Full text of Review (Federal Reserve Bank of St. Louis) : October 30, 1934

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MONTHLY REVIEW
O f Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal R e s e r v e District

R e le a se d fo r P u b lic a tio n O n a n d A fte r th e M o rn in g o f O ctober 3 0 ,1 9 3 4
JOHN S. W O O D ,
C h a ir m a n a n d F e d e r a l R e s e rv e A g e n t

FEDERAL

RESERVE

E N E R A L business in the Eighth District
during the past thirty days continued the
moderate improvement noted during the
similar period immediately preceding. Relatively,
in distribution of merchandise, goods for ordinary
consumption made a more favorable showing than
the more durable commodities. There was little,
if any betterment in the movement of lumber, glass,
certain iron and steel products and the general run
of building materials. On the other hand, certain
iron and steel specialties, notably stoves, heating
apparatus, farm implements an d, household appli­
ances, have developed improvement, both as con­
trasted with a month and a year earlier. O f the
wholesale lines investigated by this bank, decreases
in sales from August to September were, with one
exception, seasonal in character. In all lines, except
fire clay products and furniture, September volume
exceeded that o f the same month last year, the
gains ranging from 1.3 per cent in the case of hard­
ware, to 62 per cent in clothing. Likewise, retail
distribution made a favorable exhibit, September
sales exceeding the totals o f A ugust and of Sep­
tember, 1933.
Unusually mild weather in September and dur­
ing the first weeks o f O ctober militated against con­
sumption o f seasonal merchandise, and in a number
of lines, notably apparel, shoes, hats, etc., sales fell
below expectations. H ow ever, the weather con­
ditions, follow ing the abundant rainfall in late
August and during September, were ideal for agri­
cultural operations o f all descriptions. Planting of
fall grains made progress above the seasonal sched­
ule, and wheat and barley are generally up to good
stands, with color and root growth exceptionally
£ood. The clear, warm days were auspicious for
maturing and harvesting late crops. W ith the ex­
ception of corn and oats, which were irreparably
damaged by the spring and summer drouth, im­
provement was shown in practically all Eighth Dis­
trict crops during September, according to the U. S.
Department o f Agriculture's report based on condi­
tions as o f O ctober 1. Purchasing power in the
rural areas has been substantially increased by the

G




C. M . STEWART,
S e c r e ta r y a n d A is't F

J. VION PAPIN,
e d e r a l R e s e rv e A g e n t

BANK

OF

ST.

S t a t is t ic ia n

LO UIS

high prices being realized on farm products and
the substantial amounts paid by the Government
in rental and benefit payments to farmers cooperat­
ing in the crop reduction programs.
Retail trade in September, as reflected by de­
partment store sales in the principal cities was 31.7
per cent greater than in August and 21.6 per cent
in excess of September, 1933; cumulative total for
the first three quarters of the present year showed
an increase o f 18.5 per cent over the comparable
period in 1933. Combined sales of all wholesale and
jobbing firms reporting to this bank in September
fell 5 per cent below the August total, but were
9 per cent in excess of the aggregate for the same
month last y e a r; cumulative total for the first nine
months was 14.2 per cent greater than for the same
period in 1933. The dollar value of permits let for
new construction in the five largest cities o f the
district in September was 5.5 per cent greater than
in August and 53 per cent more than in September
last y ea r; for the first nine months the total was 46
per cent below that of the corresponding period in
1933. Construction contracts let in the Eighth Dis­
trict in September were 7.4 per cent smaller than
in August and 57.2 per cent less than the total for
September last year; cumulative total for the first
nine months this year was 43.0 per cent greater
than for the first three-quarters of 1933. Debits
to individual accounts in September were 4.-3 per
cent and 7 per cent greater, respectively, than a
month and a year earlier, and for the first nine
months the total exceeded that o f the comparable
period last year by 11.2 per cent.
Freight traffic o f railroads operating in this
district showed somewhat less than the usual sea­
sonal increase, but the cumulative total for the first
nine months this year was well in excess o f the
comparable periods a year and tw o years earlier.
Relatively the best showing was made in the classi­
fications o f livestock, coal and coke, ore and mis­
cellaneous freight. The unusually heavy volume of
livestock handled is attributable in large measure
to the transfer o f Government purchased cattle in
the drouth areas. For the country as a whole load­

ings o f revenue freight for the first 40 weeks this
year, or to O ctober 6, totaled 23,940,117 cars, against
22,277,053 cars for the corresponding period in 1933,
and 21,597,781 cars in 1932. T he St. Louis Terminal
Railway Association, which handles interchanges
for 28 connecting lines, interchanged 77,661 loads in
September, against 78,733 loads in August, and
72,333 loads in September, 1933. During the first
nine days o f O ctober the, interchange amounted to
20,981 loads, against 22,962 loads during the corre­
sponding period in September and 21,285 loads dur­
ing the first nine days of October, 1933. Passenger
traffic o f the reporting lines in September increased
2.5 per cent over the same month in 1933. Esti­
mated tonnage o f the Federal Barge Line between
St. Louis and New Orleans in September was
114,300 tons, against 120,131 tons in August and
119,340 tons in September, 1933.
Reports relative to collections during the past
thirty days -continued to reflect the satisfactory con­
ditions which have prevailed since last spring. Best
results were obtained in sections least affected by
the drouth, particularly in the typical cotton produc­
ing areas. In the principal distributing centers
wholesalers reported September collections relative­
ly larger than a year ago, and O ctober settlements
to date have mainly sustained the improvement.
Generally through the south liquidation with coun­
try merchants and banks has been in considerable
volume. Department stores and other retail estab­
lishments in the large urban centers early October
payments as making a favorable showing as con­
trasted with the like period in 1933. Questionnaires
addressed to representative interests in the several
lines scattered through the district show the follow ­
ing results:
Excellent

