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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District R elea sed for P u b lic a tio n O n an d A fter th e M o rn in g of O ctober 3 0 ,1 9 3 3 JO H N S. W O O D , C hairm an and Federal R eserve A g en t FEDERAL RESERVE H E recessionary trends in trade and indus try in the Eighth District noted during the first half of September continued through that month, and were still in evidence, though in lesser degree, during the opening weeks of October. Except in the case of a limited number of com m odi ties affected by seasonal influences, distribution made a relatively more favorable showing than pro duction. In distributive lines consumer goods were considerably more active than those in the category of capital industries. Retail sales increased in Sep tember over August, but in less than the usual sea sonal amount, and were smaller than a year ago, while the volum e of wholesale distribution in Sep tember receded sharply than in contrast with the same month in 1932, and was virtually unchanged from that of August this year. Purchasing generally was along more conservative lines than during the summer, and the movement of merchandise through retail channels was held down by unseasonably warm weather which prevailed throughout the dis trict during September. O f the wholesale lines investigated, drugs and chemicals, electrical supplies, furniture, groceries, and hardware reported larger sales in September than a year earlier. Boots and shoes, dry goods, clothing, and some less important classifications showed declines under the same month in 1932. Operations at iron and steel plants receded further as a whole, but in the case of certain estab lishments manufacturing seasonal commodities, ac tivities were well sustained and at a substantially higher rate than a year ago. Production and ship ments of stoves in September were the largest for that month since 1930, and moderate betterment was reported in actual and prospective business by makers of farm implements and special types of machinery. The melt of pig iron and scrap declined slightly from the August peak, but deliveries to users continued at the recent high levels. Produc tion of bituminous coal in all fields of the district was considerably in excess of a year ago. The m ove T C. M . S T E W A R T , Secretary and A ss’ t F ed eral R eserve A g en t BANK OF ST. J. V IO N P APIN , Statistician LO UIS ment of building materials, both at wholesale and retail declined moderately from August to Septem ber. Sales of electrict current to industrial custom ers by public utility companies in the chief indus trial centers were 5 per cent smaller than in August, but 12 per cent greater than a year ago. W eather conditions throughout the district dur ing September were ideal for agriculture and pros pects for most crops improved. Withal, 1933 will be a year of small production as a whole, with feed crops especially much below average. Wheat, corn, oats, cotton and a number of other products declined sharply in price during September, and this dow n ward movement was continued at a more rapid pace during the first half o f October. Live stock values hovered around the extremely low levels which have prevailed in recent months. A s reflected in sales of department stores in the chief cities of the district, the volum e of retail trade in September was 8.9 per cent greater than in August, but 11.4 per cent less than a year a g o; cumulative total for the first nine months this year fell 9.6 per cent below that of the comparable period in 1932. Combined sales of all reporting wholesal ing and jobbing firms in September were practically unchanged from August, and 12 per cent smaller than for the same time last year; the total for the first nine months was 13 per cent larger than for the like period in 1932. Dollar value of permits issued in the five largest cities for new construction in September was only about one-eighth as large as in August, and 13 per cent less than in September last y e a r; cumulative total for the first nine months was 110 per cent in excess of that for the same period in 1932. Construction contracts let in the Eighth District in September were 131.4 per cent larger than in August, and 43.4 per cent more than in September, 1932; for the first nine months this year the cumulative total was 18.9 per cent below that for the same period a year earlier. Debits to individual accounts in September were 3.9 per cent and 1.4 per cent larger, respectively, than a month and a year earlier; the aggregate for the first nine months this year fell 17.9 per cent below that for the comparable period in 1932. A ccording to officials of railroads operating in this district, freight traffic handled in September showed approximately the expected seasonal in crease. Since O ctober 1, however, the trend has been lower, though certain classifications, notably grain and grain products, miscellaneous and coal, continue to m ove in large volume. Total tonnage moved was considerably in excess of the correspondperiod in 1932. For the country as a whole, load ings of revenue freight for the first forty weeks this year, or to O ctober 7, totaled 1,878,102 cars, against 1,853,236 cars for the corresponding period in 1932, and 2,483,350 cars in 1931. