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Monthly Review of Agriculture, Industry, Trade and Finance Released for Publication in Morning Papers of September 1,1943 FEDERAL RESERVE BANK Ozark Stream OF ST. LOUIS T H fR D W A R L O A N D R IV E N S E P T E M B E R 9, the Treasury will open the largest financing operation ever to be undertaken in this or any other country. The drive has as its goal $15 billion in sales of Government securities to individuals, corporations, insurance companies, savings banks, and other in vestors (excepting banks receiving demand de posits). The $15 billion goal for the Third W ar Loan Drive is $7 billion more than the goal for non bank investors in the Second W ar Loan Drive last April, and $2.5 billion more than was actually sub scribed by them in April. The first essential of sound war financing is to obtain as much as possible from individual, corpor ate, and institutional savings, and as little as possible from the expansion of bank credit. Emphasis during O the drive will be placed primarily on sales of securi ties to individuals for the purpose of absorbing funds that might otherwise be used to bid up prices of the diminishing supply of consumer goods. State W ar Finance Committees will conduct the drive. The securities offered are of essentially the same types sold in the Second W ar Loan and will consist of Series E, F, and G savings bonds, Series C savings notes, 2 ^ per cent bonds of 1964-69, 2 per A per cent certificates cent bonds of 1951-53, and 7 of indebtedness of September 1, 1944. All of the last three types of securities are dated September 15, 1943. Shortly after the drive terminates, a 2 per cent bond and a 7 A per cent certificate of indebted ness will be offered for subscription to commercial banks for their own account. R E C E N T D E V E L O P M E N T S IN D E P A R T M E N T STORE T R A D E Dollar volume of department store sales in the than in the comparable period of 1942. Eighth Federal Reserve District in the first seven It is apparent that the most important division is months of 1943 was 17 per cent larger than in the the wom en’s and misses’ group of departments which corresponding perod of 1942. Sales in July, 1943, produces at present 45 per cent of the dollar volume were up 22 per cent from July, 1942, but were down of all department store sales. As compared with seasonally 17 per cent from June. As measured the first six months of 1942, sales of wom en’s and against 1942 performance, sales in the first seven misses’ goods in the first half of 1943 were up 33 per months of this year showed much greater than aver cent. Sales of w om en’s wear are increasing faster age percentage gains in the m ajor cities of Evans than other items handled by department stores and ville, Little Rock, and Memphis. Part of the increase are assuming greater relative importance. This in dollar volume of sales is due to a rise in prices trend seems very likely to continue for the balance resulting from curtailment of lower priced lines of the war period. Sales of virtually every depart which necessitates purchases of higher priced goods. ment included in the w om en’s and misses’ group were from one-quarter to one-half greater in dollar W ith the increase of consumer purchasing power volume in 1943 than in 1942. In tw o divisions, howand the decrease in stocks of consumer durable eyer, foundation garments and hosiery, sales in 1943 goods, department store buying has tended to be were only slightly greater than in 1942. more and more concentrated in the so-called soft lines of merchandise. For some time this bank has The second most important division in sales vol collected monthly figures on sales and stocks by ume is the house-furnishings group which accounts departments from 17 of the largest department stores for 19 per cent of total sales. In the first half of in the district. These figures throw considerable 1943, sales of house-furnishings at department stores ligfit on the present state of consumer demand for showed no change from the corresponding period in department store goods. 1942, due almost entirely to the very pronounced drop in sales volume of refrigerators and other The table below shows the distribution of sales household appliances, manufacture of which either by major departmental divisions in the first half of has been stopped com pletely or seriously curtailed. 1943, and a comparison of sales volume in that Gains in dollar volume of sales of such items as period with the first half of 1942. Also shown is draperies, curtains, linens, domestics, and lamps, the comparison of stocks at the end of June in both averaged about 20 per cent. Sales of major furniture years. items such as living-room , dining-room, and bed O f the total dollar volum e of sales reported by room suites, etc., were virtually identical in both the 17 stores, 99 per cent is accounted for by sales periods. In sharp contrast to department store ex of merchandise, and about one-sixth of all merchan perience, furniture store sales in the district in the dise is sold in basement departments. Total sales first half of 1943 were up about 10 per cent from in the first half of 1943 were 18 per cent greater Page 2 the comparable period in 1942, even though most furniture stores concentrate their sales in the more durable items and have not had any great volume in soft goods lines. Sales of basement store items were 12 per cent greater in the first six months of 1943 than