September,
August,
September,

1934....... 3.5%
1934.----- 3.4
1933....... 5.3

Good

Fair

Poor

40.2%
30.7
30.4

49.4%
56.8
49.0

6.9%
9.1
15.3

Commercial failures in the Eighth Federal
Reserve District, according to Dun and Bradstreet,
numbered 33 in September, involving liabilities of
$492,749 against 25 defaults in August with liabili­
ties o f $336,146, and 47 insolvencies for a total of
$656,537 in September, 1933.
M A N U F A C T U R IN G A N D W H O L E S A L IN G
B oots and Shoes — September sales of the re­
porting firms were 8.6 per cent larger than for the
same month in 1933 and 9 per cent below the August
total this year. Stocks .decreased 11 per cent be­
tween September 1 and October 1, and on the
latest date were more than three-fourths greater
than a year ago. The decrease in the month-tomonth sales comparison is seasonal in character.




Since October 1 there has been a general pickup in
ordering, with especially good results in the south.
Prices were mainly unchanged as contrasted with
the preceding month, and the same was true rela­
tive to factory operations.
Clothing — The mild fall to date has had a ten­
dency to hold down the movement o f seasonal
apparel through retail channels, particularly men’s
topcoats. Ordering for spring distribution has been
on a fairly liberal scale, the volume of advance
business as of October 1 being slightly ahead of a
year ago. Comment is made by a number o f impor­
tant firms that a higher grade of goods is being
taken was the case at this time a year and two
years earlier. September sales of the reporting
clothiers were 5 per cent below the August total,
but 62 per cent larger than in September, 1933.
Stocks on October 1, were 17 per cent smaller than
a month earlier, but 17 per cent larger than a year
ago.
Drugs and Chemicals — Business in this classi­
fication continued the improvement noted during
the preceding several months, with volume being
still at higher levels than a year ago. A slowing
down in purchasing of heavy chemicals and drugs
by the manufacturing trade has been more than
counterbalanced by increased sales in other lines.
An especially favorable showing has been made in
cosmetics, medicines and miscellaneous drugs. Sales
of the reporting firms in September were 10 per cent
larger than for the preceding month, and showed a
gain of 15 per cent as compared with September last
year. Inventories on October 1 were 2 per cent
smaller than on September 1, and about one-fifth
greater than a year ago.
D ry Goods — Follow ing the usual seasonal
trend, sales of the reporting firms in September de­
creased 9 per cent below the August total, but were
30 per cent greater than in September, 1933. Stocks
on October 1 were 16 per cent smaller than on Sep­
tember 1, and 17 per cent larger than a year ago.
The warm weather has tended to hold down sales
of seasonal merchandise of all descriptions, and
there has been some slowing down in orders for
immediate shipment. Advance business, however,
is above a year ago, and sales during the first half
o f October indicate an increase of about 15 per cent
over the same time in 1933.
Electrical Supplies — For the seventeenth con­
secutive month, September sales in this classifica­
tion showed an increase over the corresponding
period a year earlier. The outlet through the build­
ing industry has failed to broaden, but sales of
other products, notably household appliances, radio,
refrigeration, small motors, etc., have more than

made up the reduced requirements for building in­
stallations. Sales in September of the reporting
interests fell 3 per cent below the August aggregate,
but were 40.6 per cent larger than in September last
year. Stocks on O ctober 1 were 10 per cent larger
than a month earlier and 42 per cent greater than
a year ago.

Flour — Production at the twelve leading mills
of the district in September totaled 300,674 barrels,
the largest since last January, and comparing with
248,471 barrels in A ugust and 259,458 barrels in
September, 1933. Moderate improvement in pur­
chasing by domestic consumers was noted during
late September and the first half o f October. Rela­
tive stability in the price of cash wheat served as
an incentive to heavier takings by the large baking
and jobbing interests. Chain stores also were pur­
chasing on a larger scale than heretofore. Prices
showed little change as contrasted with the pre­
ceding two or three months. Mill operations were
at approximately 56 per cent of capacity.
Furniture — Reversing the ordinary seasonal
trend, September sales o f the reporting firms fell
5.6 per cent below the August total, and were about
one-third smaller than in September last year.
Stocks on October 1 were 35 per cent and 8 per cent
smaller respectively, than a month and a! year earlier.
Some improvement was noted in specialties, such
as office and hospital furniture and equipment, but
demand for household furniture and furnishings
remains quiet.
Groceries — Somewhat less than the usual sea­
sonal increase in sales from August to September
was indicated by the reporting firms. The total for
September was 4 per cent larger than during the
preceding month and 22 per cent in excess of a year
ago. Inventories increased 2 per cent between Sep­
tember 1 and October 1, and on the latest date were
2 per cent less than a year ago. Purchasing of
canned goods was in considerable volume, being
stimulated by expectations o f higher prices because
of short fruit and vegetable crops.
Hardware — Repair materials, including paints,
nails and a broad assortment o f other commodities,
are reported as m oving more actively than in a
number of months. In addition purchasing in the
rural areas has picked up and advance ordering for
spring distribution makes a favorable exhibit. A s a
result of these factors and continued fair purchasing
for routine requirements September sales o f the
reporting interests increased 4 per cent and 1 per
cent, respectively, as compared with a month and
a year earlier. Inventories decreased further, stocks
on October 1 being 9 per cent and 4 per cent smaller,




