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Of Agricultural> Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
Released for Publication On and After the Morning of October 3 0 ,1 93 0
>HN S. W O O D ,
Chairman and Federal Reserve Agent



A K E N as a whole, business in this district
during the past thirty days underwent mod­
erate improvement as contrasted with the
similar period immediately preceding, which earlier
period witnessed the lowest point reached thus far
in the present era of depression. The betterment
appeared principally in distribution, and more par­
ticularly in lines dealing in merchandise for common
consumption. Seasonal influences were more in evi­
dence than earlier in the year and constituted an
important factor in the larger volume of trade. The
extent of increase attributable to this cause,however,
was not as great as in recent years, and in virtually
all lines investigated the volume was substantially
below that of the corresponding period in 1929, and
the average during the past decade. Other favorable
influences affecting mercantile activities were gener­
ally reduced retail stocks, more of a disposition
among retail merchants, both in the cities and coun­
try, to replenish and make provision for late fall and
winter requirements, definite breaking of the pro­
tracted drouth and a somewhat more optimistic
attitude in the agricultural areas.
A relatively less favorable exhibit was made by
manufacturing and industrial activities generally
than by trade. New business placed with produc­
ers of iron and steel goods, building materials, tex­
tiles and a number of other important commodities
were considerably below expectations.
smaller shipments of finished materials, unfilled or­
ders at the end of September were in a majority of
instances smaller in volume than a month earlier,
and substantially below a year ago. Generally man­
ufacturers are holding down outputs to actual re­
quirements, and their purchases of raw materials are
being shaped to conform with this policy. In the
country harvesting and other seasonal activities
resulted in some reduction in unemployment, but
little change was noted in the labor situation in the
chief industrial centers. During September and
early October the bituminous coal industry showed
improvement, due to seasonal demand for domestic
grades. Demand from industrial sources continued


Assistant Federal Reserve Agent




J. V I O N P A P I N ,


dull, with prices on steaming coal tending down­
Sales of department stores in the principal cities of
the district, which at this season of the year always
increase, were in September nearly twice as large as
in August, but 9.8 per cent smaller than in Septem­
ber, 1929. For the first nine months, business of
these stores recorded a decrease of 8.9 per cent as
compared with the same period a year ago. Com­
bined sales of all wholesale and jobbing firms report­
ing to this bank were measurably larger in Septem­
ber than in August, but 30.0 per cent smaller than in
September, 1929. Charges to individual checking ac­
counts in September were 4.2 per cent greater than
in August, but about one-fifth less than the Septem­
ber total last year. For the first nine months this
year the total was smaller by 13.7 per cent than dur­
ing the same period in 1929. The amount of savings
deposits on October 1 showed only slight variation
as contrasted with a month and a year earlier.
Railroads operating in the district reported a
continued decline in the volume of freight traffic
handled as contrasted with the corresponding
periods a year and two years earlier. The usual sea­
sonal pickup from September to October failed to
materialize, due in part to peculiar conditions which
have affected the movement of agricultural pro­
ducts. Depression in general business was reflected
in a sharp decrease in the merchandise and miscel­
laneous freight classifications. For the country as a
whole loadings of revenue freight for the first 39
weeks of this year, or to September 27, totaled
35,158,648 cars, against 39,920,026 cars for the corres­
ponding period in 1929, and 38,224,762 cars in 1928.
The St. Louis Terminal Railway Association, which
handles interchanges for 28 connecting lines, inter­
changed 186,862 loads in September, against 197,862
loads in August, and 283,769 loads in September,
1929. During the first nine days of October the in­
terchange amounted to 57,676 loads, againsst 52,138
loads during the corresponding period in August,
and 74,060 loads during the first nine days of Octo­
ber, 1929. Passenger traffic of the reporting lines

decreased 16.0 per cent in September as compared
with the same month last year. Estimated tonnage
of the Federal Barge Line between St. Louis and
New Orleans in September was 113,700 tons, against
70,088 tons in August and 86,135 tons in Septem­
ber, 1929.
The slow and backward tendencies in collec­
tions, noted during the past several months, con­
tinued in virtually all lines investigated during the
past thirty days. Settlements with wholesale estab­
lishments in the principal distributing centers were
for the most part disappointing. In the case of boot
and shoe and dry goods interests, with whom Octo­
ber is an important collection month, payments were
relatively smaller than for any similar period in
recent years. It was noted, however, that depart­
ment stores and other retail interests strong in cash
and credit, were settling their bills promptly, and
taking advantage of discounts. The reason for this
was the low interest rates, which enabled the retail­
ers to effect a considerable saving by borrowing
money to discharge their obligations. Other lines
reporting backward payments were building mater­
ials, hardware, groceries and furniture. A disposi­
tion on the part of producers in many agricultural
sections to hold their stocks for higher prices has
adversely affected collections of country retail mer­
chants. This, in turn, has delayed settlements with
wholesalers and country banks. Considerable irreg­
ularity and spottiness is reflected in reports of city
retailers relative to their collections. Answers to
questionnaires addressed to representative interests
in the several lines scattered through the district
showed the following results:
E xcellen t