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, interchanged 72,333 loads in September, against 75,980 loads in August and 68,343 loads in September, 1932. During the first nine days of October the interchange amounted to 21,285 loads, which compares with 20,824 loads dur ing the same period in September, and 21,554 loads during the first nine days of October a year ago. Passenger traffic of the reporting roads in Septem ber decreased 10 per cent as compared with the same month a year earlier, but was 2.3 per cent greater than in A ugust this year. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in September was 120,000 tons, against 114,941 tons in August and 94,958 tons in September, 1932. Reports relative to collections reflect no marked change from the conditions which have obtained since the early summer. W hile spottiness is noted in certain lines, and in different localities, the trend is toward improvement as contrasted with a year and tw o years earlier. W holesalers and jobbers of boots and shoes, dry goods and other lines with which O ctober is an important settlement month, report payments well up to expectations, and in many instances in excess of those at the same time last year and in 1931. Actual losses on weak ac counts were measurably smaller than during the tw o earlier periods. In the rural areas a disposition on the part o f farmers to hold their products for higher prices has interfered with collections to some extent, but taken as a whole payments to both mer chants and banks in the rural areas have been in considerable volume. About the usual seasonal im provement in collections was reported by depart ment stores and other retail interests in the large centers o f population. Questionnaires addressed to representative interests in the several lines scattered through the district showed the follow ing results: Excellent September, August, September, 1933....... 5.3% 1933....... 4.7 1932....... 1.7 Good Fair Poor 30.4% 37.0 18.6 49.0% 41.3 59.4 15.3% 17.0 20.3 Commercial failures in the Eighth Federal R e serve District in September, according to Dun and Bradstreet, numbered 47, involving liabilities of $656,537, against 45 defaults in August with liabili ties of $843,060, and 95 insolvencies for a total of $1,427,874 in September, 1932. M oney in circulation in the United States on O ctober 11, was $5,673,000,000, which compares with $5,602,000,000 on September 13, and an aver age daily circulation of $5,685,000,000 in Septem ber, 1932. M AN U FA CTU R IN G A N D W H O L E S A L IN G Boots and Shoes — September sales of the re porting firms showed a decrease of approximately one-fifth as compared with the same month a year ago, and represented the smallest total for any Sep tember in more than a decade. A s compared with August, the September aggregate was 5 per cent greater, the increase being seasonal in character. Stocks on October 1 were 7.5 per cent smaller than a month earlier, and one-fourth less than on October 1, 1932. Factory operations receded somewhat dur ing September, and there has been a further curtail ment of output since O ctober 1. Clothing — Delayed buying of late fall and win ter merchandise was reflected in an increase in sales of the reporting clothiers from August to Septem ber, but the total for the latter month was less than one-half as large as during the corresponding period a year ago. Uncertainty relative to prices and labor troubles at many manufacturing establishments are mentioned as the chief factors in a smaller volume of ordering for next spring than is ordinarily the case at this season. Drugs and Chemicals — T he improvement in this classification noted during the tw o preceding months was continued through September, sales of the reporting interests for that period being 13 per cent larger than in August, and 8 per cent great er than a year ago. In the comparison with a year ago, a considerable part of the increase is accounted for by a larger volum e of heavy drugs and chemi cals being purchased by the general manufacturing trade. Stocks on October 1 were 5 per cent larger than a month earlier, but 5 per cent less than on O ctober 1, 1932. Dry Goods — September was marked by a noticeable recession in activities in this classifica tion. Sales o f the reporting firms in that month were 18 per cent below the same period in 1932 and 6 per cent less than the A ugust total this year. Unseasonably warm weather in September mili tated against the m ovement of seasonal goods, particularly woolen blankets, outings and kindred lines. Stocks on O ctober 1 were 6 per cent and 70 per cent greater, respectively, than a month and a year earlier, the sharp advance in the yearly com parison being due in large measure to higher prices. Electrical Supplies — For the fifth consecutive month, September sales of the reporting interests in this classification showed an increase over the cor responding period a year earlier. Miscellaneous products continue to predominate in sales, the out let through the building industry showing no mater ial change from recent quiet conditions. A s com pared with a year ago, considerable betterment is noted in demand for radio materials. September sales of the reporting interests were 16.5 per cent larger than for the same month in 1932, and 8 per cent less than the August total this year. Flour — Production at the twelve leading mills of the district in September totaled 259,458 barrels, as against 202,982 barrels in August and 258,697 barrels in September, 1932. Demand continued inac tive, purchasing