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F E D E R A L . R E S E R V E MONTHLY B A N K REPORT O F ST. L-OU!S ON GENERAL BUSINESS AND AGRICULTURAL CONDITIONS IN FEDERAL RESERVE DISTRICT No. 8 RELEASED FOR PUBL!CAT!ON ON AND AFTER SUNDAY, OCTOBER 2 6 , 191* W!LL!AM MCC. MART!N CHAtRMAN Of THE BOARD AMO FEDERAL RESERVE AGEMT The good wheat crop and the fact that com is now well out of danger from frost, which have strengthened the position of the farmer, afford a sound basis for the optimism which still prevails in this district. Most lines of wholesale and retail business show increases over the corresponding period in 1918. This/however, is due in great measure to the increased money value of transactions. Moreover, last year war rcstrictionsjwcre still in force, and the influenza epidemic was interfering with merchandising, especially with the retail trade. In the South, businesses benefited by the high price of cotton are prospering, but the usual autumn activity in clothing, both wholesale and retail, has been somewhat delayed by the unseasonably warm weather. M ANUFACTURING.— A survey of the industries in the several manufacturing centers in the district, indicates that many lines of business have developed materially beyond a pre-war basis. The number of employes has increased, and wages are from 40% to 100% higher. In addition to this, many new industries have been established. A large manufacturer of shoes says there is a good demand for his product, but that he is somewhat hampered by the "under-production of labor." His orders on hand for future delivery are far above normal. The market, he says, is very high, but shows some signs of weakness. Manufacturers of clay products, brick, tile, clay pipe, etc., say there is a good demand for their products from small manufacturers and for municipal and other internal improvements. The demand is about 75% of normal. The steel strike and dullness in the metal trades has restricted the demand for fire brick. Prices tend to decline. A chemical manufacturer says his business is growing in volume, and is beyond the normal footing. tending downward. He complains that production is reduccd. Prices are A woolen mill states that its business is improving, and that the shortage of clothing is a favorable factor in stimulating demand. Iron and steel plants say business is improving, and one concern states that its sales in September increased 50% as compared with the same month last year. It says that its business is the largest in its history. A stove manufacturer says his business increased 100% over September last year, and that his orders on hand for future delivery are 200% more than at the same time in 1918. A large flour mill says there has been no marked change in milling conditions during the past month. that some of its laborers do not exert themselves to produce as much as they might. It states A 20% increase over last month, and a 5 % increase over the corresponding month last year, is reported by a large baking concern. It asserts that a 10% reduction in basic prices has occurred. "W ith proper production and transportation," declares a glass manufacturing concern, "the outlook is for an unprecedented volume of business." It states that its business increased 40% over the corresponding month last year and 20% over last month. WHOLESALE A N D JOBBING.— A large wholesale hardware concern reports that its business is improving. It attributes this to the good harvest, remunerative prices to farmers and to the optimistic spirit prevailing. Its busi ness increased considerably over last year, but decreased slightly from last month. There is still a tendency in some quarters to buy only for immediate wants. A 7 % increase over last year, and a 3 % decrease from last month in its business, are reported by an electrical Mq^Jy company. It says there is a good dem&nd for its products. Wholesale grocery Arms say prices arc tending to lower levels, that there is a good demand for their products, but that orders on hand for future delivery are not as large as last year. There are few complaints of the Govern ment's sale of foodstuffs. Wholesale dry goods Hpugeg say. there is 9. strong demand, for thetr products. One firm says its business decreased 5% from last year, but increased 10% over last month. It asserts it has already booked large orders for the spring and summer of 1920. The dfrnaiid for the best grades of cotton, whichliHScepRonally strong at this time, has put cotton factors and jobbers in an optimistic frame of mind. Their only complaints are of export difficulties and of a prospective shortage of farm labor. . ^ RETAIL.— Some retailers say that the "anti-profiteering agitation" and the high prices have affected their sales adversely. In the South the t^s^a§€^bly ^rm "w eat^ef )ia6 decayed the demand for fait and winter'goods. While some stores report increases in business as high as 61% over last year, and 35% over last month, yet one concern states that its apparent margin pf increaseis due largely tp ap egtensionof.its p la n te d to the higher prices. AGRICULTURE.