G ood


P oor

September, 1930..........0.1% 16.8% 57.7% 25.4%
August, 1930...............0.1
September, 1929.........1.4
Commercial failures in the Eighth Federal Re­
serve District in September, according to Dun’s
numbered 153, involving liabilities of $4,427,593,
against 112 defaults with liabilities of $1,909,148 in
August, and 98 failures for a total of $1,762,109 in
September, 1929.
The average daily circulation in the United
States in September was $4,492,000,000 against
$4,476,000,000 in August, and $4,811,000,000 in Sep­
tember, 1929.
Boots and Shoes — Following the trend of re­
cent years, sales of the reporting interests decreased
in September as compared with August. Compared
with a year ago, the September total showed a
decrease of more than one third, and was the small­
est for that particular month in more than eight

years. In the yearly comparison the unfavorable
showing was due chiefly to a decline in advance
orders. Lower prices were also a factor in the de­
crease. Stocks decreased about 13.0 per cent be­
tween September 1 and October 1, and on the latter
date were approximately a fifth larger than at the
same time in 1929.
Clothing — Belated purchasing of late fall and
winter merchandise and more favorable weather
conditions were reflected in a sharp increase in Sep­
tember sales of the reporting clothiers over those of
the preceding month. The September total, how­
ever, was 8.0 per cent less than a year ago, and the
smallest for that month since 1924. Ordering for
delivery next spring is reported considerably smaller
than the usual volume.
Drugs and Chemicals — Improvement generally
through all lines was noted in this classification as
compared with recent months. September sales of
the reporting interests were 16.0 per cent larger than
in August, but the total was 16.0 per cent less than
in September, 1929, and the smallest for that month
since 1924. Aggregate stocks on October 1 showed
slight decreases as compared with thirty days and
a year earlier.
Dry Goods— For the fourth consecutive month,
September sales of the reporting firms showed an
increase over the preceding thirty-day period. The
September total, however, was the smallest for that
particular month since 1921, and only a third as
large as a year ago. Depleted retail stocks have re­
sulted in an increase in current ordering, particular­
ly of seasonal merchandise, but future business
continues in considerably smaller volume than at the
corresponding period in recent years. The general
policy of curtailing inventories was reflected in de­
creases of 11.0 per cent and 13.0 per cent, respective­
ly, in stocks on October 1 as compared with thirty
days and a year earlier.
Electrical Supplies — September sales of the re­
porting firms were 43.0 per cent smaller than for the
same month in 1929, and 24.0 per cent less than the
August total this year. In the yearly comparison a
considerable part of the decrease was accounted for
by smaller sales of goods for new buildings. Stocks
on October 1 were slightly smaller than thirty days
earlier, and 11.4 per cent larger than a year ago.
Flour — Production at the 12 leading mills of
the district in September totaled 395,330 barrels, the
largest since last March, and comparing with
351,423 barrels in August, and 426,244 barrels in
September, 1929. Stocks of flour in St. Louis on
October 1 were 30.0 per cent larger than on Septem­
ber 1, and 15.0 per cent greater than on October 1,
1929. Prices declined further, chiefly in sympathy

with the downturn in wheat values. However, due
to high cash premiums and lower feed prices, the
decline in flour was relatively considerably less than
in the case of wheat. Purchasing by dealers and
ultimate consumers continued on a hand-to-mouth
basis, but the volume of sales was larger than in
several months, with fair quantities of low grade
flours being taken for export. Mill operations were
at from 55 to 60 per cent of capacity.
Furniture — There was an increase of about
12.0 per cent in sales of the reporting interests in
September as compared with August. The Septem­
ber total, however, was less than half as large as
for the same month in 1929, and the smallest re­
corded in any September since 1921. Stocks on Octo­
ber 1 were 18.0 per cent smaller than thirty days
earlier, and 55.0 per cent less than on October 1,
Groceries — While continuing to run considera­
bly below the corresponding month last year, sales
of the reporting firms in September showed a gain
of about 5.0 per cent over August this year. In both
large cities and the country, retailers were more
disposed to replenish depleted stocks, and require­
ments for late fall and winter were being covered
more freely. Demand centered chiefly in staples,
sales of fancy goods and luxuries making a relative­
ly poor showing. The trend of prices was lower.
Producers of canned goods were freer sellers at
slightly reduced prices. Stocks on October 1 were
a fifth larger than a month earlier, and slightly in
excess of a year ago.
Hardware — As contrasted with a year ago,
September sales of the reporting interests showed
a decrease of one-third, but the total was approxi­
mately 10.0 per cent greater than in August this
year. Stocks continued to decrease, and on October
1 were smaller by 4.0 and 12.5 per cent respectively,
than thirty days and a year earlier.
Iron and Steel Products — Demand for iron and
steel goods in this district during the past thirty
days was as a whole slightly better than a month
earlier. The improvement, however, was due almost
exclusively to seasonal influences, many important
commodities showing no change from the dull con­
ditions which have obtained throughout the year.
Purchasing and specifying by the general manufac­
turing trade showed moderately expanding tenden­
cies. Warehouse and jobbing interests reported an
increase in orders booked, and a greater diversity in
goods being taken. Individual orders, however, con­
tinue of small size, and principally for immediate or
reasonably prompt delivery. The approach of the
fourth quarter of the year had practically no effect
on the situation. Ordering of materials for consump­

