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Monthly Review
E

D

E

R

A

Volume X X X IV

L

R E S E R V E

B A N K

Number 9

SEPTEMBER, 1952

Features
of the

ECONOMIC
GEOGRAPHY
of the

Eighth District




The Eighth Federal Reserve District has unity
from an administrative and an economic point of
view. There is a geographic basis for this unity
in the district’s relatively small size landlocked
position interconnected rivers moderately rough
topography and humid middle-latitude climate.
But its soils and underground resources are com­
plex. And when man and his works are added
to the geographic landscape9 it is seen to have
great diversity.

,

,

,

,

,

Census economic areas show this diversity as
a production pattern that can be closely associated
with the physical geography of the district.
Smaller areas9 also closely related to geo­
graphic characteristics are being defined by this
bank. They will provide even more detail high­
lighting the economies of cities and distinguishing
more precisely between type-of-farming areas and
regions where mining and recreational activities
predominate.

,

,

Thus geographic factors underlie the grouping
of man’s activities in the district

.

The Eighth Federal Reserve District has unity
from an administrative and an econom ic point
o f view.

A n d the approximately 5 million square miles of

U T J U T first things first” has always been good, if

in most respects; certainly the Great Sahara Desert

trite, advice.

It is particularly applicable to

the relationship between physical geography, and an
analysis of the Eighth District economy. A n under­

of France with about one-fourth as many people.
the Anartic Plateau are undoubtedly more alike
is.

The search for unifying characteristics must

turn elsewhere.
A

study of the district’s position on the globe

standing of the districts economy begins with an

suggests

understanding of its physical geography.

region lying entirely within the Temperate Zone

For the

a

better

basis

for

unity.

Here

is

a

fundamental basis of man's activity is his physical

and entirely continental (Figure 1).

environment— climate, soils, landforms, and so on.

miles distant from the Gulf of M exico, 500 miles

The Eighth Federal Reserve District is both an

from the Atlantic Ocean, and 1,500 from the Pacific.

administrative and an economic unit.

In fact its

administrative boundaries were determined in large
measure

by

important

economic

considerations.

One of these was to form an area of closely knit
transportation routes

It is nearly 180

and facilities which

would

speed up collection of checks and transfers of money
between member banks and the Federal Reserve.
And since transportation patterns generally reflect
trade patterns, it follows from this fact alone that
this district has a certain unity of trading patterns.
The question arises, however, as to whether it has
other elements of similarity or if these trading areas
are superimposed upon an otherwise largely dis­
similar physical and cultural landscape.

. . . interconnected rivers9 . . .
Thus far the district has been examined from
its global aspects— size, shape, and location.

The

search for other elements of similarity now turns
within its boundaries. Note the vast, interconnected
network of rivers impressed much like the outline of
a tree upon the surface of the district (map, Figure
2 ). The main trunk is the m ighty Mississippi whose
40-m ile wide valleys appear as large basins on the
otherwise hilly

surface

of the district.

M aj or

branches extending to left and right are the M is­
souri and Ohio, the Arkansas and the Tennessee.
But numerous smaller rivers wind across the sur­

. . . there is a geographic basis fo r this unity
in the district’ s relatively small size,
landlocked position. . . .

and story as well as economic importance— the Illi­

In the search for unifying characteristics the first

the W h ite and the Black, the Current and the St.

and m ost obvious fact that comes to mind is that

Francis, the Y a zo o and the Sunflower, the Ouachita

face of the map— many equally well known in song'
nois, the W a b a sh , the Cumberland and the Green,

the district is physically united and is relatively

and the Red.

small in size.

land of flowing waters.

T he district's 196,000 square miles

Truly, this district is throughout a
Contrast this area to the

comprise less than 6 per cent of the territory of

Great Plains Region with its intermittent streams,

the United States, and its 10.5 million inhabitants

to the almost dry region of the Great Basin, center­

are only 7 per cent of the country’s total. How ever,

ing in Nevada, to other regions which have their

size is a relative matter and may be a poor criterion

streams, but not in such abundance nor in similar

of unity.

generous pattern.

Thus, to a European, the district's size

might be m ost impressive as it is nearly the size

Here, indeed, is an element of

homogeneity.

. . . moderately rough topography9 . . .
N ext examine the land surface itself which has

Figure 1—The district’s
continental position is
illustrated by this map.
Dotted lines show extent
of the Temperate Zone.
In this particular map
projection, the size of
the district is somewhat
exaggerated and that of
the northern half of the
continent is relatively
too small.

been so cut up by these many water courses (Figure
3 ). T w o things are evident. First of all, it is gen­
erally a rough surface.
of plain.

Here are no vast expanses

Secondly, with but few exceptions, the

relief— the distance from the trough of a valley to
the crest of a hill— is small.

How ever, upon closer

examination, it can be seen that, despite the gen­
erally relatively

small

relief in the district, the

terrain divides itself into smaller areas with con­
siderable differences in relief.
O n the north are found the Till Plains. T he work
“ till” means that they are composed of earth mate­

Page 115




Figure 2—The Mississippi River dominates the district. The
Missouri and Ohio rivers are most prominent in the northern
portion and the Tennessee, Arkansas, and White, in the

southern. Note the large number of artificial lakes. Reelfoot Lake, near the northern Tennessee border, was formed
by an earthquake in 1811.

rial (known as till) which has been scraped and left

finely ground, lending itself to soil formation at

behind by a glacier. This is the m ost level terrain

later stages and affording a relatively stone-free

of the district, with the exception of the Mississippi

surface for the plow, thousands of years later.

Alluvial Plain.

contrast, for e x a m p l e ,

H ere the glacier as it receded left

By

the glacier crossing the

behind a mantle of earth and rocks from less than

granites of N ew England exposed hard bedrock at

fifty to several hundreds of feet in depth.

many places, tore off chunks of varying sizes and

Since

the glacier advanced and receded over soft lime­

left behind thin, stony

stones, on the whole, the residue left behind was

difficult.




soils that make farming

Page 116

The glaciated plains of the district are not uniform
by any means, however.

One principal difference

is that they are more dissected in northern M is­
souri than they are in district Illinois, but the
height of the hills is generally not over SO to 100
feet.

T he southern boundary of the T ill Plains

(see map) is the southern boundary of glaciation in
the district.

Arkansas have somewhat similar relief.

These are parts of the Gulf Coastal Plain (see insert
map, Figure 3.) A s the main map shows, this plain
is a series of hills arranged in belts that curve north­
ward, paralleling the Mississippi River. These hills
extend from the southern border of the district
into the Purchase area (southwestern corner) of
Kentucky.

100 miles east of the river.
On the west of the M ississippi Alluvial Plain,
the Gulf Coastal Plain resumes its belted character,
but only one belt of any size, a broad band of sandclay, timbered hills, is located in Arkansas. These
hills are cut by the valleys of the Ouachita and Red
rivers.

A lthough the balance of the district is unglaciated,
large areas of it in Tennessee, Missouri, and South­
western

out on the west, traces of it m ay be found as far as

T he first series on the east is known

as the Fall Line Hills. Their width varies from 50
miles in the south to 8 miles in the north and they
extend about m idway into Tennessee.

Underlying

rock formations are sandy and soils are generally
of low productivity.

T o the west of these hills is

the richest and best-known lowland of the Coastal
Plain Province— the Black Bjelt. It is named for its
deep, black soil formed on a very soft limestone
(Selma chalk) which overlies the sandy formations.
It ranges from 20 to 25 miles in width at the M is­
sissippi western

border to

only a few miles

in

width where it finally thins out a little north of
the Tennessee border.

M o vin g still closer to the

Between, these areas of mild relief on the north
and south of the district are tw o physiographic
provinces which in some places attain the boldness
of mountains. These are the Ozark and Ouachita
Provinces on the west. T he Highland Rim of the
Interior L o w Plateaus on the east (see insert map,
Figure 3) is also generally rough.

The Ouachita

Province with its mountains of that name has the
m ost rugged terrain in the district, with many of the
central ridges over 2,500 feet and the distance from
valley bottom to mountain ridge often better than
1,500 feet. Just to the north, in the Upper Arkansas
Valley, a sub-region of the Ouachita Province, M ount
M agazine attains 2,823 feet— the highest point in
the district.

T h e Boston Mountains, still farther

north, and structurally part of the Ozarks, have a
horizon of 2,250 feet for many miles and also have
deep valleys. In M issouri, the St. Francis Mountains
do not quite attain 1,800 feet with a general relief
of from 500 to 800 feet.
T he Highland Rim area in Kentucky is statistically
less impressive than any of the mountain areas of

Mississippi River, a third belt is found, an upland

M issouri or Arkansas. But anyone who has wound

of sand and clay called the Pontotoc Ridge. -Only a

about its snake-like roads, seen its hidden valleys,

small wedge-shaped portion of this ridge is prom­

sug&r loaf hills, limestone sinks, and tum bling water­

inent. Beginning at the southern Tennessee border,

falls, will hesitate to discount the mountain atm os­

it narrows to a point 90 miles farther south. M ost

phere of a large part of it.

of its soils produce well.