being chiefly for immediate require ments. Carload purchasing was in considerably smaller volume than earlier in the season. The large baking interests had fairly well covered their needs, and were disposed to await developments before in creasing their commitments. Follow ing a slight advance during early September, prices during the last half of that month and early in O ctober showed easing tendencies in sympathy with the downturn in cash wheat values. Mill operations were at from 50 to 55 per cent of capacity. Furniture — There was an increase of approxi mately one-third in September sales of the reporting firms over the same month in 1932, but a decrease of 8 per cent under the A ugust total this year. U n usually heavy purchasing in A ugust was responsible to a large extent for the counter-to-seasonal decrease in the month-to-month comparison. During the past three months there has been a noticeable increase in demand for household furniture and furnishings, also in radio cabinets and several other special lines. Stocks on October 1 were 6 per cent and 9 per cent smaller, respectively, than a month and a year earlier. Groceries — Moderate improvement in business in this classification was noted in September sales of the reporting interests during that month being 1 per cent larger than in A ugust and 5 per cent greater than a year ago. Inventories increased further, stocks on O ctober 1 being larger by 6 per cent and 9 per cent, respectively, than a month and a year earlier. Broadening in trade in the rural areas was notable particularly in the south, where the movement of cotton to market is contributing to purchasing power. Prices were irregular, with the average of all commodities measurably higher than a year ago. Hardware — September sales of the reporting firms were 21 per cent larger than for the same month in 1932, but 6 per cent less than in August this year. The marked gain in the yearly comparison was attributed, partly to a heavier demand for goods for distribution in the rural areas and to the higher prices prevailing at this time. Aside from repair materials, no improvement w orthy of note has taken place in builders’ tools and hardware. Inventories on O ctober 1 were 4 per cent smaller than on Sep tember 1, but 11 per cent larger than on October 1, 1932. Iron and Steel Products — Activities in the iron and steel industry in this district underwent a fur ther slight recession during the last half of Septem ber and the first tw o weeks in October. The slow ing down, however, was by no means universal, as operations at stove and heating apparatus plants, jobbin g foundries and manufactories of other sea sonal commodities were well sustained and at a measurably higher rate than a year ago. Steel mill operations receded, and purchasing of finished steel and iron products was smaller than earlier in the season. Shipments of these commodities continued at a relatively high rate, but the forwardings were at the expense of backlogs, which at the first of October were mainly smaller than a month earlier. Purchasing by the railroads failed to develop the expected betterment and there was no change w orthy of note from the recent quiet conditions in oil country goods and supplies generally for the petroleum industry. The outlet through the build ing industry, except for commodities used in high way construction, river and levee improvement work and other outdoor engineering projects, failed to expand. Manufacturers of sheets, plates, bars and other rolled products reported a noticeable de cline in the placement of new orders since the mid dle of September. Moderate improvement in demand for roofing, fencing and other materials used in the rural areas was noted. Distribution of iron and steel goods by warehouses and jobbers in September represented a smaller total tonnage than in either July or August, though considerably larger than in September a year ago. New business in pig iron fell off measurably, due largely to previous contracting, but shipments continued heavy. On a daily average basis, deliveries to melters in the district during the first half of O ctober were at a rate only slightly below September, which earlier period registered the peak of the year. For the country as a whole production of pig iron in September, according to the magazine “ Steer’, totaled 1,507,931 tons, the smallest since June, and comparing with 1,833,265 tons in A ugust and 593,640 tons in September, 1932. Steel ingot production in the United States in Sep tember was 2,310,982 tons, against 2,900,611 tons in August, and 991,858 tons in September, 1932. A U T O M O B IL E S Combined passenger car, truck and taxicab pro duction in the United States in September was 196,082, against 236,480 in A ugust and 84,141 in September, 1932. F ollow ing the unvaried trend during the past decade, distribution of automobiles in this district during September, according to the group of dealers reporting to this bank, decreased from A ugust to September. For the fourth consecutive month, how ever, the volum e of sales in September was greater than for the corresponding period a year earlier. In the m onth-to-m onth comparison the decrease was somewhat greater than the average during the past ten years. This fact was attributed principally to the relatively heavy volum e of sales recorded in August. A s has been the case for a number of months, demand for cheap and medium priced