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MONTHLY REVIEW O / AgricMttwa^ Indwtria^ Trade and Financial Conditions in the Eighth Federai Reserve District Released for Publication On and After the Afternoon of JOHN S. W O O D , Chairman and FcJewt! Reserve Agent FEDERAL SecretaryanJ An't F^dera^Reserve Agew^ RESERVE improvement in general business in the Eighth District, which became noticeable in late July and continued in increasing measure during August, was extended through the first three weeks of September. Since that time the pace has slackened perceptibly, and while a considerable part of the gains in both trade and industry has been held and the general level is still well above the low point of the spring and early summer, some hesi tancy has developed during the first half of October; with certain lines failing to show seasonal better ment. Taken as a whole, September proved to be the most satisfactory month experienced so far this year in distributive lines, both wholesale .and retail. Increases in sales volume over August were larger than could be accounted for by seasonal influences, and for the first time since April, 1931, combined sales of all wholesaling and jobbing lines investi gated by this bank showed an increase in September over the corresponding period a year earlier. There were also moderate increases in production in a number of manufacturing lines, some of which had had a record of steady declines during the preceding eighteen months. H Due to importance of agriculture in this district, the factor of dominating influence in the progress of business, both in point of morale and volume trans acted, has been the price of farm products. The ad vance in hog values in late June, which was followed by a sharp rise in cotton, wheat and some other commodities in July and August, was reflected in a marked acceleration in buying of merchandise and restoration of confidence in the business community and the public generally. Failure of these advances to hold, coupled with declines it; prices of corn, oats, potatoes and some less important products to new record lows for the season in many years had the effect of substantially reducing purchasing power in the agricultural areas, of reversing the feeling of optimism and of reinstating the policy of ultra con servatism in commitments for merchandise of all descriptions. Warm weather during September and most of the first half of October tended to hold down dis C. M. STEWART. BANK OF ST. "90f 1932 J. VION PAPIN, LOUIS tribution of seasonal goods, both at wholesale and retail. On the other hand these conditions were favorable for completing the harvest of late crops, which operations were in the main accomplished with a minimum loss of quality and quantity. Ac cording to the report of the U. S. Department of Agriculture, based on October 1 conditions, yields of the principal crops of the district fully carried out estimates made earlier in the season. The employ ment situation underwent slight improvement in September as contrasted with the two preceding months, with betterment most noticeable in the large industrial centers and the bituminous coal fields^ The supply o^ farm labor continues consider ably in excess of requirements, with wage scales on October 1 the lowest since the beginning of the present century. As reflected by sales of department stores in the principal cities of the district, the volume of retail trade during September was 49.1 per cent greater than in August and 15.7 per cent smaller than Sep tember, 1931; for the first three quarters of this year cumulative sales were 22.7 per cent smaller than* for the comparable period in 1931. Combined sales of all wholesaling and jobbing interests reporting to this bank in August showed an increase of 8.5 per cent over the preceding month, and of 1*1 per cent over the September total last year ; for the year to September 30, aggregate sales were 24.6 per cent smaller than for the first nine months of 1931. The dollar value of permits issued for new construction in the five largest cities of the district in September was 32 per cent larger than in August, but more than two-thirds les§ than in September, 1931; for the first nine months the total was 23 per cent small er than for the corresponding period liast year. Con^ tracts let for construction in the Eighth Federal Re serve District in September were 7.7 per cent larger than in August, and 14.6 per cent less than the September total last year; for the first nine months this year the aggregate, iell 55.4 per cent below that for the same period in 1931. Debits to checking accounts increased 11 per cent in September over the preceding month, but declined 24 per cent under September, 1931; the total for the Arst nine months this year was 26 per cent smaller than for the like period last year. While continuing much below the volume at the corresponding period during the past several years, freight tfafAc of railroads operating in this district has shown decided expansion during recent weeks. The showing made by miscellaneous freight, m erchandise^ lesstthan-car-lots and coal has been particularly favorable. The movement of livestock continued light. For the country as a whole, load ings of revenue freight for the first 39 weeks this year, or to October 1, totaled 20,976,758 cars, against 28;721,707 cars for the comparable period in 1931, and 35,349,201 cars in 1930. