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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REVIEW OF BUSINESS CONDITIONS IN EIGHTH DISTRICT Released for Publication On and After the Morning of October 31, 1925 WILLIAM McC. MARTIN Chairman of the Board and Federal Reserve Agent N the main developments during the past thirty days have tended toward further expansion in general business. In a m ajority of lines investigated, September sales showed good gains over the corresponding period last year, and in a number of important instances, increases over the August totals this year. The completion of the prin cipal harvests has developed mainly satisfactory results, and prices being realized by farmers for their products are sufficiently high to insure good margins of profit. This fact, coupled with the uni versally high levels of employment in the leading industrial centers, has substantially increased the general purchasing power o f the public. Production and distribution of merchandise continues on a large scale, as indicated by the heavy (railroad loadings and actual statistics of manufacturers and wholesale and retail interests. W hile in a m ajority of lines purchasing is still being done largely on an immediate requirement basis, some improvement in future ordering has taken place, notably in dry goods, drugs and chem icals, hardware and iron and steel. Greater stability in com m odity prices has tended to increase manu facturing commitments for raw materials, and in a number of lines more goods are being made up to meet prospective demands than during the cor responding period last year. In the building field activities continue una bated, the dollar value of permits issued in the five largest cities of the district during September showing a gain of 21.0 per cent over the same month in 1924. In face of unseasonably warm weather, which retarded the movement of fall goods, sales at department stores in the principal centers of the district during September increased 0.3 per cent over those of the same month last year. Sales of chain and mail order stores continue to exceed all seasonal records. Purchasing of farm implements, stoves and supplies generally for the agricultural sections is in heavy volume. I Supply and demand in the labor market is well balanced throughout the district, according to re ports of the Employment Service of the U. S. Department of Labor. In all the chief industrial centers employment conditions during September displayed improvement over the preceding month. The call for common labor in highway construction, river improvement work and municipal and public utility building projects continued heavy, and served to absorb much of the slack created by com pletion of fall harvests. Save in certain counties where a shortage of cotton pickers was reported, farm help was fully adequate for all demands. A d ditions to their working forces were made by textile and lumber interests in the South. Improvement in the coal situation noted in the preceding issue of this report, and which was occa sioned partly by the strike in the anthracite fields which became effective September 1, failed to con tinue during the period under review. The spurt of buying by both steam users and the domestic trade quickly spent itself and was follow ed by a return of the recent quietness and a slight downward reac tion in prices. The unseasonably warm weather during September had a depressing effect on sales to householders, and wagon deliveries from retail yards were in unusually light volume. In antici pation of the usual seasonal demand, plus the addi tional requirements looked for because of suspen sion in hard coal production, production at the bituminous mines was speeded up, and producers have experienced difficulty in disposing of their full outputs. Competition is reported very keen, and in the Illinois and Indiana fields price is becom ing an important factor on account of the low prices made by Kentucky producers, with which dealers who handle Illinois and Indiana coals find it hard to compete. Total output of bituminous coal for the country as a whole during the calendar year 1925 to October 10, was 383,050,000 tons, against 360.545.000 tons for the corresponding period in 1924 and 443,303,000 tons in 1923. Traffic handled by railroads operating in the district continues on a larger scale than during any similar season in previous years. A s contrasted with the tw o preceding years, a large part of the recent gains is accounted for by heavier loadings of merchandise and miscellaneous freight. Total loadings of revenue freight for the entire country during the first 39 weeks of the year, or to Septem ber 26, were 37,846,925 cars, which compares with 35,701,943 cars for the corresponding period last year and 37,303,239 cars in 1923. T h e St. Louis T er minal Railway Association, which handles inter changes for 28 connecting lines, interchanged 217,465 loads in September, against 225,771 loads in August and 213,480 loads in September, 1924. D ur ing the first nine days o f O ctober 67,178 loads were interchanged, com paring with 62,828 loads during the first nine days o f September, and 68,973 loads during the corresponding period last year. For the first time in many months an upward trend was shown in passenger traffic by the reporting roads, a gain o f 3.5 per cent being recorded in September over the same month in 1924. Estimated tonnage of the Federal Barge line between St. Louis and New Orleans for the month of September was 47.000 tons, against 64,922 tons in A ugust and 80,537 tons in September, 1924. T h e high efficiency in collections generally through the district noted in recent months was well sustained during the past thirty days. Answers to 445 questionnaires addressed to repre sentative interests in the various lines throughout the district showed the follow ing results: Excellent September, 1925........... 