in the comparable period in 1942. Sales increases varied roughly from 10 to 16 per cent in all basement de partments except for shoes where sales fell off 3 per cent. Increased purchasing power evidently is bringing new buyers to the main store divisions instead of to the basement store sections. W hile basement store sales have gained in volume the per centage rise is smaller than that for the main store and the dollar increase is only one-eighth that of the main store. M en’s and boys’ wear sales accounted for about 11 per cent of total department store sales, and in the first half of 1943 gained 10 per cent over the comparable period in 1942. Sales of men’s clothing declined 9 per cent, reflecting primarily the decline in the civilian male population due to growth of the armed forces and uncertainty as to the future on the part of civilians of draft age. A ll other divisions in the men’s and b oys’ sections showed sizable per centage gains as compared with a year earlier. Sales of the other three divisions, piece goods, small wares, and miscellaneous items, account for approximately one-fifth of the total. Dollar sales of small wares in the first six months of 1943 rose 21 G E N E R A L INDUl In July, industrial production in the United States continued to hold at a level some 22 per cent above pre-war production. The seasonally adjusted Fed eral Reserve index of industrial production in July was 205 per cent of the 1935-39 average, having failed to advance to any extent for the sixth straight month. Neither durable nor non-durable goods output ex panded appreciably in July. W hile the industrial plant in the United States is turning out a phenomenal volum e of goods, the leveling off of output is creating increasing concern since production schedules for this year anticipate a steady rise in output of war goods. In June, the W ar Production Board’s index of munitions output stood at 580 (Novem ber, 1941 = 100), and again did not com e up to the scheduled level. Munitions pro duction for the last half of this year will have to average 30 per cent more than average output in the first half to meet the goals set for 1943. The major factor retarding the rise in production at present is manpower shortage. In an attempt to meet manpower demand, the W ar M anpower Com pel' cent over first half 1942 performance. Sales of piece goods increased 47 per cent and sales of mis cellaneous items gained 24 per cent. Items included in these divisions which registered decreases in sales volume in the first part of 1943 were sporting goods, cameras, tires and auto accessories, groceries, art needlework, etc. Department store stocks at retail prices at the close of June, 1943, were 18 per cent less than they were a year earlier, reflecting shortages of civilian goods caused by war activity. Of 65 separate de partments for which figures are available, only 12 showed increased stocks. M ost departments showed sizeable declines percentage-wise from a year earlier. Notable exceptions to the decline were w om en’s dresses, coats, suits, furs, and jewelry. The other items which show percentage increases in stock volume have relatively small dollar volume and the increases are of no particular significance. Distribution of Department Store Sales and Comparison o f Sales and Stocks by M ajor Departments IT E M Percent o f total sales* Total Sales ........................... 100.0% Main Store................................ 82.6 Women’s and Girls’ W ear. . 45.2 Men’s and Boys’ W ear. . . . 11.3 Household Furnishings.... 19.2 4.6 Piece G oods.......................... 11.0 Small W ares........................ Miscellaneous........................ 4.5 16.2 Basement Store........................ SALES First half ’ 43 com p. with ’42 + 18% +20 + 33 +io - 0- +47 +21 +24 + 12 STOCKS June 30/43 com p, with June 30/42 — — — — — — — 18% 18 11 15 27 8 16 —29 — 20 *In first six months, 1943. IA L S IT U A T IO N mission at mid-August issued its most stringent order to date when it announced a program planned to hold essential workers on war jobs, to assure a transfer of workers to war industry, and to supply men to the armed forces without cutting war pro duction. The list of non-essential activities was en larged considerably, making draft-age men em ployed in such lines liable for induction in the very near future unless they shift to war industry. In this district, industrial activity in July was off slightly from June, although it was greater than a year earlier. Consumption of industrial electric power in the major cities of the district declined fractionally from June, but was 19 per cent above July, 1942. District output of steel also was down slightly in the month. Lumber production at dis trict mills was about the same as a month earlier and continued at a level below a year ago. Indus trial alcohol output in July was greater than in June and in July, 1942. Coal production in district mines was up 44 per cent and 18 per cent, respect ively, over a month and a year ago. The increase Page 3 over June was due primarily to the abnormally low production of that month resulting from the coal strike. July shoe production, according to prelimi nary reports, declined 7 per cent from June and was 11 per cent less than July, 1942. Output of war goods apparently failed to register any appreciable advance in the past month. A ctivity in miscellan eous manufacturing lines also did not increase. July construction activity in the district was down