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BUSINESS




ITIONS

Monthly Review of A g icu
Released for Publication

FEDERAL

RESERVE

Trade and Finance
apers of October 1,1943

BANK

OF

ST.

LOUIS

R E C E N T TREND S IN E IG H T H D IS T R IC T P O P U L A T IO N
E T W E E N April, 1940, and March, 1943, it is
estimated that total population in the Eighth
District grew by some 150,000 persons, or
about 1.5 per cent. This compares with a 3.2 per
cent gain for the nation in the same period. Between
May, 1942, and March, 1943, Eighth District popu­
lation is estimated to have declined fractionally,
while total United States population was increasing
by 1 per cent. Due to heavy withdrawals for the
armed forces, civilian population, in both the dis­
trict and the nation, has declined since April, 1940,
but there has been a relatively greater decrease in
the district than in the United States. Civil popu­
lation in the Eighth District declined about 4.3 per
cent, while the decline for the entire nation amounted
to 2.3 per cent. Inasmuch as the district civil popu­
lation is showing a significantly greater percentage
decline than that of the United States, it would
seem that there has been some out-migration of per­
sons from this district to other parts of the country.
Probably more significant, at present, than the
indicated out-migration from the district to other
sections is the shift in population within the district
itself. The table below shows the civilian popula­
tion in six Eighth District metropolitan areas in
1940, 1942, and 1943. The March, 1943, figures are
estimates of the Bureau of Census based on the
registration for W ar Ration Book T w o, and are ad­
justed to independent estimates of national popu­
lation derived by the Bureau. Inasmuch as con­
siderable numbers of people registered late for the
second ration book,, there will probably be some
final corrections for the March, 1943, figures. For
example, on the basis of available evidence, it seems
likely that in the St. Louis area the March, 1943,
population is understated so that the final figure
will show a slight increase in population since May,
1942, rather than a decline. Other areas in the dis­
trict may conceivably have their population figures
revised downward.
The civilian population for the six metropolitan
areas combined gained about 6 per cent from April,
1940, to May, 1942, while the total district decline
was almost 1 per cent, thus indicating a rather
strong movement from the rural areas to the large

B

cities as a result of the war production boom in the
major cities. Between May, 1942, and March, 1943,
the population increase in the six areas combined
was fractional, but the decline in district civilian
population was much more marked than in the pre­
vious two-year period.
W hen the metropolitan areas are considered sepa­
rately, it is evident that those which are strongly
engaged in war production are exhibiting the great­
est population rises. Evansville has shown a rather
steady increase from April, 1940, to March, 1943.
St. Louis and Louisville, which benefited quite early
from the defense-war program, showed a much
greater population increase in the period from 1940
to 1942 than in the follow ing year. In Little Rock,
where the construction program for industrial and
military facilities was quite extensive, the popula­
tion increased more percentage-wise than in any
other metropolitan area in the district between
April, 1940, and May, 1942, but in the follow ing year
an actual decline was registered. Little Rock is
classified as a labor surplus area, and in addition to
withdrawals for the armed forces, there has prob­
ably been an out-migration of workers into other
sections. Memphis, which entered rather late into
the war program, shows a population decline for the
first two years after April, 1940, but a very pro­
nounced increase in the next year.
Springfield,
which has been relatively untouched by the war
building and manufacturing program, has seen its
population decline in both periods as some out­
migration, probably to war production centers, and
withdrawals for military services have not been
counterbalanced by any influx of workers for war
plants.
C IV IL IA N

State

P O P U L A T IO N O F E IG H T H D IS T R IC T
M E T R O P O L I T A N C O U N T IE S
(in thousands)
M ay, ’ 42 M ar.,’ 43
M ar., ’ 43
A pril, M ay,
M arch, com p.w ith com p.w ith com p.w ith
1940
1942
1943
A p ril,’40
M a y,’42 A p ril/4 0

158
E vansville.............
Little R o c k ...........
156
L ou isville................ 451
M em phis................ 358
St. L o u is ................ 1,430,
Springfield.............
91

167
175
496
353
1,520
90

T o t a l....................2,644
2,801
Source: Bureau of the Census.

171
171
502
383
1,504
87
2,818

+ 5.7%
+ 1 2 .2
+ 1 0 .0
— 1.4
+ 6.3
— 1.1
+

5.9

-f—
+
+
—
—

2.4%
2.3
1.2
8.5
1.1
3.3

+

0.6

+ 8.2%
+ 9.6
+ 1 1 .3
+ 7.0
+ 5.2
— 4.4
+

6.6

F U R N IT U R E STO R E T R A D E
from a smaller sample of stores by the Department
Since May, 1942, the Federal Reserve System has
of Commerce. In this district, at present, there are
been collecting data on sales, stocks, collections, an</
about seventy furniture stores which furnish this
receivables from a sample of the larger and more
bank with monthly reports on their operations.
important furniture stores in the United States.
These stores are scattered throughout the district
Prior to that time, similar data had been collected
Page 2