tion during that period, both raw and finished, such
as was usual in former years, was almost entirely
lacking. Inventories as a whole are light, but there is
a disposition to continue the policy of open market
purchasing. The aggregate of unfilled orders of in­
terests reporting to this bank showed no appreciable
change as contrasted with the preceding month.
Shipments of finished materials were in smaller than
anticipated volume, due to backwardness in specifi­
cations by important consumers, notably the auto­
motive industry, railroad equipment builders and
the oil industry. Aside from the tractor division,
activities in the farm implement industry were con­
siderably below the seasonal average. Goods for
use in the agricultural areas are generally in much
smaller than the usual seasonal demand. Fabrica­
tors of iron and steel building materials reported
a further decrease in unfinished business, and new
lettings have been chiefly of small jobs. The call
for materials for highway work, municipal improve­
ments, and other outdoor engineering projects was
relatively better than for commodities to be used in
housing construction. Gray iron and malleable
foundries, particularly those specializing in automo­
bile castings, are in many instances still carrying
heavy stocks of finished goods awaiting shipping
directions. No marked changes in prices were noted,
but competition continues keen, and reports of shad­
ing on desirable business were numerous. Quota­
tion on scrap iron and steel were slightly reduced
from the high point in September. Production of
pig iron for the country as a whole in September
totaled 2,276,781 tons, the lowest in six years and
comparing with 2,525,105 tons in August and 3,496,454 tons in September, 1929. Steel ingot production
in the United States aggregated 2,867,978 tons in
September, against 3,095,293 tons in August and
4,527,966 tons in September, 1929.
Combined passenger car, truck and taxicab pro­
duction in the United States in September totaled
222,931, against 223,046 in August and 415,912 in
September, 1929.
Following the seasonal trend of the past eight
years, distribution of automobiles in this district
during September showed a decrease as compared
with August. For the seventh consecutive month,
according to dealers reporting to this bank, the Sep­
tember total was smaller than for the corresponding
period last year. In the month-to-month compari­
son the decrease this year was considerably larger
than the average during the past half decade. As
has been the case since early in the spring, the vol-

ume of business done by country dealers was rela­
tively much smaller than that of selling agencies in
the large centers of population. Reduced crop pro­
duction, due to the drouth, coupled with the de­
pressed prices of agricultural products, has had the
effect of sharply reducing purchasing power of
farmers, and there is a general disposition to recon­
dition cars owned and make them servicable for a
longer time rather than purchase new ones. This is
true particularly in the south, where aggregate Sep­
tember sales of the reporting dealers were the small­
est for that particular month in recent years. In the
large urban centers dealers report that depression in
business and extensive unemployment have adverse­
ly affected their sales. In a number of instances,
prospective purchasers are awaiting the fall automo­
bile shows, the putting out of new models and pos­
sible price reductions. Demand for trucks of all
descriptions decreased rather sharply from August
to September, the decline in activity being most
marked in vehicles for light delivery service. Sep­
tember sales of new passenger cars by the reporting
dealers were 34.0 per cent smaller than in August,
and 37.0 per cent below the September, 1929, total.
Stocks of new cars in dealers’ hands, which have for
a number of months averaged smaller than a year
earlier, continued to record decreases. On October
1 stocks were 13.5 per cent smaller than on the same
date in 1929, and 11.0 per cent less than on Septem­
ber 1 this year. There was no notable change in
conditions in the used car market as contrasted with
the preceding thirty days. There was a further de­
crease in sales, both as compared with a month and
a year earlier. Stocks of salable used cars held by
dealers on October 1 were 2.5 per cent smaller than
on September 1 and 10.0 per cent less than on Octo­
ber 1, 1929. The ratio of new cars sold on the in­
stallment plan in September by the dealers report­
ing on that detail to total sales was 52.5 per cent,
which compares with 55.4 per cent in August and
54.8 per cent in September, 1929.
The condition of retail trade is reflected in the
following comparative statement showing activity
at department stores in leading cities of the district:
N et sales com parison
Stocks on hand Stock turnover
Sept. 1930 9 months ending Sept. 30, 1930
Jan. 1, to
com p, to Sept. 30, 1930 to
com p, to
Sept. 30,
1930 1929
Sept. 1929 same period 1929 Sept. 30, 1929
Evansville .. .......— 11.5%
— 5.6%
— 5.8%
1.48 1.66
L ittle Rock.,....... — 6.0
— 11.7
— 18.8
1.71 1.77
Louisville .......... — 7.2
2.05 2.29
— 8.9
+ 3.1
M emphis .............— 9.0
— 9.5
2.18 2.29
— 10.3
Quincy ........ ........
— 1.4
1.91 1.96
— 0.4
St. L ou is.... ....... — 10.7
— 8.5
— 7.7
2.82 2.98
Springfield, M o.— 10.0
— 8.1
— 16.7
1.19 1.13
8th District........ — 9.8
— 8.9
— 7.9
2.46 2.60
Stocks on hand
N et sales com parison
Sept. 1930 com p, to
Sept. 1930 com p, to
Sept. 1929 A ug. 1930
Sept. 1929
A u g. 1930
M en’ s furnishings......... .— 15.9%"*
— 17.1%
— 11.7% '
+ 7.1%
B oots and shoes................— 14.1
— 6.1
+ 8.3

