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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.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102