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Monthly Review
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Volume XXXIII




EIGHTH

DISTRICT

INCOME

IN 1950

E

S

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N

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OCTOBER, 1951

Number 10

The year 1950 marked general expansion
and income growth throughout the nation.
The Eighth District fully participated in this
general advance, and district income moved
up at the national rate.
Income advanced in all major sectors of
the district economy from 1949 to 1950.
However, there were wide differences among
income areas within the district. These dif­
ferences reflected the varying importance of
major income sources for the local econo­
mies of district income areas. In conformity
with past experience* agricultural income
proved the most volatile of the major income
flows. Disparities in Government income pay­
ments stemmed from sharp increases in mili­
tary payrolls. Differential growth in factory
pay reflected variations among income areas
in the relative importance of durable goods
manufactures and in their general rate of
industrialization.
The past decade has been a period of tre­
mendous economic growth for the nation
and the district. Over this period, the dollar
total of district income payments tripled, as
did district per capita income. Manufactur­
ing payrolls were a key factor in this spurt
toward increased output in the district, lead­
ing to higher productivity of the district
labor force in the factory as well as on the
farm.
District income growth is significant be­
cause it enables the district to make a greater
direct contribution to national strength, and
because it may illustrate methods of attack­
ing problems in low income areas abroad.

The year 1950 marked general expansion . . .
The year 1950 was marked by two clearly defined
expansionary movements which lifted business ac­
tivity throughout the nation to a new peak rate. In
the first half of the year, the cyclical upswing in
business initiated after mid-1949 proceeded steadily,
broadly based upon a resurgence of investment ac­
tivity and strong consumer demand for durable
goods. The advance gave promise of continuing
throughout the second half of the year. Actually the
second half witnessed a strong acceleration in busi­
ness activity stimulated by a general upsurge in de­
mand. The basic economic pattern in the first half
had inflationary overtones; in the second half
the pattern was one dominated by inflationary in­
fluences.
The altered economic prospect stemmed from the
military aggression against South Korea by Com­
munist forces, an event which has greatly influ­
enced economic developments ever since. For the
remainder of 1950, American businesses and con­
sumers reacted vigorously to the emergency by
buying heavily of the items they expected would be
in short supply.
. . . and income growth throughout the nation.
National income, which may be defined briefly as
the sum of earnings of labor and property arising
from production of the nation’s output, advanced
from $217 billion in 1949 to $239 billion in 1950, a
rise of 11 per cent. Part of the increase reflected
larger physical volume and part reflected higher
prices and wage rates. After allowance for price
changes, the Gross National Product increased 6
per cent in volume, as compared with the 11 per
cent rise in its market value. The industrial ex­
pansion reflected in these income data, confined
mainly to durable manufactures at first, spread
gradually to other lines; and incomes generated
by the step-up in production added further stimu­
lus to consumer purchasing. Expansion of income
continued throughout 1951, though at a somewhat
retarded rate.
Personal income—the sum of income receipts of
persons from all sources— was $225 billion in 1950
as compared to $205 billion in 1949. It rose to $250
billion (annual rate) in the April-June period of
1951, and was 15 per cent higher in that quarter
than in the corresponding quarter a year earlier,
before the outbreak of warfare in Korea. Roughly
half of this increase stemmed from the general rise
in prices which were pushed up repeatedly during
most of the year by heavy private and Government
demands. The sizable advance in real income was
made possible chiefly by increased employment, in­
stallation of large amounts of new productive facili­
Page 138




ties, and fuller utilization of existing productive
capacity.
Income payments to individuals— the income re­
ceived from all sources by residents of the Conti­
nental United States— increased from $196 billion
in 1949 to $217 billion in 1950, a rise of 11 per cent.
On a regional basis, the largest relative gains were
scored by the Northwest and the Southeast, where
income rose 14 and 12 per cent, respectively. Total
income growth in the Central and Far West re­
gions matched that of the country as a whole, while
the 10 per cent rise in New England and the Mid­
dle East was only a little smaller. The lightest gain
(8 per cent) was scored by the Southwest.
Per capita income payments— total income divided
by total population—averaged $1436 for the country
as a whole in 1950. This was 9 per cent above the
1949 average of $1320 and higher than in any other
year. Average incomes for entire states in 1950
ranged from $698 in Mississippi to more than $1900
in Delaware and the District of Columbia. Others
in the top rank included Nevada ($1875), New York
($1864), and Connecticut ($1776).
The Eighth District fully participated in this
general advance . . .
In line with the trend of national economic activ­
ity, Eighth District farms, factories, and mines
operated at high levels of output in 1950. Pushed
mainly by strong demand in consumer markets,
industry in the Eighth District hustled through a
big year. The district's leading cities consumed
about 15 per cent more industrial power in 1950 than
in 1949. Construction activity climbed to a new
peak and received additional impetus in 1951 when
the atomic project near Paducah raised construc­
tion contracts awarded in the Eighth District to a
record share of the national total. The growing
impact of new military needs also was evidenced
by the number of certificates of necessity for acceler­
ated tax amortization allowed in this district,
approximately $300 million by July, 1951 or about
3 per cent of the national total.
. . . and district income moved up at the national
rate.
Total district income moved up at the national
rate of 11 per cent from 1949 to 1950, and the dis­
trict thus maintained its share (5.1 per cent) of
total national income. Per capita district income,
however, rose relatively less than in the nation,
from $973 in 1949 to $1,055 in 1950, an increase of
8 per cent. This slightly smaller gain in per capita
income reflected the larger-than-national average
rate of increase in district population in 1950. The
number of people in this district grew from 10.3
million in 1949 to 10.5 million in 1950.

District income moved up at the national rate,
PERCENTAGE

G R O W T H O F D IS T R IC T IN C O M E
(Selected Years— 1929-1950)

1929 to
1950
163
United States .......................

1940 to
1950
186

1944 to
1950
42

PAYM ENTS

1948 to
1950
8

1949 to
1950
11

District ......................................

158

194

41

4

11

Arkansas .................................
Illinois ......................................
Indiana ...................................
Kentucky .................................
Mississippi ..............................
Missouri ...................................
Tennessee ..............................

181
99
190
184
154
148
251

220
144
193
221
212
186
243

36
36
37
49
13
50
36

- 0 2
6
5
- 0 7
8

11
9
13
9
15
11
12

E IG H T H

D IS T R IC T ’ S S H A R E O F N A T IO N A L IN C O M E
PAYM ENTS
(Selected Years— 1929-1950)
1929

1940

1944

1949

1950

100.00

100.00

100.00

100.00

100.00

100.00

District ..............................
5.06
Arkansas ......................................... 68
Illinois .............................................. 91
Indiana ............................................30
Kentucky ..........................
.68
Mississippi .......................
.30
1.87
Missouri ............................
Tennessee ........... ..........
.32

4.96
.65
.83
.33
.67
.28
1.83
.37

5.00
.76
.72
.34
.70
.34
1.70
.44

5.25
.78
.75
.34
.78
.33
1.83
.44

5.10
.73
.72
.33
.77
.29
1.82
.44

5.10
.73
.71
.34
.76
.30
1.82
.44

United States ..................