Department Store Sales by Departments — As
reported by the principal department stores in Lit­
tle Rock, Louisville, Memphis, and St. Louis.
Percentage increase or decrease
Sept. 1930 com pared to Sept. 1929
N et sales
Stocks on hand
for month
at end o f m onth
Piece good s............................................ — 12.4%
— 14.2%
Ready-to-w ear accessories.................— 8.8
— 3.2
W om en and misses’ ready-to-wear..— 17.1
— 23.5
M en’s and boys’ wear....................... — 14.9
— 7.1
H om e furnishings................................. — 14.0
— 12.0

In point of dollar value, permits issued for new
construction in the five largest cities of the district
in September were 42.0 per cent larger than in Au­
gust, and smaller by approximately one half than in
September a year ago. According to statistics com­
piled by the F. W . Dodge Corporation, contracts
let in the Eighth Federal Reserve District in Sep­
tember amounted to $18,166,653, which compares
with $23,320,000 in August, and $39,465,352 in Sep­
tember, 1929. Production of portland cement for
the country as a whole in September totaled 16,124,000 barrels against 17,821,000 barrels in August, and
17,223,000 barrels in September, 1929. Building
figures for September follow :

Evansville ,.
L ittle R ock
Louisville ...
M em phis .. ..
St. Louis.....

N ew Construction
Perm its
*C ost
$ 489 $ 271

Sept. totals 1,414 1,373
A u g. totals 1,237 1,294
July totals 1,147 1,709
* In thousands (000 om itted ).


Repairs, etc.
Perm its
*C ost
27 $ 27


$ 420 $1,149

Returns from the five largest cities of the dis­
trict show a decrease of 45.5 per cent in combined
postal receipts for the third quarter of this year
under the corresponding quarter in 1929, and a de­
crease of 46.0 per cent as compared with the second
quarter this year. Detailed figures follow :
______________ F or Quarter E nding
Sept. 30,
June 30,
M ar. 31,
Evansville ....$ 157.000 $ 168,000
; 164,000
Little R ock....
Mem phis ........
St. L ou is.......
T otals........$2,508,000



Sept. 30,
$ 171,000

Sept. 1930
com p, to
Sept. 1929
— 8.2 %
- f 4.0


— 67.0
— 45.5

Public utilities companies in the five largest
cities of the district report consumption of electric
current by selected industrial customers in Septem­
ber as being about 2.0 per cent smaller than in
August and less by 5.0 per cent than in September,
N o. o f
A u g.
Custom ­
* K .W .H . * K .W .H .
Evansville .... 40
Little R o :k.. 35
.... 87
..... 31
, 155
..... 348
* I n thousands (000 om itted).


Sept. 1930
com p, to
A ug. 1930
+ 0.1%
— 4.3
+ 7.2
— 2.2
— 4.7
— 1.9

* K .W .H .

