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FEDERAL RESERVE BANK OF ST. LOU!S M O N T H L Y R E P O R T ON G E N E R A L B U S IN E S S A N D A G R IC U L T U R A L C O N D IT IO N S IN F E D E R A L R E S E R V E D IS T R IC T N o . 8 RELEASED FOR PUBUCAT!ON ON AND AFTER THE MORN)NG OF SEPTEMBER 2 7 ,1 0 2 0 W!LL!AM M cC. MART)N, CHAtRMAM OF THE W A R D AMD FEDERAL RESERVE AGENT REVIEW of activities during the past month * * discloses some uneveness, certain lines showing a recessionary tendency, while others maintain a pate equal to or closely approximating their pros perity of recent months. The predominating trend is m the direction of further readjustment, but the processes involved in this change have been gradual and orderly enough to produce only minor disturb ances in business and finance. Additional price declines have taken place, which affect important commodities, but elsewhere basic materials and parallel lines are as high as ever, and in some in* stances advances are recorded. Manufacturers and merchants, both wholesale and retail, are injecting an unusual amount of effort into their business, and obtaining mainly satisfying results. The public is still m need of goods, and apparently as well equipped as ever to 611 its wants, but is more exact ing m the matter of values. A saner, and more sober tone obtains in all departments of trade than has been the case since the normal tenor of things was upset by the war and its effects. A noticeable feature is a greater abundance of Merchandise. Deliveries are prompter and it is clear that manufacturers have caught up with the demand, and in numerous cases outstripped i t This *act, coupled with price reductions, has made for in placing orders for fall and winter goods. Almost universally, wholesalers and jobbers report that buying for immediate requirements is excenent, but have the reverse to tell relative to buy***^ !**to future. There is a decided disposition Mi the part of retailers, both in the city and coun*o hquidate their stocks, or to keep them no w g w than necessary for current purchasing. The a c t i n g attitude is general, and merchants are Mirous of informing themselves before making tensive commitments. This is true especially in mMinery, shoes, clothing and kindred f metal lines the abundance of goods is though in recent weeks transporta! * ^ improved sufficiently to eliminate 5 recent scarcity. Prices o f iron and th. P *^"cts are holding relatively strong, and *s active. This is true, also, o f drugs Slsssware, and paper goods. In the o* food products there have been a large inat*rSt L reductions, especially on basic ^ on certain articles which are in * *°"**dance just now, the reductions are mnyii+ tt*** *^*chmg the ultimate consumer than *"ght be expected. be expected. o f living coat, while — beading^ightly ** * result o f t h t July I, still abnormally high. Reports from all sections of the district indicate that the rent item holds firmly at recent levels, with many instances of further advances. Results of the railroad rate ad vances, though small on any one commodity, bulk noticeably in the aggregate, and are particularly discemable in their bearing on the price of -fuel. The expense of public utility services has not declined, and in several notable instances has moved upward. Gasoline and lubricating oils are also higher. These expensive items tend to balance declines so far recorded on the general run of things making up householders' monthly bills. Agricultural results in the district continue the basis for optimism. The size of crops thus far gar nered is large, and prospects for those still in pro cess of development are good. Since the first of September weather has been too cool and wet for growing cotton, and numerous complaints are com ing in, but despite weather and insect pests the out look is good. Likewise there has been somewhat too much moisture and a deficiency o f sunshine over the com belt, but indications still point to a yield well over the average in states of this district Figures compiled from the September 1 forecast of the United States Bureau of Crop Estimates show the production in the Eighth Federal Reserve Dis trict of leading crops as follows: Com 464,938,000 bu. against 380,722,000 bu. in 1919; Wheat 54722,000 bu. against 106,022,000 bu.; Cotton 2,112,000 bales, against 1,789,000 bales; Oats, 72,701,000 bu. against 63.595.000 bu., and Hay 7,690,000 tons against 8.124.000 tons in 1919. With the exception of wheat the movement of cereal prices in the St. Louis grain market has been downward, the movement being accompanied by considerable nervousness and irreg ularity. Since the middle of August com futures have broken 11c to 16c a bushel and the spot article from 25c to 26c. Cash oats in the same period fell about 10c. Wheat futures fluctuated widely, the extremes being separated by about 20c a bushel. While considerably under normal, fuel conditions in the district show steady improvement in quanti ty, though prices remain high. Dealers report sup plies laid in for domestic consumption considerably under