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MONTHLY REVIEW 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 FEDERAL RESERVE 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. Despite 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 T C. M . STEW ART, Assistant Federal Reserve Agent BANK OF ST. J. V I O N P A P I N , Statisticii LOUIS dull, with prices on steaming coal tending down ward. 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 Fair P oor September, 1930..........0.1% 16.8% 57.7% 25.4% 8.5 52.8 38.6 August, 1930...............0.1 30.6 61.1 6.9 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. MANUFACTURING AND W HOLESALING 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, 1929. 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. AUTOMOBILES 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. RETAIL TRADE 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 0.0 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 -f-29.5 — 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 BUILDING 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 1930 1930 1929 1929 291 403 $ 489 $ 271 32 39 92 166 151 80 271 1,556 636 203 944 588 375 577 1,163 1,600 Sept. totals 1,414 1,373 $2,959 A u g. totals 1,237 1,294 2,080 July totals 1,147 1,709 2,191 * In thousands (000 om itted ). $4,181 4,074 4,869 Repairs, etc. Perm its *C ost 1930 1930 1929 1929 79 53 $ 27 $ 27 112 102 42 45 59 76 131 127 84 209 37 146 343 494 183 804 677 559 589 934 783 659 $ 420 $1,149 687 964 378 759 POSTAL RECEIPTS Returns from the five largest cities of the dis trict show a decrease of 45.5 per cent in combined postal receipts for the third quarter of this year under the corresponding quarter in 1929, and a de crease of 46.0 per cent as compared with the second quarter this year. Detailed figures follow : ______________ F or Quarter E nding Sept. 30, June 30, M ar. 31, 1930 1930 1930 Evansville ....$ 157.000 $ 168,000 ; 164,000 Little R ock.... 234.000 212,000 238.000 Louisville 612.000 683.000 681.000 Mem phis ........ 541,000 581.000 653,000 St. L ou is....... 964,000 3,049,000 3,023,000 T otals........$2,508,000 $4,667,000 $4,785,000 Sept. 30, 1929 $ 171,000 225.000 681.000 605,000 2,923,000 $4,605,000 Sept. 1930 com p, to Sept. 1929 — 8.2 % - f 4.0 10.1 10.6 — — — 67.0 — 45.5 CONSUMPTION OF ELECTRICITY 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 Sept. A u g. Custom 1930 1930 ers * K .W .H . * K .W .H . Evansville .... 40 1,850 1,848 Little R o :k.. 35 2,213 2,312 .... 87 8,089 7,543 996 ..... 31 1,018 , 155 21,839 St. 22,928 ..... 348 34,987 * I n thousands (000 om itted). 35,649 Sept. 1930 com p, to A ug. 1930 + 0.1% — 4.3 + 7.2 — 2.2 — 4.7 — 1.9 Sept. 1929 * K .W .H . 1,804 2,071 8,057 1,199 23,821 Sept. 1930 com p, to Sept. 1929 + 2 .5 % + 6.9 + 0.3 — 16.9 — 8.3 36,952 — 5.3 AGRICULTURE 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 average. 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 year. 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 Shipments Sept., A u g ., Sept., Sept., A u g., Sept., 1930 1930 1929 1930 1930 1929 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...... 1,567 976 7,635 1,477 966 6,497 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: Close H igh L ow O ct. 15, 1930 W heat D e c ........................ per bui.$ .853/6$ .75*4 $ .78 M ay ..................... “ .9 2 ^ .82 .83 N o. 2 red winter “ .92 .83 .88 @ .8 8 ^ N o. 2 hard........... “ .86 .80 @ .8 0 ^ .77V* Corn 77H .8 0 ^ D e c......................... “ .8 8 ^ .92 .80 .83 M ay ..................... “ .8 5 ^ .S5 .85 @ N o. 2 m ixed........ “ .96 H N o. 2 w hite........ “ .98 ^ .89'A .92 @ ,9 2 ^ Oats .40 .3 6 ^ .38 N o. 2 w hite........ “ .37y2 @ Flour 4.50 4.50 @ 5.00 Soft patent........per bb. L 5.00 5.30 4.75 4.75 @ 4.85 Spring patent...... “ .985 .940 M iddling cotton....per lb. .915 7.00 8.00 @ 10.15 .10.75 O ct. 15, 1929 1.32 1.29 @ @ ■ $1,33^4 1.435/6 1.35 1 .2 9 ^ .93H .95 @ .9 7 H @ .48 @ 11 .0 .96 .98 .48^2 6.75 @ 7.00 8.15 .17% @10.05 6.00 6.20 FINANCIAL 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, 1930 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, 1930 f2 4 *O ct. 16, 1929 25 $234,556 275,964 $243,096 302,986 Total loans and discounts.................$491,538 Investments U. S. Governm ent securities...... 34,809 Other securities.............................. 126,021 $510,520 $546,082 33,727 124,149 47,311 108,542 T otal investments............................... $160,830 R eserve balance with F. R . bank.. 45,051 Cash in vault....................................... 5,765 Deposits N et demand deposits....................... 361,475 Tim e deposits.................................. 235,878 Government deposits..................... 1,208 $157,876 44,440 5,581 $155,853 45,275 6,626 370,674 239,410 1,538 379,586 233,481 2,513 Total deposits.......................................$598,561 $611,622 $615,580 Bills payable and rediscounts with 5,020 Federal Reserve B ank................... 5,307 31,105 *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 district. 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 8,080 31,743 14,944 5,393 7,473 93.281 200,790 192,078 5,963 16,911 13,817 775,420 4,785 16,972 ...10,194 F ort Smith, Ark.... Greenville, Miss.... Helena, A rk ............ L ittle R ock, A rk... Louisville, K y ........ Memphis, T enn..... $ 37,817 6,463 26,203 11,189 3,138 3,402 61,984 176,941 112,311 5,944 6,968 8,941 619,791 3,928 13,853 11,893 16,428 **Texarkana, •Sept., 1929 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: Bills 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., 1930 ♦Sept., 1930 tl. 5 38,128 6,472 24,348 12,158 3,425 3,711 65,*73 204,913 126,709 5,739 8,018 10,921 617,263 4,126 14,996 *O ct. 22, 1930 ..$18,161 .. 8,229 23,899 *Sept. 22, *O ct. 22, 1930 1929 $18,144 $48,951 10,469 42 23,899 8,625 .$50,289 , 62,152 „ 75,845 $52,512 64,254 78,779 $57,618 85,914 77,535 , 71.3% 70.2% 71.1% BUSINESS CONDITIONS IN THE UNITED STATES 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. INDUSTRIAL PRODUCTION AND EMPLOY 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 BILLIONS O F DOLLARS 10 BIU.IONS O F D O LLA R S 10 M E M B E R BANK C ED IT y i :R All Other Loans Loans on Securitiesj Investments 1926 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. 1927 1928 1929 1930 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 1926 1927 1928 1929 1930 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 yields.