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, interchanged 120,261 loads in September, against 143,022 loads in August, and 144,843 loads in September, 1931. During the first nine days of October the interchange amounted to 40,871 loads, which compares with 33,075 loads dur ing the same period in September, and 46,993 loads during the Arst nine days of October last year. Pas senger traiKc of the reporting roads decreased 33 per cent in September as -compared with the same month in 1931. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in September was 95,500 tons, against 99,822 tons in August, and 106,931 tons in September, 1931. Taken as a whole, collections during the past thirty days showed slight improvement over the similar period immediately preceding, and quite marked betterments as compared with the corres ponding time last year. Generally through the south settlements with both merchants and banks were in increased volume, and resumption of operations at a number of mines was reflected in better payments in bituminous coal fields. In the northern tiers of the district, where wheat and corn are the chief crops, farmers are disposed to hold their stocks for higher prices, and backwardness in collections has resulted in many sections. Wholesalers in the chief distributing centers are for the most part getting in their money promptly. This is true particularly of boots and shoes, dry goods and other lines with which October is an important settlement month. Spottiness still characterizes collections of retailers in the large urban centers, with increasing com plaints of backwardness by Arms which do an ex tensive installment payment business. Replies to questionnaires addressed to representative interests in the several lines scattered through the district show the following results: Excellent September, .1932....... 1.7% August, 1932....... 1.7 September, 1931....... 0 Good Fair Poor 18.6% 20.2 13.8 59.4% 56.1 64.1 20.3% 22.0 22.1 Commercial failures in the Eighth District in September, according to Dun's, numbered 95, involv ing liabilities of $1,427,874, against 144 failures in August, -with liabilities of $3,279,105, and 102 de faults for a total of $2,621,575 in September, 1931. The average daily circulation of* the United, States in September was $5,685,000,000 against $5,720,000,000 in August, and $5,133,000,006 in Sep tember, 1931. M ANU FACTU RING AND W H O L E SA L IN G Boots and Shoes— Following the seasonal prece dent, sales of footwear declined in September from August. The extent of the decline, according to the reporting Arms, was only 3.3 per cent, which is con siderably below the average. As compared with a year ago, September sales showed a gain of approxi mately 12 per cent. This was the Arst month since last November that sales have exceeded those of the corresponding period a year earlier. During the Arst half of October there has been a slight falling off as compared with September, but the volume of pairs and dollar amount has exceeded that of the same period in 1931. Inventories continue to decline, stocks on October 1 being 6 per cent and 47 per cent smaller,respectively, than a month and a year earlier. Clothing — September sales of the reporting Arms increased slightly over the same month last year, but showed little change from the August total this year. Purchasing of late fall and winter apparel, which had been postponed earlier in the season, was in considerable volume, and some reor dering for underestimated requirements was re ported. Demand for work clothes, while somewhat more active than earlier in the year, continues on a moderate scale. In all lines interest centers chiefly in cheap priced merchandise. Drugs and Chemicals — September sales of the reporting Arms were 18 per cent larger than in August, and 7 per cent smaller than the September, 1931, total. Stocks increased 4.4 per cent between September 1 and October 1, and on the latter date were 8.5 per cent smaller than a year ago. The sales comparison in September with a year earlier was the most favorable in this year, decreases in preceding months having ranged from 14 to 39 per cent. Moderate improvement was noted in demand for heavy drugs and chemicals from the general manufacturing trade, particularly the textile and leather industries. Dry Gopds — For the Arst time in thirty-foui* months, the volume of business done in this classiAcation in September exceeded that of the corres ponding month during the preceding year. Sales of the reporting Arms showed an increase in September of 20 per cent over that month in 1931, and of 32 per cent over the August total this year. Improvement in both comparisons extended pretty well through out the entire line, trut was most marked in piece goods. The recent decline in cotton has had a ten dency to slow down buying, and sales since October 1 have been in noticeably smaller volume than dur ing the first half of September. Stocks on October 1 were 4 per cent smaller than a month earlier, and about 31 per cent less than on October 1, 1931. Electrical Supplies — September sales of the re porting Arms increased 6 per cent over the August total, which contrasts with a