32/s
.305/8
.3 4 / 2

.4 7 y

4.80@ 5.40
6.25 @ 6.60
.0780
7.75@ 9.00

5.45@5.90
7.25@7.35
.1320
7.50@9.60

TRAN SPORTATION

The St. Louis Terminal Railway Association,
which handles interchanges for 28 connecting lines,
interchanged 92,268 loads in October, as against
87,820 loads in September and 93,067 loads in Octo­
ber, 1936. During the first nine days of November
the interchange amounted to 25,769 loads against
27,233 loads during the corresponding period in
October and 25,726 loads during the first nine days
of November, 1936. Passenger traffic of the report­
ing roads in October increased 14 per cent in num­
ber of passengers handled and the same amount in
revenues as compared with the corresponding month
last year. For the entire country, loadings of revenue
freight for the first 45 weeks this year, or to Novem­
Page 6




BUILDING

The dollar value of building permits issued for
new construction in the five largest cities of the dis­
trict in October was 7.4 per cent smaller than in
September and 75.2 per cent less than in October,
1936. According to statistics compiled by the F. W .
Dodge Corporation, construction contracts let in
the Eighth Federal Reserve District in October
amounted to $12,687,900 which compares with
$13,818,600 in September and $15,327,500 in October,
1936. Building figures for October follow :
(Cost in
thousands)

Range of prices in the St. Louis market be­
tween October 15, 1937, and November 15, 1937,
with closing quotations on the latter date and on
November 16, 1936, follows:
High

ber 6, totaled 33,788,309 cars, against 31,030,606 cars
for the corresponding period in 1936 and 27,332,082
cars in 1935. Estimated tonnage of the Federal
Barge Line between St. Louis and New Orleans in
October was 140,600 tons, against 162,198 tons in
September and 128,931 tons in October, 1936; cumu­
lative tonnage for the first ten months this year was
1,475,624 tons, against 1,419,825 tons for the like
period in 1936.

Evansville....
Little Rock
Louisville....
St.

Louis....

New Construction
Permits
Cost
1936
1937
1936
1937
16
49
$ 46 $ 115
21
32
109
36
124
104
277
525
289
298
400
3,306
248
309
436
756

Oct. Totals 678
Sept.
“
691
Aug.
“
668

812
795
620

1,195
1,290
1,704

4,811
1,590
2,571

Repairs, etc
Cost
Permits
1937 1936
1937 1936
153
124
$ 103 $ 48
110
103
28
37
54
63
45
98
156
146
61
69
178
206
113
340
642
702
711

677
639
615

359
782
570

567
466
557
•

CONSUMPTION OF ELE C TR IC ITY

Public utilities companies in six large cities of
the district report consumption of electric current
by selected industrial customers in October as being
7.2 per cent smaller than in September, and 1.6 per
cent less than in October, 1936. Detailed figures
follow :
Oct.,
(K .W .H . No. of
in thous.) Custom­
1937
ers
K .W .H .
Evansville..... 40
2,984
Little Rock.. 35
2,064
9,164
2,483
1,198
Pine Bluff.... 20
22,982
Totals..... 388
*Revised figures.

40,875

Sept.,
1937
K .W .H .
2,172
2,488
9,931
2,500
865
26,100
44,056

Oct. 1937
comp, with
Sept. 1937
+ 37.4%
— 17.0
— 7.7
— 0.7
+38.5
— 11.1
— 7.2

Oct.,
Oct. 1937
1936 comp, with
K .W .H . Oct. 1936
2,970
+ 0.5%
2,076
— 0.6
8,810*
+ 4.0
— 4.1
2,590
1,089
+ 10.0
24,017
— 4.3
41,552

— 1.6

LIFE INSURANCE

Sales of new, paid-for, ordinary life insurance in
states including the Eighth District during Octo­
ber, the preceding month, and a year ago, together
with the cumulative totals for the first ten months
this year and the comparable period in 1936 are
shown in the following table:
(In thousands
of dollars)
Arkansas..........
Illinois.............
Indiana............
Kentucky.........
Mississippi.......
Missouri...........
Tennessee........