3.1% August, 1925............... 4.0 September, 1924........... 4.1 Good 53.3% 36.0 34.9 Fair 41.5% 56.0 54.8 Poor 2.1% 4.0 6.2 Commercial failures in the Eighth Federal Reserve District during September, according to Dun’s, numbered 54, involving liabilities of $1,138,071, against 91 defaults in A ugust with liabilities of $1,049,444 and 71 failures for $3,586,174 in Sep tember, 1924. T h e per capita circulation of the United States on O ctober 1, 1925, was $42.17 against $41.84 on September 1, 1925, and $42.52 on O ctober 1, 1924. M A N U F A C T U R IN G A N D W H O L E S A L E Autom obiles — After declining steadily for the preceding four months, automobile production for the country as a w hole registered a sharp turn upward in September, total output for that month being 28.3 per cent larger than in A ugust and 12.5 per cent in excess of the September, 1924, total. Manufacturers reporting direct or through the National Autom obile Chamber of Commerce built 272,360 passenger cars in September, against 221,739 in A ugust and 263,464 in September, 1924. The output of trucks in September totaled 59,236, which compares with 36,696 in A ugust and 31,224 in September, 1924. Less than the usual slowing down in distribu tion of automobiles in September as compared with August was in evidence. A ccording to reports of dealers sales during the period under review were stimulated by the appearance of new models and recent price concessions. Business in the large cities was relatively better than in the country, ex cessive rains during the last half of September interfering with sales in the rural districts. D eliv eries o f cars from manufacturers to dealers are back ward, and the latter, in turn, are from three to eight weeks behind on deliveries to customers. Stocks of new cars in dealers’ hands are the smallest in more than four years. There has been a rather marked slump in sales of used cars, stocks of which are increasing, and in many instances burdensome. Business in accessories is holding up to the recent high levels, and greater stability and generally more satisfactory conditions are reported in the tire trade. Sales of 320 dealers scattered through the district during September were 9.4 per cent larger than during the same month in 1924, and 1.7 per cent below the A ugust total this year. B oots and Shoes — September sales of the 11 reporting interests were 18.2 per cent under those of the corresponding month in 1924 and 10.2 per cent below the August total this year. In the yearto-year comparison the loss is accounted for partly by a decrease in advance orders. Stocks on hand on O ctober 1 were 14.8 per cent in excess of the same date in 1924, but 9.1 per cent under those of September 1 this year. Prices of finished goods underwent no change during the past thirty days, and in raw materials the trend of values was slight ly lower, except on especially prepared calf skins. Factory operation was at from 93 to 100 per cent of capacity. Clothing — The movement of fall and w in ter apparel, both at wholesale and retail, was retarded by the unusually warm weather which prevailed through the district during September and into October. Manufacturers and jobbers report that purchasing by retailers is still of a character^ to suggest inventory caution. In turn producers are making up few goods for which they have not orders on hand. Uncertainty relative to styles is reflected in rather disappointing sales of w om en’s garments for spring delivery. In the immediate past some improvement has developed in sales of w om en's cloaks and suits, but the m ovement of heavy overcoats and the general run o f men’s cloth ing for winter wear is backward. The demand for w ork clothes was fairly active during September, with som e reordering reported by certain distribu tors. September sales of the 10 reporting clothiers were 17.4 per cent larger than for the correspond ing month in 1924, and 39.4 per cent under the August total this year. Prices were unchanged as compared with the preceding thirty days. D rugs and Chemicals — Gains noted in this classification during the past several months were continued during the period under review. Septem ber sales of the 11 reporting interests exceeded those of the same month in 1924 by 13.1 per cent and were 12.5 per cent larger than the A ugust total this year. Seasonal goods are m oving in satisfactory volume, and advance ordering of fertilizers and insecticides are well above the same time a year ago. Fall holiday buying was in evidence earlier than usual, three leading interests reporting sales in this category the largest recorded in any similar period. D ry Goods — Purchasing generally through the entire line