—The planting of winter wheat was delayed by the dryness of the soil, which made plowing difficult. There are indications t^at the acreage yvill.be considerably reduced, from last year. Com is n6w out of danger from frost, and the yield for this district, as estimated on October 1st, is about 5,000,000 bushels larger than estimated on September 1st. The condition of the cotton crop, according to the Government report, has deteriorated in all but one of the States in the district sinde la3t Month. * The cotton yield, as of October 1st, for the States of Arkansas. Missouri. Mississippi and Tennessee is estimated at*2,239,000 bales, as against 2,605,250 bales ginned in 1918. The estimated yield of tobacco in this District is somewhat greater than last year. The following table, compiled by the U. S. Bureau of Crop Estimates, shows the acreage of the com and oats crops in this District, and the estimated production, based on condition October 1, 1919, as compared to the acreage and production last year These Bgunes refer to the entire State of Arkansas, and to the parts of Illinois, Indiana, Kentucky, Mississippi, Mi^spuri and Tennessee that are in the Eighth Federal Reserve District: CROP. AcrfMtge, Forecast of Production, Bused da Condition, October 1,1919. 's Production, 1918. ! Com............................... Oats....... :........................... 15,3Q6,Q00 382^87,000 16,726,000 2,438,000 62,124,000 2,567,000 372,977,000 ' 77,486,000 According to Government reports, the level of prices paid producers in the United States for the principal crops decreased about 8.7% during September, while in the past ten years the price level decreased only 2% during Sep tember. On October 1st ti^e index figure of prices was about 0.2% +higher than a year ago. LIVE STOCK.— The report of the St. Louis Stock Yards for September, 1919, shows in jail receipts and shipments, accept in'the receipts? and shipments of cattle, as compared with the corresponding month last year. The comparative §gm38 aye 4$ _______ Cattle._________ Hogs. Sheep. Horses and Mules. September............. ............... 1919 1918 1919 1918 1919 1918 1919 1918 Receipts............... ............. ........ 150,772 191,201 209,871 175,995 69,349 58,187 38,418 31,522 Shipments..................................... 53,357 57,$29 105,619 59,369 13,957 6,285 35,264 26,948 Prices for hogs, which ranged up to record levels in July, have since broken $8.00 or $9.0 0 per 100 ooands, and are now around $14.75 to $15.00* * - . LABOR. The shortage of skilled labor which has been in evidence during the past months continues, and there is also a shortage of female labor in many lines. Iron and steel plants in this District apparently arc not directly affected by the strike of the steel workers. It has been the experience of some of those interested in small strikes that have taken place in the District, that many of the strikers secure employment in other lines. There is still confidence in many quarters that some workable principles will come out of the Capital-Labor-Public Conference, and that the threatened strike of coal miners may be averted through Government mediation or in some other way. BUILDING^— During September, as during several months past, building activity in this District continued far m excess of the same penod last year, but, as is usual at this season, has considerably decreased since August. Comparative Rgures for September are as follows: ^ 1919 September iM # Permits St. Louis Louisville Memphis L t e Rock iU Cost Permits Cost 751 152 169 81 $2,844,980 341,465 1,106,400 145,296 382 60 55 $306,405 75,045 27,960 46,465 POSTAL RECEIPTS.— Postal receipts for the quarters ended September 30, 1918 and 1919. for all reporting cities in the District arc shown in the following comparative figures: 1919 1918 ............................. ...... $1,697,636.32 $1,686,726.40 St. Louis.... Louisville...................................................................................................... 645,316.72 501,809.80 Memphis.... ................................................ 294,580.76 302,910.74 Little Rock ........ 152,069.22 246,224.02 ............. 95,888.52 99,585.72 Evansville.......... ......... BANKING.— The demand foe money increased during the past month, as is evidenced by the marked increase in the paper discounted by the Federal Reserve Bank, shown on the last page of this report. This is due to the general prosperity of the District, and especially to the financing of cotton. There were no marked changes in rates during the past month. The high, low and customary discount and interest rates prevailing in St. Louis, Louisville, Memphis and Little Reek, from September 16th to October 15th, 4s reported by banks located in those cities, were as follows: - St; Louis___________Louisville__________ Memphis__________Little -Rock L L L H C H C H L C H C ' Customers' prime commercial paper: 6 6 6 6 5 6 6 7 5% 6 3% S% 6 6 6 5 6 5M 5% 5% 6 4 6 6% Prime commercial paper purchased in open merket: 6 5% 5% 5% 5% 5% 5% 5% 5% 5% 6 6 5% 5K 5M s.