respectively, than on September 1, and October 1
last year.
Iron and Steel Products — Changes in the iron
and steel industry in this district during September
and the first half of October were in the form of
moderate improvement, mainly seasonal in charac­
ter. The melt and shipments of pig iron and scrap
during September showed a fair gain over the pre­
ceding month, and this betterment has been carried
into October. Purchasing of pig iron during the
past thirty days has been on a larger scale than
since spring. Sales are mainly for prompt shipment,
there being little contracting for future require­
ments. Stove and heating apparatus manufacturers
increased their activities, and at the middle o f O cto­
ber averaged about five days per week, as against
two to three days between August 15 and Septem­
ber 15. Activities at farm implement plants have
also increased, and orders from all sections of the
territory are in considerably larger volume than
thought possible under the severe drought condi­
tions which prevailed during the summer. Mak­
ers of household appliances, including washing
machines, vacuum cleaners, refrigerators, etc.,
report a large volume of new orders, with a number
of plants working full time. Purchasing by the auto­
motive industry is confined chiefly to materials for
new models, and below the anticipated volume.
Building materials continue quiet, except in the
case of items for highway construction, river im­
provement work and other outdoor engineering
projects. Iron and steel warehouse and jobbin g
interests report September volume slightly greater
than in August. W ith the exception of iron and
steel scrap, which declined further, prices of fin­
ished and raw materials showed no marked changes.
For the country as a whole, production of pig iron
in September, according to the magazine “ Steel,”
totaled 899,075 tons, the smallest for any month
since May, 1933, and comparing with 1,060,187 tons
in August and 1,507,931 tons in Septem ber/1933.
Steel ingot production in the United States in Sep­
tember was 1,251,630 tons, against 1,363,359 tons in
August, and 2,283,079 tons in September, 1933.
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
168,872, against 234,809 in August, and 196,082 in
September, 1933.
Conforming with the seasonal trend, distribu­
tion of automobiles in this district decreased from
August to September, and, according to reporting
dealers, the total for the latest month fell below
that o f the corresponding period a year ago. The
decrease in the month-to-month comparison was

somewhat greater than the average during the past
decade. A s was the case during the preceding sev­
eral months, relatively the best showing was made
by dealers handling cars o f the three principal inter*
ests in the cheap priced category. Sales of trucks
in^September fell 8 per cent below August, but were
approximately one-half greater than in September
a year ago. Business in parts and accessories showed
little change from the preceding month.
September sales o f new passenger cars by re­
porting interests were 10 per cent smaller than for
the same month in 1933, and about one-fourth less
than the August total this year. Dealers continue
to "purchase on a basis o f actual, or fairly certain
prospective requirements, and indications are that*
stocks o f present models will be well cleared up
when new models are put out by the manufacturers.
Stocks of new cars on dealers’ floors on October 1
were 12 per cent smaller than a month earlier, and
28 per cent greater than a year ago. Sales o f used
cars in September fell 6 per cent and 11 per cent,
respectively, below a month and a year ago. Stocks
o f salable secondhand cars increased slightly be­
tween September 1 and October 1, and on the latest
date were larger by 4.5 per cent and 12 per cent,
respectively, than a month and a year earlier. A c ­
cording to dealers reporting on that item, deferred
payment sales in September constituted SO per cent
of their total sales, against 50.5 per cent in August
and 42 per cent in September, 1933.
R E T A IL T R AD E
The condition of retail trade is reflected in the
follow in g comparative statements showing activi­
ties in the leading cities of the district:
Department Stores
Stocks
Net sales comparison
on hand
Sept. 1934 9 months ended Sept. 30, 1934
comp, to Sept. 30, 1934 to
comp, to
Sept. 1933 same period 1933 Sept. 30, 1933
— +53.1%
+41.4%
+ 6.5%
„...+ 3.8
+ 10.4
— 13.3
Fort Smith, Ark,....+28.4
+27.3
— 13.1
Little Rock, ArkC...+47.3
+32.6
— 7.1
Louisville, Ky...,....+10.0
+ 9.0
— 9.0
....+20.4
+24.3
— 1.2
,...+20.6
+ 16.8
— 8.0
....+20.6
+28.8
— 1.0
;....+31.8
+28.0
+ 1.9
:t.. 4-21.6
+ 18.5
— 6.8

Stock
turnover
Jan. 1, to
Sept,.30,
1934 1933
1.94 1.47
1.39 1.30
1.59 1.40
1.71 1.55
2.33 2.25
2.35 2.10
2.70 2.57
1.39 1.12
2.10 1.84
2.42 2.27

Percentage of collections in September to accounts and notes receiv­
able first day of September, 1934. (Percentage of collections by cities).
El Dorado, Ark..................... 34.4%
Memphis, Tenn.........„..„........37.‘9%
Fort Smith, Ark................... 36.1
Springfield, Mo.....................;..24.5
Little Rock, Ark................... 33.9
St. Louis, Mo............„............46.5
Louisville, Ky........................ 46.8
All Other Cities......................28.5
8th F. R. District....................... 42.6%