T h e next belt is another

obscured by this general classification are a num ­

lowland, the Flatwoods, which curves south and east
from the Tennessee-M ississippi border to beyond

ber of notably level areas such as the Pennyroyal
Plain. This plain is named after a perennial mint

the M ississippi-Alabam a border. O n ly from 5 to 8

with small pungent leaves, which grows profusely

miles wide, it has a relatively smooth surface, but

there. T he central Bluegrass is also gently undulat­

On the other hand,

is largely composed of clays that are sticky when

ing, but much of the outer part in the district is

wet, cracked when dry, and poorly drained.

rugged. It is named for the bluegrass native to the

It is,

area and flourishing there due to phosphorous in

therefore, generally poor for farming.
B y far the widest belt of hills borders the Flat­
woods on the west.

T his is a s a n d y

formation

known geologically as the Red Hills because of its
bright colored soils.

It extends into the Purchase

region of Kentucky. T his belt is a heavily eroded

the limestone soil.
T he final physiographic area, the Mississippi
Alluvial Plain, is entirely different in contour from
the balance of the district.
m onotonously

level.

But

T he Plain is generally
even this flat, bottom

area, but includes some broad, fertile valleys. T he

lands area has its hills, known as Crowley's Ridge,

belt of hills terminates on the w est when it is over­

which parallel the St. Francis River from southern

laid by loess (w ind-deposited soils)

M issouri into Arkansas.

in a strip 5

to 15 miles wide and extending along the Mississippi
River to the Gulf. T hough this band of loess thins
Page 117




The Alluvial Plain begins

at the point where the M ississippi, only recently
strengthened by the M issouri, is now joined by the

94°

90*
j—

86°

PHYSIOGRAPHY
OF
<1------- <-------\
EIGHTH

THE
DISTRICT

40°

40*

38°
38*

36°

36®

34°

34*

90°

94°

Figure 3—Even lowlands of the district have many hills,
though contours are exaggerated above. The St. Francis and
Yazoo basins are known as the D ELTA in Arkansas and

Ohio and bursts its bonds to form

86°

Mississippi. Insert map shows how lowland areas are sepa­
rated by plateaus. Adapted from A. K. Lobeck, PH YSIO­
GRAPHIC PROVINCES OF N ORTH AMERICA, 1948.

a wide silt-

Taking a broad, over-all view of the physiographic

covered trough on the platform of the coastal plain.

characteristics that have been noted, the district

Here are found the renowned deltas of Arkansas

assumes a unity of lan dform : an area of moderate

and Mississippi, identified on the map (Figure 3)
as the St. Francis and Yazoo basins.

relief surrounding and draining from all sides into




a great basin.
Page 118

. • . and humid, middle-latitude climate.
The district’s climate (not to be confused with
day-to-day weather), like its physiography, has
many elements that are similar from one end of the
district to the other. This is no Twelfth District
(Federal Reserve District of San Francisco) which
embraces radically different climates ranging from
a Mediterranean type to a desert type upon crossing
the western mountain ranges, to a rainy west-coast
type farther north. Instead the Eighth District has
one world climatic type with two characteristic
features throughout: humidity and pronounced tem­
perature changes.

notable exception of the river basins, lie largely
within these soil groups. Other members of the
Great Soil Groups found extensively in the district
are the Gray-brown Podzols (moderately acid soils
formed under deciduous forest— medium productiv­
ity) in river bluff regions, the Planosols (soils hav­
ing an impervious layer of clay in the subsoil—
medium to low productivity) in southern Illinois
and northern Missouri, and the Prairie soils (neutral
soils formed under grasses— high productivity) in
northwestern Missouri and northern district Illinois.
Alluvial soils, found in all the river basin areas, vary
greatly in productivity, but more are on the plus
than on the minus side in the district.

Of course, examined in more detail, the climate
of this district is found to have considerable varia­
tion as well as these two universal characteristics.
In general, the variation proceeds from north to
south rather than east to west. Two principal rea­
sons can be cited for this: (1) there are no moun­
tain barriers of sufficient height to supersede the
latitudinal control caused by the shifting of the
sun’s rays; and (2) the weather of the district is
largely determined by dried continental air masses
which more over the great land area to the north
and west or moisture-laden air masses which move
in from the Gulf of Mexico. The effect of these
two major phenomena is that the northern part of
the district is drier and colder— the southern, wetter
and warmer. In actual figures, average annual rain­
fall approximates 36 inches in northern Missouri,
52 in southern district Mississippi. And the average
monthly January temperature in the north is 24
degrees, in the south 46 degrees. The growing sea­
son varies from less than 170 days in the north to
more than 230 days in the south with the critical
line of 200 frost-free days, which can be considered
the minimum for economical cotton production in
the district, approximately coinciding with the
northern Arkansas border, including the Bootheel
of Missouri, and then continuing southeastward
along the Tennessee River.

And when man and his works are added to the
geographic landscape, it is seen to have
great diversity•
In no case is the diversity of the district clearer
than when man and his works are thrust upon the
physical concept of it. Suddenly the pattern becomes
highly complex. In the first place, man is very
unevenly distributed over the face of the district.
Secondly, there are great differences among the
people themselves in temperament, interests, train­
ing and abilities. And the evidences of man’s pro­
ductive activity add to the diversity. Now corn
and cotton, rice and tobaco, cattle and hogs, lumber
and coal, factories and warehouses, to mention a
few, are found in an unordered array.

But its soils and underground resources are
com plex.

Census econom ic areas show this diversity
as a production pattern . . .

As more and more features of the district are
analyzed, the elements of diversity become more
prominent and it is harder to keep the concept of
unity in view. This is particularly true when soils
and underground resources are considered.
The Great Soil Groups occupying the largest
acreage in the district are the Red and Yellow
Podzolic soils (acid soils formed under a coniferous
forest— poor to medium productivity). The Ozark
Plateaus and the Gulf Coastal P l a i n , with the
Page 119




The principal economic minerals of the district
are coal (southern Illinois, Indiana and Kentucky,
northern and western Missouri, and central-western
Arkansas) ; oil and gas (the Tri-state district in
Illinois, Indiana and Kentucky, a large field along
the southern Arkansas border, and some production
in the Upper Arkansas Valley) ; lead (north of the
St. Francis Mountains in Missouri) ; and limestone,
clay, gravels and sand (all widely distributed). The
district has an important share of United States’
production of bauxite, manganese, barite, and fluor­
spar.

Having arrived at a point where differences
far outweigh similarities, the question arises as
to how man’s productive activity can be grouped
and measured meaningfully. The significant word
is “ grouped.” Over-all measurements, either aggre­
gative or average, have an important place in eco­
nomic analysis, but these total measurements may
obscure significant and offsetting developments. In
most fields today, the quest is for more precise detail
as to this complex called “ man’s productive activ­

ity.” Extremely useful methods have been devel­
oped for estimating total production, total spending,
total saving. And these aggregative indexes are
available in many very useful breakdowns; for
example, the total production of autos, tons of
steel, or total corporate spending or total consumer
spending. But there is a growing realization that
more thorough economic understanding requires
extension of work on the measurement problem in
terms of smaller areas or regions. The need for
regional data along with national aggregate rests
on the fact that small-area behavior can vary sig­
nificantly from over-all behavior. Flood disaster or
drouth or unemployment in relatively small areas
of the United States economy may change national
totals very little or their effects may be entirely
offset by exceptionally large crop outturns and
above normal employment situations elsewhere, but
these developments are important to the affected
small-areas and require consideration in the deter­
mination of national policy.
So, in developing Eighth District economic meas­
urements, this Bank, while not neglecting total
data or average data for the entire district, gives
weight to evaluating the relationships between the
all-district data available and to developing smallarea measurements which will permit a better under­
standing of the whole.1 In view of the Bank’s
continuing interest in regional analysis it follows
quite naturally that the remainder of this study is
concerned with the relation of basic geographic
resources of the district to the productive activity
in its several smaller economic areas.
The areas to be used in this analysis have been
fixed by the Bureau of the Census as part of
its project of setting up small economic areas for
regions throughout the United States. Where these
areas are sufficiently different from both an agri­
cultural and nonagricultural standpoint they are
identified separately. But, in other cases, where a
number of agricultural areas can be combined into
one homogeneous nonagricultural area, the agri­
cultural areas are shown as subdivisions of the
latter areas. Of course, in establishing boundaries
for these economic areas, a number of other con­
siderations had to be taken into account by the
Bureau.2
1 C f., Income Growth in the Eighth District, M o n t h l y R e v i e w , M arch
1949 and The Eighth District Balance of Trade. M o n t h l y R e v i e w ,
June 1952.
2 C f., S t a t e E c o n o m ic A r e a s , Bureau of the Census, 1951. General
rules followed by the Census in delimiting economic areas may be
summarized as follows:
1. Areas must follow county lines.
2 . Areas must distinguish metropolitan centers.
3. H om ogeneity with respect to economic and social conditions should
govern delimitation o f areas.
4. Delimitation should be made on the basis of statistical and other
objective evidence, insofar as possible.




Figure A— Areas outlined by the Bureau of the Census are
shown above. They will be used in this article (center in­
sert) to analyze district production. But the fact that these
areas extend beyond district boundaries in so many in­
stances is one reason for further dividing them for statistical
analysis in the future.