% 5% 3% 5% 5% 5% 5M 6 Loans to other banks........ ................... 6 6 5% 6 5 5 a 6 5 6 6 $ Bankers' acceptances of 60 to 90 days: 5 Endorsed......................... .............. 6 6 6 4% 4% 4% 4% 5 6 6 6 AM 5 Loans secured by prime stock exchange collateral or other current collateral: 6 6K 6 am 5% 6 5 6 6 6 6 7 6 7 6 5% 6 6 5 7 6 6 5 6 6 7 6 5H 6 6 5 6 6 7 6 5 8 7 7 6 5% 6 6 5 6 6 6 6 Commodity paper secured by warehouse 6 6 6 6 7 receipts, etc............................................ 6 5 6 5M 6 7% 6 Loans secured by Liberty Bonds and Cer 6 6 6 4.% 5% 6 4% 5 7 6 4% 6 In September, the Fcdezal Reserve Bank of St.Louis discounted a total of $208,364,700.14 of paper for 205 di8erent member banks, which is an increase of $55,944,417.31 over the amount of paper discounted during August, and an increase of twenty in the number of banks accominodated. There was no change in the discount rates of the Federal Reserve Bank during the past month. The rates in effect on October 18, 1919, were as follows: 15 days 16 to 60 61 to. 90 91 days to MEMBER BANKS' COLLATERAL NOTES: and less days days 6 months Secured by Liberty Bonds or Treasury Certificates....................................... 4% ........ ........ ........ Secured by War Finance Corporation Bonds............. .... ..... ........................... 5% ........ ........ ........ Secured by Bills Receivable...:::..... ......... ...... ........................................... 4% ........ ........ ........ REDISCOUNTS: Secured by Liberty Bonds or Treasury Certificates........................................... 4% Secured by War Finance Corporation Bonds................................................. ....5% Commercial Paper............................................................................................... 4% Agricultural or Live Stock Paper........................................................................ 4% 4% % 4% % 5% % Trade Acceptances.......................................................................................... .... 4% Bankers' Acceptances purchased at the market rate, subject to agreement. The condition of the banks in this District at the present time, and the changes during the past month, are reflected in the following comparative statement, showing the principal resources and liabilities of member banks in St. Louis, Louisville, Memphis, Little Rock and Evansville: Oct. 3. 1919 Sept. 5,1919 Number of Banks reporting........^ ................................................. .............................. 35 35 $ 17,154,000 United States Bonds to secure circulation.................. .......................;.................. To S 17,154,000 15,813,000 other United States Bonds, including Liberty Bonds..................... .....................15,713,000 10,324,000 8,933,000 United States Victory Notes............................................................ ....... ................ 24,129,000 40,856,000 United States Certificates of Indebtedness................................................................t*.. Total United States securities owned ....... $ 66,029,000 $ 84,047,000 Loans secured by United States Bonds and Certificates ............... Loans secured by stocks and bonds, other than United States securities...................... AD other loans and investments...................................................................................... $ 29,847,000 135,101,000 283,454,000 $ 27,753,000 135,568,000 276,520,000 Total loans and investments.................................................................................... $514,431,000 $523,888,000 Reserve with the Federal Reserve Bank i.................................................................................. $ 40,435,000 Cash in vault............................................................... ,............................................................... 10,608,000 Net Demand deposits on which reserve is computed................................................................ 312,086,000 Time deposits.;..-........................................ ............... ............................................................. 102,338,000 Government deposits................................... ............................................. ...................... 8,537,9pP $ 43,005,000 10,195,000 326,599,000 100,895,000 23,310,000 The volume of individual check transactions in this district during the past month is indicated by the following com parative table, com piled from information received from the clearing houses in the cities shown: Sept. 17 St. Louis................................................................................. . $175,606,000 Louisville................................................................................. 36,396,000 Memphis.................................................................................. 