what is customary at this time of year. The movement from mines is increasing at a rate which, if continued should materially rMuce deficiencies by the end of October. With reasonably good weather conditions to the end of December and no serious troubles at the mines, it is estimated that it will be possible to supply all requirements during the period o f maximum consumption. There has been * !o6eeaaqr gp *n supplies o f metallurgical coke, and reduction in quotations ior the product of Eastern ovens. ConneHsviHe 72-hour foundry coke ranges from $17.50 to $18.50, against $20 to $22 thirty days ago, and $7.50 when the Government released control a few months back. Depression in the automobile business in the more important Eastern manufacturing centers is reflected in this district to an even greater degree than a month ago. Sales of new and used cars are off, and it is possible to obtain delivery of virtually all makes on short order. Considerable liquidation of labor engaged in this industry has taken place, though less in this section than to the East. An imporant interest in St. Louis which laid off a por tion of its forces, is offering to take the men back at a reduction of 20 per cent in wages. Automobile accessories have eased off, both in price and activ ity, and radical price cuts have been made in tires. In the volume of traffic, both freight and passen ger, last month was the banner August for railroads operating in this district According to officials of the lines, but few months heretofore surpassed the totals rolled up in August. The officials report fur ther material improvement in the transportation sit uation. Daily mile per car efficiency has been raised several notches nearer to the 30-mile goal. Since September 1, however, offerings of freight have dropped off to a considerable extent, and results at the end of the month are not expected to equal the August totals. The falling off has not yet extended to passenger traffic. During August the Mississippi Warrior Service, Inland Waterways, which operates the St. LouisNew Orleans barge line, had capacity loads on all trips, and was prevented from handling heavier ton nages only by lack of power. The first unit of its fleet of six tow boats, ordered by the War Depart ment, and building at Charleston, W . Va., raised steam this month, and will be delivered in St. Louis October 1. The other units are expected to follow shortly. A t present the service has in use 28 2,000ton steel barges, which number will be augmented to 40 as soon as delivery on the additional craft ordered can be obtained. Reports relative to collections in the district vary considerably, but on the whole are less favorable than earlier this year or for the corresponding per iod last season. Banks and merchants report a dis position to seek extensions and make the person extending the credit carry the burden where it is possible to accomplish this object. This is by no means universal, but occurs in many instances where the debtor might well meet his obligations. Fewer merchants, especially to the South, are tak ing discounts, and as is always the case in a declin ing market all hands are desirous of being strongly fortified with cash. Hereabout, however, October is the big month for paying bills, and returns then will be much more enlightening than those of August and September. There is little complaint from retailers, who are for the most part getting in their money promptly. Commercial failures in the Eighth Federal Reserve District during August, according to Dun's, were 31, involving liabilities of $288,672, against 20 in August, 1919, with liabilities of $118,392. In July this year there were 28 failures involving liabilities of $96,040, and in June 34 with liabilities of $2,283,000. The market for investment bonds continues quiet, due to the same causes which have made for apathy in that business for the past several months. The enormous money needs in commercial lines, and the high rates offered for funds by the United States Government and business interests, are at tracting investors who usually place their surplus in municipal and corporation bonds. Several recenf issues, however, notably the new French loan, have sold readily, and a little more interest is being shown in gilt-edged rail bonds. The per capita circulation in the United States on September 1 was $57.88, against $57.07 August I and $54.03 on September 1, 1919. MANUFACTURING AND W H O LESALE Somewhat unsettled conditions exist in many ing on requirements for the future. The latter fact lines of manufacture and distribution, due in a is particularly noticeable in the South, where the large measure to the recent downward revisions in issue of the cotton crop is still in doubt. Further prices and expectations for further reductions. The improvement in the labor situation is reported. The situation in the market for several of the most im turnover is less frequent, and unit efficiency seems portant basic materials, notably cotton, wool, leath to be upward. er and sugar, is unsatisfactory, and has a tendency Boots and