and their sales in 1941 totaled approximately 33 per
cent of all furniture store sales in the district. Since
furniture distribution is handled by a relatively
large number of fairly small units, this is reasonably
g ood coverage. Beginning with this issue, a regular
monthly table on furniture store operations will be
published in this Review.
For most of 1942, sales at furniture stores reg­
istered a consistent decline from 1941 levels. This
decrease was due primarily to the application of
stricter instalment credit terms under Regulation
W , since most furniture store sales are on an instal­
ment basis. From the beginning of 1943, however,
there has been an upward trend in furniture store
sales. W ith the exception of March and April, each
month this year has registered a gain over the cor­
responding month a year earlier. In August, 1943,
sales were 14 per cent over August, 1942.
The sales of most reporting furniture stores in
this district are concentrated in such lines as livingroom, dining-room, and bed-room suites, in contrast
to department stores whose house furnishings de­
partment sales show considerable volum e in soft
lines, such as bedding, draperies, etc., and in major
household appliances. Department store sales of
house furnishings, exclusive of m ajor household
appliances, have shown no appreciable increase for
the first eight months of 1943 over the comparable
period in 1942. Despite the difficulty of obtaining

merchandise, furniture store sales in the district ap­
parently have been maintained better than the sale
of like goods at department stores.
As might be expected, the heavy volume of pur­
chasing power engendered by the war program, and
the relatively strict credit terms now in existence,
have caused cash sales to increase sharply over last
year’s levels. In August, cash sales were 26 per
cent greater than a year ago. For the last eight
months of 1942, credit sales showed a rather steady
decline in importance since cash sales increased
relatively while total sales were declining. H ow ­
ever, with the upward movement in total sales this
year, goods bought on credit are in appreciably
greater volume than a year earlier.
The imposition of stricter credit terms has re­
sulted in a rise of the collection ratio at furniture
stores in the district. The August, 1943, collection
ratio was 34 per cent as compared with 24 per cent
a year ago. A ccounts receivable in 1943 have aver­
aged almost 40 per cent less than in the comparable
period a year earlier.
Furniture store stocks at retail value, in August,
amounted to about four months’ supply at the cur­
rent rate of sale, contrasted with approximately a
six m onths’ supply at the beginning of the year. At
the end of August, inventories were 19 per cent be­
low December, 1942.

G E N E R A L IN D U S T R IA L S IT U A T IO N
into the region since the beginning of the defenseFor the past several months, the level of industrial
war program. Large supply contracts (those over
activity in this district has been relatively stable.
$50,000 in value and excluding food contracts)
Consequently, the gain over the comparable period
valued at about $3.3 billion were let in the period
a year ago, when activity was rising at a rapid rate,
from June, 1940, through June, 1943. This is but
has narrowed considerably as the year has advanced.
W hile manufacturing employment in war industry
2.5 per cent of the total dollar value of large con­
continues to expand, most of the increase comes
tracts let in the nation in the same period. In 1939,
from transfer of workers from such lines as trade,
the value of manufactures in the district totaled $2.4
billion, or 4.2 per cent of the nation’s value of manu­
service, and construction. The over-all level of dis­
trict employment has shown no marked change
factures. It is probable that the relative importance
of the district in war supply contracts secured is
since last December.
This lack of pronounced gain from month to
understated by the 2.5 ratio of district to nation, be­
cause this region may have shared to a greater rela­
month has also, of course, been characteristic of
tive degree in smaller contracts and food contracts.
national industrial activity since January. The Fed­
It seems unlikely, however, even when this is con­
eral Reserve a'djusted index of industrial production
sidered, that the district share of supply contracts
in A ugust stood at 203 per cent of the 1935-39 aver­
has approached its 1939 ratio of manufacturing value.
age, having gained but 2 per cent since the begin­
The passing of the construction phase of the
ning of the year. As measured by the index, output
defense-war program has released a considerable
of durable goods increased 5 per cent in the past
amount of labor in the district and should result in
eight months, while production of non-durables
an ample supply of workers for war plants gener­
actually dropped slightly.
ally, although certain local and specific shortages
There has been a com paratively low volume of
may well continue. This area, in contrast to its
Government war supply contracts which has flowed




Page 3

rather light volume of supply contracts, received a
very heavy volume of facility awards. A bout $1.8
billion has been spent by the Government for in­
dustrial facilities alone since June, 1940, and this
total is swelled considerably by the addition of
military facility awards. Close to 7 per cent of the
industrial construction program of the nation was
concentrated in this district.
In August, industrial activity in the Eighth Dis­
trict declined moderately from the July level, but
held well above last August. Industrial electric
power consumed in the m ajor cities was 4 per cent

greater than in July and 19 per cent more than in
August, 1942. Due to a strike, steel output dropped
off from July. Lumber production was up slightly
in the month, but remained below the level of last
year.

Industrial alcohol was turned out in less

volume as seven distilleries went out of production.
Output of shoes, according to preliminary reports,
was up 5 per cent from July, but showed no change
from a year ago.

Mining of bituminous coal in­

creased 3 per cent from July and was 19 per cent
above August, 1942.