considerably from both a month and a year ago, re flecting the tapering off of the industrial and mili tary construction program. The W ar Production Board in June reported that 80 per cent of the Gov ernment financed war facilities program had been completed by June 30. Virtually all construction of such facilities in this district has been completed. V olum e of construction contract awards in July was 16 per cent below June and 92 per cent below July, 1942. Primary distribution continued in heavy volume during July. Carloadings of all railroads operating in the district in the five weeks ended July 31 were up 12 per cent over the previous five weeks and were 3 per cent greater than the corresponding period a year earlier. Actual ton miles moved by the roads in the first six months this year have been about one-fifth more than in the corresponding period in 1942. Loads interchanged for twenty-five railroads at St. Louis in July were up 10 per cent from a month and a year earlier. In Louisville loads interchanged in July were 5 per cent more than in June, but 5 per cent less than in July, 1942. M ove ment of water-borne freight continues to be rela tively light. For the first six months of 1943, ton nage moved on the Mississippi River between St. Louis and New Orleans by the Federal Barge Lines was down 19 per cent from the corresponding period a year ago. D IS T R IC T S U R V E Y the Caribbean shipping situation considerably eased, Steel— Output of steel ingots and castings in this trade sources believe that sufficient molasses may district during July was in somewhat lesser volume be imported to permit production of industrial alco than in June, due partially to shut-downs of fur hol from molasses and sugar rather than from grain. naces for repair and partially to labor difficulties. If such a situation develops, there is a possibility Steel ingot production during the month was at an that the small distilling units now producing high average rate of 97.6 per cent of capacity. In the wines, which have to be processed by other plants United States, production of steel ingots in July into 190 proof alcohol, may be allowed to discon totaled 7,376,000 tons as compared with 7,027,000 tinue high wine production and resume whiskey tons in June and 7,145,000 tons in July, 1942. production, assuming that feed requirements do not The scrap situation in the St. Louis district is be absorb the grain necessary for output of whiskey. com ing more stringent. Supplies are not flowing A G R IC U L T U R E into the yards in adequate volume and yard labor is General Conditions — The national outlook for insufficient to process rapidly such scrap as is re food production in 1943 has improved considerably ceived. W hile mill and foundry inventories have since spring, so that the Department of Agriculture not shortened to any great extent, there is some fear now estimates that total food production this year that unless stocks can be built up in the next two will be 4 per cent greater than last year and 31 per or three months, the mills will enter the winter cent above the 1935-39 average. The increase in period with stock piles at a minimum for sustained food production is attributable to a rise in livestock operations. Since additional furnace capacity is ex production of 10 per cent over 1942. Food crop pected to com e into production in this district by output is expected to be 10 per cent less than last fall, relatively more scrap will be needed in com ing year because of lowered yields. months than was the case a year earlier. In this district, agricultural crop production will W hiskey — A t the close of July, all but three of be considerably below last year. Output of seven the 60 Kentucky distilleries were in operation, an major field crops on August 1 was estimated at 7 increase of four from the previous month. A ll dis per cent below 1942 production. Fruit and vege tilleries are w orking on industrial alcohol. Most table output is down sharply with many regions alcohol production is now from wheat due to the reporting truck crop production of less than 50 per cent of normal. Livestock output is up consider continued shortage of corn. ably, but the increase in the district is decidedly less There have been persistent rumors in recent weeks than the national average. that a sufficient backlog of alcohol has been accum In general, weather in the district throughout ulated by the Government and that limited produc this year has been unfavorable. The very wet spring, tion of whiskey may be authorized shortly. W ith M A N U F A C T U R IN G Page 4 followed by disastrous floods, held back the plant ing season for some crops and destroyed large acre ages of certain other crops that had already been set out. This was followed by abnormally high temperatures which have led to drouth conditions over a good portion of the district, especially in the south. Scattered showers in early August brought temporary relief, but crops need more rainfall. With crop production down and increased live stock output not up to the national average, farm income in Eighth District states for the balance of this year is not expected to register the sharp gains as compared with a year earlier that were evident in late 1942 and early 1943. In June, cash farm income in Eighth District states totaled $254 million, up 25 per cent over June, 1942. Cash income for the first half of this year ran 32 per cent above the corres ponding period last year. Farm