Shoes—Important interests reporting to upset programs of both manufacturers and job give out that their August business made small bers, and the feeling engendered extends more or gains over the same month last year. These gaH*s less to retailers and the ultimate consumer. On were represented chiefly in shipments, the dolly the whole, however, manufacturing capacity is fair and cent value not showing up relatively as welL ly well engaged in this district, much better than in Since the first of September new orders have not certain areas to the East. In virtually all lines raw been arriving as plentifully as last year. Buying materials are plentiful, due to improved transporta for immediate needs is quite good, but the same cap tion, and shipments of finished goods are going for not be said of future business. Merchants, especial ward in better shape than at any time this year. ly in the country, are liquidating their stocks, and Many of the more important industrial corporations are putting off replenishment in hope of lower have made headway during the past few weeks in prices. Raw materials are plentiful and lower M* working off large inventories. Since September 1 price. Calf skins, for instance, have declined to cancellations have decreased in a marked degree, and in their place rebuying is reported. In the case approximately the 1914 levels, and there has been a o f nearly all interests canvassed, buying for imme decline in sole leather, amounting to about 10c per diate needs is active and on a large scale, but there pound in the last thirty days. Prices o f the finished Mforhesitation product have declined from 6 to 7 pe? cept ****^ Digitized FRASER and great caution displayed in cover the last issue of this report. Cancellations are negJigable, and some rebuying is reported. Collections are fair. Estimated operation of plants in this district averages from 65 to 75 per cent of capacity, which compares with about 30 per cent in some of Bids Opened the Eastern shoe manufacturing districts. An inter esting sidelight on the industry is given in the following exhibit showing the average price the Government has paid for shoes during the last six months: Pairs Bought________________________________ AveragePrice March ........................................................................ - — 300,000 Apri! - ........................................................................ .......500,000 June ....................... - ...................................... .........250,000 July - ................................................................................. 250,000 August ............................................................... .............. 250,000 ' Woodenware—No change worthy of note has developed during the past thirty days. The demand as a whole is well sustained, but in spots merchants and jobbers are more backward in placing orders. Goods are somewhat more plentiful than heretofore, due to improved transportation and to the fact that manufacturers are catching up on orders. CollecRons are fair to good. Candy—Reporting interests indicate gains as high as 6 per cent over the corresponding period a year ago, and fair increases in volume over the preceding month this year, w hich latter fact is not very signiRcant as July is reckoned one of the dull months in this line. Collections are good, and the Rrst weeks of September have brought fair buying from the retail trade. Jobbers and wholesalers, however, are still feeling the demoralizing effects of the collapse of sugar, and are disposed to hold aloof from the market, anticipating lower prices. The outlook for fal and winter business is desenbed as ,p omismg, with results to the South bemg contm uT r outcome of the cotton crop and mar^ L Manufacturers still have considerable sugar nhand bought at high prices. Drugs and Chemicals — Leading houses report gams during the past month of from 10 to 20 per cent oyer the corresponding period last year and collections pretty uniformly good. The demand is brisk for virtually all commodities under this classification, with no let-up in sight for the immediate future. Some slowing down in orders for goods to be used by manufacturers is noted, but the u *^mand is fully equal to that of recent t Goods, however, are more plentiful and stocks heavier. Manufacturers are catching up, and t"e rad movement is freer. Some variation is reParted in prices. Rubber goods, paints, cotton goods, patent medicines and some standard mediHMgoods are easier, while bristle goods, glass and wme sundries are scarce and firm. The demand for fountain supplies has receded somewhat, due o the high prices asked the ultimate consumer. ^ record demand for face powders, rouge, perfumes, sachets, manicure sets similar articles, used to supplement nature. t C}<*hing—The trend of prices continue easier "Mb for women's and men's apparel, and the latter ow nearer to the pre-war basis than has been ia rm ^ *** many months. Buying in all positions Sen* ^ conservative basis, though since the first of orders have become numerous. As be-- _ with a year