. . . that can be closely associated ivith the
physical geography o f the district.
These Census economic areas can be closely asso­
ciated with the physical geography of the district
as will be shown. But this does not mean to imply
that the physical environment is the determinant.
The same terrain and climate that once served as
as base for marauding Kaskaskia Indians now are
the source of wheat and soybeans. Swamps may be
drained and deserts irrigated. And scientists may
be able to seed the clouds and furnish water for
thirsty pastures in Arkansas. But somewhere, some­
time as a practical matter, man runs into physical
forces which must be reckoned with and employed.
And faced with the same physical forces in the
same locality, man’s reaction is often similar.
Bearing in mind, then, that man is the active
force, nature the passive, the following relationships
between geography and economic areas in the
Eighth District are presented in the form of a
5. Areas should be delimited on two levels: (a) a detailed level for
use in publishing agricultural data, and (b) a more generalized
level for all other Census tabulations.
6 . Counties within any one grouping should be contiguous.
7. M ost metropolitan areas are combined with surrounding state eco­
nomic areas for tabulation of agricultural statistics.
8 . Each area for general tabulation shall contain at least 100,000
inhabitants— in the case o f agricultural areas, at least 10,000
farm s.
9 . State boundaries are also economic area boundaries.
10. It must be possible to integrate state economic area boundaries
across state lines.

Page 120

description and map (Figure 7) on the center insert.
The areas are those of the Bureau of the Census.
The numbers, names, and descriptions of these
areas, however, are those of this Bank. Further­
more, each area is considered separately irrespec­
tive of any combination made by the Census Bureau.
Census metropolitan areas are not described.
Smaller areas also closely related to geographic
characteristics are being defined by this bank.
They will provide even m ore detail9 . . •
The analysis of production given in the center
insert (between page 122 and page 124) touches
the highlights of the economic areas. To those
familiar with these areas, and thinking about them
in more detail, a number of possible further sub­
divisions will come to mind. A much more detailed
analysis of productive activities could have been
presented in this article by using this bank’s smaller
income-areas, introduced in pioneer studies in this
field in 1949.3 But these areas are now undergoing
revision of their boundaries to facilitate integration
with Census economic areas (see map, Figure 5).
There are two principal reasons for subdividing

3 C f .,

Income Growth in the Eighth District, M o n t h l y R e v ie w , March

1949.

I ncome a r e a s a r e
generally
of e c o n o m i c a r e a s .

su bdiv isi ons

Census areas into smaller units for district analysis.
First, as already noted, upon closer examination
further significant breakdowns are found. These may
involve too much detail to be shown on a national
basis, but they are of importance in comparing
regions within the district. In the second place,
Census areas extend beyond district boundaries
(see map, Figure 4) and consequently include areas
not relevant to district analysis.
While an analysis of the new income areas of
this bank will be presented in a future R e v i e w
article, the major features of these areas can be
pointed out here, thus showing how they are related
to Census areas.
. . . highlighting the econom ies o f cities . . •
One of the principal types of smaller areas which
the new income areas of the bank will highlight
is the urban area not now classed as a major metro­
politan area. Or, to put it another way, the bank
areas will segregate areas of substantially different
population density. The principal sources of income
for a highly urban region are obviously quite dif­
ferent from those of a rural area. All metropolitan
areas and major cities of the Eighth District, there­
fore, are featured as income areas. The map (Figure
6) shows all cities of over 10,000 population in the
district according to the 1950 Census. It is perhaps
somewhat of a surprise to find that there are so
few in an aggregate population of 10.5 million. This
fact alone suggests the importance of measuring
their economic activity and of further analyzing
their income bases.
. . . and distinguishing m ore precisely between
type-of-farming areas . . .
Another major type o f smaller area into which
some Census tracts will be subdivided is one that
has specialized types of farming not shown in the
larger units. An example of this is found in Tennes­
see where a diversified farming, fruit and vegetable
region in Gibson county and extending somewhat
into Crockett county has been made into a separate
income area. Segregation for urbanization also
helps segregate for types o f farming as agriculture
is generally more intensive near cities.
. . • and regions where mining and recreational
activities predominate.

Figure 5—The probable manner in which Bureau of the
Census Economic Areas will be subdivided to form Income
areas for use in this bank’s statistical analyses is shown
above. There are only five cases in which Income areas lie
across Economic area boundaries. But in all instances the
bank’s areas are cut off at district boundary lines. Economic
areas are not (see figure 4).
Page 121




A third type of sub-area justifying division of
Census areas is one with certain nonagricultural
activities of district importance, but obscured by
the larger area. Under this category can be listed
areas of oil and gas production and recreational
facilities.

Figure 6—The district has six metropolitan areas by Census
definition. The map emphasizes the relationship of cities to
the district’s rivers. It is interesting to note that Spring­
field is the only metropolitan area in the district not on a
major river. Louisville and Evansville are on the Ohio,

St. Louis and Memphis on the Mississippi, and Little Rock
on the Arkansas. Conversely, away from the rivers, espe­
cially in the central Ozarks of Arkansas and Missouri, there
is a notable absence of cities with a population of sufficient
size to be noted on the map.

Thus geographic factors underlie the grouping o f
man’ s activities in the district.

bank are closely associated with the district’s geo­
graphic characteristics.
A description of the Economic areas was outlined
in the district by the Bureau of the Census follows.

Reviewing the
Reserve District
to its production
study, it is seen

description of the Eighth Federal
from its physical characteristics
characteristics, as shown by this
that geographic factors underlie

the grouping of man’s activities in the district.
Thus economic areas of the Bureau of the Census
and the smaller income, areas developed by..this




As was noted, the following correlation of physio­
graphic and production characteristics with Census
economic areas in the district omits Census metropolitan
areas. Also} three metropolitan areas are omitted be­
cause they lie largely outside Eighth District boundaries.
Page 122

Description of District’s Economic Areas
NOTE: AREA NUMBERS ARE REPEATED FOR EACH GROUP

Glaciated Plains Region (Corn Belt Farming)—
This area is associated with the relatively level and
often fertile Till Plains physiographic region of
Missouri and Illinois. It lies entirely in the Corn
Belt. The four Missouri areas of this general region
are all meat production farming areas. But they
have considerable differences in intensity of land
use and combinations of farm enterprises, which,
in turn, are largely due to differences in soil and
topography.
Area 1 has unquestionably the most productive
upland soils in Missouri. So grain yields are high,
forage crops do well, and highly finished hogs and
beef cattle are raised there. Adjoining rich bottom
lands furnish an abundant extra supply of feed.
Area 2 has a serious erosion problem in some sec­
tions, particularly the eastern. Yields are not as
high as in area 1, legumes and pastures not as good.
And grain supplies from river bottom lands are
not so accessible. Thus, livestock are less numerous
per acre and less finished. Regarding nonagricul­
tural production, area 2 has the major coal produc­
tion of Missouri, but there are some mines in areas
3 and 4. Illinois mines in areas 5 and 6 produce
more coal than area 2, though they are by no means
the leader in that state.
Area 3 has relatively more pasture land than
area 2. Feed crops production is less than that in
either of the first two areas discussed and pastures
have less livestock-carrying capacity.
Area 4 is composed of two sections from the
standpoint of soil types. The land is definitely more
fertile on the north, and the southern half (on the
Redbeds Plains) has much less livestock per acre
and lower crop yields than any of the other areas
and more stocker and feeder livestock are raised
there. Combining the good section with the poorer,
this area is rated inferior to the others in production.
Area ,5 features a climatically sheltered fruit pro­
duction area where the Illinois River forms a delta
with the Mississippi. The balance of the farming
is prosperous (corn, other grains and legumes, live­
stock, poultry, dairying) with rich soils similar to
those in area 1 on the east.
Area 6 is distinguished from 5 particularly because
of large wheat acreages, along with dairying.




Ozark Region (Mixed Farming, Lumbering, and
Mineral Production)—This is the area with the
most rugged terrain in the district, with generally
poor to medium productive soils, and diverse min­
eral resources. It straddles the critical 200-day
growing season line. Three major ways in which
its agriculture differs from that in the Glaciated
Plains are: (1) meat animals are largely stocker
and feeder, intended to be finished in other areas
rather than fattened on the farm although there
are some significant dairying districts; (2) there
is more non-commercial farming; (3) a large share
of the land either is being or should be used chiefly
for timber production.
Area 1 is on the border of the Ozarks, and has
better upland soils than the Central Ozark Plateau.
It is a fairly prosperous dairying, corn and wheat
growing region benefiting from a close proximity
to markets in St. Louis.
Area 9, in Arkansas, considered next because it
is also a border region, has soils that are not as
good as those of area 1. It is characterized by small
cotton and vegetable and general farms, and can
be regarded as a transition zone between the Central
Arkansas Ozarks and the much better river bottom
lands to the east.
Areas 2 and 3, in the Central Plateau Region
both have considerable relatively level uplands and
resemble each other in having many general farms
specializing in meat production. But in the western
part of area 3, where pastures can be used nearly
all year around and marketing facilities have been
highly developed, there is a prosperous dairying
industry, supplemented by poultry, which is not
duplicated in area 2. The southern border counties
of area 3, however, have largely non-commercial
farms, and the ratio of income from timber market­
ing to farm income is high.
With regard to nonagricultural activity, all three
areas benefit from tourist activity. Area 1 has
numerous springs, area 2 has Lake of the Ozarks,
area 3 has the White River resort area including
a number of dams. The western tip of area 2 is a
major producer of barite though it has been super­
seded by area 10. Area 2 is one of the few pro­
ducers of manganese in the United States.,

Area 4 is the poorest farming area of the state.
This is the Big Spring and cave country of Missouri
where the terrain is in general so rough, hilly, and
stony that agriculture on uplands is practically
impossible. Most farms are at or near the sub­
sistence level. A major part of the land is in forest.
Area 5 (shown by numeral, but not boundary
line, for it is not a separate census area) is similarly
poor in agricultural activity, for here the granite
hills of the St. Francis Mountains arise. But it is
distinguished for its mining activity. Its mines
have been producing over a third of this country's
lead production. The district’s only iron mine is
also located here.
Areas 6 and 7 can be compared to each other.
Both have fruit, poultry and vegetables, with mar­
keting facilities being particularly well developed
on the Arkansas side of the border. The Missouri
area is part of the Tri-state Zinc District but most
of the mines are outside the district.
Areas 8 and 10 can also be compared to each
other. Both have exceptionally rugged relief (the
Boston and Ouachita mountains) so an unusually
high portion of the land is in forest. Cattle ranches
are being developed in both areas. And both have
many subsistence farms and supplement income
through resort activities. However, nonagricultural
activities are better developed in area 10 (H ot
Springs resort, bauxite and barite mining) than in
area 8 (Bull Shoals and Norfork dams).
Area 11 has the relatively high hills of the Illinois
Ozarks and other hilly terrain on the one hand and
large, flat, low-lying areas subject to flood on the
other. The former yields timber, fruit and vege­
tables. The latter has cash grain farms. Fluorspar
mines near Rosiclare (and also on the Kentucky
side of the Ohio River) supply over 80 per cent
of United States production.