prices in the United States on July 15 were 2 points below June 15, but 34 points above July, 1942. The decline from a month ago was due pri marily to drops in prices of meat animals, fruits, and vegetables. The parity index declined 2 points to 114 at mid-July, as the index of prices paid by farmers continued to advance. In this district, farm price decreases were evident in the past month in the northern sections, due primarily to declining livestock prices. In the southern regions, prices remained mostly steady. Cotton — According to the first 1943 production estimate of the U. S. Department of Agriculture, made as of August 1, cotton production in the Eighth District this year will total 3,617,000 bales, or 8 per cent less than the 1942 harvest of 3,922,000 bales. Mississippi is the only Eighth District state where 1943 cotton output is expected to be greater than in 1942. The decline in cotton production is due primarily to decreased yield per acre, but acre age in cultivation this year is down from last year. During the past month, very hot, dry weather throughout much of the district injured the growing crop. Acreage condition on August 1 in virtually every region was considerably below condition on the comparable date in 1942. Weevil infestation has been held to a minimum by the hot weather, but rain is definitely needed for the final growing stages of the crop. There have been some complaints of labor shortages, but such reports seem to be local ized and there appears to be no over-all labor short age in this district’s cotton belt. On August 5, the 1943 Cotton Loan Program of the Commodity Credit Corporation was announced. The loan rate is based on 90 per cent of parity price as of August 1, 1943. Parity price of 7 /8 middling cotton was 20.46c per pound on that date and the loan rate is 18.41c per pound. Last year the average loan rate was 17.02c per pound. The farm price of cotton on July 15 averaged 19.60c per pound, or 96 per cent of parity as compared with 98 per cent of parity, both a month and a year ago. Grain and Feed Crops — Although production of grain and feed crops in the United States on August 1 was indicated to be up from the July 1 estimate, Eighth District production prospects declined ap preciably in the past month due to the excessively dry, hot weather which produced drouth conditions generally throughout the district. Rain is needed in virtually every section, as the showers of early August provided only temporary relief. According to the August 1 estimates of the U. S. Department of Agriculture, production of corn in the Eighth District in 1943 will total 324,502,000 bushels. The August 1 estimate was 17 per cent below the 1942 harvest. Production of winter wheat in the district on August 1 was estimated at 28,695,000 bushels whch is 23 per cent above the excep tionally low harvest of last year. Output of oats is placed at 66,968,000 bushels, 12 per cent below 1942 production. Tame hay is indicated at 8,124,000 tons as compared with 9,327,000 tons produced in 1942. Livestock — Receipts of livestock at National Stock Yards in July were up 13 per cent over June and 22 per cent over a year ago. Cattle receipts were 20,000 head greater in July than June and were but 10,000 less than in July of last year. Reports from livestock raising sections indicate that cattle marketings in coming months will increase more than normally due in part to fears of feed shortage. Hog marketings were down 50,000 in the month but were almost 80,000 greater than a year earlier. Sheep and lamb receipts increased 95,000 head in the past month and were 30,000 head above July of last year. Livestock shipments were 55 per cent greater than a month earlier and 40 per cent above the corres ponding month last year. Although civilian meat supply at retail outlets has not increased appreci ably in recent weeks, slaughter of Federally in spected livestock at St. Louis in July was up 11 per cent over June, and was 12 per cent above a year earlier. The feed situation remains quite stringent with relatively little corn on the market, although the War Food Administration has succeeded in bring ing some corn out. Demand for processed feeds continues at extremely high levels with supply un able to keep pace. Page 5 Tobacco— -The Eighth District tobacco crop is estimated by the U. S. Department of Agriculture on August 1 at 260,496,000 pounds for all types. This is 8 per cent greater than the 242,243,000 pounds harvested last year, and 5 per cent above the ten-year (1932-41) average of 247,239,000 pounds. Reports from the burley area state that the crop continues to be irregular in growth and develop ment. Plants which were set out early have shown good grow th and are maturing rapidly with good quality in prospect. Later plantings, however, are irregular and some damage by field fire has been reported. The hot, dry weather during July con tributed to the spotted condition of the crop, but rains in early August caused some improvement. C ASH F A R M IN C O M E June Cumulative for 6 :m onths 1942 1943 19^3 1942 1941 (I n thousands of dollars) M ississippi. . . ___ T o ta ls ......... Food cost decreases in the past month in the four Eighth District cities whose figures are reported monthly ranged from 0.4 per cent in Memphis to 3.5 per cent in Little Rock. A s compared with Septem ber, 1942, food costs on July 13 were up 13.9 per cent in Memphis for the greatest gain over that month. Page 6 $ 83,997 417,455 227,836 103,802 55,658 205,0,00 87,307 $ 49,594 281,495 147,244 74,440 39,757 136,992 61,453 254,041 203,245 1,563,482 1,181,055 790,975 July, 1942 June, 1943 July, 1943 June. 1943 July, 1942 60.,840 117,58150,766 52,210 100,843 201,70680,989 60,436 1,293 2,676 1,334 2,918 67,208 129,39914,545 51,440 231,567 149,218 165,379 Cattle and C alves........... 