Sept. 1930
com p, to
Sept. 1929
+ 2 .5 %
+ 6.9
+ 0.3
— 16.9
— 8.3


— 5.3

Moderate improvement in crop prospects and
in farm conditions generally in this district took
place during the past thirty days. The drouth con­
ditions, which had prevailed earlier in the season
and were accountable for widespread injury to agri­
culture, were mitigated by scattered rains in late
September, and definitely broken by general precipi­
tation since October 1. Aided by the moisture
and mild temperatures, most unharvested crops
achieved some betterment, except in areas most
acutely affected by the dry spell. Emergency crops
put in late to make up the deficiency in feeds occa­
sioned by the drouth, have in the main done well.
There was also a general revival in pastures, though
in most sections there was not sufficient growth to
substantially help out the fall feeding problems of
livestock raisers. Stock water continued scarce un­
til the end of September, and in many sections more
rain is needed to provide an adequate supply during
the late fall and winter. In Missouri, Indiana, Illi­
nois and Kentucky, October condition of pastures
is the lowest in more than fifteen years.
Moisture was sufficient to quite generally im­
prove soil conditions for fall plowing and planting
operations, and good progress has been made on
this work. Weather has been ideal for all kinds of
farm activities, and harvesting of late crops at the
middle of October was further along than is ordi­
narily the case on that date. The outlook for pro­
duction of hay, cotton, tobacco and white potatoes
in this district was better on October 1 than a month
ago. Some improvement also took place in the con­
dition of certain late fruits and vegetables. The
surplus of farm labor was slightly reduced, though
the supply is universally in excess of demand. The
trend of farm wages in Missouri and some other
states was lower.
Winter Wheat — Wheat seeding throughout
the district was rapidly nearing completion at the
middle of October. Soil conditions were greatly
improved by precipitation since the middle of Sep­
tember, and farmers took advantage of all clear days
to expedite field work. While delays in some sec­
tions were caused by rains, and many farmers are
deferring planting to conform with fly-free dates,
larger acreages are in prospect than were indicated
in August and September. More than the usual
amount of seeding has been done for fall-winter
pasture and early summer feed. Reports from all
sections of the district indicate that more wheat is
being fed, and will be fed to livestock this winter
than in many years. Production of all wheat in the
Eighth district is estimated by the U. S. Depart­
ment of Agriculture, based on the October 1 condi­

tion, at 48,943,000 bushels, against 44,676,000 bushels
harvested in 1929, and a 7-year average (1923-1929)
of 43,636,000 bushels. Wheat prices declined fur­
ther, and in late September reached the lowest level
recorded since 1906.
Corn — Prospects for corn deteriorated slightly
during September, the estimated yield as of October
1 in this district being 185,278,000 bushels, a de­
crease of 3,122,000 bushels under the September 1
estimate, and comparing with 312,957,000 bushels
harvested in 1929, and a 7-year average of 339,625,000 bushels. Improvement in late planted corn in
the northern counties was offset by poorer condi­
tion in the middle tier of counties, and in the south.
There are numerous reports of severe damage from
ear worm, chinch bugs and mould. In Missouri, and
Illinois infestation from ear worm is more severe
than in any recent year, particularly in the southern
counties. Husking has made considerable progress,
the crop as a whole having matured earlier than the
average. Most recent returns indicate generally dis­
appointing yields and inferior quality. In many
fields farmers are finding corn poorly filled, wormy
and rotten and making poor feed. In all states of
the district, choice seed corn is scarce, and con­
siderably more corn has been fed before cribbing
than in many years.
Fruits and Vegetables — Under the influence of
more favorable temperatures and moisture condiitons, moderate improvement in fruit and vegetable
prospects took place during September. However,
no section of the district escaped injury from the
protracted drouth, and with the exception of pota­
toes, yields of all fruits and vegetable crops will be
considerably below these of last year, and in most
instances below the average of the past decade. Dig­
ging of potatoes has made good progress and yields
are large, but due to the hot weather there are num­
erous complaints of poor keeping quality and rotting
in the ground. The yield of potatoes in this district,
based on the October 1 report, is estimated at
14.940.000 bushels, against 13,313,000 bushels in
1929, and a 7-year average of 15,731,000 bushels. In
states entirely or partly within the Eighth district,
the estimated yield of apples is 12,338,000 bushels,
of which 1,651,000 barrels represent commercial
crop, against 14,280,000 bushels, with 1,620,000 bar­
rels commercial crop in 1929, and a 5-year average of
23.967.000 bushels, with 2,511,000 barrels commer­
cial crop. The output of grapes in these states is
estimated at 32,675 tons, an increase of 3,280 tons
over the September 1 forecast, and comparing with
38,196 tons in 1929, and a 5-year average of 28,707
tons. Considerable betterment in sweet potatoe
prospects took place in September, the estimated