River Plain Region (Cotton Belt Farming, Rice
Production and Lumbering—This region is associ­
ated with the alluvial plains of the Mississippi,
Arkansas, and Red rivers, including other stream
valleys such as the St. Francis and the Yazoo.
Cotton, corn and soybeans are major crops through­
out the region, with livestock raising often an
important supplemental activity. Rice production
dominates one area.
Areas 1, 2 and 3 can be singled out because of
the intensity of their cotton production even though
agriculture is more diversified now than formerly.




State lines account for the division of these delta
lands into three areas.
Area 4 is also delta land (the lower Arkansas
River) but much of it is too swampy for cultivation,
hence it has a much lower per capita income.
Area 5 is a famed rice growing area adjacent to
Stuttgart. It has unique hardpan soils ideally suited
to rice cultivation.
Area 6, to the north, also has considerable rice
production, but is chiefly a cotton and corn pro­
duction area on river terrace lands not quite as
rich as the delta. Both it and area 7, in Missouri,
have livestock and fruit farms on Crowley’s Ridge.
Area 7 is similar to area 6 with the exception of
rice culture.
Areas 8 and 9 have the valleys of the upper
Arkansas River and the Red Rivers, respectively.
The bottom lands here are excellent cotton, vege­
table and fruit producers. But the uplands of these
areas are heavily forested. Both areas have dis­
tinctive nonagricultural activities. Area 8 has the
only coal production in Arkansas (a semi-anthracite
type excellent for heating private residences) and
some oil and gas production. Area 9 has some of
the most productive oil and gas wells in the state,
though the center of production is to the east.

Coastal Plain Region (Cotton Belt Farming and
Lumbering)—This region is associated with the
sand, clay, and loessial soils of the Gulf Coastal
Plain. Cotton production dominates most of the
region, but yields are not as high as those of the
better River Plain areas. The region has the finest
timber in the district. Like the Ozark region, much
of it is heavily forested.
Areas 1 and 2 can be considered together and
areas 3 and 4, the separation being made on account
of state lines. These are highly generalized areas.
Areas 1 and 2, on the whole, are more productive
agriculturally.
Areas 3 and 4 are somewhat poorer than areas
1 and 2 for the reasons noted under the discussion
of the terrain features (page 117). All four of these
areas are characterized by small cotton farms. They
have important livestock and fruit and vegetable
subareas.
Area 5, the “ Purchase Region” of Kentucky, is
very diverse. Though related to the others physiographically, it has more bottom lands along the
Mississippi and Ohio rivers where excellent corn,
hog, cattle farms are operated. And it has con­
siderable tobacco farming, which extends only

Cens us

e c o n o mi c

district's

areas

show

the

diversity

COASTAL PLAIN REGION
(C O TTO N BELT FARMING AN D LUMBERING)

MIDWEST BASIN
(COAL AN D OIL PRODUCTION)

HIGHLAND RIM
(TOBACCO , LIVESTOCK AN D MIXED FARMING)

OUTER BLUEGRASS REGION
gHHH

(TO B ACCO AN D LIVESTOCK FARMING)

Figure 7
slightly over the Tennessee border into area 4.
In nonagricultural activities, areas 4 and 5 differ
from the others in the benefits they receive from
T V A dams on the river, the Paducah atomic plant
with supporting electric plants and the other chemi­
cal industries.




Area 6, is truly unique. It is known as the “ Black
Belt” for its black, prairie-like soils. This area,
which curves into Alabama, was once world-renowned for high cotton yields. But man plundered
the soil resource. And the region became an in­
famous example of how man’s abuse could ruin

nature’s bounty. Now it has come back as a leading
example of diversification with some of the most
outstanding livestock and dairy enterprises in the
South. Cotton is still important.
Area 7 is another unique area with respect to its
splendid pine forests, which are the source of con­
siderable high-grade lumber and of pulp for a
rapidly growing paper industry. It it also distin­
guished for its oil and gas production, having the
major share of Arkansas production (see River
Plain areas 8 and 9). Small cotton farms, with
some important fruit and vegetable enterprises, are
intermingled with the forest lands.

»wn>rri»
»n h.*»•

•• •• •••••••• •• • •• • • • • • • • • • «
••••••••••••••••••••••••••

j

.*•»•»•••»••

«
)

••• ••• •••• ••• •••• ••• •#•««••

•••••••••••••••••••••••

Midwest Basin (Coal and Oil Production)— This
area is classified according to its mineral produc­
tion because this is more distinctive than its agri­
culture. Basins supporting the mineral production
lie partly under the Till Plains and partly under the
Highland Rim physiographic regions. Climatically,
the region is still in the Corn Belt, although due
largely to soil differences tobacco is the major cash
crop south of the Ohio River.
Considering nonagricultural activities first, areas 1,
4, and 6 are the most productive coal producing
areas in their respective states, and the Illinois coal
fields, which extend far to the north, have the
largest bituminous coal production of any region
in the United States. Areas 2 and 3 in Illinois have
the major oil and gas production of that state.
And area 4 and area 6 have the major oil and gas
production in Indiana, and Kentucky, respectively.
The areas are distinguished according to farming
characteristics in the following four paragraphs.
Areas 1 and 2 are both mixed-farming areas, but
area 1 is less prosperous, with general and part-time
farming, while area 2 is the more prosperous with
more fruit and poultry.
Areas 3 and 4 are both along the Wabash River,
but on the Illinois side there is much more alluvial
land, so more grains, while the upland prairie on
the Indiana side (area 4) has more livestock. Both
these areas are better farming areas than areas 1
and 2.
Area 6, in Kentucky, can be likened to area 4 in
Indiana with regard to its farming enterprises,
though its soils are different.
Area 5 is a poor, part-time and general farming
area like 1, but has tobacco, as was pointed out
above.




Highland Rim (Tobacco, Livestock and Mixed
Farming)—this region is associated with the gen­
erally eroded and hilly Highland Rim physiographic
region. But much of the area has a limestone soil
which is potentially productive and the Penny­
royal Plain has a gently rolling topography that is
adapted to the livestock-tobacco enterprises which
characterize the region.
Area 1, in the western Pennyroyal Plain, is rela­
tively level. It supports large, prosperous cotton
and toacco farms.
Area 2, in the eastern part of the Pennyroyal and
also extending into the rugged Cumberland River
Valley on the southeast, is rougher. Farms are
smaller and general farming predominates (corn,
cows, hogs, poultry, tobacco).
Area 3 is characterized by limestone sinks, but
many of these can be farmed. Thus farms here
are often prosperous tobacco and livestock enter­
prises, though smaller than in area 1.
Area 4, across the Ohio River in Indiana, is
similar to area 3 in some of its topographic features,
but has very little tobacco farming, and farms are
less prosperous. A variety of farming types exist,
with this area having the largest number of non­
commercial farms in the state.
Area 5, also in Indiana, is a somewhat more pros­
perous farming area than the central Indiana area
described above and has more tobacco acreage. The
principal farming types are general and dairy, hay
and tobacco.
With regard to nonagricultural activity, area 2 can
boast of the recreational attractions of W olf Creek
Dam on the Cumberland River; area 3 has Mam­
moth Cave and the soldiers and gold of Fort
Knox; and in area 4 the world-renowned French
Lick Springs is located and Bedford building stone
quarried.

Outer Bluegrass Region (Tobacco and Livestock
Farming—This area is within the physiographic
division called the Bluegrass, although the section
in the district is mostly the Outer Blue Grass.
Most of the famed racing stables are located in the
Inner Bluegrass, just to the east of the district
boundary. But much of the district part of this
region is a prosperous livestock, tobacco, corn area.
H arry B. K ircher
Page 123

Survey Of Current Conditions
T R I K E S A N D T H E W E A T H E R combined to
jolt the expanding activity of the Eighth D is­

S

trict economy during July.

But recovery was evi­

dent in the first half of A u gust as workers returned
to their jobs, trade improved and rains came to
the aid of crops in most areas.

However, rains

in the second week of A u gust came to the aid of
crops in most parts of the district.
Bank loans expanded in July, as business loans
increased more than the seasonal amount for the

Em ploym ent and industrial production were re­
duced in July, chiefly as a result of layoffs at metal
using plants such as automobile, machinery and
refrigerator manufacturers.

cline during July and the first week in August as
a result of the hot, dry weather.