Cumulative Totals
Oct.,
Sept.,
Oct.,
1937
1936
1937
1936
19 37
3,567 $ 3,430 $ 4,067 $ 38,630 $ 37,875
44,373
481,804 451,657
45,142
38,721
141,361
134,303
12,942
13,387
11,981
64,220
7,451
6,642
6,678
65,888
3,310
4,108
35,496
32,069
3,426
188,331
177,821
14,890
16,324
16,986
83,102
76,263
7,354
7,578
7,557

97,313
Totals...........
United States... 579,704

86,552
500,434

Cumul.
change
+ 2.0%
+ 6.7
+ 5.3
+ 2.6
+ 10.7
+ 5.9
+ 9.0

96,049 1,034,612 974,208 +
576,873 6,031,079 5,771,758 +

6.2
4.5

MONEY AND BANKING

During the past thirty days demand for bank
credit from virtually all the principal borrowing
groups continued the upward trend which has been
in evidence since the end of last July. Requirements
of mercantile and manufacturing interests were in
considerably larger volume than at any similar
period during the past four years. While still in
large volume, liquidation at commercial banks in
both the large centers and the country was measur­
ably below new borrowings and extensions. Demand
for funds to finance the cotton and tobacco crops
was substantially greater than a year ago, and in the
case of loans based on tobacco, no material volume
of liquidation is looked for before well into Decem­
ber, when the crop begins to move through district
markets. In the cotton areas country banks gener­
ally have in their portfolios all the Commodity Cred­
it Corporation paper they can handle and are pass­
ing the overplus to their city correspondents. Com­
mitments of flour milling and grain handling inter­
ests were reduced in somewhat greater than the
usual seasonal amount.
Member Banks — Between October 13 and
November 10, total loans of reporting member banks
in the principal cities increased 2.0 per cent and on
the latter date were 16.5 per cent greater than on
the corresponding date in 1936, incidentally the
highest in more than four years. Total investments
of these banks during the four-week period declined
2.5 per cent and 13.9 per cent, respectively, as con­
trasted with a month and a year earlier. Gross de­
posits receded 1.7 per cent and on November 10
were 7.8 per cent less than on the corresponding
report date in 1936. Reserve balances receded slight­
ly, but were still measurably larger than a year ago.
Statement of the principal resource and liability
items of the reporting member banks follow s:
(In thousands of dollars)
Loans— total ..................................................
Commercial, industrial, and agricultural:
On securities........................................... .
Otherwise secured and unsecured........
Open market paper....................................
Loans to brokers and dealers................. .
Loans to banks.....................................
Other loans:
On securities.....................................
Otherwise secured and unsecured..

Investments—total ...............................

U. S. Gov’t obligations.....................
Obligations guaranteed by U. S. G<
Other securities.....................................

Gross deposits.........................................
Demand deposits.................................
Time deposits.......................................

Borrowings .............................................

Nov. 10, Oct. 13,
1937
1937
.$322,088 $315,921

Nov. 11,
1936
$276,555

. 51,734
. 146,139
. 10,026
.
4,887
s 12,973
. 45,962
.
8,554

53,676
142,338
11,599
5,697
12,894
45,881
5,821

*
*
*
5,877
*
43,623
7,772

.
,
.
.
.
.
,
.
.

10,713
27,302
345,214
197,669
45,726
101,819
896,756
706,402
190,354

*
*
390,903
224,226
58,552
108,125
944,960
758,958
186,002

11,935
29,878
336,532
192,941
46,812
96,779
881,482
691,604
189,878

Above figures are for 24 membe. _____
nks ...
in St. .........
Louis,...................
Louisville,
Memphis, Little Rock and Evansville. Their resources comprise approxi­
mately 61.6% of the resources of all member banks in this district.
* Comparable figures not available.

The aggregate amount of savings deposits held
by selected member bank on November 3 was 0.3




per cent smaller than on October 6, but 4.1 per cent
greater than on November 4, 1936.
Changes in interest rates were negligible. At
St. Louis downtown banks, as of the week ending
November 15, prevailing rates were as follow s: Cus­
tomers' prime commercial paper, \y2 to Sy2 per cent;
collateral loans, 2y2 to 6 per cent; interbank loans,
Zy> per cent; loans secured by warehouse receipts,
2 to 5y2 per cent and cattle loans, 4 to 6 per cent.
Federal Reserve Operations — The volume of
the major operations of the Federal Reserve Bank
of St. Louis (including its Louisville, Memphis and
Little Rock branches), during October, 1937, is
indicated by the following figures:
Pieces
Checks (cash items) handled............................... 4,937,764
Collections (non-cash items) handled.................
146,764
Transfers of funds....................................................
5,967
Currency and coin received and counted........... 21,242,673
Rediscounts, advances and commitments...........
30
New issues, redemptions, and exchanges of
securities as fiscal agent of U. S. Govt., etc..
14,321
Bills and securities in custody— coupons clipped
16,137

Amount
$1,165,774,000
33,912,000
351,824,000
38,886,000
3,008,000
11,253,000
........................