107,999 87,474 H o g s ...................................281,271 331,699 Horses and M u le s ......... 2,687 2,982 Sheep................................. 159,188 65,0,11 T o ta ls .............................551,145 487,166 450,020. W H O L E S A L E P R IC E S IN T H E U N IT E D S T A T E S Bureau o f L abor Statistics July, June, July, July,’ 43 com p, with (1 9 2 6 = 1 0 0 ) 1943 1943 1942 June, ’43 July,’ 42 Approxim ately one-third of the Green River crop was reported as topped by mid-August with cutting expected to begin shortly. This tobacco growing section received badly needed showers during August, but hot winds and sunshine counteracted to a large extent the benefit received from the rain. The crop is badly in need of moisture. In St. Louis, the only Eighth District city covered by the monthly index, living costs declined 0.4 per cent between June 15 and July 15. On the latter date, the St. Louis index was 5.6 per cent above the September 1942, level. $10,1,598 526,811 297,311 157,680 80,615 275,371 124,096 July, 1943 A ll C om m odities. . Farm P rod u cts. . F o o d s .................... O th er.................... C O ST O F L IV IN G $ 9,993 73,146 41,081 15,381 9,090 40,646 13,908 R E C E I P T S A N D S H IP M E N T S A T N A T I O N A L S T O C K Y A R D S Receipts Shipments In the dark-fired section, the crop is making satis factory progress over the entire belt, although the western district appears to have a more uniform grow th than the eastern section. General rainfall in early August proved helpful to. the crop. Medium and early plants will be topped soon. Cost of living in the United States declined 0.8 per cent in the month ending July 15, according to the Bureau of Labor Statistics index. A t mid-July, the index stood at 123.8 per cent of the 1935-39 average, only 5.1 per cent above the September, 1942 level, which is the stated goal toward which the present rollback-subsidy program aims. Retail food prices dropped 2 per cent to account for all of the decline in the index as other components either held stable or increased slightly. The rollback of meat prices and seasonally lower vegetable prices were the major factors in the drop in food costs. $12,673 88,183 48,732 21,811 9,808 52,539 20,295 103.2 125.0 107.2 96.9 Bureau o f L abor Statistics (1 9 3 5 -3 9= 1 0 0) July 15, 1943 U nited S tates. . . St. L ou is. . . . 123.8 123.1 Bureau o f L abor Statistics (1 93 5 -3 9= 1 0 0) July 13, 1943 U . S. (51 citie s). St. L o u is ......... . Little R o c k . .. . L ou isville......... M em phis......... . *Revised. 103.8 126.2 109.6 96.8 98.7 105.3 99.2 95.7 0 .8 % — 0.4 117.8 116.6 — + 4.6% + 18.7 + 8.1 + 1.3 5.1% 5.6 + July 13/43 com p, with June 15/43 Sept. 15/42 126.6 126.7 129.2 124.2 129.7 141.9 143.5* 140.1* 139.5 148.3 2.2 0.1 July 15,’ 43 com p, with June 15,’ 43 Sept. 15/42 COST OF FO O D June 15, Sept. 15, 1942 1943 139.0 141.6 135.2 134.9 147.7 1.0 + CO ST O F L IV IN G June 15, Sept. 15, 1942 1943 124.8 123.6 0,6 % — — — — — — — — 2.09 1.3 3.5 3.3 0..4 + 9.89 +11.8 + 4.6 + 8.6 + 13.9 IN D E X E S O F E M P L O Y M E N T IN M A N U F A C T U R IN G IN D U S T R IE S B Y M E T R O P O L IT A N A R E A S Bureau o f L abor J une/43 com p, with June, June, M ay, Statistics M a y ,’ 43 J une/42 1942 1943 1943 (1 9 3 7 = 1 0 0 ) 231.9 128.6 157.8 159.1 79.3 102.3 123.5 135.4 231.7 128.1 152.6 154.2 b - B U I L D I N G P E R M IT S N ew Construction Num ber 1943 1942 (C ost in thousands) 6 18 48 100 St. L o u is ......... . . 100 2 22 22 88 122 272 229 ' 256" 395 L ittle R o c k . .. July T o t a ls . .. June T otals. . . 21 4 95 150 189 459 342 $ + 192.4% + 25.7 + 27.8 + 17.5 Repairs, etc. N um ber 1943 1942 Cost 1942 1943 $ 0.1% 0.4 3.4 3.2 Cost 1943 1942 4 21 188 171 133 280 128 36 378 143 83 71 53 81 162 $116 23 12 128 96 $ 57 19 18 121 74 517 1,803 965 1,102 450 618 375 291 289 527 V A L U E C O N S T R U C T IO N C O N T R A C T S L E T (I n thousands J u ly /4 3 com p, with of dollars) J u ly /4 3 J une/43 J u ly /4 2 Ju n e/43 J u ly /4 2 T otal 8th D is t.. . $ 8,547 $ 1 0 ,1 7 2 * $102,656 S o u rce : F . W . D o d g e Corporation. ^Revised. ( K .W .H . in thous.) — 16% — 92% C O N S U M P T IO N O F E L E C T R I C I T Y N o. o f July, June, July, July, 1943 Custom - 1943 1943 1942 com pared with ers* K .W .H . K .W .H . K .W .H . June, 1943 July, 1942 11,073 2,932 16,749 6,208 5,350 94,327 10,618 2,916 15,621 6,130 6,682 95,171 4,757 2,991 15,969 5,165 946 84,762 h 4% - 1 - 7 - 1 -2 0 - 1 342 136,639 *Selected industrial customers. 137,138 114,590 0- E v a n s v ille .. . . Little R o c k . . . , 40 35 82 31 Pine B lu f f .. . . 20 . 134 + 133% 2 — + 5 + 20 +466 + 11 + 19 L O A D S I N T E R C H A N G E D F O R 25 R A I L R O A D S A T ST. L O U I S First nine days J u ly/4 3 Ju n e/43 J u ly /4 2 A u g ./4 3 A u g ./4 2 7 m ae/4 3 7 m og/4 2 160,,326 145,625 145,930 46,642 42,570 S o u rce : Term inal Railroad A ssociation of St. L ouis. 1,011,178 943,295 W H O L E S A L IN G Lines of Comm odities N et Sales Data furnished by Bureau of Census, U. S. Dept, o f Commerce. A utom otive Supplies........................ Drugs and C hem icals............................... D ry G o o d s................................................... Electrical Supplies................................... F urniture..................................................... G roceries....................................................... H ardw are..................................................... M achinery, Equipment and Supplies. . Plumbing Supplies..................................... T ob a cco and its P rod u cts........................ M iscellaneous.............................................. T otal all lines*............................................ ^Includes certain lines not listed above. Stocks July 31, 1943 com p, with July 31, 1942 July, 1943 J u ly/42 June/43 + — + — + — + — + + — — + + — — + — + — + — + 5% -06 11 32 8 3 11 20 2 2 1 D E PA R TM E N T STORES ....% — ’ 29 — *i3 — 23 — 17 — ‘ 28 — 24 Stocks on Hand S tock Turnover „July 31/43 com p, with July 31,’42 Jan. 1, to July 31, 1943 1942 N et Sales July, 1943 7 m os.’ 43 compared with to same June,’ 43 July,’ 42 p e r io d ’ 42 5% 8 4 15 4 9 14 1 24 io 1 1 +33 % + 44% Ft. Smith, Ark. — 9% + 5% 2.24 1.78 1.92 +38 22 + 29 2.49 Little R ock, A r k .— 10 + 34 +18 Quincy, 111......... —21 + 4 6 -1 5 + 41 Evansville, Ind. 2.00 29 3.14 -21 + 18 Louisville, K y .. 2.45 22 1.81 + 15 -2 0 St. Louis, M o. 2.32 1.39 12 + 43 +28 - 5 Springfield, M o. 1.67 3 2.61 +32 + 33 -11 Memphis, Tenn. 1.85 2.35 12 + 17 *A11 other cities - 9 + 4 1.82 2.55 13 22 + 17 -17 8th F. R. Dist. *E1 Dorado, Fayetteville, Pine Bluff, A r k .; A lton, Eas^ St. Louis, Harrisburg, Mt. Vernon, 111.; Vincennes, I n d .; Danville, Hopkinsville, Mayfield, Paducah, K y . ; Chillicothe, M o .; Jackson, Tenn. Trading d a ys: July, 1943— 2 6 ; June, 1943— 2 6 ; July, 1942— 26. Outstanding orders o f reporting stores at the end of July, 1943, were 245 per cent greater than on the corresponding date a year ago. Percentage o f accounts and notes receivable outstanding July 1, 1943, collected during July, by cities : Instalment E xcl. Instal. Instalment E xcl. Instal. A ccounts Accounts A ccounts A ccounts VI + Fort S m ith........... °, Little R ock . . 25 L o u i s v i l l e .... 32 Memphis . . . . 40 62% 57 63 59 + Q u in cy ........... St. Louis . . . . Other cities . . 8th F. R. Dist. 7 7% 74 65 68 40% 35 29 33 IN D E X E S O F D E P A R T M E N T S T O R E SA L E S A N D S TO C K S 8th Federal Reserve District (1923-1925 average = 100) July, June, M ay, July, 1943 1943 1943 1942 Sales (daily average), U n a d ju s t e d .................. Sales (daily average), Seasonally a d ju s t e d ... Stocks, U nad ju sted ................................................... Stocks, Seasonally a d ju s t e d ................................. 108 156 103 110 132 143 94 98 129 129 95 94 S P E C IA L T Y S TO R ES Stocks on Hand N et Sales 7 m os.’ 43 ‘ July 31/43 July, 1943 com p, with to same compared with July 3 1/42 period ’42 June,’43 July,’ 42 87 126 121 128 S tock Turnover Jan. 1, to July 31, 1943 1942 M en’s Furnishings — 48% — 5% + 4% — 25% 2.0.0 1.65 B oots and S h o e s .. — 37 — 16 — 4 — 5 5.09 4.32 Percentage o f accounts and notes receivable outstanding July 1, 1943, collected during J u ly : M en’s Furnishings...................... 61% Boots and S h oes............................52% C H A N G E S IN P R I N C I P A L A S S E T S A N D L I A B I L I T I E S F E D E R A L R E S E R V E B A N K O F ST. L O U I S Change from Auer. Ti;' 21, “ A ug. 18. 18, July A u g. 19, 1942 1943 1943 ( I n thousands of dollars) ......... 2,425 374,319 + + ‘ **875 14,213 — 14 + 2,235 + 20 2 ,7 8 8 T otal earning a s s e t s .................. 376,744 + 15,088 + 2 0 5 ,0 0 9 T otal reserves................................... T otal deposits................................... 697,862 467,612 611,173 + 19,546 22,142 18,823 + 55,687 + 51,199 + 218,182 1,768 + 151 O ther Advances and rediscounts. U . S. secu rities ............................... Industrial commitments under Sec. 1 3 b .. $ + 721 F E D E R A L R E S E R V E O P E R A T I O N S D U R I N G J U L Y , 1943 (In cl. Louisville, Mem phis, Little R ock branches) Pieces A m ounts Checks («ash items) handled ............................... 6,433,657 $2,387,360,327 Collections (non-cash items) handled................ 114,033 55,218,951 Transfers o f fun ds..................................................... 5,405 559,077,50,6 Currency received and cou nted ........................... 13,001,626 56,193,989 Coin received and cou n ted ................................... 13,666,544 1,371,410 Rediscounts, advances and com m itm ents......... 36 118,100,000 N ew issues, redemptions, and exchanges of securities as fiscal agent of U . S. G ovt., etc. 754,444 451,239,498 Coupons clipped from securities in c u s t o d y ... 11,015 R ATE S O F T H IS B A N K F O R A C C O M M O D A T IO N S U N D B R T H E FE D E RA L RESERVE ACT Advances to member banks, secured by direct obliga tions o f the U nited States or by such Government guaranteed obligations as are eligible for collateral, which have one year or less to run to call date or to maturity if no call date, under paragraphs 8 and 13 o f section 13........................................................................... Yi% per annum Advances to member banks, secured by direct obliga tions o f the United States or by such Government guaranteed obligations as are eligible for collateral, which have more than one year to run to call date or to maturity if no call date, under paragraphs 8 . 