Expansion at defense

period. Consumer credit loans and real estate loans
also increased.
In the nation also, economic activity was reduced
in July. Industrial production in July, as measured

plants and in some seasonal industries was not suf­

by the Federal Reserve Board, dropped 6 per cent

ficient to

from June to 191 per cent of the 1935-39 average.

outweigh

these

layoffs.

But by mid-

August many workers had returned to their jobs.

This

And the one defense plant shut down here for lack

half of 1950, immediately preceding Korea.

of steel resumed full operations on August 18.

of the decline occurred in durable goods manufactur­

Retail trade declined more than seasonally during
July as a result of limited supplies of new auto­
mobiles and as a reaction to the stimulation of sales
of seasonal merchandise by the hot weather in the
previous month.

In addition, a truck strike was a

minor factor limiting retail sales in the St. Louis
area during July.

But department store sales in

the first three weeks of August were above yearago levels, indicating a possible return to the fairly
high level of consumer spending evident in M ay and
Tune.

Crop production prospects continued to de-

level was about equal to that of the first
M ost

ing, which dropped roughly one-tenth from M ay
to June and again from June to July. The drop in
June was due primarily to lower steel production,
while the decline in July was due to lower output
of steel-using plants.

The decline in nondurable

goods production reflected vacation shutdowns in
textile and paper industries, not fully accounted for
in seasonal adjustment factors.
Other lines of activity in the nation also slowed
in July.

Nonfarm employment wTas down 400,000

persons from June; construction increased less than
seasonally.

Autom obile

sales were restricted by

lack of merchandise and department store

sales

were limited by hot weather and interest in political
W H O LESALE PRICES IN THE UNITED STATES
Bureau of Labor
Statistics
(1 9 2 6 = 1 0 0 )
A ll Commodities.. ..............
Farm Products...............
Foods.................. ...............
Other................... ..............

July,’ 52

June,’ 52

July,’ 51

111.8
110.2
110.0
112.6

111.2
107.2
108.5
112.6

114.2
111.1
110.7
115.7

July, 1952
compared with
June,’ 52 July,’ 51
+ 1 %
+ 3
+ 1
-0 -

— 2%
— 1
— 1
— 3

conventions.
Steel mill output was limited after settlement of
the strike by the time spent in restoring coke ovens,
blast furnaces and open hearths to working condi­
tions. However, operations have been increased rap­
idly, and for the week ended A ugust 23, four weeks
after the strike was settled, were scheduled at 97 per

CONSUM ER PRICE INDEX*
Bureau of Labor
Statistics
( 1 9 3 5 -3 9 = 1 0 0 )
United States....... ..............
*N ew series.

July 15,
1952
190.8

July 15, 1952
June 15, July 15,
compared with
1952
1951 June 15,’ 52 July 15,’ 51
189.6

185.5

+

1%

+

3%

July 15,
1952

U .S . (51 cities).................. ..234.9
St. L ouis.............................248.6
Little R ock...................... ..230.4
Louisville............................221.2
M em phis.............................236.8
*N ew series.

expected

to

Autom obile output in August is

approximate

only

300,000

cars

and

trucks, compared with pre-strike operations of about
500,000 vehicles a month.
W h ile the short-term effects of the steel strike

RETAIL FOOD*
Bureau of Labor
Statistics
(1 9 3 5 -3 9 = 1 0 0 )

cent of capacity.

July 15, 1952
June 15, July 15,
compared with
1952
1951 June 1 5 /5 2 July 15,’ 51
231.5
247.6
228.7
218.1
235.6

227.7
237.9
223.1
216.0
232.3

+ 1%
- 0+ 1
+ 1
+ 1

+ 3%
+ 4
+ 3
+ 2
+ 2

were deflationary, the longer-run results will tend
to be inflationary. T he price of steel has been
increased and will sooner or later be reflected in
higher per unit material costs for many consumer
durables.

Further, the

steel wage

increase may

well become the model for union demands in other
industries, increasing the wage cost for these goods.

Page 124




In addition, rising income, resulting from higher
levels of wages and employment, and rising prices
will stimulate consumer interest in buying in the
future. Consumer buying may also be stimulated
by the reduction in retail stocks of automobiles and
appliances.
Construction activity will be affected for a time
by the limited supplies of structural steel. The delay
has in effect stretched out the defense expansion pro­
gram and prolonged the time before less essential
construction projects may be started. Thus the
stimulus given to the entire economy by high-level
plant and equipment expenditures while temporarily
weakened has been continued further into the
future.

tion and food processing employment plus expansion
of employment by Federal defense agencies partially
offset the 900,000 workers unemployed by the steel
strike. About one half the workers idled by the
strike were directly affected steel workers and iron
ore miners. The rest were workers in steel-using
plants and related industries.

Employment

Manufacturing— In July, manufacturing activity
showed a large drop from the previous month and
a year ago for the first time this year, according to
reports on use of electric power by industries at
six major cities in the district. The daily average
consumption was 11 per cent below both June this
year and July a year ago. The decline in activity
was greatest in transportation equipment, machin­
ery, fabricated metals and chemical manufacturers.
Some strength was indicated in the food and shoe
industries.
In contrast to the national steel situation (where
production was 18 per cent of capacity), ingot produc­
tion in the St. Louis area during July was 62 per cent
of capacity. By the third week of August the St.
Louis mills increased operations to over 100 per
cent of capacity.
Lumber production in the district through midAugust continued at practically the same moderate
levels as in June, in response to a still rather slug­
gish market. Inventories at dealers were relatively
low, however, so any pickup in consumer demand
was expected to be felt almost immediately at mills.
Whiskey production in Kentucky again fell off.
At the end of July only 12 distilleries were in
operation, five less than a month or a year ago.
Transportation activity reflected the generally
lower level of industrial activity. Freight inter-

By mid-August employment in the district had
substantially recovered from the layoffs occasioned
by the steel strike. Most of the layoffs which
occurred during July lasted for only a few weeks,
but a few plants were closed for longer than a
month. The impact of the strike was only partly
revealed by July 15th employment figures, since
some plants were operating that week, but were
shut down either before or after that time. In St.
Louis, employment in seven major industry groups
which use steel was cut nearly 8,000 persons from
mid-Tune to mid-Julv. But total manufacturing
employment in the city dropped only 6,000 from
Tune to July, as gains in defense plants and seasonal
industries partly offset the layoffs caused by the
steel strike. In Louisville, about 5,500 fewer work­
ers were employed in the machinery, equipment
and instrument industry groups in July than in
June. The Louisville Employment Service esti­
mated that, at one time or another during Julv,
between 7,000 and 8,000 workers were laid off.
As in St. Louis, layoffs in Louisville were partially
offset by gains in other industries, chiefly defense.
The recovery from the steel strike can be meas­
ured roughly by the trend in unemployment in­
surance claims. In seven district states at the end
of June, after one month of steel strike, the number
of weeks of unemployment claimed was 170,000,
not materially larger than the 165,000 weeks claimed
four weeks earlier. But by the end of July, weeks
claimed rose to 249,000, an increase of 46 per cent
in four weeks. Tw o weeks later claims dropped
off to 212,000, as workers were recalled to their
jobs.
In the United States the total number of workers
employed in nonfarm jobs dropped 400,000 between
mid-June and mid-July. Seasonal gains in construc­




Industry
Slowdowns due to the shortage of steel and fabri­
cated metal parts from sources outside the district
were reflected by a sharp drop in the district's
industrial output in July. But the after-effects of
the steel strike tapered off in early August.

CONSUMPTION OF ELECTRICITY
D aily Average*
( K .W .H .
in th ou s.)
Evansville.............
Little R ock...........
Louisville...............
M em phis................
Pine B luff.............
St. Louis................
Totals.................

July, 1952
K .W . H .

June, 1952
K .W . H .

835
480
3,717
1,121
321
4,354
10,828

830
547
4,135
1,458
328
4,840
12,138

July, 1952
July, 1951
compared with
K .W . H . June, 1952 July, 1951
768
572
3,936
1,484
447
4,911
12,118

+
—
—
—
—
—

1%
12
10
23
2
10

— 11%

+
—
—
—
—
—

9%
16
6
24
29
11

— 11%

* Selected Manufacturing firms.

Page 125

changes at St. Louis showed a recovery in July
from a 9 per cent drop in June, but were still 11
per cent below those of July, 1951. Furthermore,
truck movements were affected throughout the
month by a truck drivers strike in the city.
An exception to the general direction of indus­
trial activity was district shoe production. It was
up somewhat both in comparison with June and
with July last year, according to the sample of use
of industrial power. This experience corresponded
to the situation nationally where shoe production for
the first seven months of the year was estimated by
the National Shoe Manufacturers Association to
have been running at 5.5 million pairs ahead of the
national annual rate of consumption.
Mining— Coal mines in district states reduced pro- .
duction 22 per cent in July compared with June,
and 17 per cent compared with July a year ago,
according to preliminary figures. This reflected the
seasonal drop experienced in recent years and the
lower level of sales this year. Crude oil production
in July continued at about the same level, which
also approximated that of a year ago.