decline of 7 per cent from July to August. As compared with a year ago, September volume showed a decrease of almost onehalf. Inventories increased slightly between Sep tember 1 and October 1, and on the latest date were 35 per cent smaller than a year ago. Flour — Production at the twelve leading mills of the district in September totaled 258,697 barrels, the largest since last May and comparing with 257,699 barrels in August and 305,335 barrels in September, 1931. Improvement in the general de mand noted in late August and the first half of Sep tember has failed to hold, due chiefly to the reces sion in values of cash wheat and uncertainty on the part of buyers relative to the future of the market. Consumption is adversely affected by the general business depression, and quietness in export demand. Millers' report bids from Europe mainly out of line with current prices, and export business confined largely to routine transactions with Latin-American countries. Purchasing by the large baking interests was on a hand-to-mouth basis, and jobbers are not disposed to augment their stocks. Mill operations were at less than half of capacity. Furniture — Marked improvement over recent months was noted in the volume of business in this classification, September sales of the reporting firms showing an increase of 34 per cent over August, and a decrease of only 11.6 per cent under the September total in 1931. Stocks on October 1 were 2 per cent and 25 per cent smaller, respectively, than thirty days and a year earlier. In the month-to-month sales comparison a considerable part of the increase was in household furniture and furnishings. Groceries — September sales of the reporting firms showed an increase of 9 per cent over August, but a decrease of 22 per cent under the September total a year ago. Stocks on October 1 were 1.4 per cent larger than a month earher, and 35 per cent smaller than on October 1, 1931. Since October 1 a slowing down in business has been noted, particular ly in the south, where the decline in cotton pric<es had a deterrent effect on buying. Due to extensive canning and preserving operations by individuals throughout the season, demand for these commodi ties in the rural areas is considerably below the average at this time of year. Hardware — Improvement noted in this classifi cation during August was extended further during September. Since October 1, however, slowing dpwn has been reported from all parts of the district. Prices showed no change worthy of note as com pared with the preceding thirty days. September sales of the reporting interests were 13 per cent larger than in August, and 27 per cent smaller than in September, 1931. Inventories continue to de crease, stocks on October 1 being 3.5 per cent and 12 per cent smaller, respectively, than a month and a year earlier. Iron and Steel — Changes in the iron and steel industry in this district during September and early October were in the form of moderate improvement. The betterment by no means extended to all branches of the industry, but the recessionary trends of earlier in the year were halted and a forward movement was noted in some important lines. Pro duction and shipments of seasonal commodities, notably stoves, furnaces, radiators, tubing and cer tain repair materials, was in considerable volume. The demand for plates, sheets, strip and other rolled products developed slightly broadening tendencies. Purchasing of finished materials by the general manufacturing trade was more active than earlier in the year, though still much below the average at the same period in the past. Requirements of the petrol eum industry expanded moderately. Considerable tonnages of a variety of commodities were ac counted for by highway construction, river and levee improvements and municipal projects. Public works predominated, also, in operations of fabricators of structural iron and steel, the lettering of a number of sizeable contracts having permitted of an increase of working forces at certain plants. Iron and steel warehouse and jobbing interests reported September sales and specifications the largest since last spring* The movement oi galvanized sheets maintained the improvement noted in August, with purchasing in the rural sections of the south and southwest rela tively better than in the northern tiers of the district. Purchasing by the railroads continues on a handto-mouth basis, and is confined chiefly to repair materials and other necessities. Specifications on finished goods by automobile builders were below what had been anticipated for this time. Aside oi items for outdoor engineering projects, goods in the building material category continued quiet. The latest decline in wheat, corn, cotton and other major crops was reflected in a further contraction in the outlet of goods used in the agricultural sections. Prices of both raw and finished materials showed no marked change as contrasted with the preceding thirty days. Pig* iron was unchanged, and the rccent strength in scrap iron and steel was maintained, with slight further advances in some grades. Sep tember shipments of pig iron to district consumers represented the largest total for ?iny month so far this year, but new ordering .continued at a minimum. For the country as a whole pig iron production in September recorded the first gain since last Febru ary, the output of 593,640 tons comparing with 528,105 tons in August and 1,168,346 tons in Sep tember, 1931. Steel ingot production in the United States in September totaled 975,061 tons, against 832,402 tons in August^ and 1,545,411 tons in Sep tember, 1931. 