1948

The Eighth District has been traditionally an
area of out-migration, and last year’s experience was
contrary to average experience in this respect. It
is, however, not to be taken as a reversal of long
time trend. Nevertheless it underlines the continu­
ing challenge to the people of this district to provide
opportunities which will keep an efficient labor
force in this district to man new factories that have
been or are about to be constructed.
Income advanced in all major sectors o f the dis­
trict econom y from 1949 to 1950;
The advance in income was most pronounced for
manufacturing payrolls (13 per cent) and Govern­
ment income payments (15 per cent). The 7 per
cent rise in farm income reflected the composite
effects of an increase in farm prices which began in
early 1950 and accelerated following the outbreak
of hostilities in Korea, a small decrease in the
aggregate volume of crop production, a slight in­
crease in meat production, and a moderate rise in
farm production expenses.

there were four district areas at par with or above
the average for the nation. The St. Louis area led
with a per capita income of $1,824 and was followed
by the Louisville area ($1,673), the Evansville area
($1,462), and the East St. Louis area ($1,408). The
latter region, the heavy industry section of the St.
Louis metropolitan area, improved its income posi­
tion considerably over 1949 in response to acceler­
ated defense activity. Considerable gains also were
recorded for the New Albany region, the Indiana
part of the Louisville metropolitan area, as well as
for several livestock producing areas throughout the
district. Finally, many areas in Mississippi recov-

However9 there were wide differences among
income areas within the district.
Though most income areas reflected the general
advance in economic activity, thirty of the ninetyseven district areas still had a per capita income less
than half the national average ($1,436). As the map
indicates, these low-income areas are concentrated
in the Ozarks, the Kentucky highland rim, and the
hill sections of Tennessee and Mississippi. The
Monticello (Kentucky) area recorded less than onethird of the national average with a 1950 per capita
income of $382.
The encouraging note, however, is that only five
district income areas dropped back in relative status
from 1949 to 1950, while many more areas consid­
erably improved their income positions. In 1950




Page 139

Only
For

Four District Areas At Par With Average
Nation

PER CAPITA

INCOME

UNDER
E lm

50%

5 0 % TO 6 4 %
65% TO 7 9 %
8 0 % TO 9 4 %
95 % ANO OVER

PER CENT OF U.S. PERCAPITA INCOME - 1 9 50
U. S. * $ 1 4 3 6
(EIGHTH DISTRICT * *1 05 5)

M IS S O U R I
1
2
3
4
5
6
7
8
9
10
11
12

Trenton
K irksville
Hannibal
Chillicothe
Moberly
M exico
M arsh all
Columbia
St. Louis
S edalia
Jefferson City
Washington

Page 140




IL L IN O IS
13
14
15
16
17
18
19
20
21
22
23
24

Bolivar
Lebanon
Rolla
Salem
F la t River
Cape Girardeau
S p rin g fie ld
Monett
West Plains
Thayer
Poplar B lu ff
Caruthersville

25
26
27
28
29
30
31
32
33
34
35
36

Quincy
Jacksonville
Carlinville
L itchfield
E. St. Louis
C entralia
E ffing h am
Olney
Lawrenceville
Chester
W. Frankfort
Harrisburg

37
38

Cairo
Metropolis
IN O IA N A

39
40
41
42
43
44
45

Vincennes
Bedford
Madison
Evansville
Jasper
Tell C ity
New Albany

____But Thirty District Areas Grow
A Faster Rate

KENTUCKY
46
47
*8
49
50
51
52
53
54
55
56
57

Henderson
Owensboro
Elizabethtown
Louisville
Shelbyville
F ra n k fo rt
Bardstown
Danville
Paducah
M ayfield
Princeton
Madisonville




At

MISSISSIPPI
58
59
60
61
62

Hopkinsville
Bowling Green
Glasgow
Lebanon
Monticello

63
64
65
66
67

F aye ttev ille
Harrison
Mountain Home
Paragould
Fort Smith

ARKANSAS

68
69
70
71
72
73
74
75
76
77
78
79

Russellville
Batesville
Jonesboro
Mena
Hot Springs
L ittle
Rock
Pine B luff
S tu ttg a rt
Helena
Texarkana
El Oorado
Crossett

80

Me Gehee
TENNESSEE

81
82
83
84
85
86
87

Oyersburg
P aris
Humboldt
Memphis
Brownsville
Jackson
Savannah

88
89
90
91
92
93
94
95
96
97

Clarksdale
Oxford
Corinth
Tupelo
Greenwood
Grenada
West Point
Greenville
Kosciusko
Columbus

Page 141

ered from the income loss shown for 1949, largely
reflecting the much better cotton crop and higher
cotton prices during the late months of 1950.
These differences reflected the varying importance
o f major income sources fo r the local econo­
mies o f district income areas.
Local differences in the level of per capita income
payments are due primarily to the different income
sources of these areas. As a major impetus to in­
creased income in 1950 resulted from an accelera­
tion of activities in the trade and service industries
as well as manufacturing, urban areas often par­
ticipated most actively in the general business ad­
vance. In the rural areas, differences in income
movements resulted from the varying fate of farm
production in these areas and from the differences
in price increases among the various farm products.
In conform ity with past experience, agricultural
income proved the most volatile o f the major
income flows.
In 1949 many district areas were hit hard by a
simultaneous price drop and smaller physical vol­
ume of such strategic district crops as cotton. Farm
income in Mississippi declined by 42 per cent from
1948 to 1949. By 1950 it had recovered only partly,
showing an increase of 18 per cent over 1949. Ken­
tucky on the other hand, which had suffered least
from the price break in 1949, recorded some decline
in 1950 farm income. Missouri farm income bene­
fited to a considerable extent from an increase in
meat production and prices, and was substantially
larger in 1950 than in 1949.
It should be noted that in many areas larger cash
receipts from the marketing of livestock products
served to compensate farmers for losses in field
crops. This trend could be observed well in north­
western Tennessee where all income areas showed
marked gains.
Disparities in Government incom e payments
stemmed from sharp increases in military
payrolls.
There was a 15 per cent rise from 1949 to 1950
in Government income payments— the total of wages
and salaries, interest, social insurance benefits, and
other types of income disbursements to individuals
by Federal, State, and local agencies. This increase
(larger than the national gain) stemmed mainly
from disbursement of the National Service life in­
surance dividend and from an increase of about
one-third in the cash pay to military personnel
stationed within the district. Because of its fairly
uniform distribution, the National Service life in­
surance dividend produced little difference in the
relative increases in Government income payments
among income areas. On the other hand, the in­
Page 142




crease in military payrolls was spread unevenly
over the nation. This district generally received
more of such payments than its population ratio
would indicate. Within the district, as a result of
the heavy concentration of military payrolls at
large army camps, several areas scored aboveaverage gains in income flowing from Government.
Differential growth in factory pay reflected varia­
tions among income areas in the relative
importance o f durable manufactures . . .
The expansion of manufacturing wages and sala­
ries last year— 13 per cent on a district basis—
reflected chiefly the recovery of the manufacturing
industry by early 1950 from the mild business down­
turn of 1949; the further upward movement of pro­
duction in response to stepped-up business and con­
sumer demands in the months immediately follow­
ing the invasion of South Korea; and, to a limited
extent, the initial impact of the national defense
program. It was, therefore, most pronounced in
those areas which had the facilities to respond
quickly to stepped-up business and consumer de­
mands. As these demands were mostly for durables,
sizable increases were recorded in the heavy manu­
facturing centers of the district, such as East St.
Louis and Evansville.
. . . and the general rate o f industrialization.
Eighth District Arkansas and Mississippi showed
increases in manufacturing pay of 17 and 23 per
cent, respectively. Any new manufacturing devel­
opment is likely to loom large in an area that is
just beginning its industrialization. These figures,
however, testify to the extent the Mid-South is par­
ticipating in industrial growth.
The past decade has been a period o f tremendous
econom ic growth fo r the nation . . .
Over the past ten years the nation’s physical
volume of output expanded by more than one-half,
the population increased by 20 million persons, and
unemployment was reduced from 8 million in 1940
(one-seventh of the labor force) to 2 million by the
end of 1950, virtually the practical minimum in rela­
tion to the enlarged labor force. During this period,
the economy first expanded under the pressure of
unprecedented military demands, later converted to
all-out production for peacetime consumer goods,
and now again is supplying the demands of this and
other countries for defense.
The dollar total of income payments in the nation
rose from $76 billion in 1940 to $217 billion in 1950,
an increase of 186 per cent. The myriad of eco­
nomic developments reflected in these summary
statistics resulted in pronounced changes in the
geographical distribution of income. As in any
period of sustained economic growth, many of the

less developed regions of the country proceeded to
grow at a faster rate than the national average and
thus tended to narrow the differentials between
them and high income regions. The share of the
nation’s total income received by the South and
W est increased 18 per cent between 1940 and 1950,
whereas that of the Northeastern area (New
England and the Middle East), the traditional focus
of national activity, declined 14 per cent. (H ow ­
ever, the aggregate income in this area, $75 billion
in 1950, still accounted for more than one-third of
the national total.)