continues active, with future orders show ing further distinct improvement. The demand for staples is on a broader scale than heretofore, but the call for styled goods and specialties is still the outstanding feature in current sales. H osiery and knitted goods generally are m oving in satis factory volume, though the warm weather in Sep tember and early O ctober served to hold down the volum e o f reordering of heavy weight goods. Rayon mixtures and silk goods continue in excellent de mand, with sales of w om en’s ready-to-wear gar ments in these fabrics running well ahead of a year ago. Silks and a number of cotton goods showed small price increases over the preceding thirty days. Sales of the 11 reporting interests during September were 6.3 per cent larger than the total for the same month in 1924, but 2.1 per cent under A ugust this year. Electrical Supplies — A s compared with the corresponding period a year ago, sales of the 12 reporting interests during September showed a gain of 34.2 per cent, but the total was 6.6 per cent under that of A ugust this year. Business in the general run of staple supplies is reported on a normal and satisfactory basis. The gain over a year ago was accounted for in large part by increased sales of radio goods and household appliances. Prices showed no change w orthy of note. Stocks of the reporting firms on O ctober 1 were 16.7 per cent smaller than a year earlier, but 4.3 per cent larger than those on September 1 this year. Flour — Production by the 11 leading mills of the district during September was 354,457 barrels, the largest since last October, and com paring with 329,516 barrels in A ugust and 383,922 barrels in September, 1924. During late September and the first week in O ctober business was quiet, with an easier trend in prices. Export sales were limited, and dom estic buyers were holding off because of the decline in wheat. Shipping directions on flour previously bought were good and some mills were m oving close to their full current make. W ith the sharp upturn in wheat during the second week of October, flour prices were advanced, and considera ble improvement was noted in sales and inquiries. Mill operation was at from 65 to 70 per cent of capacity. Furniture — Reports of leading interests reflect considerable irregularity in business during the period under review. Sales in the country are not up to expectations, and dealers are disposed to take only what goods they can dispose of from month to month. Less than the usual interest has been displayed in holiday goods. On the other hand some factories are operating at capacity and disposing of their full outputs. There is an excel lent demand for hotel, theater and school furnish ings and equipment, but a slowing down in the call for household furniture. Prices were unchanged. September sales of the 25 reporting interests were 18.3 per cent under those of the same month in 1924 and 2.2 per cent below the A ugust total this year. Stocks on October 1 were larger by 12 2 per cent than a year earlier and 27.6 per cent larger than on September 1 this year. Groceries — September sales of the 22 reporting interests were 8.8 per cent larger than for the same month in 1924, and 19.0 per cent in excess of the August total this year. Stocks increased 13.9 per cent between September 1 and October 1, and on the latter date were 15.1 per cent larger than a year earlier. A large portion of the gain in the year-toyear comparison was ascribed to better results in the country, and but for w et weather and heavy roads in many sections, the betterment would have been even more marked. The demand generally through the line is good, with sales of canned goods particularly heavy. Prices averaged about steady, advances being offset by declines. Hardware — The entire line of fall and winter goods is reported active, with retailers in the coun try calling for expedited shipment of merchandise previously ordered. M ore interest is being shown in spring goods than at the same period last year, and ordering of holiday goods is generally satisfac tory. A ll varieties o f building hardware continues in excellent demand, with sales o f paints, roofing materials and wrindow glass heavier than usual at this season. The call for sporting goods and hun ters’ supplies was reported brisk. Price changes were narrow during the past month, but the trend was higher, with a number o f specific advances mentioned in list prices for spring goods. Septem ber sales of the 12 reporting interests were 13.2 per cent larger than for the same month in 1924, and 1.4 per cent in excess o f the A ugust total this year. Iron and Steel — Business in this classification continues to show moderate but steady expansion. Orders received at mills and foundries have in creased, and while shipments hold to their recent high levels, some accumulation of backlogs is noted. A s has been the case for a number of months the building industry continues the most satisfactory outlet for iron and steel goods. W ith the approach of less favorable weather for building operations there is in evidence a general anxiety to place work under contract, evidenced by the volume of structural awards and large sales of standard build ing materials from stock. T h e demand from the automotive industry is active, particularly for