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 84,141, against 90,324 in August and 140,566 in Sep tember, 1931. Following the seasonal trend, distribution of automobiles in this district decreased from August to September, and for the ninth consecutive month this? year, according to the reporting dealers, sales were below those of the comparable period in 1931. The decrease in the month-to-month comparison, however, was considerably smaller than the average during the past decade. In the comparison with a year ago, September sales decreased 22 per cent, which contrasts with the decrease of 42 per cent in August. For the first time in a number of months, business of dealers distributing medium and high priced cars was relatively better than that of those handling the cheaper makes. Of the total sales of new passenger cars in September, approximately 70 per cent were cheap-priced cars, against 82 per cent in August, 80 per cent in July and 81 per cent in September^ 1931. In the small towns and country decreases in both yearly and month-to-month com parisons were more marked than in the large cities. Preoccupation of farmers with harvest and the de pressed levels of agricultural products militated against filling of requirements. Demand for trucks was reported fairly active, particularly for heavy ser vice. Sales of trucks of all descriptions in September wdre 7 per cent greater than in August, but only slightly more than one-half as large as in September, 1931. September, sales of new passenger cars by the reporting dealers were 7 per cent smaller than in August and 22 per cent below the September total a year ago. Universally the policy of close and con servative purchasing is being observed by distribu tors, and inventories, continue light. Stocks of new cars on October 1 were 6 per cent smaller than a month earlier and 43 per cent less than on October 1, 1931. Conditions in the used car market under went no changc worthy of note as contrasted with the preceding thirty days. September sales were 12 per cent and 26 per cent smaller, respectively than a month and a year earlier. Stocks of salable second hand cars on hand on October 1 were 3.5 per cent smaller than on September 1, and 18 per cent less than on October 1, 1931. Replacement buying by both dealers and the public w a s reflected in moder ate betterment in demand for tires. Business in re placement parts and accessories was slightly less active than during the preceding month. According to dealers reporting on that item, deferred payment sales in September constituted 48 per cent of their total sales, against 51 per cent in August, and 47 per cent in September, 1931. R E T A IL T R A D E The condition of retail trade is reflected in the following comparative statements showing activities in the leading cities of the district: Department Stores Net sales comparison Stocks on hand Stock turnover Sept. 1932 Jan. 1, to. 9 months tpxled Sept. 30, 1932 Sept. 30. Sept. 30,1932 to Sept. 1931 1932 1931 Sept. 30, 1931 ...— 28.0% — 31.9% — 30.4% 1.23 1.36 Littie Rock.... ...+ 0.8 — 24.4 — 14.5 1.55 1.89 ...— 8.6 — 19.8 1.79 1.98 — 12.9 — 22.5 2.09 2.24 ...— 2.1 — 12.8 Quincy ......... . — 10.4 — 23.6 — 19.7 1.63 1.86 — 22.7 — 25.4 2.55 2.73 ...— 19.6 Springfield .... ...— 36.8 — 32.8 — 12.7 .91 1.23 8th District.-. ...— 15.7 — 22.7 — 21.3 2.24 2.45 Retail Stores Net sales comparison Stocks on hand Stock turnover Sept. 1932 9 months ended Sept. 30, 1932 Jan. 1, to Sept. 30, Sept. 30,1932 to Sept. 1931 same period 1931 Sept. 30, 1931 1932 1931 Men's Furaishings — 22.1% anti Shoes... — 14.2 — 29.5% — 28.3% 2.00 2.39 — 25.6 — 21.4 1.94 2.14 B U IL D IN G The dollar value of permits issued for new con struction in the five largest cities of the district in September was 32 per cent larger than in August, and 67.8 per cent less than in September, 1931. A c cording to statistics compiled by the F. W . Dodge Corporation construction contracts let in the Eighth District in September amounted to $10,063,670 which compares w ith $9,340,382 in August and $11,790,867 in September, 1931. Production of P o r t land cement for the country as a whole in September totaled 8,189,000 barrels, against 7,835,000 barrels in August and 12,092,000 barrels in September, 1931. Building figures for September follow : Permits 1932 1931 253 E van sville.. 149 Little Rock 13 32 L o u isv ille .. 49 82 Memphis ... *107 123 St* Louis.... 2.10 327 *Cost 1933 1931 $ 26 & 56 7 92 143 73 130 196 243 1,271 Sept. totals.. 528 817 $ 5 4 5 SI,693 Aug. " ..4 3 7 678 1,266 413 615 1,590 Jul& " ..4 5 1 449 *In thousands of dollars (000 omitted). itirmits 1932 1931! 118 ,56 112 56 40 33 138 114 241 206 472 425 436 642 616 560 *Cost 1932 1931 $ 7 $ 13 8 42 17 16 58 25 110 153 $200 208 529 $249 400 630 CON SUM PTION 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 Septem ber as being 7.3 per cent smaller than in August and 19.9 per cent less than in September, 1931. De tailed figures fo llow : Sept., Aug., Sept. 1932 No. of 1932 1932 Custom^ *K.W .H . *K .W .H . Aug. 1932 ers — 1.7% 1,672 ' ' 1,701 .... 