yield on October 1 being 13,105,000 bushels, or about
2,000,000 more than the September 1 forecast, and
comparing with 17,741,000 bushels harvested in
1929, and a 5-year average of 16,748,000 bushels.
Tomatoes and other commercial vegetable crops
underwent improvement between September and
October, and the condition of gardens on October 1
was considerably higher than thirty days earlier,
though still below the average of recent years. The
yield of peanuts, based on the October 1 condition,
is estimated at 21,495,000 bushels, an increase of
3.600.000 bushels over September 1 forecast, but
about a third smaller than last year and the 5-year
Live Stock — Breaking of the drouth materially
helped the status of farm animals throughout the
district. Forced marketing of hogs and cattle was
halted, and in the principal stock raising areas farm­
ers are generally in a better position to carry their
herds through the winter, though strict economy in
the use of feeds will be necessary in many instances.
The movement of livestock to market in September
was in seasonably larger volume than in August,
but measurably smaller than during September last
Some improvement in pastures tended to help
the situation, and hay prospects were better than a
month earlier. The output of tame hay in the dis­
trict is estimated at 5,763,000 tons, against 9,105,000
tons harvested in 1929, and a 7-year average of
8.160.000 tons.
Receipts and shipments at St. Louis as reported
by the National Stock Yards, were as follows:
R eceipts
A u g .,
A u g.,
86,702 100,043 100,127
Cattle and calves.......132,519 125,393 160,135
H ogs ..............................238,241 210,960 312,938
191,940 183,084 211,815
H orses and mules...... 1,567
Sheep ........................... 55,926 45,110 64,770
18,465 10,782 33,672

Cotton — The U. S. Department of Agriculture
estimates the output of cotton in the Eighth district,
based on the October 1 condition, at 2,554,000 bales.
This represents a decrease of 14,000 bales under the
September 1 forecast, and compares with 3,306,000
bales produced in 1929, and a 7-year average of
2.660.000 bales. Fair to good progress has been
made in picking the crop, but generally harvesting
is slow because of the fact that farmers are hiring as
little help as they can possibly get along with.
There are many complaints of small bolls, due to the
summer drouth, and in Arkansas and Mississippi
new fruitage has been restricted in many sections by
army and leaf worm activity. Influenced by lack
of consumer demand and absence of investment and
speculative interest, prices receded further, record­
ing a new low for the crop and since 1915 in early
October. In the St. Louis market the middling

grade ranged from 9.15c to 9.85c per pound between
September 15 and October 15, closing at 9.40c on
the latter date, which compared with 13j^c on Octo­
ber 15, 1929. Farmers generally are unwilling to
sell at present prices, and are holding their cotton
for more favorable marketing conditions. This fact
is evidenced by the scant receipts at compresses as
compared with last year, and the average during the
past several years. Total receipts at Arkansas com­
presses from August 1 to October 1 totaled 257,113
bales, against 408,987 bales for the corresponding
period in 1929. Stocks on hand in Arkansas ware­
houses on October 10 totaled 232,489 bales, against
111,155 bales on September 12, and 237,968 bales on
the corresponding date in 1929.
Tobacco— Quite marked improvement in tobac­
co prospects in all sections of the district took place
during September, and since the end of that month
reports indicate further betterment in the late varie­
ties. The U. S. Department of Agriculture’s esti­
mate as of October 1 places the yield of all types in
this district at 267,261,000 pounds, a gain of 22,500,000 pounds over the September 1 forecast, and com­
paring with 316,507,000 pounds produced in 1929,
and a 7-year average of 288,688,000 pounds. Cutting
has been pushed rapidly under favorable conditions
for handling and housing. At the middle of October
practically the entire crop of burley, air-cured, green
river and fired-dark tobacco had been housed. Quali­
ty of the leaf can still be improved by favorable
curing weather, and an accurate estimate of ulti­
mate quality can not be made until the curing pro­
cess is completed in November.
Rice — Harvesting and threshing of the crop
has made good progress, and early returns tend to
bear out earlier estimates both as to quality and
quantity. Combined yield in Arkansas and Missouri
is placed by the Department of Agriculture at 6,709,000 bushels, against 7,119,000 bushels in 1929, and
the 5-yeear average of 8,384,000 bushels. Opening
prices for the new crop average about 10 per cent
below a year ago. Farmers, where possible, are
holding their stocks for higher prices.
Commodity Prices — Range of prices in the St.
Louis market between September 15, 1930 and Octo­
ber 15, 1930, with closing quotations on the latter
date and on October 15, 1929:
H igh
L ow
O ct. 15, 1930
W heat
D e c ........................ per bui.$ .853/6$ .75*4
$ .78
M ay ..................... “
.9 2 ^
N o. 2 red winter “
.88 @ .8 8 ^
N o. 2 hard...........
.80 @
.8 0 ^
.8 0 ^
D e c.........................
.8 8 ^
M ay ..................... “
.8 5 ^
.85 @
N o. 2 m ixed........ “
.96 H
N o. 2 w hite........ “
.98 ^
.89'A .92 @ ,9 2 ^
.3 6 ^
N o. 2 w hite........ “
.37y2 @
4.50 @ 5.00
Soft patent........per bb. L 5.00
4.75 @ 4.85
Spring patent...... “
M iddling cotton....per lb.
7.00 8.00 @ 10.15