D IS T R IC T S U R V E Y
from wholesalers and retailers because of the short­
Iron and Steel — Output of steel ingots and cast­
age of w^hiskey stocks.
ings in this district in August and early September
Only 50 distilleries in Kentucky were in opera­
was at a lower rate than the preceding month and
tion on August 31 as compared with 57 a month
the corresponding period a year ago. The drop in
earlier and 51 last year. The reduction in the num­
production is attributable to a one-week strike at
ber producing alcohol from a month ago is due
the largest plant in this district. On August 30, the
primarily to drouth conditions as many plants de­
rate of steel ingot operations in this area fell to 79.9
pend upon natural sources of supply for water. A
per cent of capacity, the lowest scheduled weekly
contributing factor to the curtailment in operations
rate since Decem ber 22, 1941. The rate rebounded
is, however, a series of machinery breakdowns due
to approximately its normal war-time level in the
to equipment being kept in almost uninterrupted
week of September 6 and at mid-September, was at
operation for a long period of time.
101.2 per cent of capacity.
A G R IC U L T U R E
The scrap situation is still the cause of consider­
General
Conditions
— In this district, crop pro­
able w orry in this district. The supply is falling off
duction
prospects
of
seven major field crops on
at present, and mill inventories decline slightly from
September
1
were
slightly
improved, with a gain of
week to week. Trade sources state that the major
1
per
cent
over
predictions
a month earlier, but ex­
cause of curtailed supply is a shortage of yard labor
pectations
are
6
per
cent
below
last year’s produc­
for handling and processing scrap. The local situ­
tion. The major factor in the increase from the
ation is rendered particularly serious because of the
August 1 estimate was an indicated gain of 20 million
additional steel making capacity that will come into
bushels in corn. W heat and potato prospects were
production soon with the consequent need for addi­
unchanged, oats declined moderately, while hay and
tional scrap supply.
It is expected that a consider­
cotton
prospects worsened considerably. Forecasts
able addition to steel ingot capacity will com e into
for
these
seven major crops are, however, 14 per
operaton within the next six weeks when three large
cent
above
the ten-year average.
new open-hearths are lighted. Additional castings
M A N U F A C T U R IN G

capacity is also expected to be in production in the
near future.
Whiskey — Kentucky distilleries in A ugust con­
tinued the production of industrial alcohol for the
war program. Despite all rumors that a limited
production of whiskey would be allowed, the W ar
Production Board announced, on September 15, that
there was not a sufficient supply of industrial alco­
hol on hand, in view of increased requirements for
alcohol for synthetic rubber, to allow the resump­
tion of whiskey distilling. A lso, the grain shortage
makes it impolitic to use corn for whiskey. Reports
indicate that most distillers favor continuance of
industrial alcohol production and that most of the
pressure for resumption of whiskey output came
Page 4




Upturns in prices received by farmers for chickens,
eggs, cotton, cottonseed, dairy products, and grains
raised the general national level of farm product
prices 5 points during the month ended August 15.
Prices of fruit and truck crops were the only group
to show a decline. For the first time since A ugust
last year, the general level of prices paid by farmers
for commodities failed to advance. The parity index
increased 3 points to 117 at mid-August. Prices for
farm products in the Eighth District also experi­
enced a gain of from one to three points, for the
month ended August 15. The greatest increases
were in the southern part of the district. Tennessee
and Arkansas reported gains of 2 and 3 points,
respectively.

Cotton— W eather throughout the cotton-grow ing
area of the Eighth District in August was generally
unfavorable for good crop development, and the
U. S. Department of A griculture estimate of 1943
cotton production in this district was down sharply
from the August 1 estimate. Cotton output in the
district at present is indicated at 3,291,000 bales,
down 9 per cent from the estimate of a month earlier
and com paring with 3,922,000 bales harvested in
1942. The yield per acre has been cut sharply by
the long and continued drouth. In the cotton-grow ­
ing states of the district, September 1 condition
varied from 56 per cent to 73 per cent of normal, as
compared with a range of 78 per cent to 83 per cent
on September 1, 1942. H ow ever, one favorable re­
sult of the abnormally hot, dry weather of July and
A ugust is the very low rate of weevil infestation
reported. Picking of cotton has becom e general
throughout the district. Labor supply appears to be
adequate in most sections, but picking costs are up
sharply from a year ago.
Fruits and Vegetables— Eighth District prospects
of vegetable yield remained far below the national
average yield on September 1. Production of snap
beans will average one-third less than 1942 produc­
tion, although acreage planted was greater than
1942. The prolonged drouth conditions throughout
the central section of this district reduced the tomato
crop by as much as 50 per cent in some areas.
W hite potato output is off 1 per cent from last year.
Green peas and other vegetables also showed marked
decreases.
Fruit production also has suffered considerably.
A pple prospects on September 1 were estimated at
20 per cent lower than last year, grapes around 10
per cent, and peaches, 50 per cent below 1942 pro­
duction.
Grains— The feed situation in the Eighth District
appears to be exceedingly short in relation to animal
population. Drouth in most states, especially Arkan­
sas, has not only retarded the grow th of grain crops,
but has damaged pastures, further aggravating the
supply situation. Some effort, however, has been
made to relieve conditions by shipments of Govern­
ment grain, primarily wheat.
September 1 estimates of the U. S. Department
of Agriculture indicate a 1943 district corn harvest
of 344,730,000 bushels, a gain of 20 million bushels
over the August 1 forecast but some 50 million
bushels short of 1942 output. Oat prospects on
September 1 indicated a crop of 65,861,000 bushels,
about 1,100,000 bushels less than was forecast a
month earlier and 11 million bushels less than last
year. H ay prospects dropped sharply in the month