4o — 44.2 1,061 1,901 Little Rock... 35 — 3.4 6,117 5,911 .... 85 + 19.0 1,389 ..... 31 1*167 — 6.9 16,841 18,094 189 St. Louis. 26,874 Totals ..... .... 380 *In thousands (000 omitted). 28,980 — 7.3 Sept., Sept. 1932 1931 *K .W .H . Sept. 1931 1,991 — 16.0% 1,888 — 43.8 6,524 — 9.4 — 14.1 1,617 21,512 — 21.7 33,532 — 19.9 A G RICU LTU RE The condition of crops in the Eighth District during September varied in minor degree only as contrasted with the preceding month. Weather was in the main favorable for maturing and harvesting late crops, and these were secured with a minimum of loss in quantity and quality. Expressed as a per centage of the 10-year average (1919-1928), com bined yield per acre of 33 important crops indicated on October 1, 1932, in states of the district, accord ing to the U. S. Department of Agriculture, was as follows: Indiana, 102.6; Illinois, 107.1; Missouri, 96.6; Kentucky, 95.1; Tennessee, 91.2; Mississippi, 84.3 and Arkansas, 92.7. Improvement from August to September was indicated in all states except Ten nessee and Missouri, the decline in the former being .8 per cent and in the latter 1.3 per cent. For the most part fall vegetables turned out well, and yields of sortie fruits appear to be somewhat larger than estimates earlier in the season indicated. However, as a whole the fruit crop in this area was the small est in recent years, particularly tree fruits south of the Missouri River. Soil preparation and seeding of fall cereals was delayed to some extent by dry weather over a con siderable part of the principal winter wheat areas. Since the middle of September, however, needed moisture has been supplied by fairly general rains and seeding operations have made good progress. In the northern tiers of the district, farm work is quite generally up to the usual seasonal schedule. Availa ble supplies &f farm labor continue greatly in excess o f requirements, with wiages sharply below a year and two years ago. A typical example is in Missouri, where the average rate per month with board is $18.55, against $25.75 for October, 1931, and without board, $26.00 this year against $34.90 in 1931. These scales are the lowest since 1902, and much of the hiring for farm work is only for a few days at a time. Com — The season from planting to harvest was unusually auspicious for corn, and indications are for one of the largest yields ever produced in this district. Practically the entire crop had matured before the frosts in October, and from the chief growing sections reports indicate quality above average. Silo Ailing was mainly completed by the end of September, and somewhat more than the ordinary amount of corn was cut for fodder. Sep tember and early October weather was favorable for drying and curing corn, which was essential to check mould development atid ear-worm damage. Based on the October 1 condition, the U. S. Depart ment of Agriculture estimates the yield of corn in the Eighth District at 378,283,000 bushels, a slight decrease under the September 1 forecast, and com paring with 383,052,000 bushels harvested in 1931, and a 9-year average (1923-1931) of 342,534,000 bushels. The heavy indicated yield coupled with liberal sales of old corn served to sharply lower prices. On October 15 No. 2 mixed corn sold in the St. Louis market at 25c per bushel. After planting, cultivation, harvest, husking and transportation costs, this figure leaves scant returns for the pro ducer. Winter W heat— No change worthy of note took place in Eighth District prospects for this crop in September. The Government's October 1 report estimates the output at 34,292,000 bushels, as against 66,260,000 bushels harvested in 1931, and a 9-year average of 51,510,000 bushels. In sections affected by the late summer drouth, seeding was delayed, and full planting intentions will not be realized. However, mainly favorable conditions have attended seeding operations, and a large part of the crop has been put in after hessian Hy immune dates. Fruits and Vegetables— Prospects for the apple crop^inthis district changed little; during September. Completion of the harvest of late apples confirmed the low estimates of production made earlier in the season. The output in states including the Eighth District is estimated by the U. S. Department of Agriculture in its October I report at 6,737,000 bushels, of which 969,000 barrels represent commer cial crop, against 28,642,000 bushels, with 3,527,000 barrels commercial crop in 1931, and a 5-year aver age (1924-28) of 23,967,000 bushels, of which 2,511,000 barrels were commercial crop. Peaches in the district were a virtual failure, the yield being esti mated at only 1,248,000 bushels, against 14,470^000 bushels in 1931, and a 5-year average of 8,175,000 bushels. An exception to the generally small frwt yield was grapes, the estimated production of 34,028 tons in states of the district being the largest on record, and comparing with 33,721 tons in 19&1, attd a 5-year average of 28,000 tons. Production orf ped* nuts in these states also made a new high record, the output being estimated at 36,035,000 pounds, against 29,940,000 pounds in 1931 and a 5-year aver age of 30,220,000 pounds. As a rule all late vege