the last decade is shown on the second map accom­
panying this article. The total income increase in
each area is shown as a per cent of the increase for
the nation as a whole. Thus the map shows directly
the areas which registered better— or worse— than
national average performance during the ten year
period. It should be stressed that these data reflect
total income payments and not per capita income, a
point discussed more fully later in this article.
The white areas, lagging far behind the national
rate, are concentrated in rural Illinois and Missouri
where several counties suffered absolute population
losses of as much as 10 per cent. The dotted areas,
still lagging behind the national rate of expansion,
spread over much of Arkansas, Illinois, Indiana,
Kentucky, and Missouri, and again are mostly rural
areas registering actual population losses over the
last decade, though in many cases their remaining
farm labor force may have greatly improved its
per capita productivity and income. The shaded
areas, keeping pace with the nation, are primarily
rural areas where major farm improvements and
some industrial developments permitted the produc­
tive utilization of a growing labor force. Among
urban centers, East St. Louis (91 per cent) and
Springfield (94 per cent) approached the national
rate of growth.

. . . and the district.The Eighth Federal Reserve District contributed
its share to the growth of the nation over the past
decade. Physical volume of output in the district
expanded at about the national rate, while the dis­
trict labor force increased by only 2 per cent. The
district sent a large outflow of labor into other
regions where district workers manned new fac­
tories and plants. Power consumption of the major
district centers more than doubled between 1940
and 1950.
Within the district the geographical pattern of
growth roughly reflected the developments in the
country as a whole. The expansion of the district
economy was fastest around the metropolitan cen­
ters and throughout the Mid-South which has been
going through a rapid process of industrialization.

The crosshatched areas, where total income grew
faster than in the nation, are concentrated in the
Mid-South and around the major metropolitan cen­
ters of the district. In addition, northwestern
Arkansas stands out. There poultry raising and
fruit processing pushed the Fayetteville area 29
points ahead of the national rate of growth. The
same relative lead is shown by the Evansville area
but there reflects a remarkable expansion in manu­
facturing payrolls.
Finally, there were a few district areas which led
the nation by more than 30 per cent. In this cat­
egory are two areas in northwestern Tennessee,
Dyersburg and Humboldt, where livestock products
and truck crops greatly improved farm income.
Here are also the Louisville and Memphis metro­
politan areas. At the top of the list is Little Rock
where total income increased proportionately more
than in any other district area and was 40 per cent
ahead of the national rate of growth.

Over this period, the dollar total o f district income
payments tripled9 . . .
Total income payments in the district increased
from $3.8 billion in 1940 to $11 billion in 1950, a
gain of 194 per cent. The increase was largest in
Eighth District Tennessee (243 per cent), where
Memphis, hub of a tri-state region, registered the
rapid growth of the Mid-South. Income also more
than tripled in district Kentucky (221 per cent),
Arkansas (220 per cent), and Mississippi (212 per
cent). The Indiana portion of the district (up 193
per cent) and Missouri (up 186 per cent) just kept
pace with the nation (186 per cent), while southern
Illinois (144 per cent) lagged. The latter area, how­
ever, should receive some new impetus toward in­
dustrial growth as a result of recent developments
around East St. Louis and Paducah.
Growth in the various areas of the district over
TOTAL

AND

United
States
W a g e s and Salaries.....................(Millions of Dollars) $141,629
Proprietors Income ...................
“
“
“
36,217
Property Income .......................
“
“
“
24,118
Other Income ...............................
“
“
“
15,279
T o ta M n co m e .......................
“
“
"
217,243
Per Capita Incom e................................... (D ollars)
1,436
% of Average U . S. Incom e....................................
1 00%




PER

C A P IT A

Eighth
District
$6,246
2,773
1,107
954
11,080
1,055
73%

IN C O M E

Arkansas
$

761
531
105
180
1,577
825
57%

PAYM ENTS

Illinois
$ 849
335
238
121
1,543
1,165
81%

1950

Indiana
$

446
177
65
51
739
1,070
75%

Kentucky
$

998
346
165
131
1,640
1,046
73%

Mississippi
$

225
312
45
82
664
637
44%

Missouri
$2,392
852
420
298
3,962
1,329
93%

Tennessee
$ 575
220
69
91
955
975
68%

Page 143

. . . as did district per capita income.
Per capita income in the district increased from
$368 in 1940 to $1055 in 1950, a gain of 187 per cent
and considerably above the national rate of 150 per
cent. While district per capita income in 1940
amounted to but 64 per cent of the national average,
it had climbed to 73 per cent by 1950.
It needs particular emphasis that, while total in­
come payments in this district as a whole increased
just in step with the nation, per capita income in­
creased much faster. The district’s share of
national income payments fluctuated around 5 per
cent of the national total throughout the forties, but
its per capita income improved greatly. This differ­
ence is important and is explained by a substantial
relative decline in district population. In 1940 the
Eighth District had 8 per cent of the nation’s popu­
lation; in 1950 it had less than 7 per cent of the
national total.
District population actually increased between 1940
and 1950 by several hundred thousand people. The
gain, however, for the decade was relatively much
smaller for the district than for the nation and con­
sequently the district’s share of the total population
declined as indicated. Furthermore, such popula­
tion gain as did occur in the district was concen­
trated in the urban areas; most of the rural counties
suffered absolute population losses.
The net result, of course, was that by 1950 a
smaller proportion of the nation’s population lived
in the district, but these people were producing as
high a proportion of the nation’s output as in
1940. Total output in real terms grew consider­
ably between 1940 and 1950. The district’s output
growth kept pace with the nation’s growth. Most
importantly, output per person in the district in­
creased more than the national average and this fact,
was reflected in the higher growth rate in per capita
income here.
This development may be viewed as a somewhat
mixed blessing. The gain in productivity was most
desirable. It would have been even more beneficial,
however, to have had job opportunities in high pro­
ductivity industries for those who left the district.
Then not only would per capita income have
grown, but total income would have increased more
rapidly. And the district would not have lost part
of its active labor force which had been raised and
trained here.
As it was the Eighth District contributed to
national development by a constant supply of work­
ers which in part made possible the growth of out­
put in other areas. This contribution was a factor
in total national growth. As noted the latest figures
Page 144




indicate that during the last year district income
payments gained at the national rate while district
population increased at a somewhat faster pace.
Thus district per capita income declined relatively
after 1949, from 74.1 to 73.5 per cent of the national
average. It is possible that this reflected some
increase in employment opportunities which slowed
down district out-migration.
It might be noted in passing that at least part of
the drop in relative income position here during the
past two years reflected the volatility of farm in­
come. The district had an exceptionally good year
for agriculture in 1948. The 1949 crop year was not
too favorable. While gains were scored in 1950,
they still were not sufficient to bring the figures
back up to 1948 levels. The point is that the decline
in per capita income from the *1948 peak should not
be taken to indicate a declining trend but rather
should emphasize the importance of agriculture in
this region and the fact that farm income is a vola­
tile income sector.
Manufacturing payrolls were a key factor in this
spurt toward increased output in the dis­
trict, . . .
While total district income payments increased
194 per cent over the last decade, manufacturing
payrolls spurted by 234 per cent and it was this
increase in manufacturing pay that appeared to
spearhead general income growth in many district
areas. In Tennessee, the state of most pronounced
total income growth (243 per cent), manufacturing
payrolls more than quadrupled; similar develop­
ments characterized Kentucky and Arkansas, other
states of remarkable total income growth. There
was a relative lag in manufacturing development in
southern Illinois and Indiana, though it should be
emphasized that any new development will look