with a forecast crop of 7,546,000 tons as compared
with the 1942 harvest of 9,327,000 tons. W ith the
wheat harvest over, prospects remained unchanged
from August 1 at 28,695,000 bushels, up 2,300,000
bushels from last year. Arkansas rice is indicated
at 13,230,000 bushels as compared to 13,770,000
bushels estimated on August 1 and 13,515,000 bushels
produced in 1942.
Livestock— August livestock receipts at National
Stock Yards were off 6 per cent from July, but were
5 per cent above last August. H og marketings
dropped 58,000 head in the month and were 33,000
head less than last year. Sheep and lamb receipts
decreased 13,000 head from July. Cattle and calf
marketings were up sharply by 47,000 animals from
a month earlier but failed to attain last year’s num­
bers by 15,000 head. Total shipments declined 14
per cent from July numbers but were up 7 per cent
from August, 1942. Cattle shipments gained over
July, while hog and sheep shipments declined. Fed­
erally inspected livestock slaughter in August was
14 per cent less than in July but 7 per cent greater
than in August, 1942.
Tobacco— Total tobacco production in the Eighth
District was estimated on September 1 by the U. S.
Department of Agriculture to be 251,821,000 pounds,
or 3 per cent less than the estimate made a month
earlier. Indicated production in 1943, however, is
4 per cent above the 1942 harvest.
In the burley section, a long period of dry weather
was relieved by general rainfall in the first part of
September. These rains were beneficial to tobacco
standing in the fields, but it is believed that the late
tobacco is too small to develop and mature properly.
Approximately 75 per cent of the burley crop had
been harvested by September 10. Farmers experi­
enced some initial difficulty in securing an adequate
supply of labor, but sufficient labor finally was
obtained.
In the dark-fired section, recent rains proved very
helpful to the crop w^hich has made good progress
in general. Good weather conditions for the remain­
der of the season may bring the late tobacco to a
satisfactory yield. A bout two-thirds of the crop
has been cut, and is, for the most part, of medium
size and good quality.
Drouth conditions have also affected Green River
district tobacco. By September 10, approximately,
one-half of the crop had been housed. Good quality
is expected of the early plantings, but indications
are that the late plantings will be inferior.
C O S T O F L IV IN G

In August, for the third straight month, the cost
of living index for the United States declined. From
Page 5

mid-July to August 15, the decrease was 0.5 per cent
and left the index only 4.6 per cent above the level
of September, 1942. Virtually all of the drop was
due to declining food prices which fell 1.3 per cent.
Over the three-month period, food costs have fallen
4.1 per cent, partially reflecting seasonal price de­
clines of vegetables and fruits, and partially due to
the O P A program of rollback of butter and meat
prices by means of subsidies to processors. O PA
has announced that it plans to issue shortly a
schedule of lower ceilings on apples, oranges, onions,
potatoes, lard, vegetable oils, and peanut butter.
This move is expected to decrease the cost of living
index about 2.5 per cent more and bring it closer to
the September, 1942, level which is the announced
objective of O P A retail price policy. O P A estimates
that subsidies to carry out this program will amount
to some $100 million a year.
In St. Louis, the cost of living index on August
15 was 0.4 per cent below the level of a month
earlier, but 5.1 per cent above September, 1942.
Food costs in St. Louis declined 1.0 per cent in the
month. In other district cities covered by the cost
of food index, changes from a month earlier ranged
from a 0.1 per cent decline in Louisville, to a 1.8 per
cent increase in Little Rock.
EM PLOYM ENT

W hile localized labor shortages have been re­
ported in sections of the Eighth District, the out­
look for the district as a whole appears to be more
favorable than for the nation. The labor needs of
district farmers have been largely met, although
shortages of a spasmodic nature have been reported
in several sections of the district. Arkansas is faced
with a shortage of labor for the rice harvest, but the
completion of wheat harvesting and cotton picking
may release additional farm labor for the rice harvest.
The net demand for local labor in the St. Louis
area is expected to increase considerably during the
next few months. The normal supply of labor is
practically exhausted, but there is a potential labor
supply more than sufficient to meet additional war
demands if it can be successfully recruited. In Little
Rock, supply seems adequate to meet labor require­
ments during the next six months. In Pine Bluff,
however, the labor shortage is critical and in-migra­
tion of workers is seriously hampered by the lack
of adequate housing facilities. Evansville, current­
ly rated as a labor shortage area, and Louisville, a
potential shortage area, continue to register employ­
ment gains although additional supply becomes in­
creasingly difficult to obtain. Memphis is reported
able to meet most labor needs with relative ease.
Page 6




CASH FA R M
IN C O M E
July
Cumulative for 7
1943
1942
1943

(I n thousands
of dollars)

A rkansas..................$13,452
96,822
Illin ois....................
In d ia n a .................... 55,368
K e n tu ck y ................ 24,337
M ississippi.............
7,059
M issou ri.................. 59,849
Tennessee................ 19,305
T o ta ls ..................

1942

months
1941

$11,126
77,682
42,079
18,459
6,866
46,745
15,205

$115,050
623,633
352,679
182,017
87,674
335,220
143,401

$ 95,123
495,137
269,915
122,261
62,524
251,745
10,2,512

$ 57,417
345,615
181,950
89,144
44,843
171,984
72,541

218,162

1,839,674

1,399,217

963,494

276,192

R E C E IP T S A N D S H IP M E N T S A T N A T IO N A L S T O C K Y A R D S
Receipts
Shipments
A u g.,
1943

A u g.,
1942

July,
1943

154,937 107,999 169,940
Cattle and Calves. . .
H o g s . ...........................
228,385 281,271 195,258
H orses and M u les. . .
3,675
2,687
2,033
. . 135,444 159,188 126,340
,522,441 551,145 493,571

A u g.,
1943

A u g.,
,1942

July,
1943

84,301 60,840 84,961
85,193 100,843 53,960.
3,655
2,676
1,982
41,323 67,208 46,589
214,472 231,567 187,492