ago, manufacturers and job.cent business from 10 per cent less to 8 per tntme: Where gains are recorded, however, Mred salesmanship and concessions have figresults. Made-up fur goods are reported better than expected, with prices i he cool weather in late August and early $6.79% 6.78 6.06% 5.70 5.45 September served to stimulate the hat business, Collections generally are reported fair, with some few backward spots and demands for extensions, Merchant tailors report a slight improvement in business since the first of this month, Electrical Supplies—Business in this line is described as about steady with thirty days ago. Some factories engaged in manufacturing appliances for automobiles report cancellations, but the industry generally in this district continues to show goodly gains over the volume of business done during the corresponding period a year ago. One typical interest records a gain of 63 per cent over a year ago, but a decrease of 2 per cent under the preceding month this year. No change in prices worthy of note has occurred during the month. Many concerns report a growth in their business, due to the broadening use of electrical specialties, Iron and Steel Products—Further improvement transportation has registered a direct effect on this classification. Goods are reaching destination with greater alacrity, and stocks augmenting. The demand, however, holds up extremely well and prices are Arm, with some advances noted. Such advances in the main are to take care of the added cost due to the increased freight rates. Mills and foundries in the district continue their recent pace of operation, though unfilled orders in a number of instances have been materially reduced and it is apparent that the position of consumers as to supplies is becoming easier from week to week. The recent buying movement in pig iron seems to have given smelters about all they need for the moment, and quietness prevails in that commodity. Southern foundry iron, 1.75 to 2.25 per cent silicon, is quoted at $42 a ton with an abundance obtainable at that figure for immediate and future delivery, Implement makers and dealers report business about steady, also prices, but some cancellations and holding up of orders from the South. There has been a slowing down in the demand for some building materials, and the inquiry for tubular goods and oil drilling supplies from the Southwest. Nails are still scarce, and the same is true of bale ties. Collections are fair to good. Railway s u p p l y interests report dullness in their line, buymg by the carriers not havmg been resumed.. Hardware—Interests reporting find their business holding well up to recent showings, and "*<**' cate that prospects for fall and winter are excellent. The past thirty days have developed no material change in prices, but in all instancy stocks have increased and goods are easier to obtam. August results develop gains of 10 to 24 per cent over the corresponding month last year, and one leading house reports the largest August m its history, Sporting goods continue to move well, but a Mrther recession is noted m automobile accessories. F!otur—Millers in this district continue Jto com plain of slow and unsatisfactory business. The domestic trade expects lower prices, and is buying from hand to mouth. Export business is adversely affected by a preferential ocean freight rate in favor of wheat as against Hour, amounting to about 50c per barrel. This enables Canadian millers to under sell those in this country, besides making it more profitable for Europeans to import wheat than Hour. Mills in the district are running at barely 50 per cent capacity, and the first two months of this sea son, the season beginning July 1, have proved the smallest in many years. Domestic stocks are very low and must perforce soon be replenished, which fact coupled with a better inquiry recently from Southern Pacific Ocean points, leads to the belief that business must shortly undergo a change for the better. Lumber—Since the buying movement, anticipa tory to the advance in freight rates, ended, the mar ket has subsided into quiesence and new purchasing since has been at a minimum. The mills are anxious for business, and a large portion of them are mak ing concessions in prices sufficiently large to absorb the higher transportation costs. The market is weak and retailers are well stocked. Some improve ment in the car situation is reported, but equip ment is still short. Building is being retarded by scarcity of materials other than lumber, which has a derogatory effect on the lumber trade. Hardwood is also dull and weak, with a rather broad spread in selling prices. Car oak holds fairly firm, but slow ing down in buying by automobile manufacturers has cut the demand for maple and elm. Collections are not uniformly satisfactory. Memphis interests expect considerable benefit from the milling-intransit decision. Fire Clay Products— Reporting interests complain of railroad facilities, especially as they affect their supplies of raw materials. There has been a slump in new business, and the several concerns aw engaged in