relatively minor in regions where there are already
major manufacturing centers, such as East St. Louis
and Evansville.
District industrialization was reflected not only in
the growth of manufacturing payrolls but also in the
larger role manufacturing employment played for
the district labor force. While in 1940 only 15 per
cent of total district income originated in manufac­
turing this ratio rose to 18 per cent in 1950.
, . . leading to higher productivity o f the district
labor force in the factory as well as on the
farm .
The larger demands of industry on the labor force
of the district not only raised the productivity and
skill of workers manning the new plants, but also
encouraged further productivity gains in agricul­
ture. Or, to put it the other way around, productiv­
ity gains in agriculture made it possible to maintain
farm output with a smaller farm labor force, thus
releasing workers for new industries. For example,
operators and workers on Tennessee farms de­
creased 13 per cent over the last decade, but the
number of Tennessee tractors quadrupled over the
same period, and Tennessee farm income tripled.
Mechanization and diversification of agriculture have
gone hand in hand with the growth of district in­
dustry, and in both the trend has been toward higher
labor productivity. Yet whatever has been accom­
plished thus far is only a challenge to continue the
efforts toward higher district income through rais­
ing district productivity. Continued investment in
better training and capital equipment will make it
possible for the district labor force to substitute
brains for brawn, and skill for sweat, and tools for
the good right arm.
District incom e growth is significant because it
enables the district to make a greater direct
contribution to national strength . . .
The district now is in better position to contribute
to the needs of the nation in its struggle to preserve
a free world. This contribution consists of a larger
flow of goods and services to other regions, within
this country and outside. Increases in district in­
come reflect the impetus to district economic growth
that comes from the development of industries
strategic for interregional trade and income flows.




As was pointed out in previous articles of this Re­
view, district economic development must be cog­
nizant of the effects of current and anticipated
changes in the country as a whole.
. . . and because it may illustrate methods of
attacking problem s in loiv income areas
abroad.
Finally it might be noted that district income
growth is of general interest for still another reason.
As has been stressed often in this Review, many
district areas are underdeveloped in the sense that
proper capital expenditures and training of new
skills could be expected to raise the productivity of
the soil and of the labor force. Similar problems
are faced by many countries abroad.
The United Nations has attempted the challeng­
ing task of estimating the 1949 per capita national
income of some 70 countries, expressing the results
in dollars of 1949 purchasing power. These esti­
mates are the only available data relating to the
distribution of the world’s 1949 current output of
goods and services among countries. They permit
us to gauge district performance not only in rela­
tion to other regions within the United States but
also in relation to foreign countries.
It, therefore, is interesting to note that, while 1949
district per capita income of $973 was low compared
to the United States average of $1,320, it still was
considerably higher than the per capita income of
any foreign country. The only foreign countries
even approaching district per capita income in 1949
were Australia, Canada, Denmark, New Zealand,
Sweden, Switzerland, and the United Kingdom.
The weighted average for all countries of the world
in 1949 was in the neighborhood of $250, far below
any district income area. There are twenty-five
large countries in the world with per capita incomes
below $100; these countries contain together well
over half of the world’s population.
While these data illustrate the size of the task of
raising income in other countries and enabling all
people of the world to share in a higher standard of
living, they also point out the universal task of
raising labor productivity.
Werner Hochwald

Page 145

Survey of Current Conditions
Eighth District economic activity in August and
early September moved in about the same way as
that for the nation. Industrial production picked
up a, little, and nonagricultural employment rose.
Farm harvest time was here for some crops and
sections and was approaching for others. Consumer
buying moved up (more than seasonally) but failed
to attain the volume of a year ago. Prices stayed
fairly stable. The district, like the nation, was
continuing to go through a “ wait and see” period.
Production in this district during August was at
a higher level than in July, although still somewhat
below that prevailing during the first half of this
year. Nationally, industrial production in August
was 218 per cent of the 1935-39 average, an increase
of approximately 2 per cent from July but still
about 2 per cent below the level during the first half
of the year.
Construction activity continued to lag behind
1950 records but, despite restrictions, remained at
a higher level than in 1949. There was some gain
between July and August but it was less than sea­
sonal in amount. For the district, however, volume
of contracts let (which is an indication of future
work) pointed to continuation of substantial non­
residential construction during the period ahead.
Much of this will reflect military and other defense
construction activity.
For the second consecutive month, district retail
trade in August increased more than seasonally.
The level reached, however, did not match that of
the comparable period last year when scare buying
was still going on. Nevertheless, sales volume
PRICES
W H O L E S A L E P R IC E S IN T H E U N IT E D S T A T E S
Bureau of Labor
August, 1951
Statistics
compared with
(1 9 2 6 = 1 0 0 )
A u g .,’ 51
July,’ 51
A u g .,’ 50
July,’51
A u g .,’ 50
A ll Commodities.. .. 178.0
166.3
179.5
— 0.8 %
+ 7.0%
Farm Products,...190.6
194.0
177.5
— 1.8
+ 7.4
F oods.................. .. 187.3
186.0
174.6
+ 0.7
+ 7.3
Other....................
168.7
155.3
— 0.8
+ 7.7
C O N S U M E R P R IC E I N D E X *
Bureau of Labor
August 15, 1951
Statistics
A u g . 15,
July 15, A u g . 15,
compared with
( 1 9 3 5 -3 9 = 1 0 0 )
1951
1951
1950
July 15,’ 51 A u g. 15,’ 50
United States....... .. 185.5
- 0 - %
+ 7.0 %
185.5
173.4
*N ew series.
R E T A IL F O O D *
Bureau of Labor
August 15, 1951
Statistics
A u g . 15,
July 15,
A u g . 15,
compared with
1951
( 1 9 3 5 -3 9 = 1 0 0 ) 1951
1950
July 15, ’ 51 A u g. 15,’ 50
U . S. (51 cities). ..227.0
227.7
209.9
— 0 .3 %
+ 8 .1 %
St. L o u is............ ...237 .2
237.9
220 .8
— 0.3
+ 7.4
Little R ock........ ,2 2 2 .9
223.1
210.7
— 0.1
+ 5.8
Louisville..............214.8
216.0
197.8
— 0.6
+ 8.6
M em phis.............. . 234.7
232.3
219.4
+ 1.0
+ 7.0
*N ew series.

Page 146




during July and August reduced stocks to more
comfortable levels.
Despite flood damage, crop production in the
Eighth District as a whole in 1951 will be larger
than last year’s total. And with prices received
by farmers above last year’s level, total farm income
is expected to be appreciably higher this year than
last.
E M P LO YM E N T

Total employment in the nation increased slightly
to an all-time high of 62.6 million persons in early
August. Nonagricultural employment rose 324,000
persons from the July figure, to a new peak, but
there was some decline (220,000) in agricultural
employment. Unemployment dropped to 1.6 million
persons, a record low for the postwar period.
Throughout the Eighth District employment in
August was generally ahead of July. Exceptions
were Louisville and Vincennes where decreases
were experienced during August. In Vincennes a
large shoe plant employing 500 persons was closed
down. In Louisville smaller employment in wood­
working and textile plants more than offset the
additional employment in cigarette production. In
addition, seasonally slow retail activity and com­
pletion of some construction projects were respon­
sible for a decline in nonmanufacturing employment.
In St. Louis, indicators showed employment in­
creasing in August, but early September layoffs
may have overbalanced hirings. The seasonal drop
in brewing, completion of war contracts in some
firms and material shortages have caused recent
layoffs. Continued claims for unemployment com­
pensation in St. Louis declined during August but
rose in the first half of September. For the week
ended August 18 there were 6,434 continued claims
filed, down 943 from four weeks earlier. However,
for the week ended September 15, continued claims
had risen to 7,561.
W H O L E S A L IN G
Line of Commodities
D ata furnished by
Bureau of Census,
U . S. Dept, of Commerce*
Autom otive Supplies .......................... ....
D rugs and Chemicals............................ ....