Retail Stores
Stocks
Net sales comparison
on hand
Sept. 1934 9 months ended! Sept. 30, 1934
comp, to Sept. 30, 1934 to
comp, to
Sept. 1933 same period 1933 Sept. 30, 1933
Men's
'
Furnishings .......1-31.9%
-|-25.6%
+ 12 .2 %
Boots and
— 3.1
— 8.0
Shoes ................ +15.6




Stock
turnover
Jan. 1, to
Sept. 30,
1934 1933
-----1.71 1.78
2.23

2.11

PO STAL RECEIPTS
Returns from the five largest cities of the dis­
trict show an increase in combined postal receipts
for the third quarter this year, of 1.7 per cent over
the corresponding period in 1933, and a decrease of
5.9 per cent under the quarter ended June 30, 1934.
Detailed figures follow:
Sept. 30,
Tune 30,
1934
1934
Evansville ........$ 133,923 $ 133,937
167,554
160,085
Little Rock.___
560,684
598,983
Louisville ____
Memphis ______ 449,545 .
461,360
St. Louis______ 2,136,137
2,311,177

Mar. 31,
1934
$ 141,196
182,751
605,216
499,219
2,320,894

Sept. 1934
Sept. 30, corap. to
1933
Sept. 1933
$ 139,549 — 4.0%
153,540 + 9.1
540,284 + 3.8
448,329 + 0.03
2,107,190 + 1.4

Totals

$3,749,276

$3,388,892

________ $3,447,843

$3,665,542

+

1.7%

CONSUM PTION OF E LEC TR IC ITY
Public utilities in the five largest cities of the
district report consumption of electric current by
selected industrial customers in September, as being
about 13.5 per cent smaller than in August, and 7.5
per cent less than in September, 1933. Detailed
figures follow:
No. of Sept.,
Aug.,
Sept. 1934
Sept., Sept. 1934
Custom1934
1934
comp, to
1933 comp, to
ers
* K .W .H . *K .W .H . Aug. 1934*K.W .H . Sept. 1933
Evansville .... 40
1,8512,488
— 25.6%
1,656
+11.8%
Little Rock... 35
1,8462,339
— 21.1
1,961
— 5.9
Louisville .... 84
6,9567,790
— 10.7
7,337
— 5.2
1,6851,798
— 0.3
1,262
+33.5
Memphis .... 31
St. Louis...... 193** 16,428 18,829
— 12.8
18,881** — 13.0
Totals ........3 I J
28,766
*In thousands (000 omitted).
••Revised figures.

33,244*

— 13.5%

31,097

— 7.5%

B U IL D IN G
T he d o llar v alu e of perm its issued for new
construction in the five larg e st cities of the district
in Septem ber w as 5.5 per cent g re ate r than in
A u gu st, and 53.3 per cent more than the Septem ber,
1933 total. A ccording to sta tistic s com piled b y the
F . W . Dodge Corporation, construction contracts
let in the E ighth F ederal R eserve D istrict in Sep­
tem ber am ounted to $ 7,616,894 w hich compares
w ith $8,228,255 in A ugust, and $14,432,097 in Sep­
tem ber, 1933. B u ild in g figures for Septem ber, fol­
lo w :
New Construction Permits
*Cost
1934
1933
1934
1933
Evansville ..
4
150
$ 85 $ 26
Little Rock
8
14
7
5
Louisville .. 40
34
340
157
Memphis ... 95
142
52
39
St. Louis.... 151
148
244
248

Repairs, etc.
Permits
*Cost
1934 1933
1934 1933
337
47
$ 109 $ 10
145
63
31
8
63
33
21
17
135
127
68
71
364
396
321
354

Sept. totals 298
488
$ 728 $ 4751,044
666
Aug.
“
318
475
690
3,877
807
522
July
V
281
476
481
3,615648
447
*In thousands of dollars (000 omitted).

$ 550 $460
210
261
228 318

A G R IC U L T U R E
Crop prospects as a w hole in the E ighth Dis­
tric t im proved d u rin g Septem ber, and the better­
m ent w as continued through the first h alf of Octo­
ber. A bundant rain s in late A u g u st and d u rin g the
follow ing month w ere of im m ense benefit to late
crops, n o tably potatoes, h ay, legum es, sorghums,
apples and certain vegetab les. Pasture's in many
sections effected record recovery, and m oisture was
supplied for p lan tin g w in ter w h eat and rye, and

bringing these crops up to a good stand. W ater
for livestock, which in the worst affected drouth
sections was practically exhausted, was replenished
and the great deficiency of subsoil moisture partial­
ly restored. W hile the year in broad stretches of
the district will be recorded as one o f extremely
small production, the fall season to date has
wrought surprising improvement in earlier pros­
pects. Expressed as a percentage of the 10-year
(1921-1930) average, combined yield per. acre of 33
important crops indicated on O ctober 1, in states
including the Eighth District, according to the U. S.
Department of Agriculture, was as follow s: Indi­
ana, 81.7; Illinois, 65.7; Missouri, 46.1; Kentucky,
106.9; Tennessee, 108.3; Mississippi, 106.5, and A r­
kansas, 87.3. In all these states excepting Indiana
and Illinois, there was improvement from Septem­
ber to October, ranging from 1 per cent in Missouri
to 8.4 per cent in Arkansas.
Since the end of September weather generally
has been mild and clear, which constituted ideal
conditions for maturing and garnering late crops.
Husking of corn has made considerable progress,
and greater than the usual portion o f the crop had
been cribbed at the middle of October. T he cotton,
rice and tobacco harvests have proceeded with prac­
tically no interruption, and in this district prospec­
tive yields of these crops increased during Septem­
ber. Em ergency forage crops in the main under­
went betterment, and estimates o f tame hay produc­
tion increased somewhat, under intensive efforts
of farmers to save late production because of the
shortage and war-time prices being paid for hay in
some sections. Pastures made an almose phenomenal
recovery between September 1 and October 1; Mis­
souri, for example rising from 18 per cent to 48 per
cent of the 1922-1931 average during the period,
and Illinois.from 47 per cent to 68 per cent.
A total of $57,460,366 has been added to 19331934 farm income in states of the Eighth District
by rental and benefit payments up to September 1
to farmers cooperating in the adjustment programs
of wheat, cotton, tobacco, corn and hogs, according
to the Agricultural Adjustm ent Administration’s
report issued October 10. Since September 1 addi­
tional disbursements of considerable size have been
made. The follow ing table analyzes the payments
by state and com m odity up to September 1:
Cotton
Wheat
1,94J>
Ar.k. ... ...$14,783,697 $
Ill........
1,805,527
Ind. ...
1,409,467
Ky.......
186,548
Miss. . .... 14,521,429
Mo....... ... 2,471,770
1,131,699
Tenn. ... 4,683,260
90,949
Totals ...$36,524,607* $ 4,626,135