Construction
Construction activity during July in the nation
increased less than seasonally. This was the net

LOADS INTERCHANGED FOR 2 5 RAILROADS
AT ST. LOUIS
July,’ 52

June,’ 52

July,'51

108,461

98,767

117,779

Source:

First Nine D ays
A u g . , ’ 52 A u g . , ’ 51
33,393

7 mos. *52

7 mos. *51

758,848

819,367

33,795

Terminal Railroad Association of St. Louis.

C O A L PRODUCTION INDEX
19 3 5 -3 9 = 1 0 0
Unadjusted
July,’ 52

Adjusted

June,*52

J u ly /5 1

118.5

111.4

92.0 P

July,’ 52
104.5 P

June,'52

July ,’ 51

126.0

126.6

CRUDE OIL PRODUCTION---- DAILY AVERAGE
(I n thousands
of bbls.)

July, ’ 52 J u n e ,’ 52 July, *51

Arkansas,... ..................

76.6

Indiana.......
Kentucky... ...................

33.5

July, 1952
compared with
J u n e ,'52
July, *51

76.2
170.0
32.8
33.9

76.1
169.3
30.1
29.4

+
—
—
—

1%
3
1
1

+ 1%
— 2
+ 8
+ 14

312.9

304.9

—

2%

+

result of a decline in public expenditures after sea­
sonal adjustment which was only partly offset by a
gain in private construction expenditures. Defense
construction remained at high levels. The steel
strike had little effect on building operations during
the period, but was expected to have some effect
on work in later months.
New housing starts in June and July throughout
the United States were at the seasonally adjusted
annual rate of 1,063,000 and 1,088,000 respectively.
If August starts are also less than 1,200,000 (sea­
sonally adjusted annual rate) downpayment re­
quirements under Regulation X on residential con­
struction must be reduced to not more than 5
per cent as provided by the 1952 amendments to
the Defense Production Act. Present requirements
range from 5 to 40 per cent.
Contracts awarded for private residential con­
struction in the St. Louis territory of the F. W.
Dodge Corporation during the first seven months of
the year were about the same as those in the corre­
sponding months last year. Since March of this
year, however, the dollar volume of contracts
awarded has been improving over that of last year
and the margin of gain was considerable by July.
But a recent survey by this bank indicates that this
uptrend may not continue. According to this sur­
vey, private housing starts for the next six months
will be about one-sixth less than those in the cor­
responding period last year.
Public residential housing awards, in contrast to
private, have shown sharp gains over year-ago
figures. From January to July, the gain was 66 per
cent. A notable start was made at St. Louis in
July on a 1,736 unit public housing project.
Total construction contracts awarded in the
Eighth District during July were $106 million, ex­
cluding the $459 million contract by the Atomic
Energy Commission for an addition to the uranium
separation plant near Paducah. Also excluding this
one contract, awards were 41 per cent above July,
1951, but were 10 per cent below June, 1952.
While total construction contracts awarded in the
first seven months have been larger than in the
same period last year, not all areas of the district
BUILDING PERMITS
M onth of July

T otal.......

1%

New Construction
(Cost in
thousands)

SH O E PRODUCTION INDEX
1935-39:= 1 0 0
Unadjusted
June,’ 52
140.9

M a y ,'52
145.4

P— Preliminary

Page 126




June,’ 51

June,’ 52

M a y ,’ 52

June,’ 51

L32.4

136.8

150.0

128.5

241
5,994
974
3,774
1,966

99
206
87
204
329

^95
191
93
201
244

116
247
194
299
1,180

$12,949
$ 7,265

925
917

824
924

$2,036
$1,906

1952

107
52
177
1,985
267

94
36
214
2,088
240

$

July Totals...

2,588

2,672

$26,540

June Totals...

2,047

2,448

$ 6,445

Little R ock...

Adjusted

1951

Repairs, etc.
Number
Cost
1952 1951
1951
1952

Cost

N umber
1951
1952

242
438
968
4,196
20,696

$

$

$

58
100
83
166
800

$1,207
$

956

have shared the same experience. The most recent
information available, that for the first half year,
indicates that construction contracts awarded in the
three largest cities of the district increased sharply
over the corresponding period last year, but those
awarded in Little Rock and Evansville decreased.
TOTAL CONSTRUCTION CONTRACTS AW ARDED
IN FIRST HAUF OF YEAR
(D ollar amounts of thousands)
1952
St. L,ouis area................................... $195,283 $150,405
Louisville .............................................
43,805 35,822
Memphis ................................. ............
52,168 31,932
Little Rock ......................................
9,697 10,711
Evansville ...........................................
6,545 • 13,612
Source:

1951
+30
+22
+63
— 10
— 52

Per cent
change

F . W . Dodge Corporation.

Trade
Sales during July were at a somewhat lower level
than in June. Normally sales drop seasonally from
June to July, but this year the decline was some­
what more than seasonal in some lines of trade.
This reflected chiefly a reaction to the concentrated
buying of “ hot weather” merchandise during June’s
record heat wave and secondly a reaction to the
weather which continued depressingly hot through
July. Interest in the political conventions was also
a limiting factor in the month as was the protracted
truck drivers strike in the St. Louis area. Auto­
mobile sales were restricted in July and early Au­
gust by the reduced output of new cars.
Department store sales during July totaled almost
one-fifth less than in June. The drop from June
was somewhat more than seasonal, placing the sea­
sonally adjusted index of daily average sales at
99 per cent of the 1947-49 average, which compared
with 111 per cent in June. Adjusted sales a year
ago were 104 per cent of the base. Cumulative dis­
trict sales for the first seven months of 1952 totaled
2 per cent larger than in the like period last year.
In major district cities, department store sales
generally declined from June to July. The smallest
decline was recorded by Little Rock department
stores where sales dipped 6 per cent below those
a month ago. The largest decline occurred in
Paducah where sales averaged almost one-third
below those in June. In comparison to the general
decline from June to July, St. Louis area depart­
ment stores recorded the only decline from July,
1951. Elsewhere in district cities, sales increased.
The largest gain from last year was reported in
Paducah where sales were 14 per cent larger than
in July, 1951.
District furniture store sales during July were
somewhat above those a year ago. Indications
were that much of the gain occurred in the major




TRADE
DEPARTMENT STORES
Stocks
on H and

______________ N et Sales_______

Stock
Turnover

July, 1952
7 mos. ’ 52 July 3 1 /5 2
compared with
to same comp, with
June,’ 52 July,’ 51 period’ 51 July 3 1 ,’ 51
8th F .R . District............ — 1 8 %

+

Ft. Smith, A rk .1............. ..—
Little Rock, A rk ............ ..—
Quincy, 111........................ ..—
Evansville, Ind................. —
Louisville, K y ................. ..—
Paducah, K y ......................—
St. Louis Area1,2............ ..—
Springfield, M o .................—
Memphis, Tenn.................—
A ll Other Cities8............ ..—

+ 1
+ 8
+ 3
+ 6
+ 5
+14
— 2
+ 1
+ 5
+10

8
6
11
16
21
31
22
10
11
15

2%

+

2%

Jan. 1 to
July 31,
1952 1951

— 11%

+ 1
+ 3
— 7
+ 3
+ 3
+31
+ 1
+ 4
+ 3
+ 5

2.09

1.85

1.94
2.06
2.09
1.85
2.21

— 6
— 9
— 16
— 15
+ 3
..........
— 15
— 12
— 3
+ 1

1.83
1.75
1.87
1.67
2.12

2.08 1.78
1.85 1.60
2.17 2.07
1.79 1.70

1 In order to permit publication of figures for this city (or area), a special
sample has been constructed which is not confined exclusively to depart­
ment stores. Figures for any such nondepartment stores, however, are
not used in computing the district percentage changes or in computing
department store indexes.
2 Includes St. Louis, Clayton, Maplewood, M issouri; Alton and Belleville,
Illinois.
3 Fayetteville, Pine B luff, A rk an sa s; Harrisburg, M t. Vernon, Illin o is;
Vincennes, Indian a; D anville, Hopkinsville, Mayfield, K en tu ck y; Chillicothe, M issouri; Greenville, M ississippi; and Jackson, Tennessee.
Outstanding orders of reporting stores at the end of July, 1952, were 11
per cent larger than on the corresponding date a year ago.
PE R C E N T A G E O F A C C O U N T S A N D N O T E S R E C E IV A B L E
Outstanding July 1, 1952, Collected During July
Instalment E xcl. Instal.
Accounts
Accounts
Fort Smith....... ..... %
Little R ock....... 17
Louisville...........18
Memphis............ 20

46%
44
44
36

Instalment Excl. Instal.
Accounts
Accounts
Q uincy................
St. L ou is............
Other Cities.....
8th F .R . D ist...

1 8%
19
13
18

"

IN D E X E S OF D E P A R T M E N T ST O R E SA L E S A N D
8th Federal Reserve District
July,
1952
Sales (daily average), unadjusted8............................... 81
Sales (daily average), seasonally adjusted8.............. 99
Stocks, unadjusted4.............................................................. 112
Stocks, seasonally adjusted4............................................. 120

60%
52
50
47
STOCKS

June, M ay,
1952
1952
103
111
118
125

July,
1951

106
102
124
124

85
104
129
139

3 Daily average 1 9 4 7 -4 9 =1 0 0

4 End of Month Average 1 9 4 7 -4 9 = 1 0 0

SPECIALTY STORES
Stocks
on H and

N et Sales

Stock
Turnover

July, 1952
7 mos. ’ 52 July 3 1 /5 2
compared with
to same comp, with
June,’ 52 July,*51 period’ 51 July 3 1 ,’ 51
M en’ s Furnishings......
Boots and Shoes.........