Tobacco and its Products.................. ....
Miscellaneous ...........................................

N et Sales
A u g ., 1951
compared with
A u g .,’ 50
July,’ 51
+15%
+10

+

4

**T o ta l A ll Lines............................... .... + 1 7 %
* Preliminary.
** Includes certain items not listed above.

Stocks
A u gu st 31, 1951
compared with
A u gust 31, 1950

+ 5%
+ 7
— 27
+ 2
— 23
+ 4
— 7

+
+
+
+
+

+ 23%

— 1 8%

+ 37%

20
11
57
7
42

In Evansville, unemployment compensation claims
increased during August from July, but declined to
the mid-July level by early September.
In the six largest cities in the Eighth District
(St. Lauis, Louisville, Memphis, Little Rock, Evans­
ville, and Springfield) the current and prospective
labor supply moderately exceeds labor requirements.
This statement applies to overall supply; there are
shortages of certain specific skills. Relative to the
rest of the nation, this district has a more adequate
supply of labor. As of July, six areas in the nation
were classified as having a labor shortage, 62 areas
were considered to have a balanced labor supply,
while 84 areas, including those in the Eighth Dis­
trict, had moderate labor surpluses and 14 areas
were considered to have substantial labor surpluses.
There has been a gradual decline in the average
work week during the past few months. Whereas
in August last year the average number of hours
worked per week in all manufacturing was 41.2
hours, in July this year it stood at 40.4. The aver­
age worked in durable goods manufacturing in
July was 41.0 as compared with 39.5 hours per
week worked in nondurable goods manufacturing.
The work week in nondurable goods was shorter
in July than a year ago. The following table indi­
cates the average hourly earnings and the average
work week in manufacturing in selected Eighth
District cities during July, 1951.
Average
H ourly
Earnings

City

Little Rock ....................................................................................$ 1.11
St. Louis ...................................................................................... 1.55
Memphis ........................................................................................... 1.40
United States ............................................................................... 1.60

Average
W eekly
Hours
42.0
39.8
42.3
40.4

basis, power consumption declined 6 per cent from
the July rate.
Steel mill operations in the Eight District during
August were scheduled at 86 per cent of capacity,
two points less than in July and only three points
higher than in August, 1950.
Lumber mill operations, which have been slow
recently due to slackened demand and excessive
stocks, showed little change during August. South­
ern pine mills operated at a weekly average of
193,000 feet during August, only 2,000 feet per week
above the July operations and substantially below
August, 1950 activities. Southern hardwood opera­
tions in August were at 98 per cent of capacity, un­
changed from July, but below the operating rate
in August, 1950. The outlook for the remainder of
the year is brighter than during the past few months
due to increasing demands from both civilian and
military sources and the adjustment of inventories
which have been effected with the past two months.
The shoe industry increased its operations during
August as is normal at that season but did not reach
the level of output in August last year or earlier
this year. National shoe production in August was
estimated at 38.3 million pairs or 21 per cent below
August last year. Total production during the first
eight months of 1951 was off approximately 5 per
cent from a year ago. When adjustment is made
for the large increase in military shoe production
this year, civilian shoe output is estimated to be
off about 9 per cent. Most of this decline has taken
place since April.
Livestock slaughter in the St. Louis metropolitan
area in August totaled 390,000 head, an increase of

INDUSTRY

Eighth District industry in August registered a
somewhat larger output than in July, partly because
of the longer work month and partly reflecting
seasonal gains in some lines. Mining activity in­
creased with coal production showing a strong sea­
sonal upturn while oil output stayed the same. Con­
struction activity also rose (slightly) but the gain
was less than seasonally expected. Transportation
operations stayed at about the same level. Manu­
facturing output in total apparently exceeded July’s
volume, but the daily rate of operations showed
some decline.
Manufacturing— Total industrial power consump­
tion in the district’s major cities in August was 4
per cent ahead of July and 9 per cent above that
of August, 1950. Among industries the major gains
were scored by the paper products, apparel, and
transportation equipment lines. On a daily average




IN D U S T R Y
C O N S U M P T IO N

O F E L E C T R IC IT Y

( K .W .H .
A u g ., 1951 July, 1951
.in thous.)
K .W . H .
K .W . H .
Evansville..........
17,186
16,135
12,217
12,014
Little Rock.......
Louisville...........
86,241
82,649
M emphis............
29,681
31,170
Pine B luff..........
10,103
9,395
St. Louis............
108,377
104,057
Totals............. 263,805
255,420

23

W ork D ays
r— R evised.

21

A u g ., 1950
K .W . H .
16,736 r
9,992 r
76,863
28,205
7,463
103,256 r

242,515 r
23

A u gust, 1951
compared with
J u ly /51
A u g .,*50
+ 6 .5 %
+ 2 .7 %
+ 1.7
+ 2 2 .3
+ 4.3
+ 1 2 .2
— 4.8
+ 5.2
+ 7.5
+ 3 5 .4
+ 4.2
+ 5.0

+

3.3%

L O A D S IN 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

A u g .,’ 51

First N ine D ays
S e p t./5 1
S e p t./5 0

J u ly /51

A u g ./5 0

+

ST. L O U IS

8 mos. *51

8 mos. *50

117,952
117,779
126,7X3
31,178 '
33,290
935,871
Source: Terminal Railroad Association of St. Louis.
C R U D E O IL

A u g ., 1951

July, 1951

A u g ., 1950

Arkansas............
Illinois................
Indiana...............
Kentucky...........

76.7
165.4
32.0
30.6

76.1
169.3
30.1
29.4

82.0
174.8
31.4
27.9

304.7

884,334

P R O D U C T IO N — D A IL Y A V E R A G E

(In thousands
of bbls.)

Total...............

8.8%

304.9

316.1

A u gust, 1951
compared with
J u ly /5 1
A u g ./5 0
+
—
+
+

1%
2
6
4

- 0- %

— 7%
— 5
+ 2
+10
—

4%

Page 147

24 per cent from July and 3 per cent from August,
1950. Slaughter of all kinds of livestock, including
cattle, was greater during August than in July. But
cattle slaughter was 20 per cent less than in August,
1950, while hog slaughter was up 21 per cent over
a year ago.
Earlier this year whiskey production was stepped
up in anticipation of a possible grain shortage which
led to the accumulation of large stocks of bulk
whiskey. When shortages did not appear and sales
lagged, operations were reduced during July and
August, with only 17 of the 62 distilleries in Ken­
tucky in operation at the end of each month.
Mining— Crude oil production in the Eighth Dis­
trict in August was unchanged from July but was
4 per cent less than in August, 1950. Increasing
production in Indiana and Kentucky fields and to
some extent in Arkansas was offset by a decrease
in production in Illinois. New drilling operations
in the Illinois-Indiana-Kentucky area totaled 624
during August as compared with 482 in July. New
pools have been opened in Illinois and Kentucky
recently.
Coal production in the Eighth District increased
seasonally about 30 per cent from July and was
about 3 per cent higher than August, 1950. Nation­
ally, coal production in August increased 43 per
cent from July and was equal to output a year
earlier.
Transportation— Railroad freight interchanges at
St. Louis during August were unchanged in number
from July but were 7 per cent less than in August
last year. For the first nine days of September,
loads interchanged numbered approximately 6 per
cent less than in the same period a year ago.
Construction— Expenditures for new construction
in the nation during August totaled approximately
$2.8 billion, an increase of about 1 per cent over
July, but slightly below expenditures in August,
1950. The amount of new construction in August
increased less than seasonally expected, thus con­
tinuing the trend evident since March. The physical