Tobacco
180
268
72,246
2,537,251

Com-Hogs
$ 231,236
1,050,833
4,845,419
309

49,941
624,293

*’*6,8347707
62,942

Totals
$15,017,058
2,856,627'
6,327,132
2,788,559
14,521,429
10,488,117
5,461,444

$ 3,284,179

$13,025,446

$57,460,366

$

♦These figures do not include transactions in distribution, of profits
or advances on cotton, options, either exercised or through participation
in the cotton pool.




Corn — A s in other sections of the country,
Eighth District corn is showing disappointing
yields, and much grain of inferior quality. In its
report as of October 1, the U. S. Department o f
Agriculture estimates production in this district at
165.724.000 bushels, a decrease of 9,058,000 bushels
from the September 1 forecast, and comparing with
296.955.000 bushels harvested in 1933 and an 11-year
average (1923-1933) of 346,344,000 bushels. This
estimate not only includes corn for grain, but the
grain equivalent o f corn to be utilized for forage,
silage, and pasturage. In Missouri the indicated
yield of 4 bushels to the acre is the lowest on record
and compares with the 1933 average of 22.5 bushels,
while in Illinois the crop is the smallest since 1873.
Drouth accounted for the principal part o f the fail­
ure, but heavy inroads were also made by chinch
bugs, ear-worms and other insect pests. One of the
largest acreages of corn that has ever been so util­
ized is being harvested for silage and fodder this
year. The carry-over of old corn is universally
light, and much of the sealed corn was taken out to
carry livestock through the drought period, or to
sell because of favorable prices.
W inter W heat — The Government's October 1
report makes no change in Eighth District produc­
tion of winter wheat, the output being placed at
44.813.000 bushels, against 38,434,000 bushels har­
vested in 1933, and an 11-year average (1923-1933)
of 49,096,000 bushels. In a number of sections,
notably in Missouri where tlie wheat crop for the
first time on record exceeds the corn yield, farmers
are holding considerable wheat for feeding livestock.
A good seedbed, abundant rains at the right time
and warm weather for germination and growth have
served to put the crop planted this fall ahead of the
usual schedule.
Fruits and Vegetables — Late fruits and vege­
tables were materially benefited by the late August
and September rains. This was true particularly o f
apples, the precipitation having helped to size late
varieties. W hite potato prospects in the district
proper improved slightly between September 1 and
October 1, the forecast on the latter date being for
8.983.000 bushels, against 9,107,000 bushels har­
vested in 1933 and an 11-year average of 13,967,000
bushels. In states entirely or partly within the
Eighth District the sweet potato crop is estimated
by the U. S. Department of Agriculture, on a basis
o f October 1 conditions, at 17,058,000 bushels, an
increase o f approximately 2 per cent over the Sep­
tember 1 forecast and comparing with 15,960,000
bushels harvested in 1933 and a 5-year (1927-1931)
average o f 15,873,000 bushels. In these states the
apple crop is forecast at 8,676,000 bushels, o f which

3.716.000 bushels represent commercial crop;
against 12,784,000 bushels in 1933, with 5,044,000
bushels commercial production and a 5-year average
of 15,181,000 bushels o f which 6,653,000 bushels
were commercial production; pears, 2,021,000 bush­
els,sagainst 883,000 bushels last year and a 5-year
average of 1,706,000 bushels; grapes, 34,022 tons,
against 33,136 tons in 1933 and a 5-year average of
29,341 tons. Production o f peanuts in these states
promise to be the largest of record, 42,300,000
pounds, against 36,845,000 pounds in 1933 and a
5-year average o f 27,701,000 pounds. T h e A gricul­
tural Adjustment Administration estimates prices
for the 1934 peanut crop above $59 a ton for Spanish
peanuts, $56 a ton for Virginias and $50 a ton for
runners, as a result of the recently announced pea­
nut program. A ll producers will benefit from these
prices, and in addition producers w ho sign and carry
out agreements to adjust the 1935 peanut acreage
will receive $8 on each ton o f peanuts harvested in
1934.
Livestock — The past month-has been marked
by considerable improvement in condition of live­
stock in the northern stretches o f the district. The
betterment is attributable almost entirely to the
late A ugust and September rains, which restored
deficient water supplies and greatly improved pas­
tures. Milk production showed a marked increase
over the preceding month due to greatly improved
pastures. E g g production was slightly lower than
last year. Eighth District hay production on O cto­
ber 1 was estimated at 4,219,000 tons, an increase of
469.000 tons over the September 1 forecast and com ­
paring with 5,249,000 tons harvested in 1933 and an
11-year average (1923-1933) of 6,832,000 tons.
Receipts and shipments, at St. Louis as reported
by the National Stock Yards, were as follow s:
Receipts
Sept.,
Aug.,
Sept.,
1934
1934
1933
Cattle and Calves___289,680 339,350 111,650
Hogs ______________ 220,176 170,745 543,720
Horses and Mules.... 10,238
6,281
6,372
Sheep ......................... 68,941 52,276 47,461