1 % per annum and 13 of section 13............................................................ Advances to nonmember banks, secured by direct ob ligations of the United States, under paragraph 13 o f section 13........................................................................... >per annum .1 Rediscounts and other advances to member banks un >per annum der sections 13 and 13a..................................................... .1 Advances to member banks under section 1 0 ( b ) ................1 Yt i per annum Advances to individuals, partnerships, and corporations other than banks, secured by direct obligations of the United States, under paragraph 13 o f section 1 3 . . . 2 % per annum Industrial advances to member banks, nonmember banks, and other financing institutions under sec tion 13b: 7o to (a ) On portion for which such institution is obligated Yi % per annum (b ) On remaining portion — N o charge to financ ing institution. Federal Reserve Bank will retain interest collected from borrower. Advances to established industrial or commercial f 2 Y 2 % to businesses under section 13b................................................ t 5 » per annum Commitments to established industrial or commercial businesses under section 13b...................................................10% to 25% of the loan rate charged borrow er with a minimum rate o f Y i% per annum. Commitments to member banks, nonmember banks, and other financing institutions, under section 13b................10% to 25% of the loan rate charged borrow er with minimum rate of Y\ % per annum provid ed : that no commitment will be given on loan on which b or rower is charged over 5% per annum. P R I N C I P A L R E S O U R C E A N D L I A B I L I T Y IT E M S O F R E P O R T IN G M E M B E R B A N K S Change from A ug. 18 July 21, A u g. 19, (I n thousands of dollars) 1943 1943 1942 Total loans and in v e s tm e n ts .... ........... $1,450,833 + 16,120 + 375,154 Commercial, industrial, agricultural loans* 209,331 + 4,826 — 26,493 Loans to brokers and dealers in securities. 4,100 383 + 797 Other loans to purchase and carry securities 8,489 544 1,236 Real estate loans............................................ 65,917 137 + 4,138 Loans to banks............................................... 310 28 — 437 Other loans....................................................... 59,944 2,385 — 7,909 Total loans..................................................... 348,091 6,119 — 31,140 Treasury b ills..................................................... 10.3,898 10,281 + 34,245 Certificates o f indebtedness........................... 225,138 8,793 + 115,520 Treasury notes................................................... 148,764 2,363 + 86,284 U. S. bond s....................................................... 477,795 8,865 + 179,777 Obligations guaranteed by U . S. G o v t.. 32,495 — 2,955 Other securities................................................. 114,652 — 627 — 6,577 T otal investments........................................ 1,102,742 10,001 + 40 6 ,2 9 4 Balances with dom estic ban k s.................. 114,620 — 1,485 — 36,568 Demand deposits — ad ju sted **................ 941,623 31,095 + 197,494 Time deposits................................................... 209,957 + 3,800 + 25,0.99 U. S. Government deposits......................... 131,504 — 19,029 + 80,789 Interbank deposits.................. ........................ 480,070 — 10,081 + 44,325 B orrow ings....................................................... 2,275 + 775 + 2,275 * Includes open market paper. **Other than interbank and Government deposits, less cash items on hand or in process o f collection. A bove figures are for 24 member banks in St. Louis, Louisville, M em phis, Little R ock and Evansville. Their resources comprise approximately 75% of the resources o f all member banks in this district. + (I n thousands of dollars) D E B IT S T O IN D IV ID U A L A C C O U N T S June, July, J u ly /4 3 com p, with July, 1943 1943 1942 June,’ 43 J u ly /4 2 El Dorado, A rk ........... $ 11,232 20,229 F ort Smith, A rk ........ Helena, A rk ................. 3,458 63,540 Little Rock, A rk ......... 13,721 Pine Bluff, A rk ........... Texarkana, A rk.-T ex. 15,058 12,663 Alton, 111...................... 75,962 E .S t.L .-N a t.S .Y .,Ill... 15,523 Quincy, 111................... 87,918 Evansville, In d ........... Louisville, K y ............. 320,605 Owensboro, K y ........... 14,660 7,156 Paducah, K y ............... 6,518 Greenville, M iss......... Cape Girardeau, M o .. 4,594 4,207 Hannibal, M o............. 18,771 Jefferson City, M o .. . 906,089 St. Louis, M o ............. 4,818 Sedalia, M o ................. 26,995 Springfield, M o ........... 7,978 Jackson, Tenn............. Memphis, T enn........... 207,083 ,1,848,778 $ 10,765 19,430 3,279 62,091 14,013 15,599 12,382 75,604 15,844 81,449 328,918 13,451 8,368 6,632 4,845 4,118 16,277 952,285 5,744 29,068 8,032 228,785 1,916,979 $ 9,079 17,369 2,908 62,026 21,491 17,150 12,472 71,783 12,450 62,0,05 274,791 11,016 8,174 5,858 4,055 3,773 16,223 815,764 4,027 24,0,36 6,585 184,824 1,647,859 b 4% - 4 - 5 - 2 2 3 + 2 -0 2 + 8 3 + 9 - 14 2 5 + 2 + 15 5 - 16 7 1 - 9 - 4 + + + + + + + + + + + + b + 24% 16 19 2 36 12 2 6 25 42 17 33 12 n 13 12 16 11 20 12 21 12 + 12 C O M M E R C IA L F A I L U R E S I N E I G H T H F . R. D I S T R I C T J u ly/43 com p, with J u ly /4 3 Ju n e/43 J u ly /4 2 J une/43 J u ly /4 2 N um ber............... 5 L iabilities........... $ 49,000 S o u rce : Dun and Bradstreet. (Completed August 25, 1943) $132,000. 