tables were abundant crops, and fall gardens, due to deferred frosts and adequate moisture, have in most localities been above average. The sweet potato crop in states of the district is forecast at 20.529.000 bushels, which is 15 per cent greater than a year ago, and 38 per cent above the 5-year average. In the district proper the yield of white potatoes is placed at 13,377,000 bushels, which compares with 12.472.000 bushels produced in 1931, and a 9-year average of 14,596,000 bushels. Potatoes at the end of September were the cheapest in more than a quar ter of a century. Live Stock — Aside from scattered reports of losses of hogs from cholera, the satisfactory condi tions obtaining in livestock throughout the present year were generally sustained during September and the Arst half of October. The unfavorable factor in the livestock industry is the extremely low market prices for all meat animals. Due to plentiful and cheap corn and other feeds, farmers plan to consid erably increase feeding operations this fall and winter. In all states of the district the condition of pas tures on October 1 was below the 10-year average, and with the exception of Tennessee and Missis sippi, below the October 1 condition last year. Pros pects for tame hay in the district declined slightly from August to September, the October 1 estimate being for 4,891,000 tons, against 5,458,000 tons in 1931, and the 9-year average of 7,616,000 tons. Milk production per cow continued low, owing to the poor condition of pastures. An exception to the general decline in farm product prices was eggs, which on October 1 were selling at the highest price of the year. Receipts and shipments at St. Louis as reported by the National Stock Yards were as follows: ________ Receipts_______ Sept., Aug., Sept., 1932 1932 1931 Cattle and Ca!ves......l't2,586 120,775 126,753 Hogs ......................... 210,265 188,755 205,040 Horses and Mules..... 2,797 1,902 2,349 Sheep ......... ................ 66,071 65,702 51,951 ______Shipments Sept., Aug.', Sept., 1932 1932 1931 73,089 78,408 89,091 162,304 148,855 157,783 2,510 1,754 2,888 26,998 12,781 12,688 Tobacco — There was a further slight decrease in prospects for the Eighth District tobacco crop in September, the estimate as of October 1 by the Government being 278,501,000 pounds, a drop of 6.180.000 pounds under the September 1 forecast, and comparing with 395,016,000 pounds raised in 1931, and a 9-year average of 285,534,000 pounds. The sharp decrease under a year ago was due to a reduction in acreage, unfavorable weather at the time plants were set, and lack of moisture during the growing season. Conditions in late September and early this month have not been favorable for cutting, housing and curing late cut leaf. Early cut tings of burlev types are generally of good color and quality, with a large part suitable for smoking. In the one-sucker and Green River districts indications point to a crop of superior quality to that of last year. Cotton — Under stimulus of favorable weather for maturing the crop during September, particular ly in the Arst three weeks of that month, prospects improved, and based on the October 1 condition, the U. S. Department of Agriculture estimates the out put in this district at 2,237,000 bales, an increase of 52,000 bales over the September 1 forecast, and com paring with 3,470,000 bales harvested in 1931, and a 9-year average (1923-1931) of 2,726,000 bales. In all states harvesting made good headway, owing to the early maturity and large proportion of opened bolls. In some sections picking progressed slower than might have been expected for the reason that growers are hiring little help, and harvesting their cotton with labor available on their own farms. The decline in prices, which began in the second week of September, continued irregularly into October and following publication of the October 1 estimate of production, values receded to the lowest point since early August and more than $14.50 per bale under high point touched toward the end of August. In the St. Louis market the middling grade ranged from 5.70c to 6.85c per pound between September 15 and October 15, closing at 5.70c per pound on the latter date, which compared with 6.70c on Septem ber 16 and 5.75c on October 15, 1931. The move ment to market has been at a more rapid rate than a year ago. Receipts at Arkansas compresses from August 1 to October 14 totaled 443,531 bales, as against 355,259 bales during the comparable period in 1931. Stocks on hand as of October 14 totaled 573,735 bales, against 395,609 bales on September 16, and 319,836 bales on the corresponding date a year ago. C O M M O D I T Y P R IC E S Range of prices in the St. Louis market between September 15, 1932 and October 15, 1932 with clos ing quotations on the latter date and on October 15, 1931, follow: Ilixh Wheat Dec.................... ...pcrbu.$ .55% $ .60% Mav ............... .55% July ............... No. 2 red winter " .54% .54% No. 2 hard " . .... " " .29 .29 .30 No. 2 white ...... Flour Soft ratent.... " .18% No. 2 white .. 4.50 ..per !h. .065 Hogs oa hoof..... ..per cwt. 4.45 Close Low Oct. 15, 1932 Oct. 15. 