Shipments
Sept.,
Sept.,
Aug.,
1934
1934_________
1933
178,078 210,898 57,820
115,410 125,139 266,344
9,204
6,548
6,264
18,744 18,877
8,780

Cotton — Eighth District cotton prospects in­
creased during September under generally favora­
ble weather conditions. In its report as of October 1
the U. S. Department o f Agriculture estimates the
yield at 1,957,000 bales, which is 156,000 bales more
than the September 1 forecast, and compares with
2.554.000 bales harvested in 1933, and a 10-year
average (1923-1932) o f 2,705,000 bales. The crop in
many sections was greatly improved by the fall
rains and the clear, warm weather which followed
the precipitation. The past few weeks have Been
auspicious for harvesting and ginning the crop.
Labor has been plentiful for the harvest ow ing to
the largely rcduced acreage. During early October




prices declined slightly, but continued well ahead
of the corresponding period a year and two years
earlier. In the St. Louis market the middling grade
ranged from 11.80c to 12.50c between September 17
and October 15, closing at 11.85c on the latter date,
which compares with 12.50c on September 17 and
8.45c on October 16, 1933. Receipts at Arkansas
compresses from August 1, to October 12 totaled
423,951 bales against 345,363 bales in the corre­
sponding period a year ago. Stocks on hand as of
October 12 totaled 557,11 bales, against 329,315
bales on September 14 and 392,905 bales on the
corresponding date in 1933.
Tobacco — Prospects bettered to the extent of
4,108,000 pounds in this district during September.
Based on October 1 conditions the U. S. Depart­
ment of Agriculture estimate Eighth District pro­
duction at 234,951,000 pounds, against 277,750,000
pounds harvested in 1933 and an 11-year average
(1923-1933) of 304,854,000 pounds. The season thus
far has been one of the most favorable experienced
for curing tobacco. Burley leaf is curing slowly but
thoroughly and in some sections stripping is in full
progress. The crop gives indications of being a
desirable one, especially in the case of cigarette and
smoking grades. No definite date for opening the
tobacco markets has been determined, but it is like­
ly that selling will begin in late November or early
December.
In the dark tobacco districts, the air-cured crop
is reported curing satisfactorily; being of high qual­
ity and free of houseburn. In the dark-fired districts
tributary to Clarksville, Springfield, Hopkinsville
and the western district, cutting and housing is
also practically completed. Late tobacco improved
noticeably under favorable weather in August and
September and gives every indication of high
quality.
C O M M O D ITY PRICES
Range of prices in the St. Louis Market between
September 15, 1934 and October 15, 1934, with clos­
ing quotations on the latter date, and October 16,
1933, follows:
High

Low

Wheat
Dec...................... perbu..$1.04f$$ .96
May ---------------- “
1.05J4 .95
No. 2 red winter 44
1.04*4 .9 6 #
No. 2 hard “
44
1.12
1.03
Com
.79** .72*4
*pec....................... "
♦May .................... “
.80% .75
♦July ..........------ ;;
.80*4 .72H
No. 2 mixed ..... “
.79J£ .79J4
No. 2 white ...... 44
.88
.83
Oats
No. 2 white ..... u
.60
.53*4
Flour
Soft patent........ perbbl. 7.30
6.50
Spring ” ........ “
7.30
7.65
Middling Cotton..per lb.
.1250 .1180
3.00
Hogs on hoof..... per cwt. 7.40
•Nominal quotations.

Close
Oct. 15, 1934
Oct. 16,1933
------------------------------------$
1.00
$ .70#
1.00
.74#
1.03
.76J4@ .76#
1.08J4
.74J4@ .74#
.76*4
.37*4® .38
.7 8 # @ .78*1
.44*4 @ .44#
.79
.46 @ .46$
.79$4
.3 7 # ® .37#
.85*4
.39 @ .39V*
.58
6.70 @7.00
7.40 @7.65
.1185
5.85 @3.00