sheets, deliveries on which are backward in many instances. There has been some slow ing down in the call for oil country goods, with sales of bars and tubular materials smaller than during the pre ceding thirty days. T h e coal fields, however, are purchasing more freely, and the cement and quarry ing industries continue to account for liberal ton nages. W ith the improved general demand some efforts have been made to advance prices, particu larly on materials for advanced delivery. In the case of finished and semi-finished goods, however, little has been accomplished in this direction, average val ues showing virtually no variation as compared with the preceding month. P ig iron production showed a further gain during September, the increase over August being approximately 0.69 per cent, though September has 30 days, against 31 in August. Steel ingot production in September also showed a m oder ate gain over the preceding month. P ig iron prices advanced, No. 2 Southern iron (1.75 to 2.25 per cent silicon) averaging $18.50 in September against $18 in August, and Northern iron of the same grade advancing $1 per ton to $21.50, base. During the third week of O ctober Southern iron advanced to $20.50 per ton. Scrap iron and steel prices, on the other hand, continued to decline, heavy melting steel in the St. Louis market dropping to $15.25 per ton. Lum ber — A verage prices of softw oods have attained the highest point since last May, a sharp upturn having developed since the decline of a month ago. The unprecedented volum e of fall con struction of all types, together with a broad indus trial demand for lumber, has resulted in a heavy movement into consumers’ hands. Yard stocks are generally light, particularly in the country, and there is a general movement to replenish and fill out assortments. N o change w orthy of comment has taken place in the hardwoods. Industrial buying is on a liberal scale, with the furniture and auto m otive interests still accounting for large quanti ties. A dvices from Memphis mention heavy book ings of hardwoods to the United Kingdom , sched uled for shipment through the first quarter of 1926. R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statement showing the activity of department stores in leading cities of the district: Net sales comparisons Stocks on hand Stock turnover kept. 1925 Nine months ending Sept. 30, 1925' January 1, comp, to Sept. 30, 1925, to to Sept. 30, comp, to 1924 same period, 1924 Sept. 30, 1924 1925 Sept. 1924 1477 — 2.0 138.1 — 17.3% Evansville ....— 0.0% Little Rock...— 4.7 + 6.9 — 0.8 186.6 167.4 211.3 + 0.4 — 6.1 242.9 Louisville ....+11-9 + 2.9 170.6 162.9 + 6.9 — 6.3 173.2 150.5 — 1.7 + 3.6 + 4.8 225.9 231.4 Springfield ..— 6.3 112.6 95.5 — 2.8 — 16.2 8th District.. + 0.3 + 2.0 206.5 + 3.7 215.1 C O N S U M P T IO N O F E L E C T R IC IT Y Public utility companies in the five largest cities of the district reported a decrease of 1.0 per cent in consumption of electricity by industrial customers during September as compared with the preceding month. A s compared with September, 1924, however, a gain of 19.4 per cent was shown. In the year-to-year comparison the gain was spread generally over all classes of users, but with cold storage and ice manufacturing plants showing the largest relative increases. Detailed figures fo llo w : Sept. 1925 Sept. Sept. Aug. No. of comp, to custom■ 1925 1925 1924 ers *K.W.H. *K.W.H. Aug. 1925 *K.W.H. 928 + 0.3% Evansville.. ....40 ' 1,246 1,242 1,366 — 1.3 Little Rock....35 1,334 1,351 4,118 5,064 5,051 + 0.3 Louisville ......67 + 1.5 1,025 975 ...31 961 13,412 — 1.6 ....88 16,270 16,534 Totals......261 24,889 25,139 — 1.0 20,849 Sept. 1925 comp, to Sept. 1924 +34.3 % — 2.3 +23.0 — 4.9 +21.3 + 19.4 A G R IC U L T U R E Changes in yields of the chief crops in the district as a result of conditions prevailing during the past thirty days were relatively narrow. On the whole, however, prospects were somewhat more favorable than during the similar period immediate ly preceding and the general trend was in the direction of improvement. The protracted drought and hot spell were broken in mid-September, though average temperatures during September were unusually high. The moisture came too late to repair injury done to certain crops, but pastures were greatly benefited, and corn, tobacco, legumes and late vegetables were helped to some extent. In some sections good progress was made in preparing the soil for fall crops, but elsewhere such work is backward, having been held up in the first instance by lack of rain, and more recently by too abundant rains, which have interfered with seeding. During September there was a decline in the out put o f milk, due to dry pastures, and shipments of eggs and poultry were smaller. The condition of live stock was reported less satisfactory than here tofore, but some improvement has taken place since O ctober 1. A ccording to the Department of A gri culture, the com posite condition of all crops in states w holly or partly within this district (1 0 0 = 10-year average) was 99.4 per cent on October 1, against 96.6 per cent on September 1, and 92.3 per cent on O ctober 1, 1924. W heat — Scattered reports from the chief grain producing areas of the district indicate fair increases in winter wheat acreage, though weather