Changes in the principal assets and liabilities of
this bank are shown below :
Nov. 19,
1937
(In thousands of dollars)
242
Industrial advances under Sec. 13b...... $
85
Other advances and rediscounts............
78
Bills bought (including participations).
U. S. securities........................................... 112,212
Total earning assets.............................. .
Total reserves .......................................... .
Total deposits .......................................... .
F. R. Notes in circulation..................... . .
Industrial commitments under Sec. 13b.
Ratio of reserve to deposit
and F. R. Note liabilities.................... .

Oct. 19,
1937
$
247
222
78
111,385

Nov. 19,
1936
$
488
146
87
115,809

112,617

111,932

116,530

286,338
211,944
180,778

296,449
221,075
182,126

270,097
197,388
181,602

183

1,035

1,287

72.9%

73.5%

71.3%

Following are the rates of this bank for accom­
modations under the Federal Reserve A ct:
(1) Rediscounts and advances to member banks, under
Section 13 and 13a....................................................... 1 ^ % per annum
(2) Advances to member banks, under Section 10b........... 2 % per annum
(3) Rediscounts, purchases, and advances to member
banks, nonmember banks and other financing in­
stitutions, under Section 13b:
(a) On portion for which such institution obligated....3 % per annum
(b) On remaining portion............................................... 4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing in­
stitutions, to rediscount, purchase, or make ad­
vances, under Section 13b...........................................
flat
(5) Advances to established industrial or commercial j 4 % to
businesses, under Section 13b................................. I 5}4% per annum
(6) Advances to individuals, firms and corporations,
including nonmember banks, secured by direct
obligations of United States under Section 13....... 4 % per annum

Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
Oct.,
(In thousands
1937
of dollars)
East St. Louis and Natl.
Stock Yards, 111..$ 40,533
El Dorado, Ark....
5,229
Evansville, Ind.... 31,580
Fort Smith, Ark.... 14,109
Greenville, Miss....
8,260
Helena, Ark...........
3,267
Little Rock, Ark.... 42,848
Louisville, K y....... 163,666
Memphis, Tenn.... 180,626
Owensboro, K y....
5,867
Pine Bluff, Ark.... 13,769
Quincy, 111....... .
8,779
St. Louis, M o....... 656,633
Sedalia, M o...........
2,231
Springfield, M o..... 15,573
Texarkana, Ark.-Tex. 8,597
Totals............... 1,201,567

(Completed November 23, 1937)

Sept.,
1937

Oct.,
1936

$ 39,206
5,241
29,276
12,578

$ 34,649
4,473
29,155
12,465

6,110

10,122

2,183
42,432
152,251
140,420
5,749
11,728
8,490
566,500
2,093
14,199
8,591

3,869
44,176
167,845
232,294
5,587
16,110
8,098
604,803
2,017
15,903
9,055

1,047,047

1,200,621

Oct. 1937 comp, with
Sept. 1937 Oct. 1936
3.4%
0.2

7.9

+ 12.2

35.2
49.7
1.0

7.5
+28.6

+ 17.0%
+ 16.9
+ 8.3
+ 13.2
— 18.4
— 15.6
— 3.0
— 2.5
—

22.2

- -

6.6

+ 5.0
— 14.5
+ 8.4
8.6
10.6

-

9.7

—

- -

0.1

— 5.1

+14.8

+ 0.1

2.1

17.4
+ 3.4
--15.9

+
+
2.1

Page 7

NATIONAL SUMMARY OF BUSINESS CONDITIONS
BY B O ARD OF GOV E R N O R S O F F E D E R A L R E SE RV E SYSTEM

INDUSTRIAL PRODUCTION

Index of physical volume of production, adjusted for sea­
sonal variation, 1923-1925 average = 100. By months, Jan­
uary, 1929, through October, 1937. Latest figure 103.