29,629,000 Little Rock.............................................................................. 9,387,000 Evansville................................................................................ 4,601,000 Sept. 24 $137,553,000 34,371,000 - 24,598,000 8,719,000 4,281,000 Oct. 1 §140,367,000 30,077,000 27,052,000 8,907,000 4,451,000 Oct. 8 $149,206,oM 30,983,000 34,432,000 11,899,000 4,164,000 The resources and liabilities o f the Federal Reserve Bank o f St. Louis on October 10, 1919, as compared to a m onth ago, and a year ago, are shown in the following statement: RESOURCES: Sept. 12,1919 Gold coin and certificates.....................................................................................$ 2,524,000 Gold settlement fund—P. R. Board.......................... .......................................... 11,979,000 Oct. 10,1919 $ 3,256,000 16,409,000 Oct. 10,1918 $ 2,219,000 10,713,000 Total gold hdd by Bank............................................................................... 14,503,000 Gold with foreign agencies......................................................................................................... Gold with Federal Reserve Agent........................................................................ 54,721,000 Gold Redemption Fund....................................................................................... 5,743,000 19,665,000 5,081,000 54,434,000 5,640,000 12,932,000 233,000 44,992,000 2,804,000 Total gold reserve......................................................................................... Legal tender notes, silver, etc.............................................................................. 74,967,000 5,272,000 84,820,000 5,954,000 60,961,000 1,630,000 Total reserves............................................................................................... Bills discounted—Secured by Government war obligations................................. Bills discounted—All other.................................................................................. Bills bought in open market................................................................................. 80,239,000 60,400,000 14,230,000 14,918,000 90,774,000 58,095,000 32,189,000 7,343,000 62,591,000 42,127,000 38,037,000 4,454,000 Total bills on hand........................................................................................ U. S. Government Bonds..................................................................................... U. S. Certificates of Indebtedness........................................................................ 89,548,000 1,153,000 17,068,000 97,627,000 1,153,000 17,068,000 84,618,000 1,153,000 3,321,000 Total earning assets...................................................................................... Bank premises...................................................................................................... Uncollected items and other deductions from gross deposits............................... 5% Redemption fund against F. R. Bank notes.................................................. All other resources............................................................................................... 107,769,000 691,000 57,559,000 660,000 563,000 115,848,000 691,000 74,952,000 811,000 589,000 89,092,000 TOTAL RESOURCES................................................................................ $247,481,000 LIABILITIES: Capital paid in...... !............................................................................................. $ 4,005,000 Surplus................................................................................................................. 2,589,000 Government deposits............................................................................................ 2,542,000 Due to members—Reserve Account.................................................................... 62,441,000 Deferred availability items.................................................................................. 46,089,000 Other credits........................................................................................................ 4,512,000 Total gross deposits...................................................................................... F. R. Notea in actual circulation......................................................................... F. R. Bank notes in circulation—net liability...................................................... A other liabilities............................................................................................... 11 115,584,000 108,089,000 16,278,000 986,000 TOTAL LIABILITIES.:............................................................................. $247,481,000 $283,665,000 72,423,000 52,000 1,411,000 $225,569,000 $ 4,030,000 $ 3,734,000 2,589,000 ...........;!.....!.... 3,128,000 14,563,000 67,050,000 50,408,000 58,648,000 33,872,000 3,851,000 11,524,000 132,677,000 126,438,000 16,666,000 1,265,000 110,367,000 107,506,000 1,706,000 2,256,000 $283,665,000 $225,569.000
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