conditions from this time forward will play an important part in final plantings. In parts of Illinois and Missouri too much rain has hampered field work, and fears are expressed that the delay will result in less acreage being seeded than intended. Early plowed land is in excellent condition, and grain planted early is com ing up to a good stand. For the district the indicated yield of all wheat on O ctober 1 was 63,351,000 bushels, against 63,427,000 bushels on September 1, and 53,394,000 bushels harvested in 1924. For the entire country the yield is 697,000,000 bushels, a decrease of 3,000,000 bushels under the September 1 estimate, and com paring with 873,000,000 bushels produced in 1924. Corn— Intense heat and drought conditions dur ing early September considered, the corn crop held its own in fairly good shape in this district during the period under review. In all states, with excep tion of Tennessee prospects are for heavier yields than last year. Harvesting is general, and cribbing is earlier than usual in most sections. Early husking returns indicate a large quantity of light, chaffy corn, but in some counties quality is exceptionally good. V irtually no corn is still immature, and frost damage will be negligible, as much of the crop is now cut and out of the way. Based on the October 1 condition total output of corn for the district is estimated at 410,628,000 bushels, against 410,785,000 bushels, the indicated yield on September 1, and 346,256,000 bushels harvested in 1924. For the en tire country the crop is estimated at 2,918,000,000 bushels against 2,437,000,000 bushels in 1924. Fruits and Vegetables — W ith the exception of Illinois, yields of apples, both total and commercial crops, are smaller than a year ago. In the South, particularly the Ozark country, the hot weather caused a heavy drop of apples, which served to re duce the crop materially. Keeping quality of the remaining fruit was considerably lowered. On O c tober 1 the condition of apples in Illinois was 55 per cent, in Missouri 46 per cent, in Kentucky 37 per cent, in Tennessee 31 per cent and in Arkansas 60 per cent. Late tomatoes received but little bene fit from the belated rains, and the output is disap pointing in commercial areas. Shipments of grapes were fully up to expectations, and exceeded those of last year. The indicated yield o f white potatoes for the district on O ctober 1 was 13,794,000 bushels, which compares with 13,894,000 bushels indicated on September 1, and 20,930,000 harvested last year. Sweet potato prospects changed in minor degree only in the principal producing areas. In Missis sippi the outlook is for a large crop, 8,294,000 bush els, against 4,400,000 bushels produced in 1924. The indicated combined yield of peanuts in Arkansas, Tennessee, and Mississippi is 29,528,000 pounds, an increase of 2,314,000 pounds over the 1924 crop. Live Stock — Reports generally relative to live stock are less uniformly favorable than heretofore. The long drought and hot weather had a detrimen tal effect on herds, from which they have been slow to recover. The recent precipitation, however, has revived pastures, and with earlier and heavier feed ing of prepared feeds, it is hoped to get live stock in good condition to enter the cold weather. The hay crop is generally short, the indicated yield for the district on O ctober 1 being 6,793,000 tons, against 6,329,000 tons predicted on September 1, and 8,719,000 tons produced in 1924. The demand for live stock at the principal markets continued active, and shipments were heavy. Receipts and shipments at St. Louis, reported by the National Stock Yards, were as follow s: _______ Receipts_______ Sept. Aug. Sept.' 1925 1925 1924 Cattle and Calves.....151,670 164,598 179,349 Hogs ........................300,110 244,703 312,089 Horses and Mules.... 7,329 3,808 6,577 Sheep ........................ 54,226 70,035 48,148 _____ Shipments______ Sept. Aug. Sept. 1925 1925 1924 ’ 100,063 102,950 112,667 208,771 165,267 227,949 7,408 2,843 5,623 28,468 23,407 25,168 T obacco — W eather during late September and the first week of October was favorable for that portion of the crop remaining in the fields, much of which has shown considerable improvement. R e ports from the burley district are to the effect that the crop is curing well, and indications are there will be some fair color, and the late crop will yield some heavy bodied red fillers, which were scarce in the early cuttings. The aircured crop has im proved considerably, both in length and quality, and gives promise of a good percentage of good useful manufacturing leaf. The greater part of the Green river and stemming crop was cut prior to the rains, and the early cutting is curing fairly well. Tobacco in the dark fired district has improved with the rains, and a certain part of this late tobacco will be of desirable quality. Farmers universally are making unusual effort to fire the crop well and cure it thoroughly. Based on the October first condition the crop in this district is estimated at 287,989,000 pounds, against 292,770,000 pounds, the indicated yield on September 1, and 338,335,000 pounds har vested in 1924. Rice — Recent rains have seriously interfered with harvesting rice, and in the case of the early varieties, considerable damage has been wrought. Due to heavy