— 36%
— 21

— 10%
— 8

—
+

1%
2

Jan. 1 to
July 31,
1952 1951

— 23%
— 8

1.26
2.44

1.10
2.31

Percentage of accounts and notes receivable outstanding July 1, 1952,
collected during July:
M en's Furnishings.......................

45%

Boots and Shoes.....................

42%

Trading days: July, 1952— 2 6 ; June, 1952— 2 5 ; July, 1951— 25.

RETAIL FURNITURE STORES
N et Sales
July, 1952
compared with

Inventories
July, 1952
compared with

June,’ 52 July,’ 51 June,’ 52

Ratio
of
Collections

July,’ 51 July,’ 52 July,*51

8th Dist. Total1.......... — 1 0 % + 8 %
+ 1 %
— 10%
23%
26%
St. Louis Area2........... — 3
+ 3
+ 1
— 7
55
57
St. Louis................... — 4
+ 2
+ 1
— 7
58
60
Louisville Area8.......... — 21
+ 6
+ 4
— 17
13
14
Louisville.................. — 17
+ 4
+ 4
— 15
12
13
Memphis........................ — 17
+25
— 2
— 10
12
15
Little R ock................... — 28
+ 7
+ 4
+ 3
17
20
Springfield.................... — 8
+ 6
— 1
— 9
16
17
Fort Smith...................
-0 +17
*
*
*
*
*
N ot shown separately due to insufficient coverage, but included in
Eighth District totals.
1 In addition to following cities, includes stores in Blytheville, Pine
Bluff, Arkansas; Hopkinsville, Owensboro, K en tu ck y; Greenwood, M is­
sissippi; Hannibal, M issouri; and Evansville, Indiana.
2 Includes St. Louis, M issou ri; and Alton , Illinois.
8 Includes Louisville, K en tu c k y; and N ew Albany, Indiana.
Percentage Distribution of Furniture Sales
July,’ 52 June,’ 52
Cash Sales.....................................................................
Credit Sales.................................................................
Total Sales................................................................

15%
85
10 0 %

13%
87
100%

July,*51
14%
86
1 0 0%

Page 127

W H O LE SA LE TRADE
L in e o f C o m m o d itie s

N e t Sales

S to ck s

D a ta fu rn ish ed b y
B u rea u o f C en su s,
U .S . D e p t, o f C o m m e rce *

July, 1952
com p a red w ith
J u n e ,’ 52
J u ly /5 1

Ju ly 31, 1952
com pared w ith
July 31, 1951

A u to m o t iv e S u p p lie s ........................................
D ru g s and C h em ica ls.......................................
D r y G o o d s .............................................................
G ro c e r ie s ................................................................
H a r d w a re ...............................................................
T o b a c c o and its P r o d u c t s ..............................
M is c e lla n e o u s .......................................................

+ 9%
— 11
-— 20
+10
— 5
+ 6
— 1

* * T o t a l A ll L in e s ........................................... —
* P relim in ary.

7%

+25%
— 11
— 21
+12
— 2
+13
+ 7
-0 -%

+ 3 %
+10
— 28
— 6
— 18
+ 3
— 21
— 20%

* * I n c lu d e s certa in item s n o t listed a bove.

appliance division with mechanical refrigeration
and cooling equipment accounting for the major
portion of the increase. Some renewal of interest
in purchase of television sets was credited to sales
promotions and interest shown in political conven­
tions.
Inventories held by reporting retail lines on July
31 were below those a year ago. Department store
inventories throughout the district averaged about
one-tenth below their July, 1951, levels. Furniture
store inventories on July 31 were off a similar
amount.
At department stores throughout the district the
volume of outstanding orders on July 31 was larger
than a month earlier and 11 per cent over July
31, 1951.

Banki ng and Finance
Tightness in the money market was the dominant
factor in the financial picture during July and early
August. Despite the pressure, banks in the district
expanded their credit sharply, especially their loans
to businesses. By contrast, banks in the rest of
the country expanded their loans and investments
only moderately with business loans showing little
change. Also reflecting the tightness of the money
market and the demand for credit, interest rates
moved up somewhat in the period.
The amount of checks cashed at district banks
in July (seasonally adjusted) was larger than in
recent months but slightly less than the peak levels.
Money Market— During July and early August
the money market remained very tight. This situa­
tion dominated the financial picture. Commencing
the period without much cushion, banks were
drained of a sizable amount of funds as a result
of an outflow of money into circulation, Treasury
operations and an increase in foreign Federal Re­
serve deposits. A partial offset to these drains was
provided by net System purchases of Government
securities.
Page 128




Banking— Commercial banks, to meet the drain
of funds, increased their borrowings sharply, sold
a sizable amount of short-term Government securi­
ties or allowed maturing issues to run off, and in
some cases tightened their loan policies (most large
banks, for instance, increased their rates on loans
to brokers against Stock Exchange collateral from
2 ^ 2 per cent to 23^ per cent).
Total loans at all commercial banks in the coun­
try showed only a moderate climb during July and
early August. Expansion centered in a further gain
in loans to consumers and on real estate. Outstand­
ing loans to businesses showed little change on
balance over the period. Public utilities and manu­
facturers of metal and metal products made sub­
stantial net repayments. Most other types of
businesses increased their borrowings moderately.
Loans to dealers for purchasing or carrying U. S.
Government securities jumped sharply early in July,
reflecting bank financing associated with Treasury
borrowings, but then declined steadily over the rest
of the period.
Districtwise, bank credit rose substantially in
July and early August. As in the entire nation, both
consumer and real estate loans continued to climb.
But in contrast with the rest of the country, busi­
ness loans rose sharply. The gain, which was much
more than seasonal, centered in banks at St. Louis,
Louisville and Memphis. Normally, loans decline
somewhat at this time at Memphis and Louisville.
The largest increases in loans went to sales finance
companies. However, banks reported increases in
loans to most other types of businesses also.
Banks in both the large and small centers in­
creased their Government security holdings in July
and early August. The gains consisted primarily
of net purchases of Government bonds.
Interest Rates—Also reflecting in part the tight
money market conditions, interest rates hardened
somewhat in the period. Average rate on accepted
bids for Treasury bills dated June 26 was 1.68 per
cent. For bills dated August 14, the rate rose to
1.90 per cent (a record high since 1933). At the
same time yields on short-term Government bonds
rose from less than 2 per cent to roughly 2% per
cent. Long-term bank restricted bonds declined in
price from over 98 to less than 97. Yields on both
medium and high grade municipal bonds were up
somewhat over the period also. In addition most
large banks increased their rates on loans to brokers
on securities other than U. S. Government obliga­
tions from 2Yz per cent to a level of 2^4 per cent.
Checks Cashed— Debits to deposit accounts at
22 cities in the Eighth District were $4.3 billion

on a seasonally adjusted basis during July. This
was up somewhat from the levels of recent months
but slightly below the peaks on October, 1951, and
February, 1952.
Largest gains over the previous month were re­
ported by banks in Fort Smith and Pine Bluff,
Arkansas; Evansville, Indiana; and Jefferson City,
Missouri. On the other hand, Owensboro, Ken­
tucky, had a substantially smaller amount of checks
cashed than in June.
Nationally, as well as in the district, there ap­
peared to be a sharp uptrend in the number of
checks cashed. Debits to deposit accounts reported
by banks in 342 cities totaled $147 billion during

DEBITS TO DEPOSIT ACC O U N TS
(I n thousands
of dollars)

July,’ 52

E l Dorado, A r k .............. $
Fort Smith, A rk ............
Helena, A r k .....................
Little Rock, A r k ...........
Pine B luff, A r k ..............
Texarkana, A r k .* ..........
Alton, 111...........................
E -S t.L .-N a t.S . Y ., 111...
Quincy, 111.......................
Evansville, In d .............
Louisville, K y ................
Paducah, K y ...................
Greenville, M iss.............
Cape Girardeau, M o....
H annibal, M o .................
Jefferson City, M o ........
St. Louis, M o .................
Sedalia, M o ..................... .
Springfield, M o ..............
Jackson, Tenn................
Mem phis, Tenn..............

June,’ 52

J u ly /5 1

July, 1952
compared with
J u n e/52 J u ly /51

25,976 +
24,339 $
23,762 $
47,912
44,459
41,630 +
7,282 —
6,700
7,010
146,166
150,937
136,705 —
30,430 +
34,278
38,161
18,057
13,579 +
18,954
33,045
28,275 —
32,743
130,332
129,552
124,036 +
31,235 —
34,138
35,241
154,518
142,987
149,367 +
656,861
633,838 +
684,681
36,469 —
35,060
43,150
43,126
22,596 —
42,391
19,083
19,995
20,087 —
13,233
12,505
12,459 +
10,413
8,922
10,462
54,515
48,758
49,421 +
1,956,287
1,808,652 —
1,989,005
10,843
9,567 +
11,430
67,832
65,962 +
70,695
19,924
19,277
20,048 +
526,738
540,883
507,235 —

Totals............................. $4,078,462 $4,081,976 $3,783,771

2% —
8
+
—
5
3
+
11
+
5
+
1
+
1
+
3
+
8
+
4
4—
19
2
+
—
5
6
+
+
012
+
2
+
5
+
4
+
—
3
3
+

- 0- %

+

6%
15
8
7
25
40
16
5
9
3
8
4
88
5
6
17
10
8
19
7
1
4

July, an amount 18 per cent above July, 1951. By
contrast the cumulative total for checks paid for
customers of these banks in the first six months of
1952 was only 5 per cent over the corresponding
period of a year ago.