O ct. 15, 1929



1 .2 9 ^

.95 @
.9 7 H @





@ 7.00





As contrasted with the preceding thirty days,
the banking and financial situation in this district
underwent no notable changes. Depressed business
conditions were reflected in a further slowing down
in demand for credit from industrial and mercantile
interests. Liquidation of loans by these interests
was spotty in character, but in fair volume as a
whole. October payments to boot and shoe, dry
goods and other wholesaling lines, with which Octo­
ber is an important collection month were in the
main satisfactory, and resulted in a considerable re­
duction in commitments with their banks. Loanable
funds held by banks in the large centers were abun­
dant, and customers with satisfactory balances were
able to secure accommodations at the lowest rates
recorded at any time in recent years.
Due to depressed prices of certain agricultural
products and a disposition on the part of producers
to hold for more favorable markets, liquidation by
country banks to their city correspondents have
been slow. This is true particularly in the south,
where the movement of cotton is backward and col­
lections of retail merchants poor. There has been
a fair volume of liquidation by grain and milling in­
terests, and total commitments of these interests are
considerably smaller than at the corresponding time
last year. Demand from canning, packing and live­
stock industries has shown less than the usual sea­
sonal increase.
Total loans of the reporting member banks de­
creased sharply between September 10 and October
8, and this movement was accompanied by a cor­
responding recession in deposits, which on the
second report date this month reached the lowest
point of the year. Investments continued the irreg­
ularly upward trend which began early in the sum­
mer, and on October 8, reached the highest level
since June 18. Average borrowings of all member
banks from the Federal reserve bank varied only
slightly as compared with the preceding thirty days,
but were uniformly considerably below the corre­
sponding period in 1929.
At St. Louis banks current rates of interest
were as follow s: Prime commercial paper, 3 to 5
per cent; collateral loans, 4% to 5^4 per cent; loans
secured by warehouse receipts 3% to SJ2 per cent;
interbank loans, 4 to 5 per cent, and cattle loans,
5 to 6 per cent.

September 17, 1930. Deposits decreased 2.1 per cent
between September 17, 1930 and October 15, 1930
and on the latter date were 2.8 per cent less than
on October 16, 1929. Composite statement follows:
* O ct. 15,
N um ber o f banks reporting............
f 24
Loans and discounts (incl. rediscounts)
Secured by U. S. G ovt, obligations
and other stocks and bonds....$218,298
A ll other loans and discounts.... 273,240

*Sept. 17,
f2 4

*O ct. 16,



Total loans and discounts.................$491,538
U. S. Governm ent securities...... 34,809
Other securities.............................. 126,021





T otal investments............................... $160,830
R eserve balance with F. R . bank.. 45,051
Cash in vault.......................................
N et demand deposits....................... 361,475
Tim e deposits.................................. 235,878
Government deposits.....................





Total deposits.......................................$598,561
Bills payable and rediscounts with
Federal Reserve B ank...................
*In thousands (000 om itted).
tD ecrease due to consolidation. T hese 24 banks are located in St, Louis,
Louisville, Memphis, L ittle R ock, and Evansville, and their resources
represent 53.1 per cent of the resources of all m em ber banks in this

Debits to Individual Accounts — The following
table gives the total debits charged by banks to
checking accounts, savings accounts, certificates of
deposit accounts and trust accounts of individuals,
firms, corporations and U. S. Government in lead­
ing cities of the district. Charges to accounts of
banks are not included.

Pine Bluff, Ark..
Quincy, 111..........

$ 62,425


F ort Smith, Ark....
Greenville, Miss....
Helena, A rk ............
L ittle R ock, A rk...
Louisville, K y ........
Memphis, T enn.....

$ 37,817




Sept., 1930 com p, to
A ug. 1930 Sept. 1929
4- 0-8%
+ 0.1
— 7.1
- f 8.7
+ 9.1
+ 9.1
+ 6.1
+ 15.8
+ 12.8
— 3.4
+ 15.1
+ 2 2 .1
— 0.4
+ 5.0
+ 8.3

— 38.9%
— 19.9
— 23.3
— 18.6
— 36.5
— 50.3
— 29.5
+ 2.1
— 34.0
— 3.8
— 52.6
— 21.0
— 20.4
— 13.8
— 11.6

— 14.3

— 37.9

1,156,894 $1,110,766 $1,466,503
+ 4 .2
— 21.1
*In thousands (000 om itted).
**Includes one bank in Texarkana, T exa s not in E ighth District.