cleaning up on old orders. This applies particularly to refractories. The demand for sewer pipe has declined, due to delay in road building and general construction and improvements. August was somewhat ahead of the same month last year in dollar value of business and shipments, but be hind in new orders booked. Collections are fair, and thus far there have been few cancellations, though several manufacturers say they would not be sur prised to receive some during the coming weeks. Labor is more plentiful, and the turnover less fre quent. Furniture—White dealers need goods, they are not buying heavily because of an idea that prices will decline. Manufacturers report prices steady to firm. They have raw materials at high prices. Au gust developed a falling off in sales, but not in ship ments, as compared with a year ago. Collections are fair to good. Common labor is easing up, but skilled workers are not over-plentiful, and wages hold at recent levels. Miscellaneous—The trend of things in other lines, such as stationery, cooperage, bags, tobacco, rope, and plumbers supplies seems to be to ease off. New orders are coming in more slowly, and liquidation in a greater or lesser degree, is in progress. Prices vary, but no radical declines are observable, and in some lines the market is steady to higher, notably in the case of paper and paper products. Glass pro ducts are also very firm. Collections range from * fair to good. RETAIL All things considered business in the retail less variation, but better values are going in to the department of distribution has held up in good goods displayed. Leading department stores shape during the past thirty days. As was remarked district show gains in net sales during the month 0 in preceding issues of this report, buying is more August of irom 1.2 per cent to 37.6 per cent a s com conservatively pursued, and there is a marked dis pared with the same month a \car ago. In S t. Louis position on the part of the public to get full value these big gains were accomplished despite tlM lac for money spent. Wherever goods offered square the great emporiums remained closed each Satur with current ideas of values, there is no trouble to day, which was not the case last year. Collections dispose of them. No signs are evident of a decline are running about on a parity with a year ago, M m general purchasing power. There have been fur there is little complaint save of a seasonal sort,<M ther reductions in prices to the ultimate consumer to many persons being away on vacations and e noticeable principally in goods for personal con ferring payments until their return. Reports fro sumption. In clothing the trend is downward, with man\ articles, especially men s apparel, working the South, where cotton and tobacco a r e the ^ gradually to figures common before the war. Sell crops, are less optimistic than those received r ing prices of ready-to-wear goods for women show other scetions of the district. AGRICULTURE The September 1 crop report of the U. S. Depart Higher temperatures and sunshine have co ment of Agriculture was an optimistic document, the immediate past, which will work won especially in its account of things in this particular maturing the corn crop. Barring the conting district. Conditions since the data was compiled of an early frost, the out-turn of this cereal have not been uniformly favorable for obtaining realize the most hopeful expectations, best results, there having been a superabundance operations have been pushed on an , of moisture and hardly sufficient sunshine. Little large scale. Plowing and listing has been ai _ real deterioration has taken place, however, and in the plentiful precipitation, and r e p o r t s from all likelihood the Government's estimate of totals all sections of the district where cereals are for all food crops will be fully realized in the sequel. indicate excellent soil conditions. O f ftp** . tty, ^y .y ^ questionaires sent to farmers and country merchants 70 per cent show com conditions good, 22 per cent fair and only 8 per cent poor. About the same ratio obtains in replies on tobacco. Hay is shown in a Nourishing condition, and 65 per cent of responses on potatoes report good. Fruit crops have turned out or are turning out much better than expected earlier in the season. Apple prospects are better than a month ago, and in Missouri the commercial yield will almost equal last year's. As indicated elsewhere in this report, the wheat crop of the district was 53,300,000 bu. under that of last year, but quality, as demonstrated by recent threshing returns and reports from marketing points, is exceptionaUy high. Oats are turning out we!!, with a small gain over the 1919 estimate. In Arkansas drier weather would have been better for maturing and harvesting the rice crop, but even with this disabi!ity prospects are fine. The Southern Rice Growers Association has Axed the selling price of rice at $8 per bag for Nos. 1 and 2. Last year the price Axed was $10, but on account of the demand most of the crop brought $12 to $13. Generally through the district farm labor