W H O L E S A L E P R I C E S IN T H E U N I T E D S T A T E S
Bureau of L abor
Statistics
A u g.,
July,
A u g.,
A u g .,’ 43 com p, with
(192 6 = 10 0 .)
1943
1943
1942
J u ly,’43
A u g .,’ 42
A ll C om m odities. . 103.1
Farm P rod u cts. 123.5
F o o d s .....................105.8
O th e r......................97.1
Bureau o f L abor
Statistics
(1 9 3 5 -3 9 = 1 0 0 )

103.2
125.0
107.2
96.9

A ug. 15,
1943

123.8
123.1

122.6

Bureau of L abor
Statistics
(1935-39=10.0)

A u g. 17,
1943

—
•—
—
+

C O ST O F L IV IN G
July 15,
Sept. 15,
1943
1942

123.2

United States.
St. L ou is. . .

99.2
106.1
100.8
95.6

+

— 0.5%
— 0.4

117.8
116.6

139.0
141.6
135.2
134.9
147.7

+ 3.9%
+ 16.4
-I- 5.0.

1.6

A u g. 15,’ 43 com p, with
July 15,’43 Sept. 15/42

COST OF FO O D
July 13,
Sept. 15,
1942
1943

U. S. (51 cities) . . . 137.2
St. L o u is ............. .... 140.2
Little R o c k ......... ....137.6
L o u isville........... .....134.7
M em p his..................148.0.

0.1%
1.2
1.3
0.2

4.6%
5.1

A ug. 17/43 com p, with
July 1 3/43 Sept. 15/42

126.6
126.7
129.2
124.2
129.7

—
—
+
—
+

1.3%
1.0
1.8
0.1
0.2

+ 8.4%
+ 1 0 .7
+ 6.5
—
j- 8.5
+ 1 4 .1

IN D E X E S O F E M P L O Y M E N T IN M A N U F A C T U R IN G
IN D U S T R IE S B Y M E T R O P O L IT A N A R E A S
Bureau of Labor
J u ly /4 3 com p, with
June,
Statistics
July,
July,
1943
1943
1942
June/43
July,’ 42
(1937 = 100)
230.0
130.7
162.1
161.5

231.9
128.7
157.8
159.1

85.7
102.5
128.9
139.0,

—
+
+
+

B U I L D I N G P E R M IT S
N ew Construction
N um ber
1943 1942

(C ost in
thousands)

, 40
Little R ock
, 19
73
L o u isville .........
91
. 65

48
16
60
48
162

A ugust T o t a ls . ,. 288
272
July T o t a ls . . . .

334
256

Cost
1942
1943
$

122
5
125
41
54
347
459

$

H[-168.4%
H- 27.5
-J- 25.8
- 16.2

0.8%
1.6
2.7
1.5

Repairs, etc.
Num ber
1943 1942

Cost
1943 1942

161
10
102
24
765

175
125
39
389
145

98
83
46
175
191

$ 52
26
15
195
86

$ 38
20
26
72
163

1,062
517

873
965

593
450

374
375

319
289

V A L U E C O N S T R U C T IO N C O N T R A C T S L E T
( I n thousands
A u g ./4 3 com p, with
of dollars)
A u g .,’43
J u ly/43
A u g ./4 2
J u ly /4 3
A u g ./4 2
Total 8th D is t .. . $ 8,971
$ 8,720* $ 65,777
S o u rce : F. W . D od g e C orporation. *Revised.

+ 3%

C O N S U M P T IO N O F E L E C T R IC IT Y
A u g.,
A u g .,
N o. of
A ugu st, 1943
July,
Custom - 1943
1942
1943
com pared with
ers* K .W .H . K .W .H .
K .W .H . July, 1943 A u g., 1942

(K .W .H .
in thous.)
E vansville. . ,. .
Little R o ck . , .

40
35
82
31
20
. . 134

11,223
3,037
17,092
6,343
6,433
98,644

11,073
2,932
16,749
6,208
5,350
94,327

5,194
2,971
16,404
5,516
1,298
88,175

T o ta ls ........... 342
142,772
*Selected industrial custom ers.