and excessive rains, accompanied by high winds, much rice has fallen down before being properly matured, and this will be a total loss. W hile quality of rice threshed has been good, yields have been disappointing. T he mills report a fair demand, with prices steady around $1.50 to $1.60 per bushel on No. 1 grades. The U. S. Department of Agriculture estimates the crop in Arkansas at 8.113.000 bushels, which compares with 6,552,000 bushels harvested in 1924. Cotton — The condition of cotton in this dis trict underwent improvement between the middle of September and O ctober 1. The indicated yield on the latter date was 3,112,000 bales, which com pares with 2,762,000 bales on September 16, and 2.231.000 bales produced in 1924. For the country as a whole the crop on October 1 was estimated at 14,759,000 bales, against 13,628,000 bales, the final Census ginnings in 1924. A ccording to the U. S. Department of Agriculture the chief cause of the improved prospect was that September rains re vived drought-stricken plants to an unexpected extent. This rainfall benefited many plants that had been regarded as hopelessly damaged. Gener ally bolls have opened so rapidly that there has been a scarcity of pickers, with the result that much cotton was unpicked and subject to damage from unfavorable weather. The movement to market has been rapid, and is taxing storage and ginning capacity. Receipts at Arkansas compresses from August 1 to O ctober 9 totaled 237,654 bales, aggjnst 108,553 bales during the corresponding period last year and 38,768 bales in 1923. Com m odity Prices — Range of prices in the St. Louis market between September 15, 1925, and O ctober 15, 1925, with closing quotations on the latter date and on O ctober 15, 1924: Close Wheat High Low Oct. 15, 1925 Oct. 15, 1924 December ...... ...per bu.$1.56$4 $1.37^ $1.49 $1.51 1.383/g 1.465^ 1.59 1.54*6 No. 2 red winter “ 1.81 1.58 $1.72 @ 1.75 $1.47 @ 1.52 “ No. 2 hard..... 1.65 1.46 1.57 @ 1.60 1.45 @ 1.46 Corn “ December ..... 1.12 .74 *-8 .745/s .82^ “ 1.15y8 .85 H .79 .79*4 “ .79 1.16 No. 2.............. .96 1.15 @ .83^2 “ 1.17 No. 2 white.... .81 .87 .96 Oats “ .39*4 .55/2 No. 2 white.... .42^ .40M Flour 8.25 8.75 @ 9.25 Soft patent..... 9.25 7.25 @ 8.25 “ 7.30 Spring patent.. 7.85 @ 8.10 8.25 7.35 @ 7.90 .22/2 .22% Middling cotton....per lb. .24 .2254 8.50 @ 11.40 10.00 @ 11.85 Hogs on hoof..... ..per cwt.14.30 10.00 Note: September wheat closed at $1.48 and September corn at 76c. B U IL D IN G Building operations throughout the district continued with undiminished activity during the period under review. In the five largest cities of the district the dollar value of permits for new construction in September was 21.0 per cent larger than for the same month in 1924, but 1.2 per cent less than during August this year. Save for a slight advance in certain grades of lum ber, prices of building materials developed no change as compared with the preceding thirty days. Production of portland cement for the country as a whole during September was 15,939,000 barrels, against 16,419,000 barrels in August and 14,519,000 barrels in September, 1924. Building figures for September fo llo w : New Construction Permits *Cost 1925 1924 1925 1924 288 $ 451 '$ 403 . 174 279 176 Little Rock: 81 83 362 2,637 2,937 Louisville .. . 373 1,365 . 421 451 876 2,192 . 852 1,059 4,312 .1,901 2,243 $8,555 $7,073 .2,188 1,922 8,659 5,506 .2,179 1,797 6,753 5,558 *In thousands of dollars (000 omitted). Repairs, etc. *Cost Permits 1925 1924 1925 1924 115 89 $ 13 $129 130 102 41 46 107 219 96 64 95 124 21 50 591 512 352 592 $ 646 827 683 $881 602 661 P O S T A L R E C E IP T S Returns from the five largest cities of the trict show a decrease in postal receipts for third quarter of 1925 of 4.4 per cent under second quarter, but a gain of 7.4 per cent over third quarter of 1924. Detailed figures follow : dis the the the Sept. 30, 1925 Evansville .................. $ 145 Little Rock.................. 211 Louisville ...... ............. 651 Memphis ....... ............. 474 ............. 2,850 ............. $4,331 *In thousands (000 omitted). 894 979 843 *For quarter ending June 30, Mar. 31, 1925 1925 '$ 151 ’ $ 148' 201 207 664 642 493 431 3,021 2,983 $4,530 $4,411 1,067 946 1,028 Sept. 1925 Sept. 30, comp, to Sept. 1924 1924 $ 141 ' + 2.8% 201 + 5.0 600 + 8.5 421 + 12.6 2,669 + 6.8 $4,032 + 7.4 F IN A N C IA L The firmer tone of the money market, noted in the preceding issue of this report, was sustained during the period under review. A number of im portant manufacturing and mercantile lines in creased their commitments, and total loans of the reporting member banks m oved steadily upward to the h ig h est lev els reached since last spring. broader general dem an d for m o n ey w a s The reflected in a further upw ard trend in interest and discount rates. T h e fo llo w in g table sh o w s principal resources and liabilities o f reportin g m em b er banks in E v a n sville, L ittle R o ck , D e m a n d fro m the agricu ltu ral sections w as . , , . , 0 f S o u th w ere require- L o u is : stron ger, particu larly in the 1925 m en ts for financing cotton , tob acco , rice, cotton seed, nnrl rrnnc qrp rnaVino- thpmcplvpc -f^lt ana otner late crops are m aK ing tn em seive s leit. A s com pared w ith the precedin g th irty days there than at this tim e last y ear. th rou gh the agricultural is reported as and St Oct. 14, *Sept. 16, *Oct. 15, 1924 inveltments and discounts $511,979 $503,98i Libe^t/TonX b°nds * 22*812 22 924 Treasury bonds.... 