.29

@ .29#
5.75 @6.25
6.60 @6.75
.0845
3.50 @4.S5

F IN A N C IA L
Demand for credit expanded slightly in the
Eighth District during the past thirty days the
betterment being confined largely to the southern
sections of the area. Requirements for financing
the tobacco and cotton crops have expanded, but
less than is ordinarily the case at this season. Some
banks in the tobacco region have increased their
borrowings from city correspondents. Commit­
ments of grain and flour milling interests, though
somewhat reduced from the preceding thirty days,
are still substantially larger than a year and tw o
years ago. In the principal urban centers banks
report a fair volume o f mercantile and industrial
loans, but with liquidation o f prior loans still in
larger volum e than new commitments and renewals.
Taken as a whole available funds held by banks,
both in the city and country, are considerably in
excess o f credit requirements.
Between September 12 and October 10, total
loans of reporting member banks in the chief cities
increased 3.5 per cent and on the latest date were
8.3 per cent smaller than a year ago. Total invest­
ments o f these banks during the four-week period
increased by 1.6 per cent and were 10.1 per cent in
excess o f the total on O ctober 11, 1933. Deposits
continued to m ove upward, and at $548,131,000 on
October 10 were 0.6 per cent and 19 per cent greater,
respectively, than a month and a year earlier.
There was a fair-increase in borrowings of all
member banks from the Federal Reserve bank be­
tween September 17 and O ctober 17. Industrial
loans and commitments granted by this bank under
Section 13b o f the Federal Reserve A ct, approved
June 19, 1934, continue in substantial volume. A s
of October 17, advances amounted to $363,000 and
commitments to $530,000, as compared with $67,000
and $132,000, respectively, a month earlier.
The amount o f savings deposits held by selected
banks as o f O ctober 3 was slightly larger than on
September 5, and 16.7 per cent greater than on
October 4, 1933.
Changes in interests rates were negligible, but
the trend was slightly firmer. A t St. Louis banks,
as of the week ended O ctober 15, current rates were
as follow s: Customers prime commercial paper,
2 to 5j^ per cen t; collateral loans, 4 to 6 per cent;
loans secured by warehouse receipts, 2 to 6 per ce n t;
interbank loans, 5 to 6 per cent and cattle loans 5
to 6 per cent.
Condition of Banks — Loans and discounts of
the reporting member banks on O ctober 10, 1934,
showed an increase o f 3.5 per cent as contrasted
with September 12,1934. Deposits increased 0.6 per




cent between September 12, 1934 and October 10,
1934 and on the latter date were 19.0 per cent great­
er than on October \l% 1933. Composite statement
fo llo w s :
♦Oct. 10,
1934
Number of banks reporting...........
19
Loans and discounts (inch rediscounts)
Secured by U. S. Govt, obligations
and other stocks and bonds....$ 70,905
All other loans and discounts.... 146,345
Total loans and discounts..
Investments
U. S. Govt, securities....
Other securities..............

♦Oct. 11,
m$
19

19
$ 71,473
138,507

$ 88,958
148,072

— 4217,250

$209,980..

$237,030

.......$181,453
___ _ 116,578

$182,580
114,455

$128,967
102,12S

Total investments............................ $298,031

$297,035

$231,092

Reserve balance with F. R. Bank..$ 86,294
Cash in vault......................................
8,072
Deposits
Net demand deposits....................$352,816
Time deposits................................ 165,560
Government deposits.......*............ 29,755

$ 84,866
8,691

$ *9,505
8,822

$349,393
165,807
29,770

$277,199
159,355
24,014

$544,970
$460,568
Total deposits.............. .................... $548,131
Bills payable and rediscounts with
Federal Reserve Bank..............................
..............
..............
*In thousands (000 omitted).
The total resources of these banks comprise approximately 62.0% •
of all member banks in this district.

Federal Reserve Operations — During Septem­
ber, the Federal Reserve Bank of St. Louis dis­
counted for 8 member banks against 8 in August
and 65 in September, 1933. The discount rate of
this bank remained unchanged at 2
per cent.
Changes in the principal assets and liabilities of
this institution appear in the follow ing table:
♦Oct. 19,
1934

♦Sept. 19,
1934
$
352

♦Oct. 19,
1933
$ 1,877

93,200
122

’*93*200
122

***90i499
172

Total Bills and Securities................. ..$ 93,898

$ 93,674

$ 92,548

... 147,802
... 142,444

$189,230
141,696
135,439

$156,765
92,166
139,793
4,747

68.3%

67.6%

Bills bought ......
U. S. Securities..

...

Ratio of reserve to deposits
and F. R. Note Liabilities.....
#In thousands (000 ommitted).

...

70.0%

Debits to Individual Accounts — The follow ing
table gives the total debits charged by banks to
checking accounts, savings accounts, certificates o f
deposit accounts and trust accounts of individuals,
firms, corporations and U. S. Government in leading
cities o f the district. Charges to accounts of Banks
are not included.
♦Sept.,
1934
East St. Louis and NatT
Stock Yards, 111...$ 21,816
El Dorado, Ark......
3,609
Evansville, Ind...... 15,751
Fort Smith, Ark.....
7,630
3,844
Greenville, Miss.....
Helena, Ark...........
2,341
Little Rock, Ark.... 22,342
Louisville, Ky........ 115,491
Memphis, Tenn...... 103,037
Owensboro, Ky......
3,668
6,853
Pine Bluff, Ark.....
Quincy, %111..............
5,431
St. Louis, Mo......... 392,720
Sedalia, Mo.............
1,541
Springfield, Mo...... 10,789.
♦♦Texarkana.
Ark.-Tex.......... ..
5,281
..$722,144

♦Aug.,
1934
$ 21,996
*3,251
16,560
6,930
2,617
1,441
22,344
116,112
79,601
3,275
4,323
5,695
390,897
1,576
10,889

♦Sept.,
1933
$ 23,194
3,057
13,849
7,511
2,927
1,401
19,468
107,079
88,040
2,494
5,399
4,890
379,600
1,295
9,386

Sept., 1934 comp, to
Aug., 1934 Sept. 1933
— 0.8%
+11.0
— 4.9
+ 10.1
+46.9
+62.5
— 0.5
+29.4
+12.0
+58.5
— 4.6
+ 0.5
— 2.2
— 0.9

— 5.9%
+18.1
+13.7
+ 1.6
+31.3
+67.1
+14.8
+ 7.9
+17.0
+47.1
+26.9
+11.1
+ 3.5
+19.0
+ 14.9

.........