136,639

119,558

+ 1%
+ 4
+ 2
+ 2
+ 20
+ 5
+

4

+ i 16%
+
2
+
4;
+ 15
+ 396
+ 12
+ 19

DEPARTM ENT

STORES

Stocks
on H and

Stock
T urnover

A u g. 31,’43
com p, with
A u g. 3 1/4 2

Jan. 1, to
A ug. 31,
1943 1942

N et Sales
A ugust, 1943
com pared with
J u ly,’43 A u g .,’ 42

8 m os.’43
to same
period ’ 42

Ft. Smith, A r k .. + 6%
+31%
+ 23%
2.47 1.99
7%
Little R ock, Ark.
+34
26
2.73 2.23
+ 7
Q uincy, 111..........
+ 13
+ 17
" t i l
+ 42
Evansville, I n d .. — 3
+ 18
29
3.51 2.23
L ouisville, K y .. . + 9
+ 18
+ 17
St. Louis, M o .. . + 12
13
2.75 2.07
- 0+ 7
+ 28
Springfield, M o. + 4
3
2.58 1.60.
+ 27
+22
Mem phis, Tenn. + 16
2.94 1.95
+ 31
+ 2
*A11 other cities. — 6
2.62 2.13
— 5
+ 10
+ 4
+ 16
8th F. R. D ist.. + 1 0
2.85 2.08
7
+ 7
*E1 D orado, Fayetteville, Pine Bluff, A rk
A lton, East St. Louis,
Harrisburg, M t. V ernon, 111.; Vincennes, I n d .. Danville, Hopkinsville,
M ayfield, Paducah, K y . ; Chillicothe, M o .; Jackson, Tenn.
T rading d a ys: A ugu st, 1943— 2 6 ; July, 1943— 2 6 ; A ugust, 1942— 26.
Outstanding orders o f reporting stores at the end of A ugust, 1943,
were 220 per cent greater than on the corresponding date a year ago.
Percentage o f accounts and notes receivable outstanding A ugu st 1,
1943, collected during A ugust, by cities :
Instalm ent E xcl. Instal.
Instalm ent E xcl. Instal.
A ccoun ts
A ccounts
A ccoun ts
A ccoun ts
F ort S m ith ...........
L ittle R ock . . 25
L ouisville. . . . 36
M em phis . . . . 40

64%
55
64
57

Q u in cy ...........
St. Louis . . . .
Other cities . .
8th F .R . Dist.

30%
38
27
35

72%
72
64

S P E C IA L T Y STO R ES

108
156
103
110

Stocks
on Hand

N et Sales
A ugu st, 1943
8 m os.’43 "A u g . 3 1/4 3
com pared with
to same com p, with
J u ly /4 3 A u g .,’ 42
period ’42 A ug. 31/4 2

114
152
121
128

Stock
Turnover
Jan. 1. to
A ug. 31,
1943 1942

1.77
M en’s Furnishings — 9 % — 15%
+ 3 % — 19%
2.13
Boots and Shoes. . + 6
— 20
— 6 — 28
5.59
4.77
P ercentage o f accounts and notes receivable outstanding A ugu st 1,
1943, collected during A u g u s t :
M en’s F u rnish in gs.................... 4 7 % *
Boots and S h oes........................... 53%
*Preliminary.

R E T A IL F U R N IT U R E S T O R E S
Net Sales
Inventories

R atio
of
A ugust, 1943
A ugust 31/43
Collections
com pared with
com pared with
J u ly/4 3 Ju n e/42 July 31/43 A u g. 3 1/42 A u g .,’43 A u g ./4 2
St. Louis A rea 1 . — 0.4% + 20,. 2% — 3.0% — 32.9%
50%
36%
+ 24.7
52
St. L o u is ......... — 0.2
— 3.0
— 32.9
37
*
*
*
*
A lt o n ................ — 2.9
— 18.1
Louisville A rea 2 + 7.2
+ 16.8
+ 4.1
28
— 30.7
17
+ 23.9
+ 1.8
L ouisville. . . . + 14.3
— 38.3
28
16
N ew A lb a n y . . — 16.8
— 7.7
+ 10.0
— 1.0
27
23
+ 21.7
— 5.4
— 29.3
23
M em phis............. — 3.1
17
— 18.2
L ittle R o c k ......... + 4.3
+ 6.6
— 4.3
31
22
*
*
*
*
+ 2 2 .4
S pringfield......... + 13.1
*
*
— 22.9
33
27
Pine B lu ff........... — 11.8
+ 14.0
— 0.4
— 27.6
34
8th D ist. T o ta l3 . + 1.3
24
*N ot shown separately due to insufficient coverage, but included in
Eighth D istrict totals.
in c l u d e s St. Louis, M issou ri; East St. Louis, and A lton, Illinois.
2Includes Louisville, K en tu ck y; N ew A lbany, and Jeffersonville,
Indiana.
3In addition to above cities, includes stores in Blytheville, Fort
Smith, A rk a n sas; Evansville, In d ia n a ; Henderson, H opkinsville, Ow ens­
boro, Paducah, K en tu ck y ; Columbus, Greenville, Greenwood, Starkville,
M ississippi; Hannibal, M issou ri; and D yersburg, Tennessee.
PERCENTAGE

D IS T R IB U T IO N O F SALE S
A u g., ’43
July, ’ 43
A u g., ’ 42

Cash S ales................................................... 20%
Credit S ales................................................. 80
Total S ales............................................... 100

21%
79
100

18%
82
100

L O A D S I N T E R C H A N G E D F O R 25 R A I L R O A D S
A T ST. L O U I S
First nine days
A jig ./4 3 J u ly /4 3 A u g .,’ 42 Sept., ’43
Sept.,’42 8 m os.’ 43
8 m os.’ 42
161,951
160,326 150,40.9
46,342
42,315
S ou rce: Term inal Railroad A ssociation of St. Louis.




1,173,129

A utom otive Supplies.........
Drugs and C hem icals. . . .
D ry G o o d s.............................
Electrical Supplies.............
F urniture................. .............
G roceries...............................
H ardw are.............................
Plum bing Supplies.............
T obacco and its P rodu cts.
M iscellaneous......................

+

+

1,093,704

4%
1
14
18
25
3
16
1
3
3
10

+
+
+
—
+
+
—
—
+
+
+

A u g. 31, 1943
com p, with
A u g. 31, 1942

25%
8
12
35
21
7
3
25
15
15
5

— *32
— 55
— *12
— 16
— 42
— 30

*Includes certain lines not listed above.
C O M M E R C IA L F A I L U R E S I N
A u g ./4 3

E IG H T H

J u ly /4 3

A u g ./4 2

5
$ 49,000

28
$219,000

N um ber...............
3
Liabilities........... $ 70.,000
Source : Dun and Bradstreet.