cars was considerably better than in the high priced field. A s contrasted with the same period a year ago, business o f country dealers showed noticeable improvement, both with reference to actual sales and prospects. Generally throughout the rural areas replacement requirements are more in evidence than at any time in recent years. For the most part, stocks of distributors are low and they will be in a favorable position for handling the new lines when they are placed on the market. Demand for trucks receded during September, sales for that month being about on a parity with a year ago, but about one-fourth less than in A ugust this year. September sales of new passenger cars by the reporting dealers were 64 per cent greater than for the same month in 1932, and 15 per cent less than in A ugust this year. Stocks of new passenger cars on dealers’ floors on O ctober 1 were 4 per cent larger than a month earlier and 9 per cent greater than a year ago. The status of the used car market showed no notable change as contrasted with the preceding thirty days. Sales in September were 18 per cent smaller than in August, and about onefourth greater than in September, 1932. Stocks of salable secondhand cars as of O ctober 1 were 4 per cent and 10 per cent larger, respectively, than thirty days and a year earlier. A ccordin g to dealers report ing on that item, deferred payment sales in Septem ber constituted 42 per cent of their total, which con trasts with 44 per cent in August, and 48 per cent in September, 1932. R E T A IL TR A D E The condition of retail trade is reflected in the follow ing comparative statements showing activities in the leading cities of the district: Department Stores Net sales comparison Stocks on hand Sept. 1933 9 months ended Sept. 30, 1933 comp, to comp, to Sept. 30, 1933 to Sept. 1932 same period 1932 Sept. 30, 1932 Evansville ....— 5.8% — 4.4% — 7.0% + 2 2 .6 Little Rock ..— 26.5 — 15.7 — 10.9 — 0.9 Louisville ....— 14.3 Memphis ... ..— 13.5 — 11.4 + 8.0 , — 2.1 — 11.5 — 7.2 , — 9.4 — 8.3 + 13.2 — 13.7 — 18.2 Springfield . . + 3.2 — 9.6 + 1 0 .5 8th District ..— 11.4 Stock turnover Jan. 1, to Sept. 30, 1933 1932 .92 .77 1.45 1.55 2.19 1.78 2.10 2.09 1.73 1.63 2.57 2.55 1.02 .91 2.30 2.22 Retail Stores Net sales comparison Stocks on hand Sept. 1933 9 months ended Sept. 30, 1933 comp, to comp, to Sept. 30, 1933 to Sept. 1932 same period 1932 Sept. 30, 1932 Men’ s Fur nishings ....— 1.5% Boots and Shoes ........— 22.9 Stock turnover Jan. 1, to Sept. 30, 1933 1932 — 8.7% + 1 1 .9 % 2.19 2.00 — 13.8 — 16.4 2.24 1.94 P O STAL RECEIPTS Returns from the five largest cities of the dis trict show a decrease in combined postal receipts for the third quarter of this year, of 9.7 per cent under the corresponding period in 1932, and a de crease of 8.8 per cent as compared with the quarter ended June 30, this year. Detailed figures fo llo w : Sept. 30, June 30, March 31, 1933________ 1933________ 1933 Evansville ....$ 139,549 $ 136,219 $ 130,563 Little Rock.... 153,540 148,486 162,088 Louisville ...... 540,284 586,831 547,544 Memphis ...... 448,329 447,551 463,886 St. Louis....... 2,107,190 2,396,873 2,302,362 Sept. 30, 1932 $ 136,083 179,359 570,929 465,178 2,400,267 Totals $3,751,816 .......... $3,388,892 $3,715,960 $3,606,443 Sept. 1933 comp, to Sept. 1932 + 2.5 % — 14.4 — 5.4 — 3.6 — 12.2 — 9.7 BU ILD IN G The dollar value of permits issued for new con struction in the five largest cities of the district in September was only about one-eighth as large as in August, and 12.8 per cent less than in September, 1932. A ccording to statistics compiled by the F. W . D odge Corporation, construction contracts let in the Eighth District in September amounted to $14,432,097, which compares with $6,237,834 in August, and $10,063,670 in September, 1932. P ro duction of portland cement for the country as a whole in September totaled 5,638,000 barrels against 8,223,000 barrels in A ugust and 8,210,000 barrels (revised figures) in September, 1932. Building fig ures for September fo llo w : _________New Construction Permits *Cost 1933 1932 1933 1932 149 Evansville .. 150 26 $ 26 $ 14 13 Little Rock 5 7 34 49 157 Louisville .. 73 107 39 196 Memphis ... 142 210 248 St. Louis.... 148 243 Sept. totals Aug. “ July *In thousands 488 528 $ 475 $ 545 475 437 3,877 413 475 451 3,615 449 of dollars (000 omitted). _______ Repairs, etc._________ Permits *Cost 1932 1933 1933 1932 47 56 $ 10 $ 7 63 56 8 8 33 40 17 17 114 127 71 58 396 206 110 354 666 522 447 472 425 436 $ 460 261 318 $200 208 529 CON SU M PTIO N OF E L E C T R IC IT Y Public utilities companies in the five largest cities of the district report consumption of electric current by selected industrial customers in Sep tember as being 5 per cent smaller than in A ugust and 12.3 per cent more than in September, 1932. D e tailed figures fo llo w : No. of Sept., Aug., Sept. 1933 Custom 1933 19 33 comp, to ers * K .W .H . * K .W .H . Aug. 1933 Evansville .. 40 1,656 1,875 — 11.7% Little Rock.. 35 1,961 2,026 — 3.2 7,337 7,420 — 1.1 Louisville .... 85 Memphis ...... 31 1,262 1,450 — 13.0 St. Louis.......195** 18,839 19,906** — 5.4 Totals ........... 386 31,055 *In thousands (000 omitted). * * Revised figures. 