10,638 11,247 2,256 Victory and Treausry notes 6,582 6,737 Certificates of indebtedness 2,440 3,648 Other securities 109,950 112,441 94,548 -------------------------------------------------Total investments $165,129 $169,568 $147,302 Reserve balance with F. R. bank 48,873 46,629 Cash in vault................................................. 8,799 7,969 7,952 Deposits Net demand deposits 399,404 392,204 375,393 Time deposits 213,167 210,081 206,549 Government deposits ................. 4,470 s.ios Scattered liquidation sections 1925 M em p h is, Lo^s'and ^sraMtseP(°inc"g rediscount's)..... 33 33 33 Secured by U. S. Gov’t, obligations........ $ 6,654 $ 7,228 $ 9,8 secured by other stocks and bonds......... 180,945 173,101 153,74 An other loans and dlscounts • 324,380 323,652 319,4 w as quite m arked im p rov em en t in the call for funds to carry live stock. Grain and flour m illin g interests w ere callin g fo r slig h tly h eavier a cco m m o d a& ® J % tion s, and there w a s the usual season al increase in 1 . . . . . b o rro w in g b y the pack in g and can n in g industries. ® / , - , , , « L a r g e O cto b er settlem en ts o f the b o o t and shoe j , , i i i * 1 j* r and d ry g o o d s interests resulted m a reduction of .1 • < a. u u u. u j j . • •. • r ,1 their loan s, th ou g h the broadened activities o f these lines are h old in g their co m m itm e n ts at h igh er levels L o u isv ille , Bins* p ^ y a b ie ^ d "'r ^ S ^ s'w iS Fl eS i e d ™ u bas.k Gov-t. obligations.... 2,471 varied through counted for 2 2 6 o f its m e m b er ban ks, a ga in st 2 2 0 th e district the crop m o v e m e n t has been financed w ith a m in im u m o f strain on ban k s in the large accom m odated in A u g u s t, and 239 in Septem ber, i m T h e d iscoun t fa te rem ained unchanged at 4 centers, and as has o n ly . been the G en erally case for the past several m o n th s, loan able fu n ds in hands o f the _ . , . . . , r , financial in stitution s are a m p le fo r acco m m o d atin g . . . . . . . : s all leg itim a te bu sin ess requ irem en ts. cent c h a n g e s .Q the 3,6 5,2 incipal assets and lia. • . .. institution as com pared w ith the ,t i _ i • preceding m on th and a y ear a g o are sh ow n in the fo llo w in g ta b le : bilities of this , 45,4 977 .i„ W ^ ii^ d ) 12,011 19,161 Tot?' resources of these 33 banks comprise approximately 54 per cent of the resources of all member banks m the district. Federal R esg rve O p era tio n s - D u r in g S ep tem ber the F ederal R ese ry e B a n k o f S t L o u is d is_ m in or degree 10 2,6 $617-041 $607,393 $585,5 3,843 crops are m arketed and m o v e d in to con su m ptive channels. R eq u irem en ts o f m an u factu rers o f b u ild * in g m aterials continue at th e h igh lev els noted in recent m o n th s. L o a n s on stock exch a n g e collateral m $483,0 f C om m ercia l P aper — Scan t offerin gs, particu*°i 92517, *SeiP92517, * ° c\92l ' lariy o f choice n am es, featured bu sin ess during the Bills discounted.. •$29,933 "$39,563 r$2i,646 J ® Bills purchased 15,402 2,374 7,017 p a st th irty d a ys, and tended to h old dow n v olu m e u. s. Securities 20,288 30,163 16,769 r i -n i • 1 1 . , p Foreign loans on gold 294345 .......... 0 1 sales. B rok era ge interests also com plain ed of ---------------------------------, . .. . <• . i t Total bills and securities$65,917 $72,445 $45,432 keen com p etition 0 1 th e lo w eastern call m on ey f . r. Notes in circulation 41,419 40,051 56,7 < 1 1* 1* 1 __ 1 1• (v j 4 Total deposits............. ........ .................... ........ . 83,372 79,315 78,556 rate and liberal acco m m o d ation offered borrow ers Ratio of reserves to deposit b y their b a n k in g con n ection s. In addition efficient and F' ^ note liabllltie® 52.0 % 44 .4 % 73.0 co llection s h ave placed m a n v m ercan tile and m an u - D eb its to In d iv id u al A c c o u n ts T h e fo llo w in g factu rin g interests in a stro n g cash position , so that com parative tab le g iv e s the tota l debits charged b y th ey are able to carry on to a larg e ex ten t w ith banks to ch eckin g a cco u n ts, sa v in g s accou n ts, cer- their o w n resources. T h e gen eral dem an d for co m - tificates o f d eposit accou n ts and trust accou n ts o f m ercial paper w a s reported g o o d , especially in the. individuals, firm s, corporation s and U . S. G o vern - S o u th . R a tes w e re stea d y at 4 # to 4 ^ per cent. r* r 1 t^1 • C on d ition o f B a n k s — F u rth er expansion in „ „ . . . . . loan s and discou n ts o f rep o rtin g m em b er ban ks took m en t in the leadinS Clties o f th ls d ,s t n c t - C h a rg es to accounts o f ban ks are n ot in clu d ed : * For four weeks ending Oct. 1925 Oct. 1925 Oct. 2 1 ,— Sept. 22, Oct. 22 , comp, to comp, to place du rin g the period under review , the total on £ gt Louig and O c to b er 14 b ein g $ 5 1 1 ,9 7 9 ,0 0 0 , w h ich com pares w ith + __5- ~ ____ $ 5 0 3 ,9 8 1 ,0 0 0 on S ep tem b er 16 and $48 3 ,0 1 9 ,0 0 0 on Z-\ . \ 1 a r, • 1 , * O cto b e r 15, 1924. D e p o sits a lso m o v ed upw ard, 4- 4. 