66

132
143
94
98

Stocks

A ugust, 1943
com pared with
J u ly/43 A u g ./4 2

Data furnished by Bureau of Census,
U . S. Dept, of Commerce.

C H A N G E S IN P R I N C I P A L
FEDERAL RESERVE

IN D E X E S O F D E P A R T M E N T STO R E SALES A N D STO CK S
8th Federal Reserve District (1923-25 average = 100)
A u g., July,
June,
A u g.,
1943
1943
1943
1942
Sales (daily average), U n ad ju sted .................... 122
Sales (daily average), Seasonally a d ju s t e d ... 163
Stocks, U n a d ju sted ................................................... I l l
Stocks, Seasonally a d ju s te d ................................. 112

W H O L E S A L IN G
Lines o f Comm odities
N et Sales

(I n thousands of dollars)

F. R. D I S T R I C T ■
A u g ./4 3 com p, with
J u ly /4 3
A u g ./4 2
— 40%
+ 43

— 89%
— 68

ASSETS A N D L IA B IL IT IE S
B A N K O F ST. L O U I S
Change from
Sept. 15,
A ug. 18, Sept. 16,
1943
1943
1942

Industrial advances under Sec. 13b.
Other advances and re d is co u n ts ...

$

.........
9,600
361,220
370,820

___
7,175
+
— 13,099
5,924
—

Total reserves..................................................... 743,300
Total deposits..................................................... 493,093
F. R. Notes in circulation............................. 636,868

+
+
+

45,438
25,481
25,695

Industrial commitments under Sec. 13b. .

—

170,

1,598

14
9,480
+
+ 183,302
+ 192,768

+ 85,705
+ 71,590
+ 224,235
435

+

P R I N C I P A L R E S O U R C E A N D L I A B I L I T Y IT E M S
O F R E P O R T IN G M E M B E R B A N K S
Change from
Sept. 15,
A u g. 18, Sept. 16,
(In thousands of dollars)
1943
1943
1942
Total loans and investm ents........... ............$1,490,014 + 39,181 + 399,510
Commercial, industrial, agricultural loans;* 227,084 + 17,753 — 4,797
5,159 +
1,059 +
1,965
:s
8,617 +
128 —
1,239
Real estate loans....................
64,847
1,070 +
2,599
Loans to banks......................
580 +
270 +
232
Other loans...............................
66,444 +
6,500 — 2,784
Total loans..........................
372,731 + 24,640, — 4,024
Treasury b ills..........................
109,280 +
5,382 + 16,956
Certificates of Indebtedn ess.
219,804
5,334 + 111,274
Treasury notes........................
.
149,859 +
1,095 + 94,295
U. S. b o n d s...............................
489,626 + 11,831 + 188,909
34,865 +
2,370 —
240
.
113,849
803 — 7,660
Total investments......................
. 1,117,283 + 14,541 + 4 0 3 ,5 3 4
Balances with dom estic banks.
121,918 +
7,298 — 20,417
Demand deposits — adjusted**
.
921,229
20,,3 94 + 151,630
211,804 +
1,847 + 24,363
173,825 + 42,321 + 160,797
Interbank deposits...............................
505,327 + 25,257 + 46,123
B orrow in gs............................................
9,600 +
7,325 +
9,600
^Includes open market paper.
**Other than interbank and Government deposits, less cash items on
hand or in process of collection.
A bove figures are for 24 member banks in St. Louis, Louisville, M em ­
phis, Little R ock and Evansville. Their resources com prise approximately
75% of the resources of all member banks in this district.

(I n thousands
of dollars)

A ug.,
1943

9,666
El Dorado, A rk ........... $
20,386
Fort Smith. A rk .........
3,284
Helena, A rk .................
60„633
Little R ock, A rk ........
13,004
Pine Bluff, A rk ...........
15,614
Texarkana, A rk.-T ex.
12,673
Alton, 111.....................
E .S t.L .-N a t.S .Y .,Ill. .
75,067
13,799
88,702
Evansville, In d ...........
285,486
Louisville, K y .............
12,492
Owensboro, K y ...........
7,013
Paducah, K y ...............
6,446
Greenville, M iss........
4,694
Cape Girardeau, M o ..
3,828
Hannibal, M o .............
22,863
Jefferson City, M o .. .
St. Louis, M o ............. , 885,183
4,985
Sedalia, M o .................
26,623
Springfield, M o ...........
7,566
Jackson, T enn .............
Memphis, T enn........... 183,242
, 1,763,249

(Completed September 25, 1943)

A ug.,
1942

July,
1943
$

11,232
20,229
3,458
63,540
13,721
15,058
‘ 12,663
75,962
15,523
87,918
320,605
14,660
7,156
6,518
4,594
4,207
18,771
906,089
4,818
26,995
7,978
207,083

1,848,778

$

8,500
16,321
2,512
63,409
24,696
15,556
11,917
74,076
11,479
58,957
264,451
11,826
8,243
5,608
4,052
3,761
16,546
803,780,
4,210
23,314
6,282
167,093

1,606,589

A u g ./4 3 com p, with
Ju ly/43 A u g ./4 2
___ 14%
1
+
5
.— 5
—
5
4
+
- 0.
,— 1
.— 11
1
+
11
.— 15
— 2
.— 1
2
+
9
+ 22
2
3
+
1
—
5
— 12
—

5

14%
25
31
4
___ 47
- 0i 6
+
+
1
+ 20
+ 50
8
+
6
+
15
15
+
+ 16
2
+
+ 38
+ 10
+ 18
+ 14
+ 20
+ 10
+
+
+

+

10

Page 7

INDUSTRIAL PRODUCTION

N A T IO N A L S U M M A R Y O F C O N D ITIO N S
B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E SYSTEM

Federal Reserve indexes. Groups are expressed in terms
of points in the total index. M onthly figures, latest shown
are for A ugust, 1943.
DEPARTMENT STORE SALES AND STOCKS

1937

1938

1939

Federal Reserve indexes.
are for July, 1943.