volume of w7
ork put in place now is significantly
smaller than a year ago although higher costs this
year bring total outlays close to last year’s level.
Private residential building normally increases in
August but this year it declined 2 per cent, and
together with previous declines, brought private
home building activity down about one-third below
last year’s level of activity. Construction of com­
mercial stores, restaurants and garages also has
dropped. The decrease in private construction has
been more than offset by the increase in publicly
financed construction, mainly military projects and
atomic energy facilities. Building activity in in­
dustrial plants, electric power projects and other
essential facilities for the mobilization program con­
tinued to increase during August.
Construction contracts awarded in the 37 states
covered by the F. W . Dodge Corporation reports
in August were down 8 per cent (dollar value) from
July and were off 18 per cent from August, 1950.
Residential construction contracts showed a slight
increase from July but were 25 per cent lower than
in August last year. Nonresidential construction
contracts awarded during August were off 11 per
cent from July and 12 per cent lower than in August
last year.
In contrast in the Eighth District, $117 million
in construction contracts were awarded during
August as against $75 million awarded in July and
$103 million in August, 1950. Nonresidential con­
tracts awarded in August were up by 64 per cent
from July and 10 per cent over August of last year.
TRADE

Except at men’s wear stores, August sales of
reporting retail lines throughout the district totaled
larger than in July. The increases were mainly
seasonal in character although some gains were
more substantial than might be expected from sea­
sonal changes alone. The increases, however, were
not large enough to bring dollar volume up to the
heavy consumer buying of last year and sales gen­
erally totaled less than in August, 1950.

PRODUCTION INDEXES

COAL

P R O D U C T IO N
1 9 3 5 -3 9 = 1 0 0

144*

July. ’ 51
109*
SH O E

Adjusted
A u g ., ’ 50
140

A u g ., 51
146*

P R O D U C T IO N
1 9 3 5 -3 9 = 1 0 0

M ay, ’ 51

132
133
*Preliminary.

Page 148




July, ’ 51
124*

A u g., ’ 50
142

IN D E X

Unadjusted
June, ’ 51

B U IL D IN G P E R M IT S
M onth of August
New Construction

IN D E X

Unadjusted
A u g ., ’ 51

CONSTRUCTION

Adjusted
June, ’ 50
139

June, ’ 51
129

M ay, ’ 51

June, ’ 50

137

135

Number
(Cost in
1950
1951
thousands)
• 126
Evansville.........
86
53
105
Little R ock.......
260
Louisville............... 236
M em phis............ . . 2,228
2,589
390
St. Louis........... .... 320
A u g. T otals...... ... 2,923
July Totals....... ... 2,672

3,470
3,578

Cost
1951

1950

Repairs, etc.
Number
Cost
1951
1950
1951 1950

185 $
320
480
1,790
1,778
1,336
2,495
5,346
2,874
2,745

98
227
101
186
256

$ 7,812 $11,537
$12,949 $24,311

868
824

$

78
234
108
226
285
931
985

$

72 $
87
168
136
93
110
234
130
659
781
$ 1,212 $1,258
$1,207 $1,482

Department Stores— Sales volume during August
in the district totaled 20 per cent larger than in July
but was 5 per cent less than that in August, 1950.
The more-than-seasonal gains from the previous
month placed adjusted daily sales at 350 per cent
of the 1935-1939 average. In comparison they were
344 per cent in July and 370 per cent in August, 1950.
Cumulative 1951 sales during the first eight
months for the district as a whole were slightly
larger than in the like period a year ago. Except
in Little Rock (where cumulative sales have dropped
3 per cent below those in 1950) sales volume in
major district cities equaled or exceeded 1950
volume. The largest average gains from 1950
occurred in Evansville, Quincy and several smaller
shopping centers.
The lag in sales from last year reflected in large
part, but not wholly, the result of lessened buying
of hard goods. Soft goods sales also were off.
At St. Louis department stores, for example,
sales volume of the home furnishings division in
the upstairs store during August dropped 24 per
cent below that last year. • But also in the main
store, piece goods and household textile division
sales averaged 21 per cent less than in the like month
last year. Upstairs women’s apparel and accessory
sales averaged about one-tenth less than a year ago
while men’s wear sales declined 9 per cent.
There were indications that prices were a grow­
ing consideration to buyers. August sales in the
basement store as a whole totaled slightly larger
than a year ago in contrast to the decline of 14 per
cent for the upstairs divisions. Basement store
home furnishing division sales totaled less than last
year but the decline was smaller than in the upstairs
store. W om en’s apparel and accessory sales down­
stairs equaled those last year and basement men's
wear sales registered a substantial gain (40 per
cent).
The retail value of inventories held by district
department stores on August 31 was reported as
being 5 per cent larger than a month earlier and
19 per cent above August 31, 1950. Outstanding
orders at the end of August were valued one-sixth
less than those a month earlier and almost onehalf below those a year ago.
Specialty Stores— In St. Louis women’s specialty
stores, August sales volume was substantially larger
than in July but was off one-fifth from that in
August, 1950. The value of inventories on August
31 was 3 per cent above that at the end of July but
was 11 per cent larger than a year ago.
District men’s wear store volume dropped 4 per
cent under that in July and was 5 per cent less than
last year. Inventories on August 31 were one-tenth




TRAD E
D E P A R T M E N T STORES
Stock
Turnover

Stocks
on Hand

N et Sales

Au g. , ’ 51
8 mos. ’ 51 A u g. 3 1 ,’ 51
compared with
to same comp, with
July,’ 51 A u g .,’ 50 period ’ 50 Aug. 31,’ 50
+ 20%
+ 1 9%
— 5%
+ 1%
+
Little Rock, A rk... +
Quincy, 111............... +
+
+
+
+
+
+
A ll Other Cities*... +

Jan. 1, to
A u g . 31,
1950
1951
2.07

2.61

— 4
+ 33
2 .10
+ 6
2.53
— 5
— 3
+ 5
2.02
2.50
— 10
+ 21
2.00
2.22
+ 5
+ 6
+ 27
2.45
+ 6
1.93
2.87
— 9
+ 1
+ 17
2.40
— 6
+ 23
+ 1
1.98
2.63
— 8
+ 22
1.91
2.57
- 0— 3
- 0 + 16
1.85
2.34
- 0+ 2
+ 12
2.36
2.65
+ 3
+ 5
1.78
2.11
+ 16
*
Fayetteville, Arkansas; Harrisburg, M t. Vernon, Illinois; Vincennes,
Indiana; Danville, Hopkinsville, Mayfield, Paducah, K entucky; Chilli­
cothe, M issouri; Greenville, M ississippi; and Jackson, Tennessee.
2In order to permit publication of figures for this city, a special sample
has been constructed which is not confined exclusively to department
stores.
Figures for any such nondepartment stores, however, are not
used in computing the district percentage changes or in computing de­
partment store indexes.
2Includes St. Louis, Clayton, Maplewood, M issouri; Alton and Belle­
ville, Illinois.
Outstanding orders of reporting stores at the end of August, 1951,
were 48 per cent less than on the corresponding date a year ago.
Percentage of accounts and notes receivable outstanding A ugust 1,
1951, collected during A ugust, by cities:
20
26
26
25
17
19
19
16
25
14

Instalment Excl. Instal.
Accounts
Accounts
Fort Smith............. ...%
Little Rock....
20
Louisville......
21
M emphis........
19
IN D E X E S