Agriculture

8%

*
These figures are for Texarkana, Arkansas, only. Total debits for
banks in Texarkana, Texas-Arkansas, including banks in the Eleventh D is ­
trict, amounted to $40,074.

Prospects for Eighth District crop production
continued to decline during July and early August
due to hot, dry weather. Rains during the second

MBER BANK ASSETS AND LIABILITIES BY SELECTED GROUPS
A ll M ember
( I n Millions of D ollars)
Assets

June, 1952 July, 1951
to
to
July, 1952 July, 1952 July, 1952

1. Loans and Investments................................
a. Loans..............................................................
b. U .S . Government Obligations............
c. Other Securities.........................................
2 . Reserves and Other Cash Balances........
a. Reserves with the F .R . bank...............
b. Other Cash Balances3.............................
3. Other A ssets......................................................

$4,317
1,928
1,989
400
1,336
699
637
50

+
+
+
—
•—
—
—

4. Total A ssets.......................................................

$5,703

Liabilities and Capital
Gross Demand Deposits...............................
a. Deposits of Banks.....................................
b. Other Demand D eposits........................
Tim e Deposits............................. .....................
Borrowings and Other Liabilities..........
Total Capital Accoun ts................................

9. Total Inabilities and Capital Accounts..

5.

6.
7.
8.

Large City Banks1

Change fro m :

Smaller Banks2

Change fro m :
June, 1952 July, 1951
to
to
July, 1952 July, 1952 July, 1952

Change fro m :
June, 1952 July, 1951
to
to
July, 1952 July, 1952 July, 1952

106
39
68
1
28
4
24
- 0-

+316
+ 137
+ 144
+ 35
+ 19
+ 25
—
6
—
1

$2,522
1,262
1,061
199
817
448
369
32

+ 79
+ 38
+ 44
—
3
— 35
—
6
— 29
- 0-

+ 189
+ 90
+ 71
+ 28
+
6
+ 14
—
8
+
4

$1,795
666
928
201
519
251
268
18

+
+
+
+
+
+
+

27
1
24
2
7
2
5
- 0-

+ 127
+ 47
+ 73
+
7
+ 13
+ 11
+
2
—
5

+

78

+ 334

$3,371

+

+ 199

$2,332

+

34

+ 135

$4,186
636
3,550
1,031
113
373

+
+
+
+
+

19
7
12
9
50
- 0-

+ 193
—
4
+ 197
+ 55
+ 71
+ 15

$2,552
600
1,952
498
103
218

—
5
+
6
— 11
+
2
+ 47
- 0-

+
+
+
+
+
+

99
2
97
19
68
13

$1,634
36
1,598
533
10
155

+
+
+
+
+

24
1
23
7
3
- 0-

+ 94
—
6
+ 100
+ 36
+
3
+
2

$5,703

+

78

+ 334

$3,371

+

+ 199

$2,332

+

34

+ 135

44

44

1 Includes 13 St. Louis, 6 Louisville, 3 Memphis, 3 Evansville, 4 Little Rock and 4 East St. Louis-N ational Stock Yards, Illinois, banks.
2 Includes all other Eighth District member banks.

Some of these banks are located in smaller urban centers, but the majority are rural area banks.

8 Includes vault cash, balances with other banks in the United States, and cash items reported in process of collection.




Page 129

week of August were beneficial over much of the
district, although coming too late to help some
crops. Up to mid-August the drouth had not been
broken in Southeastern Indiana and South-Central
Kentucky. Nationally, prospects for crops were
reasonably favorable due chiefly to a bumper wheat
crop already harvested and to good crop conditions
in the main Corn Belt.
Grain Production—August estimates for district
crop production were below July estimates. How­
ever, the August estimates, although below 1951
production figures, still point to relatively large
crop production despite the widespread drouth.
District corn production is expected to be 15 million
bushels, or 4 per cent, less than in 1951 and 5
per cent less than the 1941-50 average. This fore­
cast is the net result of expectations for a larger
1952 crop of corn in Missouri than in 1951, but
substantially smaller crops in other district states
where the drouth was more severe. In Arkansas,
for example, a 48 per cent reduction is expected,
compared with the 1951 crop. The district wheat
crop, produced under favorable conditions, is nearly
one-third larger than in 1951; the oats crop is prac­
tically the same as last year’s. The district soybean
and burley tobacco crops are estimated at 4 and
12 per cent less than in 1951 but 1952 production
will exceed the 1941-50 average considerably. The
district rice crop will be 51 per cent larger than
the ten-year average and 7 per cent larger than
the 1951 crop.
ESTIMATED PRODUCTION FOR MAJOR CROPS,
EIGHTH DISTRICT, AUGU ST 1, 1 9 5 2
(In thousands)
Estimated
production
A u g. 1, 1952
Corn (b u .) ......................................
W h ea t (b u .) .................................
Oats (b u .) ......................................
Soybeans (b u .) ............................
Rice (bags) ...................................
Cotton (bales) ..............................
Burley tobacco (lb s.) .............
Source:

335,705
52,754
41,979
78,737
10,367
3,104
174,288

Per cent
change
from 1951
—
+
—
+
—
—

4%
30
04
7
8
12

Per cent change
from 1941average
— 5%
+ 38
— 33
+ 60
+ 51
— 14
+ 7

Adapted from Crop Production, U S D A , August, 1952.

Hay and Pasture Crops—Hay and pasture were
among the most severely affected crops in district
states. Less hay will be harvested in all district
states in 1952 than in 1951; the reductions in Ken­
tucky, Missouri, Arkansas and Tennessee are esti­
mated to be 15, 26, 38 and 43 per cent, respectively.
Pasture conditions in Illinois and Indiana were
higher as a percentage of normal than the national
average, the other district states being below the
national average condition. The 30 per cent of nor­
mal in Tennessee was the lowest of any state in the
nation.
Page 130




ESTIMATED HAY PRODUCTION AND PASTURE
CONDITION. EIGHTH DISTRICT STATES, A U G U ST 1
(1,000 Tons)
A ll H ay Production
1952
Arkansas

..........................

Pasture Condition A u g . 1

Per cent change
from 1951

Per cent of normal
1952
1951

807

— 38%
— 6
— 7
Kentucky ....
— 15
Mississippi ......................
751
— 3
...................... 3,651
— 26
958
— 43
Tennessee ..........................
U . S ................
— 8
S ource: Crop Production, U S D A .

35%
79
73
49
45
55
30
69

91%
95
92
78
75
99
82
86

CASH FARM INCOME
6 month total Jan. thru June

June,
1952

June, 1952
compared with
M ay,
June,
1952
1951

.$ 26,817
. 136,286
74,777
.
32,423
.
23,126
.
74,922
.
33,831

— 5 % + 11 %
— 10
—
2
— 2
—
5
+ 10
—
9
+ 6
+ 33
— 1
— 11
+ 10
+ 14

$

. $402,182

—

(I n thousands
of dollars)

3% —

2%

1952

1952
compared with
1951
1950

187,647
875,902
477,114
244,842
139,238
440,034
189,687

+
—
—
+
—
—
+

9%
2
1
4
5
5
5

+46%
+ 13
+ 20
+ 7
+ 41
+ 13
+ 19

$2,554,464

—

1%

+ 17%

RECEIPTS AND SHIPMENTS
AT NATIONAL STOCK YARDS
Receipts

July
1952
Cattle and calves. 125,850
H o g s ........................ 221,573
Sheep.......................
64,980
H orses.....................
T otals.................

412,403

Shipments

July, ’ 52
compared with
June,’ 52 July,’ 51
+30%
— 17
+10

+ 8 <?
— 19
+ 7

—

—

3%

8%

July,
1952
53,554
78,807
41,553

July, 52
compared with
June,'52 Julyt*51
+39%
— 13
+24

— 14%
— 32
+24

173,914

— 17%

Soybeans— In Missouri, 1952 soybean production
is expected to be substantially higher than in 1951
when floods and wet weather reduced the size of
the crop materially. Substantial declines are ex­
pected, however, in the other important soybeanproducing states of Illinois and Indiana. Soybean
production has been hit particularly hard by drouth
in Kentucky, but declines also are expected in other
district states.
Cotton— Cotton production is expected to be less
than in 1951 in all district states with the exception
of Missouri, where a one-third larger crop is indi­
cated this year than last. The decrease in produc­
tion in the mid-South and southeast is expected to
be partially offset by expected increased production
in Arizona and California.
ESTIMATED SOYBEAN AND COTTON PRODUCTION.
EIGHTH DISTRICT STATES, A U G U ST 1
(Production in thousands)
Soybeans

Cotton
Indicated Per cent Indicated Per cent Per cent cha
production change production change
from 1941bushels from 1951
bales
average
from 1951
....
....
..

11,310
82,203
31,842
1,768
5,850

— 9%
1,050
—
— 13
—
— 13
—
— 28
Kentucky # ....
— 2
Mississippi
1,450
+ 13
410
— 5
500
Tennessee ....
— 6
United States .. 264,395
14,735
Source: Crop Production, U S D A .

— 16%
—
—
—

— 10
+ 33
— 6
—

3

— 24%
—
—
—

— 12
+ 13
— 9
+ 17