32,677 — 5.0 Sept., Sept. 1933 1932 comp, to * K .W .H . Sept. 1932 1,707** — 3.0% 1,647** + 19.1 5,931** + 2 3 .7 1,389 — 9.1 16,975** + 11.0 27,649 + 12.3 A G R ICU LTU R E W eather conditions were generally favorable for agriculture throughout the Eighth District in September, and prospects for m ost late crops im proved during that month. This betterment was carried through the first half of October, there being less damage from early frosts than usual, and m ois ture being more abundant and well distributed than earlier in the season. T he O ctober 1 report of the U. S. Department of Agriculture shows that the chief increases as compared with a month earlier took place in potatoes, corn, tame hay, legumes, tobacco, rice, sweet potatoes and pastures. In this district, cotton showed little change as contrasted with the preceding estimate. H ow ever, as a whole the 1933 season has been one of the m ost difficult for farmers in this area in recent years. The spring was too wet for early planting, which resulted in reduced acreages of oats, corn and soybeans among the major crops. Drouth in June and July cut yields of nearly all crops, though wheat in the main escaped heavy damage. Rainfall during the entire season, except in September and so far this month, was so local in character that great irregularity pre vails in yields, most crops producing below average. Fruit and vegetable crops were short, though in some instances larger than the practical failure of the preceding year. In the chief corn producing sections, chinch bugs were more w idely scattered than for many years, and are goin g into hibernation in large numbers. Difficulty has been experienced in many localities in preparation of wheat land, and seeding continued well into m id-October. Corn — The U. S. Department of Agriculture estimates the Eighth District corn crop in its O cto ber 1 report at 288,012,000 bushels, an increase of 3,362,000 bushels over the September 1 forecast, and com paring with 380,505,000 bushels harvested in 1932, and a 10-year average (1923-1932) of 351,832,000 bushels. T he crop matured rapidly under fav orable September weather, and at the middle of October was practically safe from frost damage. In the drier areas and sections of heavy chinch bug infestation, the corn ripened prematurely, with the result of lighter yields, and in many localities, the poorest quality in a number of years. Early husking returns indicate unusual spottiness, with yields turn ing out below expectations in many instances. In states entirely or partly within the Eighth District, stocks of corn on farms as of October 1 totaled 130.436.000 bushels, against 105,784,000 bushels on the same date in 1932 and 35,353,000 bushels in 1931. Wheat — Production of all wheat in the Eighth District in 1933 is estimated at 36,048,000 bushels, as against 34,128,000 bushels in 1932, and a 10-year average of 50,538,000 bushels. Seeding has made good progress, but due to the unfavorable planting season, these operations were carried further into the year than is usually the case. Recent rains have materially benefited the grow ing crop, and in most sections stands and color are good. A s of October 1, stocks of wheat on farms in states partly or en tirely in this district were estimated at 33,216,000 bushels, against 39,732,000 bushels on the same date last year and 66,172,000 bushels in 1931. Fruits and Vegetables — Despite the auspicious weather conditions prevailing throughout this dis trict in September, the prospect for fruit production declined slightly. W hile the total tonnage of the principal varieties is above the very short produc tion in 1932, it is much below the average in recent years. Some betterment took place in the outlook for white potatoes, but prospects for sweet potatoes declined slightly. In the district proper the yield of white potatoes is estimated by the U. S. Depart ment of Agriculture in its O ctober 1 report at 8,451,000 bushels, against 13,164,000 bushels in 1932 and a 10-year average of 14,453,000 bushels. In states including the Eighth District the yield of sweet potatoes is estimated at 18,166,000 bushels, against 21.435.000 bushels in 1932, and a 5-year average 1926-1930 of 15,951,000 bushels. The apple crop in these states is forecast at 13,826,000 bushels, of which 1,818,000 barrels represents commercial crop, against 7,174,000 bushels with 1,089,000 barrels com mercial crop in 1932, and a 5-year average of 17,985,000 bushels of which 1,993,000 barrels were com m er cial crop; pears, 883,000 bushels, against 439,000 bushels in 1932 and a 5-year average of 1,645,000 bushels; peaches, 3,925,000 bushels, against 1,259,000 bushels in 1932 and a 5-year average of 1,645,000 bushels; peanuts, 39,545,000 pounds, against 43,290,000 pounds in 1932 and a 5-year average of 27,703,- 000 pou n d s; grapes, 33,054 tons, against 33,979 tons in 1932 and a 5-year average of 30,649 tons. Live Stock — Recent rains have considerably improved pastures, and the condition of livestock generally through the district maintained the high condition which has prevailed in recent months. Allow ing for farm stocks carried over from previous crops, the total feed grain supply is below the aver age of the past five years. This fact has tended to increase marketings of livestock, and in a number of localities is beginning to affect milk production. Production of milk per cow on October 1, accord ing to the Department of Agriculture, averaged about 1 per cent lower than on the same date last year and substantially below production on any October 1 since 1925. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follow s: Receipts Sept., Aug., Sept., 1933 1933 1932 Cattle and Calves......111,650 114,927 112,586 Hogs .............................543,720 292,906 210,265 Horses and Mules...... 6,372 4,492 2,797 Sheep ........................... 47,46160,172 66,071 Shipments Sept., Aug., Sept,. 1933 1933 1932 57,820 57,711 73,089 266,344 160,089 162,304 6,264 4,123 2,510 8,780 8,632 26,998 Cotton — As during the preceding month, Eighth District cotton prospects declined slightly in September. Based on the October 1 condition the U. S. Department of Agriculture estimates the crop at 2,520,000 bales, a decrease of 55,000 bales from the September 1 forecast and comparing with 2,942,000 bales produced in 1932, and a 10-year average (1923-1932) of 2,705,000 bales. During September all factors contributed to rapid harvesting. Weather was mainly clear and warm, which favored matur ing of late bolls. Roads were in good condition, and with the extensive acreage eliminated by plow-up and other causes, there was abundant labor for secur ing the cotton on the acreage remaining. In Arkan sas and Mississippi, plant pests have been more prevalent this season than since 1923. Boll weevil infestation extended well into the northern tier of counties, and leaf worms were also present in unusu ally large numbers. Demand for spot cotton tapered somewhat during September and the first weeks of October, resulting in a decline in prices to near the low point of the present crop. In the St. Louis market the middling grade ranged from 8.45c to 10c per pound between September 15 and October 16, closing at 8.45c on the latest date, which compares with 9.15c on September 15, and 5.7c on October 15, 1932. Receipts at Arkansas compresses from August 1 to October 13 totaled 345,363 bales, against 443,531 bales for the corresponding period in 1932. Stocks on hand as of October 13 were 346,267 bales, which compares with 248,353 bales on September 15 and 530,004 bales on October 13, 1932. T obacco — Prospects for tobacco in this district improved to the extent of 9,142,000 pounds between September 1 and October 1, the Government’s esti mate as of the latter date being 315,901,000 pounds. This compares with the short crop of 261,257,000 pounds harvested in 1932, and a 10-year average of 308,565,000 pounds. In practically all the chief pro ducing sections, weather during the late stages of development has been favorable, and results show every indication of being well above earlier expecta tions. Cutting and housing of all types had been completed at the middle of October. Cool weather accompanied by light frosts in limited localities forced cutting of the outstanding portion of the crop, even though not fully matured. This, however, represents only a small part of the total crop. Re ports relative to burley tobacco are in the main fav orable. There are traces of houseburn, but the gen eral character of the crop is considered better than last year. In the dark tobacco districts, the air cured crop is curing satisfactorily and gives indications of being desirable for all purposes. Special efforts are being put forth by producers in the dark fired districts, tributary to Clarksville, Springfield and Hopkinsville, to cure and fire their crops properly. Greater attention has been given to this detail than in previous years. C O M M O D IT Y P R IC E S Range of prices in the St. Louis market between September 15, 1933, and October 16, 1933, with clos ing quotations on the latter date and October 15, 1932, fo llo w : Close High Low Oct. 16, 1933 Oct. 15, 1932 Wheat L ~ Dec........................per bu..$ .98 $ .7 0 ^ $ .7 0 ^ $ .48*6 May ..................... “ 1.02 .74%* .7 4 ^ .53*4 No. 2 red winter.... “ .94 .76%t $ ,76% @ .76$4 $ .48% @ .49 No. 2 hard “ .... " .92% .74% .74% @ .7 4 H .48% @ .49 Corn *Dec.......................... “ .56% .37% .3 7 H @ .38 .26 *May ..................... “ .63 .43^4 .4 4 % @ .4 4 H .30^4 @ .307/g *July ...................... “ .57 .46 .46 @ .4 6 ^ .32 @ .3 2 ^ No. 2 mixed ....... “ .46 .37% .3 7 % @ .37H .2 4 H @ -25 No. 2 white ........ “ .5 3 ^ .39 .39 @ .3 9 ^ .26 @ .26%2 Oats .38 .29 .29 @ .29% .15 @ .15^4 No. 2 white ........ M Flour Soft patent......... perbbl. 7.00 5.75 5.75 @ 6.25 2.90 @ 3.50 Spring patent...... “ 7.00 6.15 6.60 @ 6.75 3.75 @ 4.25 Middling cotton.....per lb. .10 .0845 .0845 .057 Hogs on hoof......... per cwt 5.50 3.25 3.50 @ 4.85 2.75 @ 4.00 F IN A N C IA L In the Eighth District the past thirty days were marked by moderate expansion in demand for credit for commercial and industrial purposes, also, for financing agricultural operations. W ith the harvest ing and movement of the cotton and tobacco crops, loans based on these commodities increased, though in the case of cotton quite liberal marketing by pro ducers resulted in a substantial liquidation of plant ers’ indebtedness with merchants and country banks. In the typical tobacco areas no material reduction of loans based on that crop is expected prior to the opening of the principal markets in December. R e quirements of flour milling and grain interests con tinues in considerable volume, and due to higher prices, are well over the aggregate at the corres ponding period a year and tw o years earlier. D e mand for funds to condition livestock for market is less in evidence thail during past seasons. with September 13, 1933. Deposits decreased 0.7 per cent between September 13, 1933 and October 11, 1933 and on the latter date were 1.5 per cent greater than on O ctober 12, 1932. Composite state ment follow s: *Oct. 11, 1933 Number of banks reporting............ 