4,773

5,098

+ 10.6

+ 3.6

$692,280

$674,688

+ 4.3

+

‘ *In thousands (000 omitted).
"♦Includes one bank m Texarkana, Texas not in Eighth District.

(Compiled October 22, 1934)

7.0

BUSINESS CO N DITIONS IN T H E U N ITED STATES
PRODUCTION AN D EM PLO YM ENT — Volume of in­
dustrial production, as measured by the Board’s seasonally ad­
justed index, declined from 73 per cent of the 1923-1925 average
in August to 71 per cent in September. There were substantial
declines in activity at cotton and woolen mills, reflecting the influ­
ence of the textile strike, and in the output of shoes, automobiles,
and lumber. After the termination of the strike, textile produc­
tion increased. Steel mill operations, which had declined sharply

DISTRIBUTION — Daily average railroad freight-carloadings increased from August to September by about the usual
seasonal amount, but declined slightly in the first half of October.
Sales at department stores increased from August to September
by somewhat less than the estimated seasonal amount, while
retail sales of general merchandise in rural districts, as shown by
reports of mail order houses and chain stores to the Department
of Commerce, increased considerably.

Indexes of the United States Bureau of Labor Statistics.
By months X929 to 1931; by weeks 1932 to date. (1926=100).
Latest figures October 13, farm products 71.0, foods 74.8, other commodities 78.1.

during the summer, have been at a higher level in recent weeks
than in the early part of September. Production of beef and lamb
increased further in September, reflecting in part the disposal of
animals bought in the drouth areas by the Federal Government.
Wheat flour production and sugar meltings also were larger in
September. Output of anthracite and bituminous coal showed a
larger than seasonal increase.
Factory employment and payrolls declined considerably in
September, largely as a result of the textile strike. The number
of workers employed was substantially reduced in the automobile,
iron and steel, and shoe industries, as well as in the basic textile
industries. There was a larger than seasonal increase in employ­
ment in clothing industries, while in the nonferrous metals, build­
ing materials, food products, and paper and printing industries,
employment was sustained. Among non-manufacturing lines, em­
ployment increased seasonally from August to September; at coal
mines and in retail trade. There was also a substantial increase
in the number of persons provided with work by the emergency
work program of the Federal Relief Administration, while employ­
ment on public works decreased somewhat.

PER

PER CENT

120

B ILLIONS OF DOLLARS

B i ll io n s o f d o lla rs

7

120

FrA C T 0 R Y EMPLOY!*4E N T AND►PAYROLL S

110

110

\

100

100

90

90
Employment

60

\

70

\r

\

V

00

\

70

\
Payrolls

60

7

_ _ V s

AO

1929

1930

1931

/

t

A

50

30

CO M M ODITY PRICES — Wholesale prices of farm prod­
ucts and foods, which had advanced sharply in August and the
first week of September, subsequently declined somewhat. The
weekly index of wholesale prices of the Bureau of Labor Statis­
tics, which had advanced, from 74 per cent of the 1926 average at
the beginning of June to 78 per cent early in September, stood
at 76 per cent in the second week of October. Recent declines
occurred principally in those products which had increased most
rapidly in preceding weeks, such as wheat, cotton, livestock, and
meats. Prices of commodities other than farm products and
foods have in general shown little change since last January, but
within recent weeks prices of textile products and scrap steel
declined slightly and gasoline prices showed a considerable de­
crease. The open market price of silver advanced sharply in the
first half of October.
BANK CREDIT — Excess reserves of member banks have
shown no material change during the past month and on October
17 amounted to about $1,750,000,000. A reduction in treasury
cash and deposits with the Federal Reserve banks somewhat
more than offset a seasonal growth of $57,000,000 in the volume

^

60
50

'

U)

V

30
1932

1933

193^

X&dexes of United States Bureau of Labor Statistical without adjustment for
seasonal variation. (1923-1905 averages? 100). Latest figures September,
preliminary, factory employment 75.8, payrolls, preliminary 57.9*

The value of construction contracts awarded, as reported by
the F. W . Dodge Corporation, continued in about the same vol­
ume during September as in other recent months. Department
of Agriculture crop report for October 1, indicated a cotton crop
of 9,443,000 bales as compared with a yield of 13,047,000 bales
last year. The corn crop, which averaged 2,516,000,000 bushels
from 1927 to 1931, is estimated at 1,417,000,000 bushels this year.
Hay and pasture conditions improved in September and weather
in the first salf of October was generally favorable for forage
crops. The yield of white potatoes is estimated at 362,000,000
bushels, about equal to the average for 1927-1931.



Wednesday figures for reporting member banks in 90 leading cities.
Latest figures are for October 17.

of money in circulation and a continued growth in required re*
serves arising from a growth in deposits. Volume of Reserve
bank credit outstanding showed little change. At reporting member
banks in leading cities there was a further growth in deposits
and loans and investments. Between September 19, and Octo­
ber 17, total deposits of the banks increased by about $500,000,0$
Commercial loans to customers and member banks’ holdings oi':
United States Government securities increased further, whfr
security loans declined. Short-term money rates continued at lo*-»
levels during September and the first three weeks of Octobc'
Yields on Government securities declined in October, follo\vi:«
an increase in August and September.