Federal Reserve Operations — During Septem­
ber the Federal Reserve Bank of St. Louis dis­
counted for 208 member banks, against 220 in
August, and 247 in September, 1929. The discount
rate remained unchanged at 3 ^ per cent. Changes
in the principal assets and liabilities of this institu­
tion appear in the following table:

Condition of Banks — Loans and discounts of
the reporting member banks on October 15, 1930,
Ratio o f reserve to deposits
and F. R. N ote Liabilities.
showed a decrease of 3.7 per cent as contrasted with
* In thousands (000 om itted).
(Compiled October 23, 1930)

*A u g.,

5 38,128

*O ct. 22,
.. 8,229

*Sept. 22, *O ct. 22,

, 62,152
„ 75,845



, 71.3%



Volume of factory production increased by about the
usual seasonal amount in September, while factory employ­
ment increased somewhat less than in other recent years.
The general level of prices, which had advanced during
August, declined during September and the first half of
October. At member banks in leading cities there was a
liquidation of security loans, and a considerable growth in
commercial loans and in investments.
MENT — Output of factories increased seasonally in Sep­
tember, while that of mines declined. The Board’s season­
ally adjusted index of production in factories and mines,
which had shown a substantial decrease for each of the pre­
ceding four months, declined by about one-half per cent in
September. Production of iron and steel, lumber, and

Department of Agriculture estimates, based on October
1 conditions, indicate somewhat larger crops than the esti­
mates made a month earlier for cotton, corn, oats, hay,
potatoes, and tobacco.
DISTRIBUTION — Freight car loadings continued at
low levels during September, the increases reported for
most classes of freight being less than ordinarily occur in
this month. Dollar volume of department stores sales in­
creased by nearly 30 per cent, an increase about equal to
the estimated seasonal growth.
WHOLESALE PRICES — The index of wholesale
prices on the average for the month of September as a
whole, according to The Bureau of Labor Statistics, was at




All Other Loans

Loans on Securitiesj


In d ex numbers of production of manufactures and minerals combined
adjusted for seasonal variations (1923-1925 a v e ra g e s 100). Latest
figures S eptem ber: Manufactures, 90; Minerals, 94.

cement decreased and the output of automobiles continued to
be in small volume. Activity in the textile industries includ­
ing cotton, wool and silk, increased substantially, and stocks
of cotton cloth were further reduced. At bituminous coal
mines there was an increase in output of more than season­
al amount, output of copper was larger than in August, and
there was a further increase in stocks of copper. Anthracite
coal and petroleum production and shipments of iron ore
declined. Employment in manufacturing establishments in­
creased less than is usual at this season, the increase being
chiefly in fruit and vegetable canning and in clothing indus­
tries, while reductions in number of employees were re­
ported for the iron and steel, automobile, and lumber indus­
tries. Outside of factories, increased employment was re­
ported in retail establishments and coal mines.





M onthly averages of w eekly figures for reporting m ember banks in lead­
ing cities. Latest figures are averages of first three weeks in O ctober.

about the same level as in July and August. The movement
of prices, however, was upward in August, reflecting chiefly
advances in the prices of livestock and meats, while in Sep­
tember the movement was downward, reflecting declines in
a large number of commodities, including grains, livestock,
meats, cotton, and copper. In the first half of October there
were wide fluctuations in many agricultural prices, decreases
in prices of nonferrous metals, and considerable increases
in the prices of sugar and coffee.
BANK CREDIT — Security loans of reporting member
banks in leading cities increased in the latter part of Sep­
tember, but declined rapidly early in October, the decline
reflecting a large volume of liquidation in loans to brokers
and dealers in securities. Commercial loans, which up to
the last week in September had not shown the usual season­
al growth, increased by $150,000,000 in the following three
weeks. The banks holdings of investments continued to






Indexes of the U nited States Bureau of Labor Statistics (192 6 = 10 0 ,
base adopted b y B ureau). Latest figures Septem ber: Farm P ro­
ducts, 85.3; F ood Products, 89.2; O ther Commodities, 82.8.

M onthly rates in the open market in N ew Y o r k : Comm ercial rate on 4 to
6 month paper. A cceptance rate on 90-day bankers’ acceptances.
L atest figures are averages of first 21 days in O ctober.

Residential building increased materially in September,
contrary to the usual seasonal trend, while the volume of
contracts for commercial building and public works and util­
ities decreased. Total value of building contracts awarded,
as reported by the F. W. Dodge Corporation, showed little
change during the month. In the first ten days of October
there was an increase in the daily average volume of con­
tracts awarded.

increase. In response to the seasonal demand for currency,
outstanding volume of reserve bank credit showed an in­
crease of $30,000,000 on the average between the weeks
ending September 20 and October 18. Money rates in the
open market continued at low levels. The yields on high
grade bonds declined further until early in October when
bond prices declined and there was a corresponding rise in