FACTORY EMPLOYMENT

Index of number employed, adjusted for seasonal variation,
1923-1925 average = 100. By months, January, 1929,
through October, 1937. Latest figure 98.3.

WHOLESALE PRICES

Indexes compiled by the United States Bureau of Labor
Statistics, 1926 = 100. By weeks, 1932 to date. Latest fig­
ures, farm 75.9, food 83.2, other commodities 84.2, are for
week ending November 20, 1937.

MEMBER BANK CREDIT

'3 4

1035

1933

1S37

’3 4

1935

1936

1937

Wednesday figures for reporting member banks in 101
leading cities. September 5, 1934, through November 17,
1937.

Page 8




Volume of industrial production showed a further sharp decrease in
October and the first three weeks of November, and there was a reduc­
tion in employment. Commodity prices continued to decline. Distribu­
tion of commodities to consumers was maintained at the level of other
recent months.
Production and Employment — In October the Board’s seasonally
adjusted index of industrial production was 103 per cent of the 1923-1925
average as compared with 111 per cent in September and an average of
116 per cent in the first eight months of this year. There was a marked
curtailment of activity in the durable goods industries. Output of steel
ingots, which had shown a steady decline since August, was at an aver­
age rate of 59 per cent of capacity in October and by the third week in
November the rate had declined to 36 per cent. Automobile production
increased considerably in October as most manufacturers began assem­
bly of 1938 model cars. In the first three weeks of November output of
automobiles showed little change from the level reached at the end of
October, with assemblies by one leading manufacturer continuing in
exceptionally small volume. Production of lumber and of plate glass de­
clined further in October. In the non-durable goods industries, where
output had been declining since the spring of this year, there was a
further decrease in October. Cotton consumption showed a sharp reduc­
tion and activity at woolen mills and shoe factories continued to decline.
There was an increase in output at sugar refineries, where activity had
been at a low level in September. In most other lines changes in output
were largely seasonal. Mineral production continued at about the level
reached at the close of 1936 and maintained throughout this year.
Value of construction contracts awarded in October and the first
half of November was smaller than in the preceding six weeks, accord­
ing to figures of the F. W. Dodge Corporation. The decline was chiefly
in private nonresidential construction. Factory employment declined
substantially in October and payrolls showed little change, although
an increase is usual at this season. Decline in the number employed
were reported by factories producing steel, machinery, lumber, and tex­
tiles, and in many smaller industries. There was a seasonal increase in
employment at automobile factories. Employment and payrolls increased
seasonally at mines and at establishments engaged in wholesale and
retail trade.
Distribution— Sales at department stores and mail order sales in­
creased seasonally in October. Throughout the year sales at department
stores have been sustained, with seasonal fluctuations, and the Board’s
adjusted index of these sales has shown little change. Freight-car load­
ings declined in October and the first half of November, reflecting
smaller shipments of forest products, ore, and miscellaneous freight.
Commodity Prices — Prices of industrial materials, particularly
nonferrous metals, steel scrap, rubber, and hides, declined further from
the middle of October to the third week of November, and there were
some decreases in the prices of finished industrial products, livestock
and meat prices declined substantially and coffee prices dropped sharply
following the announcement by Brazil of modification of its control
policy.
Bank Credit — During the first half of November the Federal Re­
serve banks purchased $28,525,000 of United States Government securi­
ties, in accordance with the policy adopted in September to provide
additional reserves for meeting seasonal currency and other require­
ments. From the middle of October to November 17, excess reserves
of member banks increased from about $1,000,000,000 to $1,100,000,000,
reflecting the Federal Reserve security purchases and a considerable
decline in required reserves at member banks in New York City, caused
partly by a reduction in demand deposits arising from a liquidation of
brokers’ loans.
Loans to brokers and dealers reported by banks in leading cities
declined by $250,000,000 during the four weeks ending November 17.
Commercial loans, following a steady increase for several months, de­
clined after the middle of October. Member banks in New York City
increased their holdings of United States Government securities by over
$150,000,000 while banks outside New York City showed a further
reduction. Deposits continued to show moderate reductions.