1931 .48 $ .433% $ .48 .53M .52 .53% .54% .543% $ .49% <3 .50 .481/; $ .48%(<? .49 .43% .48 .49 .48% @ .49 .25% .25 .26 .15 2.90 3.75 .057 2.60 .26 .24M(3 .25 .26 @ .2654 .15 2.90 3.75 2.75 (3 .15% (S) 3.50 @4.25 .057 @4.00 .34% .38 @ .38% .40 % @ .41 .21% @ .22 3.25 3.75 4.00 <34.00 @4.00 .0575 @5.60 FIN AN CIAL The past thirty days were marked by further strengthening of the genera! banking and financial situation in the Eighth District. While slack demand for credit to finance commercial and industrial oper ations was reflected in a further decrease in loans and discounts of commercial banks, deposits in creased moderately. Growth in confidence in the financial situation was reflected in less hoarding than in a number of months, and the emergence of a considerable volume of currency tied up by that practice. Liquidation at both city and country banks was in considerable volume, with September settle ments in the cotton areas making a particularly fav orable showing. October payments in boot and shoe, dry goods, and other wholesaling lines with which this is an important collection month, were for the most part satisfactory, and permitted of sub stantial reduction of commitments with banks in the chief distributing centers. As was the case earl ier in the season, demands for financing the harvest and movement of crops were less than in past years. This was also true of grain handling and flour mill ing interests. Total loans of reporting member banks in the district on October 12 decreased 1.2 per cent from September 14, and on the latest date were at the lowest point of the year and approximately onefourth smaller than on the comparable date in 1931. This decline was counterbalanced by an increase of 1.7 per cent in investments, due chiefly to expansion in holdings of Government securities. Total depos its of $489,986,000 on October 12 represented an in crease of l.S per cent over mid-September, but a decrease of 14.2 per cent under a year ago. The use of reserve bank credit by all member banks continued to decline, and on September 14 was in smaller volume than at any time this year. Entirely as a result of this, total volume of reserve bank credit outstanding decreased 19 per cent be tween September 14 and October 14, and on the latter date was 37.5 per cent less than a year ago. Reflecting a continued active demand for currency, largely seasonal in character, the note circulation of this bank remained at the relatively high levels of the preceding three months. The amount of savings deposits held in selected banks increased 1.7 per cent from September 7 to October 5, and on the latter date was 7.6 per cent smaller than a year ago. The trend of interest and discount rates was easier. At St. Louis banks current quotations were as follows: Customers' commercial loans, 4 to 5]^ percent; collateral loa n s,4 ^ to 5 ^ per cent; inter bank loans, 4% to 5% per cent; loans secured by warehouse receipts, 4% to 5j^ per cent and cattle loans, 5 to 6 per cent. Condition of Banks— Loans and discounts of the reporting member banks on October 12, 1932 showed a decrease of 1.2 per cent as contrasted with September 14, 1932. Deposits increased 1.5 per cent between September 14, 1932 and October 12, 1932 and on the latter date were 14.2 per cent smaller than on October 14, 1931. Composite statement follow s: *Sept. 14, 1932 24 *Oct. 14, 1931 25 $113,256 186,635 $158,550 240,461 Total loans and discounts............... $296,306 Investments U. S. Government securities....... 107,719 Other securities............................ 118,917 $299,891 $399,011 102,857 119,946 83,349 132,189 Total investments............................ $226,636 Reserve balance with F. R. Bank 33,128 Cash in vault.................................... 6,363 Deposits Net demand deposits................... 277,951 Time deposits................................ 203,301 $222,803 35,544 6,969 $215,538 42,870 7,845 281,267 199,547 2,130 336,209 228,046 6,859 Total deosits......................................$489,986 $482,944 $571,114 1,564 3,879 *Oct. 12, 1932 AH other loans and discounts.... 184,971 ^Federal Reserve Bank.^............. 1,475 Debits to Individual Accounts — The following table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in lead ing cities of the district. Charges to accounts of banks are not included. *Sept., 1932 tl. ; 20,897 El Dorado, Ark.... 3,688 12,914 Fort Smith, Ark.... 7,374 3,120 1,639 Little Rock, Ark... 17,996 95,205 92,684 2,283 5,589 5,369 380,467 Sedalia, Mo.... 1,423 SpringReld, M 9,699 1932*' *Sept., 1931 $ 20,638 3,964 12,956 7,022 2,191 894 15,441 97,289 68,194 2,390 3,880 5,102 343,637 1,386 8,740 $ 27,319 4,003 21,099 9,127 2,372 1,747 24,086 128,334 85,358 4,140 5,149 7,321 531,121 3^281 12,006 5,179 4,885 8,020 Sept. 1932 comp, to Aug. 1932 Sept. 1931 + 1.3% — 7.0 — 0.3 + 5.0 + 42.4 +83.3 + 16.5 — 2.1 +35.9 — 4.5 +44.0 + 5.2 + 10.7 + 2.5 + 11.0 — 23.5% — 7.9 — 38.8 — 19.2 +31.5 — 6.2 — 25.3 — 25.8 + 8.6 — 44.9 + 8.5 — 26.7 — 28.4 — 56.7 — 19.2 + 6.0 — 35.4 Total ^.....................$665,523 $598,609 $874,483 +11.2 — 23.9 *In thousands (000 omitted). **lncludes one bank in Texarkana, Texas not in Eighth District. Federal Reserve Operations — During Septem ber the Federal Reserve Bank of St. Louis dis counted for 217 member banks against 213 in August, and 215 in September, 1931. The discount rate remained unchanged at 3 ^ per cent. Changes in the principal assets and liabilities of this institu tion appear in the following table: *Oct. 14, 1932 Bills bought .................................................. U. S. Securities............................................ Federal Inter. Cr. Bk. Debentures............ Participation in Inv. Foreign Banks........ ... Ratio <?f reserve to deposits and F. R. Note Liabilities. *In thousands (000 omitted). *Sept. 14, 1932 $10,896 '"lj009 *Oct. 14, 1931 $14,101 33,842 31,211 630 1,103 $78,061 87,964 100,948 57,640 $80,887 84,045 80,185 76,806 55.5% 53.5% 66J56 1,009 B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Industrial activity tad shipments of commodities by rail in creased from August to September by considerably more than the usual seasonal amount. There was also a more than seasonal increase in the volume of factory employment and payrolls. The general level of prices, after advancing for three months, showed a decline beginning in the early part of September. PR O D U CTIO N A N D E M P L O Y M E N T — Volume of indus trial production, as measured by the Board's seasonally adjusted index based on the 1923-1925 average, increased from a low point of 58 in July to 60 in August and 66 in September. The advance W H O L E S A L E PRICES — Wholesale commodity prices, u measured by the monthly index of the Bureau of Labor statistic), showed little change from August to September. During August and early September there was a genera! advance in prices fol lowed by a decline which continued through the Rrst half of Octo* ber, when the average was 2 per cent below the high point in early September and 1 per cent above the low point of early summer. Substantial decreases occurred after the beginning of September in the prices of many domestic agricultural commodi ties, including cotton, grains, and livestock, and also in prices of Index number of industrial production, adjusted for seasonal variation. (1923-1925 average— 100). Latest Rgure September, 66. Indexes of daHy average number of car< loaded; adjusted for ae**anal witthn. (1923-1923 averages 100). Latest figure* September, total 54, merchandise 6$. in September reflected chiefly large increases in activity at textile mills, shoe factories, meat packing establishments, and coal mines. In the steel industry, where activity had shown none of the usual seasonal increase in August, operations expanded considerably during September and the first three weeks of October to about 20 per cent of capacity. Daily average output of automobiles and lumber in September showed little change from recent low levels. Factory employment increased from S8.8 per cent of the 1923-1925 average in August to 60.3 per cent in September, accord ing to the Board's seasonally adjusted index. Considerable in creases were reported in the cotton, woolen, silk, hosiery, and clothing industries, and smaller increases at car building shops, foundries, cement mills, and furniture factories. In the automobile, tire and electrical machinery industries, employment declined. gasoline, nonferrous metals, and imported raw materials; while prices of wool, worsted yarns, coal, and lumber increased some what during this period. B A N K C R E D IT — During September and the first three weeks of October there were further additions to the reserve funds of member banks, arising from increases in the countrys stock of monetary gold, from an unseasonal return How of cur rency, and from issues of additional national bank notes. Member bank indebtedness to the reserve banks declined uy more than $100,000,000 from September 7 to October 19 and the!r reserve balances increased by $180,000,000. During September and the first two weeks of October reporting member banks in lead ing cities showed a further growth in investment holdings, largely of United States Government securities, but to some extent, ot Mtmo*: oycon**: MM*" * **^5 RE3ERVEBA!MC8ERT AMOMCT06; N CMAMCtS 6000 1 M6my*CitaM*a 5000 ____ "A '" V 3500 BmtinBshaoa 2500 --------2000 *333"* 1000 500 f . M27 1928 !?2? 1930 M90 !0# *30 4000 3400 2900 1000 tMO !000 too !93! Monthly average# of daily 6gure*. Latest ngures are average# of Rrat 22 day* In October. During the three months ending with September value of building contracts awarded, as reported by the F. W . Dodge Corporation^ was about the same as m the preceding three months, although awards are usuaHy smaller m the third quarter. In the first half of October the daily average of contracts declined somewhat. D IS T R IB U T IO N — Volume of freight-car loadings increased by considerably m y e than the usual seasonal amount in S e p ^ ber, reflecting chiefly larger slnpmenta of coal and miscellaneous iretght Department store sales increased from the low level of August by somewhat more than the usual seasonal percental other ^ investments. Loans of reporting banks d e c l i n e d furthet *° ^eptember. In the early part of October loans at banly m York City showed an increase. There was considerable %ro m Government deposits and in bankers' balances dunng ^ deposits also increased* Money rates in % market dechned to lower levels during the first half of Octoo rute on prime comm^rrla! n9r**r r.dmvd from 2 % of one per cent to % of one per Ratea for cat! !oans on stock exchange coHatera! dechned W " 2 per cent to 1 per cent.
@FedFRASER