11* ^ 1 7 ^ 1 mA ^ u 1a - I to ta llin g $ 6 1 7 ,0 4 1 ,0 0 0 on O cto b e r 14, again st Nat. stock Yards, m..$ El Dorado, Ark.......... Evansville, ind........... Fort Smith, Ark.......... Greenville, Miss.......... Helena, Ark................ Little Rock, Ark........ $ 6 0 7 ,3 9 3 ,0 0 0 a m o n th O cto b e r 15, 1924. earlier and $ 5 9 5 ,5 4 8 ,0 0 0 on In v e stm e n ts declined slig h tly , th e total on O cto b er 14 b ein g $1 6 5 ,1 2 9 ,0 0 0 again st $ 1 6 9 ,5 6 8 ,0 0 0 on S ep tem b er 16 and $ 1 4 7 ,3 0 2 ,0 0 0 on O rtnhpr 1^ 1Q?4 w ciu u cr IJ, ..*-2£- 5,931 8,176 88,972 M°emSphis!’ T en Z Z r.I 192’,637 ii *783 21 . 192.4. —p.*;.,1?.2* ?-c 1924 46,526 $ 43,688 $ 42,349 10,722 10,100 6,653 38,073 37,226 26,273 17,387 13,889 16,781 10)953 4,713 6,347 74,628 146)539 10,874 + 6.5 % + 6.2 + 2.3 +25.2 4,779 + 25.5 6,898 +28.7 82,807 + 19.2 + 9 .9 % +61.2 +44.8 + 3.6 + 24.1 +18.5 + 7.4 +3L5 + 39.6 138)058 + * 7.6 + 84 73° 3 $ a “ ftes 6S4 $ i - \ l i Springfield, Mo........ . 14,212 13,994 11,546 + 1.6 Totals.................$1,344,292 $1,180,432 $1,162,964 +13.9 »In thousands (000 omitted). (Compiled October 22, 1925) + 23.0 +15.6 B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Production — The Federal Reserve Board’s index of production advanced 2 per cent in September, notwithstand ing the suspension of anthracite mining. The volume of output increased considerably in the iron and steel, bitumi nous coal, and textile industries, while the decreases which occurred in some other industries were relatively smaller. Automobile production was larger than in August, but con tinued to reflect the effects of curtailment incidental to changes in models. Number of employees on factory pay rolls in September was larger than in August in nearly all tion. Latest figure, Septem ber=lll. reporting industries. Building contracts awarded during September did not equal the record level of August, but continued large as compared with earlier months. Total contracts awarded during the first nine months of this year were nearly as large as for the entire year 1924. Crop conditions, as reported by the Department of Agriculture, showed considerable improvement in Septem ber and the indicated yields of cotton, corn, oats, barley and hay were larger than a month earlier, while forecasts of wheat and tobacco production were slightly smaller. Mar keting of crops increased further in September, but was smaller than last year. Total and merchandise freight car loadings in September were larger than during the same month of any previous year. Coal shipments were smaller than in August, owing to the anthracite strike, and shipments of coal and of grain products were smaller than in September of last year. Prices — The level of wholesale prices, as measured by the index of the Bureau of Labor Statistics, declined slightly in September. Among groups of commodities, grains, wool en goods, and furniture showed price declines, while prices of coal and building materials advanced. In the first half Latest figure, September=160. of October prices of grains, woolen and rubber increased, while prices of sheep, hogs, sugar and cotton declined. Bank Credit — At member banks in leading cities the volume of loans, both for commercial purposes and on securities, increased further between September 16 and October 14, and at the middle of October total loans of these banks were nearly $650,000,000 larger than at the end of July. During the same period demand deposits of these banks increased by about $360,000,000, but were below the level of the beginning of the year, while the volume of their borrowings at the- reserve banks increased by about $200,000,000 to the highest point of the year. Total volume of reserve bank credit outstanding was BILLIONS OF DOLLARS ___________________BILLIONS OF DOLLARS ........................ ! FEDERAL RESERVE BANK <CREDIT 1Total Bills and I Securities j v J ^Discounted y Y j v 1922 Trade — Wholesale trade was 9 per cent larger in September than in August and sales in all lines except dry goods were larger than a year ago. Sales of department stores and mail order houses showed considerably more than the usual increase in September and were larger than a year ago. Stocks of merchandise at department stores also increased in September more than usual and, at the end of the month, were 4 per cent greater than a year ago. Wholesale firms in all leading lines except groceries re ported smaller stocks on September 30 than a month earlier. dL Bills Boughi j / Weekly figures for member banks in 101 leading cities Latest figure, October 15. ________ * / T M T , __ J v V j U.S.SeEs/' ~ ^ 1923 y ' Q 1924- 1 1925 W eekly figures for 12 Federal reserve banks Latest figure, October 21. larger in October than at any other time during 1925, reflect ing increases during the two preceding months both in discounts for member banks and in acceptances bought in open market. This growth has been due primarily to the seasonal increase during the period of about $100,000,000 in currency in circulation, and there has also been a consid erable increase in member bank reserve balances, accom panying a growth in their deposits. In October the rates on prime commercial paper were firmer and the renewal rate on call loans averaged higher than in September.
@FedFRASER