48%
47
49
38

Q uincy.............
St. Louis........
Other Cities..
8th F .R . D ist

Instalment Excl. Instal.
Accounts
Accounts
22%
60%
22 %
21
51
15
54
20
48

OF

D E P A R T M E N T STO R E SALES A N D STOCK S
8th Federal Reserve District
A u g .,
June,
A u g.,
July,
1951
1951
1951
1950
Sales (daily average), unadjusted3..................
269
301
282
318
Sales (daily average), seasonally adjusted3.. 350
344
313
370
392
372
389
322
359
357
389
295
8Daily average 19 3 5 -3 9 = 1 0 0 .
4End of M onth Average 1 9 3 5 -3 9 = 1 0 0 .
S P E C IA L T Y

STOR ES

Stocks
on H and
A u g ., 1951
8 m o s .’ 51 A u g. 3 1 ,’ 51
compared with
to fame comp, with
July,’ 51 A u g .,’ 50 period ’ 50 A u g. 31,’ 50

Stock
Turnover

N et Sales

Jan. 1, to
A u g. 31,

1951
1.20
2.63

1950

M en’s Furnishings..— 4 %
— 5%
+ 2%
+27%
1.60
Boots and Shoes.... + 1
+ 6
+ 9
+23
2.83
Percentage of accounts and notes receivable outstanding A u g. 1, 1951,
collected during A u g u s t:

43%
Boots and Shoes..................
43%
M en’s Furnishings ..................
Trading days: Au gust, 1951— 2 7 ; July, 1951-— 2 5 ; A u gust., 1950— 27.
R E T A IL F U R N IT U R E STO R E S
N et Sales______
Inventories
A u gust, 1951
compared with
July, ’ 51 A u g .,’ 50

A u gu st 31, 1951
compared with
July 31, A u g. 31,
1951

1950

Ratio
of
Collections
A u g .,’ 51 A u g .,’ 50

+ 25%
24%
— 20%
22%
— 5%
+ 5%
+ 29
— 2
— 28
33
30
+ 4
— 29
— 2
+ 28
+ 4
33
30
7
— 6
+ 28
+ 18
15
15
+ 29
— 7
— 6
+ 17
13
14
— 12
— 2
+ 26
— 6
15
13
— 2
20
+ 15
— 20
— 17
16
+ 17
— 8
— 10
17
+ 25
16
*
*
*
*
— 16
+ 1
*
N ot shown separately due to insufficient coverage, but included in
Eighth District totals.
1 In addition to following cities, includes stores in Blytheville, Pine
Bluff, Arkansas; Hopkinsville, Owensboro, K entucky; Greenwood, M is­
sissippi; Hannibal, M issouri; and Evansville, Indiana.
2 Includes St. Louis, M issou ri; and A lton , Illinois.
3 Includes Louisville, K en tu ck y; and N ew Albany, Indiana.

__

PERCENTAGE

D IS T R IB U T IO N O F F U R N IT U R E
A u g ., ’ 51
July, ’ 51

Cash Sales .............................................
Credit Sales ..........................................
Total Sales ......................................

14% '
86
100%

SALES
A u g ., ’ 50

15%
85

13%
87

100%

" 10 0 %

Page 149

larger than on July 31 and about one-fourth larger
than on August 31, 1950.
Funiture Stores— During August sales at district
stores totaled 25 per cent larger than in July but
were 20 per cent under those in the like month last
year. The retail value of inventories held by dis­
trict furniture stores on August 31 was 5 per cent
under that on July 31 and 5 per cent larger than a
year ago.
AGRICULTURE

August brought improved conditions of the im­
portant district cotton, soybean, and rice crops. On
the other hand, prospects became slightly less
bright for corn and tobacco. On balance, however,
crop production in district states this year will be
above last year’s total. Nationally, the 1951 crop
will be exceeded in size only by the 1948 crop.
The cotton crop improved in the Eighth District
during the month of August as a result of weather
favorable to rapid development. Some areas, how­
ever, were too dry and premature opening of bolls
resulted. The crop in Arkansas on September 1
was estimated at 1,640,000 bales, an increase of
140.000 bales over the August 1 estimate, and
550.000 bales more than the 1950 crop. Estimated
production in Tennessee was 35,000 bales above the
August 1 forecast. Prospects for Mississippi and
Missouri remained the same as a month earlier.
The national crop was estimated on September 1
at 17,291,000 bales, an increase of only 25,000 bales
over the August 1 estimate. Reductions in pros­
pects between August 1 and September 1 in Texas,
Oklahoma, and Louisiana totaled 280,000 bales.
Ginnings on September 1 totaled more than 2 mil­
lion running bales, compared with 859,401 bales at
the same time in 1950.
Soybean crop prospects also improved during the
month. Estimated production for the nation was
AGRICULTURE

CASH FAR M

July,
(In thousands
1951
of dollars)
Arkansas........... $ 27,735
Illinois................ 200,991
98,554
Indiana..............
39,800
K entucky..........
19,258
Mississippi........
114,980
M issouri............
31,140
Tennessee......... .
T otals............ $532,458
R E C E IP T S

AND

Cattle and calves.. . 140,143
H o g s ......................... , 263,610
Sheep......................... . 72.887
T otals.................. . 476,640




+ 30%

1951
$

+ 20%

S H IP M E N T S A T
Receipts
A u g .,
1951

Page 150

IN C O M E
7 month total Jan. to July,

July, 1951
compared with
June,
July,
1950
1951
+ 15% + 24%
+45
+ 28
+ 17
+ 26
+ 12
+ 8
+ 37
+ 11
+ 36
+ 13
+ 14
+ 5

192,680
1,092,917
592,2^8
290,016
160,929
606,548
220,026

+ 18%

$3,155,344
N A T IO N A L

Au gust, ’ 51
compared with
July,’ 51 A u g .,’ 50

A u g .,
1951

+ 20%
— 3
+ 20

+13%
+21
— 10

76,034
93,642
48,761

+

+13%

218,437

6%

1951
compared with
1950
1949
+ 29% — 6 %
+ 21
+ 14
+22
+ 18
+ 6
+ 7
+ 56
— 24
+ 22
+ 22
+ 18
+ 8
+ 1 3%

STOCK YAR DS
Shipments
August, ’ 51
compared with
July,*51 A u g .,’ 50
+ 22%
— 19
+ 46

+ 101%
+ 29
+ 15

+

+

4%

43%

273 million bushels on September 1, a 3 million
bushel increase over August— about the increase
estimated for district states.
Prospects for the 1951 corn crop declined nation­
ally and in the district during August. The
national crop was estimated at 3,131 million bushels,
a decline of 76 million bushels in the month. The
September estimate was lower than August in all
district states except Illinois. In Missouri the crop
was estimated at 140 million bushels, which com­
pares with crops of 187 million bushels in 1950 and
a 142 million bushel average for the 1940-49 period.
An estimated 536,000 acres have been abandoned,
300,000 acres being flooded.
Burley tobacco production was estimated at 553
million pounds on September 1, a 4 per cent reduc­
tion from the August estimate. However, a crop of
this size would be 11 per cent larger than the 1950
crop. Both dark fire-cured and dark air-cured
tobacco production estimates were less on Septem­
ber 1 than August 1, but 3 and 10 per cent larger,
respectively, than the 1950 crop.
Between March and July, 1951, farm land prices
increased 3 to 6 per cent in district states.
CHANGES

IN

DOLLAR

VALUE

OF

FARM

LAND

P e r cen t ch a n g e fro m :
M a rch to
J u ly , 1951
A rk a n sas ...................................................................................
Illin o is
......................................................................................
In d ia n a ........................................................................................
K e n tu c k y ....................................................................................
M ississip p i .................................................................................
M isso u ri ......................................................................................
T en n essee ...................................................................................
U n ite d

+
+
+
+
+
+
+

States .......................................................................... +

Ju ly, 1950 to
J u ly , 1951

4%
3
3
6
5
5
5

+19%
+20
+20
+20
+22
+20
+14

5

+17

S o u r c e : B .A .E . T h e F a rm R ea l E state M a rk et, Ju ly, 1951.