19 $176,000 + 2 5% — 63 — 74% — 72 Page 7 INDUSTRIAL PRODUCTION N A T IO N A L S U M M A R Y OF CONDITIONS B Y B O A R D OF G O V E R N O R S OF F E D E R A L R E SE R V E SYSTEM Industrial production advanced to a new high level in July following a slight decline in June, both o f the changes reflecting chiefly fluctuations in coal production. Maximum food prices were reduced recently with a con sequent slight decline in cost o f living in July. Retail sales continued in large volume. Industrial production — Industrial activity increased in July, reflecting a large rise in mineral production. Output at coal mines advanced sharply from the reduced level in June, production o f crude petroleum increased, and iron ore shipments reached the highest monthly rate on record. Federal Reserve index. for July, 1943. M onthly figures, latest shown is DEPARTMENT STORE SALES AND STOCKS In manufacturing industries, output o f most durable products and chemi cals continued to increase in July, reflecting chiefly a further rise in pro duction of munitions. A t meat packing plants and cigarette factories pro duction was also larger in July. Output o f leather and textile products had shown small decreases in June and further declines occurred in July. Activity in most other nondurable goods industries showed little change from June to July. The decline in the value of construction contracts awarded continued during July, according to reports of the F. W . Dodge Corporation. Most of the decline is accounted for by a drop in awards for publicly-financed industrial facilities and for public works and utilities. Distribution— Value o f retail sales declined less than seasonally in July and continued substantially larger than a year ago. During the first six months of this year sales had averaged about 12 per cent larger than in the corresponding period o f 1942 and in July the increase was somewhat greater. The higher level of sales this year as compared with last year reflects for the most part price increases. In the first half of August sales at depart ment stores increased by about the usual seasonal amount. Federal Reserve indexes. are for June, 1943. M onthly figures, latest shown COST OF LIVING Freight carloadings rose sharply in July and were maintained at a high level during the first half of August. Total loadings were 10 per cent higher than the previous month owing to the largest volume of coal transported in many years and shipments o f grain and livestock showed a considerable increase over June. C om m odity prices— The general level o f wholesale commodity prices showed little change in July and the early part of August. The cost of living declined somewhat from June 15 to July 15, according to Bureau o f Labor Statistics data. Food prices declined by 2 per cent as a result o f reductions in maximum prices for meats and seasonal declines in prices o f fresh vegetables from earlier high levels. A griculture — General crop prospects improved somewhat during July according to Department of Agriculture reports. Forecasts for the corn and wheat crops were raised 6 per cent. Production expected for corn and other feed grains, however, is 10 per cent less than last year and for wheat is 15 per cent less than the large crop o f 1942. Milk production in July was as large as the same period a year ago, while output of most other livestock products was greater. Bureau of L abor Statistics’ indexes. Last month in each calendar quarter through September, 1940, m onthly there after. M id-m onth figures, latest shown are for July, 1943. MEMBER BANK RESERVES AND RELA TED ITEMS --! ““ ' " gold stock ■ .. MEMBER BANK RESERVE BALANCES 1 : y / ^ : | NET IN CIRCULATION - — — • -------- 1 ^ RESSERVE BANK CREDIT J * 5URY DEPOSITS 1938 1939 1940 I 1941 1942 1943 W ednesday figures, latest show n are for A ugust 18, 1943. Page 8 Bank credit— The average level o f excessive reserves at all member banks, which had been about 1.5 billion dollars in mid-July, declined to 1.2 billion in the latter part o f the month and continued at that level during the first two weeks o f August. There was some further decrease o f excess reserves at reserve city banks, but most of the decline occurred at country banks, where there had previously been little change. T w o factors were principally responsible for the decline in excess reserves: an increase in de posits subject to reserve requirements, as funds expended by the Treasury from war loan accounts returned to the banks in other accounts; and a growth of over 500 million dollars in money circulation. During the four weeks ending August 18 additional reserve funds were supplied to member banks by an increase o f 580 million dollars in Reserve Bank holdings of Government securities, principally Treasury bills bought with option to repurchase. During the four weeks ending August 11, member banks in 101 leading cities increased their holdings o f Government securities other than Treasury bills by almost 800 million dollars. O f this amount, 570 million represented allotments to banks o f new certificates o f indebtedness issued in early August. Bill holdings declined as member banks made sales to adjust their reserve positions. Commercial loans increased somewhat over the four week period, but other loans declined.
@FedFRASER