19 Loans and discounts (incl. rediscounts) Secured by U. S. Govt, obligations and other stocks and bonds....$ 88,958 All other loans and discounts.... 148,072 *Sept. 13, 1933 19 *Oct. 12, 1932 19 $ 88,251 141,706 $106,393 166,617 The steady improvement in the banking situa tion, which commenced in mid-March, was contin ued through September and the first half of October. The total number of banks licensed in this district as of October 19 was 1,566, out of 1,875 which were in operation immediately prior to the national bank ing holiday. On the recent date there were 251 unli censed banks, and 58 were in process of liquidation, merged with other banks, etc. W hile recent statis tics of unlicensed banks are not available, the ratio of deposits tied up, to total deposits is known to be small. Total loans and discounts.................$237,030 Investments U. S. Government securities...... 128,967 Other securities.............................. 102,125 $229,957 $273,010 140,473 101,979 103,974 109,476 Total investments................................ $231,092 Reserve balance with F. R. Bank 49,505 Cash in vault....................................... 8,822 Deposits Net demand deposits..................... 277,199 Time deposits.................................. 159,355 Government deposits..................... 24,014 $242,452 53,173 6,329 $213,450 30,914 5,769 280,249 159,778 24,014 261,064 184,555 8,265 Total loans o f reporting member banks in the principal cities of the district increased 3.1 per cent between September 13 and O ctober 11, the major part of the increase being in “ all other loans” , which largely represent commercial borrowings. Total de posits decreased slightly during the four-week period, and there was a decline of 8.2 per cent in total investments, accounted for entirely by smaller holdings of Government securities. Borrowings of all member banks from the Fed eral reserve bank declined further, and this bank’s holdings o f discounted bills in m id-October repre sented the smallest total in many years. Reflecting the usual seasonal demand for currency, this bank’s note circulation increased by approximately $9,500,000 between September 18 and O ctober 18. The total volume of reserve credit outstanding increased between these dates from $86,973,000 to $92,770,000, due entirely to larger holdings of Government secur ities. There was an increase of $3,725,000 in member bank deposits. The trend o f interest and discount rates was decidedly lower. A t St. Louis banks, as o f the week ended O ctober 15, current interest rates were as fo llo w s : Customers’ prime commercial paper 3 to Sy2 per cent; collateral loans 4 to 6 per cent; loans secured by warehouse receipts, 1^4 to 5y2 per cent; interbank loans, 5 to S y per cent and cattle loans, 5 to 6 per cent. Condition of Banks — Loans and discounts of the reporting member banks on O ctober 11, 1933 showed an increase of 3.1 per cent as contrasted Total deposits.................................. ....$460,568 $464,041 $453,884 Bills payable and rediscounts with Federal Reserve Bank................. 570 670 1,275 *In thousands (000 omitted). This report covers 19 licensed reporting banks in four leading cities, instead of 24 banks in 5 leading cities, as heretofore. Federal Reserve Operations — During Septem ber the Federal Reserve Bank of St. Louis dis counted for 65 member banks against 67 in August and 217 in September, 1932. The discount rate re mained unchanged at 3 per cent. Changes in the principal assets and liabilities of this institution appear in the follow ing table: Bills discounted ........................................ Bills bought .............................................. U. S. Securities......................................... Federal Inter. Cr. Bk. Debentures.... Participation in Inv. Foreign Banks.. *Oct. 19, 1933 .$ 1,877 , *Sept. 19, 1933 $ 3,407 ♦Oct. 19, 1932 $ 8,943 90,499 * 83,122 **6*6,**156 172 ........ 174 .....i ‘ 06’ 9 .$ Total Bills and Securities.......................$ 92,548 $ 86,703 $ 76,108 Total Total .$156,765 . 92,165 . 139,793 $152,324 90,980 134,380 $ 93,283 56,274 100,873 Ratio of reserve to deposits and F. R. Note Liabilities......... *In thousands (000 omitted). , 67.6% 59.4% 67.6% Debits to Individual Accounts — The follow ing table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposits accounts and trust accounts of individ uals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included. ♦Sept., 19 33 East St. Louis & Natl. Stock Yards, 111..$ 23,194 El Dorado, Ark.... 3,057 Evansville, Ind.... . 13,849 Fort Smith, Ark... . 7,511 2,927 Greenville, Miss... . 1,401 Helena, Ark......... Little Rock, Ark.., 19,468 Louisville, K y....... . 107,079 88,040 Memphis, Tenn.... Owensboro, Ky.... 2,494 5,399 Pine Bluff, Ark... . 4,890 Quincy, 111............ St. Louis, M o...... . 379,600 1,295 Sedalia, M o........... Springfield, M o.... 9,386 **Texarkana, Ark.-Tex..... , 5,098 ♦Aug., 1933 ♦Sept., 1932 $ 20,313 2,937 15,005 6,690 2,148 1,051 16,295 105,553 66,816 2,268 3,599 4,944 386,800 1,227 8,665 ' $ 20,897 3,688 12,914 7,374 3,120 1,639 17,996 95,205 92,684 2,283 5,589 5,369 380,467 1,420 9,699 4,897 5,179 Sept. 1933 comp, to Aug. 1933 Sept. 1932 + 14.2% + 4.1 — 7.7 + 12.3 + 3 6 .3 + 33.3 + 19.5 + 1.4 + 31.8 + 10.0 + 50.0 — 1.1 — 1.9 + 5.5 + 8.3 + 11.0% — 17.1 + 7.2 + 1.9 — 6.2 — 14.5 + 8.2 + 12.5 — 5.0 + 9.2 — 3.4 — 8.9 — 0.2 — 8.8 — 3.2 + — 1.6 4.1 Totals ................ $674,688 $649,208 $665,523 + 3.9 *In thousands (000 omitted). **Includes one bank in Texarkana, Texas not in Eighth District. (Compiled October 21, 1933) + 1.4 BUSINESS CONDITIONS IN T H E U N ITE D STATES PRODUCTION — Industrial production, as measured by the Board’s seasonally adjusted index, declined from 91 per cent of the 1923-1925 average in August to 84 per cent in September. Activity decreased in most lines of industry, and particularly in those in which output had increased rapidly in earlier months; production of steel, lumber, cement, bituminous coal, and petrole um declined considerably and automobile output was reduced. Deliveries of silk to mills were small in September, while con sumption of cotton and wool, although reduced during the month, unusually large increase in sales in August. Trade reports indicate that sales volume was affected by unseasonally warm weather and by price advances. Sales of chain variety stores continued in somewhat larger volume than in 1932. On the railroads, average daily freight shipments during September increased by somewhat less than is usual in the early autumn, but were in larger volume than at any time since the latter part of 1931. In the first two weeks of October car-loadings were at a higher level than in late September. Index number of industrial production, adjusted for seasonal variation. (1923-1925 averages 100). Latest figure, September, preliminary 84. Indexes of the United States Bureau of Labor Statistics (1 9 2 6 = 1 0 0 ). Latest figures, September, farm products 57.0, foods 64.9, other commodities 76.1. was nevertheless larger than in other recent years at this season. Meat packing plants were more active partly because of process ing of pigs under the Government’s emergency marketing pro gram; output of flour was larger than the exceptionally small volume produced in August. In the first half of October further declines in output of automobiles, bituminous coal and petroleum were reported. Steel mill activity, after increasing in the first half of October, receded in the third week. EM P LO YM E N T — Employment of factory workers in creased between the middle of August and the middle of Septem ber, and total earnings were larger, partly as a result of further advances in wage rates, and the expansion of operations in sea sonally active industries such as canning. Employment in public utilities, railroads, stores, and mines also increased and it is esti mated that about 600,000 industrial wage-earners found work dur ing the period. Preliminary reports for the first half of October indicate some decrease in employment and a continuation of about the same volume of earnings in basic manufacturing industries. FOREIGN EXCH ANG E — The value of the dollar in the foreign exchange market fluctuated around 65 per cent of its gold parity during the latter part of September and in the first half of October advanced to 71 per cent in the third week and declined to 70 per cent on October 23. BANK CREDIT — Excess reserves of member banks in creased by $100,000,000 between September 13 and October 20, in consequence of the purchase by the Federal reserve banks of $170,000,000 of United States Government securities during the period, offset in part by a further decline in discounts and a sea sonal increase in the demand for currency. While these purchases of United States Government securities were made chiefly in New York City, member bank funds arising from these purchases were transferred to other parts of the country through expendi tures in outlying areas by Federal agencies, and through pay ment for crops marketed. At reporting member banks in leading cities there was little change in loans and investments during this period; a decline in the volume of loans on securities was MILLIONS OF DOLLARS MILLIONS OF DOLLARS 4000 — 4000 RCSER>/ t BANK CREDIT 3500 I 3500 3000 I, 3000 2500 2000 1500 Total Ur * 500 Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 averages 100). Latest figures, September, employment 76.6, payrolls 57.6. CO N STR U C T IO N — Construction contracts awarded in creased in September to the highest level for the year, according to reports by the F. W . Dodge Corporation, the largest volume o f new awards being for public works and for other non-residential projects. In the third quarter of the year, value of con struction contracts was 25 per cent of the 1923-1925 average. DISTRIBU TIO N — Sales at department stores in leading cities increased less than seasonally in September, following an M * J ▼VV'” U (k>vt^Securit^-~|^ .S. 1000 0 1 \f,r >T v / 1 1 1 1 1 1931 1500 1000 500 Jhptacourrts^ \ 1930 2000 — •.^ccejstances 1929 2500 1932 *\ V 1933 0 Wednesday figures for 12 Federal reserve banks. Latest figures are for October 18. offset by growth in all other loans. Money rates in the open market continued at low levels. On October 20 the Federal Re serve Bank of New York reduced its buying rate on bills from a range from 1 to 1 ^ per cent for different maturities to a range from f/2 to 1 per cent. The rediscount rate at New Y ork was reduced from 2y2 per cent to 2 per cent, effective October 20, and October 21, the Federal Reserve Banks of Cleveland and Chicago reduced their rediscount rates from 3 per cent to 2 ^ per cent.