The percentage of nonfarmer purchasers in­
creased from 28 to 32 per cent of the total. In
general, a smaller proportion of the purchase price
was being financed by credit and all-cash transac­
tions were a little more frequent. Size of farm
mortgages recorded, however, increased for all
classes of lenders.
Prices received by farmers declined for the sixth
straight month. The index of prices received was
292 on August 15, 7 per cent lower than the Febru­
ary, 1951 peak. The parity ratio (ratio between
prices received and prices paid) was 104, the same
as in July, 1951 and August, 1950.
BANKING

Banking trends showed little net change during
August and early September. Loans at weekly re­
porting banks in the district did not rise as much as
usual at this time and investments declined slightly.
Both demand and time deposits increased.
District Banking Developments— Total loans at
weekly reporting member banks in the Eighth Dis­
trict rose $11 million in August and early Septem­

ber. Normally loans increase about $30 million at
this time. The increase which took place in loans
largely reflected advances to businesses and con­
sumers. Real estate loans continued their slow
climb at all reporting cities except Evansville and
Little Rock. Loans on securities declined, as did
loans to banks.

mercial loan expansion nationally was made for
defense and defense-supporting activities. Banks
in the New York district made over half of the
defense and defense-supporting loans.
Debits to Deposit Accounts— Dollar volume of
checks cashed in a given period is one indicator of
the level of business activity. Debits to deposit
accounts at 22 district cities in August were up
contraseasonally (1 per cent) from July. On an
adjusted basis, district debits in August were up
5 per cent from the 1951 low in June but down 4 per
cent from the all-time peak last January.

The business loan expansion centered in inven­
tory and working capital loans, largely to food
manufacturers and commodity dealers. At the
same time, public utilities and wholesalers made
sizable net repayments. Loans for defense pur­
poses showed only a small gain, nearly all of which
went to metal and metal products manufacturers.
This reflects, of course, the relative lightness of
defense contracts in this district. Loans for defensesupporting activities declined in the period.

DEBITS TO DEPOSIT ACCOUNTS

(In thousands
of dollars)
E l Dorado, A rk ............
Fort Smith, A rk ...........
Helena, A rk ...................
Little Rock, A rk.............
Pine Bluff, A rk .............
Texarkana, A r k .* .........
Alton, 111..........................
E .S t.L --N a t.S . Y ., 111.....
Quincy, 111.......................
Evansville, Ind............. ..
Louisville, K y ................
Owensboro, K y .............
Paducah, K y ..................
Greenville, M iss............
Cape Girardeau, M o....
Hannibal, M o .................
Jefferson City, M o .......
St. Louis, M o .................
Sedalia, M o .....................
Springfield, M o .............

A u g .,

A u g .,

July,

1951
1951
1950
27,993 $
25,976 $
24,117
43,418
41,630
41,905
6,517
7,282
6,131
135,708
136,705
130,844
29,653
30,430
25,167
14,271
13,579
10,796
29,355
28,275
25,871
126,890
145,908
124,036
33,207
31,235
31,767
150,096
149,367
144,305
678,887
633,838
637,109
41,139
36,469
40,935
26,296
22,596
16,555
18,362
19,723
20,087
12,494
12,459
12,514
9,534
8,922
9,099
49,425
49,421
47,354
1,775,148 1,808,652 1,718,468
9,567
10,979
10,635
73,406
65,962
68,889
19,667
20,048
19,106
Memphis, Tenn............. ..
646,815
491,795
507,235
Totals............................. $3,824,275 $3,783,771 $3,813,978

Consumer loans gained more than usual at this
time sharply reversing the downward trend of re­
cent months. This rise occurred at all reporting
centers except Memphis.
Investments at the district’s weekly reporting
banks declined slightly ($4 million) in the six-week
period. Treasury bill holdings, however, were in­
creased $13 million shortening average portfolio
maturities somewhat.
Banking Developments Nationally— Earning as­
sets of weekly reporting banks in leading cities of
the nation rose $400 million in August to a total of
$70.5 billion. The increase centered in commercial
loans, but unlike the district, roughly half the com­

* These figures are for Texarkana, Arkansas, only,
banks in Texarkana, Texas-Arkansas, including banks
District, amounted to $33,941.

A u gust, 1951
compared with
July, ’51 A u g ., ’50

+ 8%
+ 4
— 11
— 1
— 3
4* 5
+ 4
+ 18
+ 6
-0 + 7
+ 13
+16
— 2
-0 + 7
-0 — 2
+ 11
+ 11
— 2
— 3
+ 1+

+ 16%
+ 4
+ 6
+ 4
+ 18
+ 32
+ 13
+ 15
+ 5
+ 4
+ 7
-0 + 59
+ 7
-0 + 5
+• 4
+ 3
— 3
+ 7
+ 3
— 24
-0 -%

Total debits for
in the Eleventh

E IG H T H D IS T R IC T
M E M B E R B A N K A SSE TS A N D L IA B IL IT IE S
B Y SELECTED GROUPS
A ll Member_____________

A u g ., 1951

107
190
62
21
147
109
38
5

$2,343
1,183
992
168
805
445
360
31

$— 10
—
1
— 5
— 4
— 10
+
9
— 19
+
3

4

$ + 259

$3,179

$—

$3,988
623
3,365
995
54
353

$— 14
— 17
+
3
+
5
+ 12
+
1

$ + 237
+ 87
+ 150
+ 10
— 10
+ 22

$2,432
588
1,844
494
44
209

$5,390

$+

$ + 259

$3,179

A u g ., 1951

July, 1951
to
A u g ., 1951

$4,033
1,807
1,868
358
1,304
680
624
53

$+
+
+
—
—
+
—
+

12
4
16
8
17
4
21
9

$5,390

$+

a. Deposits of Banks...... .............................. .
b. Other Demand Deposits..............................
6. Tim e Deposits ......................................................

9. Total Liabilities and Capital Accounts....

b. U .S . Government Obligations..................
c. Other Securities .............................................
2. Reserves and Other Cash Balances.............
b. Other Cash Balances8...................................

A u g ., 1950
to
A u g ., 1951

$+
+
—
—
+
+
+
+

___________ Smaller Banks2

Change fr o m :
July, 1951
to
A u g ., 1951

Assets

1. Loans and Investm ents......................................

__________Large City Banks1
__________

Change fro m :

(I n Millions of Dollars)

A u g ., 1950
to
A u g ., 1951

A u g ., 1951

Change fro m :
July, 1951 A u g ., 195'
to
to
A u g ., 1951 A u g ., 195

64
130
39
27
83
75
8
3

$1,690
624

$ + 150

$2,211

$+

21

+ $109

$— 30
— 10
— 20
+
1
+
9
+
3

$+
+
+
—
—
+

148
83
65
3
13
18

$1,556
35
1,521
501
10
144

$ + 16
—
7
+ 23
+
4
+
3
— 2

$ + 89
+
4
+ 85
+ 13
+
3
+
4

$— 17

$+150

$2,211

$ + 21

$ + 109

17

$-r
+
—
—
+
+
+
+

876

190
499
235
264
22

$ + 22
+
5
+ 21
—
4
—
7
—
5
—
2
+
6

$+
+
—
+
+
+
+
+

43
60
23
6
64
34
30
2

Liabilities and Capital

5. Gross Demand Deposits...................................

4

1 Includes 15 St. Louis, 6 Louisville, 3 Memphis, 3 Evansville, 4 Little Rock and 4 East St. Louis-N ational Stock Yards, Illinois, banks.
2 Includes all other Eighth District member banks.
Some of these banks are located in smaller urban centers, but the majority are rural area banks.
3 Includes vault cash, balances with other banks in the United States, and cash items reported in process of collection.




Page 151