1940

1941

1942

1943

M onthly figures, latest shown

Demand deposits (adjusted) exclude U. S. Government
and interbank deposits and collection items. Government
securities include direct and guaranteed issues. W ednes­
day figures, latest shown are for September 15, 1943.
MEMBER BANK RESERVES AND RELATED ITEMS

W ednesday
1943.

figures,

latest shown are for

Page



September

15,

Industrial activity and war expenditures were maintained in A ugust at a
high level. Com m odity prices showed little change. Retail trade continued
in large volume.
In du stria l p r o d u c tio n — Output o f manufactures and minerals showed
little change in A ugust and the B oard’ s seasonally adjusted total index o f
industrial production remained at the July level.
P roduction o f durable
manufactures increased. Output o f iron and steel continued to advance and
reached the peak levels achieved earlier this year.
There w ere further
slight increases in activity at war plants in the transportation equipment
industries. Output o f other durable products showed little change.
Production o f nondurable goods declined in August, reflecting further
decreases in output o f textile, leather, and fo o d products. Cotton consump­
tion in August was about 15 per cent low er than the same period a year a go
and was at the lowest level since the beginning o f 1941. Leather output has
also declined in recent months and is currently close to prewar levels. A ctiv ­
ity at meatpacking plants showed the usual seasonal decline in August but
preliminary figures indicate that output was about one-fifth larger than a
year ago.
Output o f most other manufactured foods declined somewhat
further. Production o f petroleum, coke, and rubber products continued to
advance in A ugust while chemical production showed little change. P r o ­
duction o f crude petroleum continued to rise and in August was in the
largest volume on record. Lake shipments o f iron ore likewise reached a
record level. Production o f coal and metals was maintained in large volume.
D istrib u tion — Department store sales continued large in August and the
first half o f September. Increases during this period were less than seasonal,
however, follow in g maintenance o f sales at a com paratively high level during
July. F or the year to date value o f sales at department stores has been
about 13 per cent greater than in the corresponding period last year, re­
flecting in part price increases. Inventories at department stores have in­
creased in recent months and are now somewhat higher than at the begin­
ning o f this year, indicating that receipts o f new merchandise have been in
excess o f the value o f goods sold.
C o m m o d ity p rices — T h e general level o f wholesale com m odity prices
continued to show little change in August and the early part o f September.
Prices o f lumber and newsprint were increased, while prices o f fruits and
vegetables showed further seasonal declines.
In retail food markets prices o f apples and fresh vegetables declined
further from m id-July to m id-August. T h e Bureau o f L abor Statistics cost
of living index declined one-half o f one per cent as decreases in foods w ere
partly offset by small increases in retail prices o f other goods and services.
A g ricu ltu re — General crop prospects declined slightly in A ugust a ccord ­
ing to official reports. T he forecast fo r corn production was raised by 3
per cent to almost 3 billion bushels, while prospects fo r other feed crops
declined. Production o f cotton indicated on Septem ber 1 was 11.7 million
bales as com pared with a crop o f 12.8 million last season.
B a n k cred it — In m id-September excess reserves o f member banks rose
sharply to about 2 billion dollars from the average level o f about 1.1 billion
which had prevailed in the latter part o f A ugust and early in September.
This increase was due in part to the fact that the Treasury was making
disbursements out o f tem porary borrow ing from Reserve Banks on special
certificates in anticipation o f tax collections and receipts from the T hird W a r
Loan Drive.
It also reflected in part a substantial decrease in required
reserves at the middle o f the month when funds from individual and c o r ­
porate deposits were transferred to Government loan accounts which are not
subject to reserve requirements. D uring the fou r weeks ended September 15
the Reserve System holdings o f Government securities increased by about 1
billion dollars in addition to the special certificates taken directly from the
Treasury. M ost o f the increase was in the form o f Treasury bills sold to
the Reserve Banks with sellers retaining the option to repurchase. O ver this
four-w eek period currency in circulation increased by about 560 million
dollars to a total o f 18.8 billion outstanding.
In the last tw o weeks o f August and the first week o f September, report­
ing member banks in 101 leading cities showed a net decline in security
holdings as a result o f the sale o f bills to the Reserve System. In the week
ending September 15, however, some non-banking holders sold securities to
the banks in anticipation o f purchases during the D rive, and bank holdings
also increased through repurchase o f bills from the Reserve System.
Com m ercial loans, which had expanded by 100 million dollars in July and
in August, increased by 250 millions during the week ending September 15.
This increase in com m ercial loans was shared by both N ew Y ork and other
reporting member banks. In the week ending the 15th, loans to brokers and
dealers in N ew Y o rk City increased 370 m illion dollars, most o f w hich was
for purchasing and carrying Government securities, and there was also an
increase in loans on securities to others.