has been plentiful, thought not always efficient. Wages on the average for producing this season's crops are thought to be Condition September 1 1920 lOyr.Av. <% the highest ever paid up to this time. In the cotton belt some scarcity of help is reported. Pastures have been benefited by the heavy rains, and so far as can be gathered, live stock continues in good condition. The number of cattle and hogs on farms is estimated to be less than a year ago, the reduction being occasioned by the drop in prices on the hoof, and the high cost of feeds, The Department of Agriculture makes the com bined condition of all crops in the seven states of this district (100=average) 106.03 per cent as of September 1, against 103.4 per cent on August 1. Reports relative to cotton are more varied than is the case in other crops. It is fairly certain, however, that the crop has gone backward since the Government's last bulletin, August 25. Excessive rains, cloudiness and cool nights have damaged the plant, and there are numerous reports of shedding, rust and material insect ravages. Prospects for the district are still good, however, and less apprehension is felt just now relative to yield than to ultimate prices and movement of what remains of last year's crop. The U. S. Department of Agriculture, in its re port as of September 1, gives the condition of com in the seven states of this district as follows: Forecast 1920 From Sept. 1 Cond. Bu.* Aug. 1 Cond. Bo.* Price per Bn. December Estimate Sept. 1 1919 1914-18 Av. 1920 1919 Bu.* Bu.* Cents Cents %__________________________________________ Arkansas ----------------- 90 74 63,156 IH'nois ---------------------- 72 76 281,686 Indiana--------------------- 88 80 184,130 78 107,110 Kentucky ----------------- 98 Mississippi ---------------- 77 79 66,970 Missouri ------------------- 84 67 216,838 Tennessee ---------------- 93 82 87,124 *In thousands of bushe!s—i. e., 000 omitted. 59,232 284,871 177,924 96,941 66,399 200,159 82,032 48,726 301,000 175,750 82,500 59,700 155,412 74,750 49,702 347,537 178,140 99,485 63,448 171,524 86,790 19S 149 148 184 201 156 188 206 184 188 211 204 193 209 Range of prices on typical products in the St. Louis grain market between August 16 and Sep tember 16, with closing quotations on each of these dates: Close Auyust 16 December Wheat_____________ $ 2.36% March Wheat_____________" I J 2.39 September Corn______________ 1.47% 1.23% December Corn_______________ September Oats______________ .69%c No. 2 Red Winter Wheat_____ 2.50 @ 2.53 No. 2 Hard Wheat___________ 149 @ 2.50 No. 2 Corn__________________ 1.59 No. 2 White Corn____________ 1.61 No. 2 White Oats____________ .74 @ 74%c F!our: Soft Patents__________ 11.25 § 13.10 F!our: Spring Patents________ 12.45 g 12.80 High $2.50 2.46 1.50 1.25% .69%c 2.71 2.42 1.66 1.68 74%c 13.50 13.65 Low $ 2J28% 2.28% 1.26 1.09% 61%c 2.47 2.63 1 28 1.30 63c 10.50 1100 Close September 16 $ 2.38% 2.33% 126% 1.11 @ % 61%c 2.60 @ 2.62 2.48 @ 2.50 1.28 1J0 @ 1.31 .63 @ 63%c 11.00 @ 13.50 12.10 @ 12.65 LABOR Among the latter may be mentioned the furniture Further well defined evidence of easier labor conworkers strike in Evansville, Ind., which had lasted dtttons have come to the surface during the past about four months. Somewhat more satisfactory few weeks. Business interests report no difRculty conditions are reported in the building trades, *n obtaining the help they need, with the exception though troubles there have not been entirely ad o* certain of the specialized trades. In some lines justed. A strike of teamsters in the cement industry there ts a slight oversupply, but to date unemploy has served to tie up building to some extent in St. ment m the district as a whole is slight Generally Louis and the immediate surrounding area. Few wages hold steady with a month ago, complaints are heard from the farms, where help "tough m isolated cases reductions are reported. proved ample for harvesting and threshing. Rail According to State and Federal labor commission roads report more applications for positions in their ers, the principal - unemployment is in factories. clerical departments. Domestic help is scarce in jU nng the past month w e number of strikes has city and country. decreased, and several in progress have terminated. COMMODITY MOVEMENT Receipts and shipments of important commodities at St. Louis during August, 1920 and 1919 an^f July 1920, as reported by the Merchants' Exchange, were as follow s: --------------------- Receipts------------------- __ S ^___ 307 740 Aug. 1920 314.970 ---------------------Shipments-------------------- July 192V Aug 1919 Aug. 1920 Ju!y!920 Aug. 1919 428.480 425,820 397.670 478,485 *gS-!g ''% 3§ ^0 7^ ^1Z848 nasx S -E E E E E 'i M ------------- ^ "'SS S ^ r ^ E E E E S1 s '^ T —^ o n ^S%3 t 028.900 ^ 1.025.500 ---------------------- - r r r '- K H m ^397 ^ 6174 ^lO^S Eg3 33 ^5.996.800 8.165.700 5,588.700 iw w X 2 .^ .s w s ,a v o . BUILDING A sharp decrease in the number of building perpicious for attempting to remedy the sttaabon mits and dollar and cent value represented by tnem Contractors are loath to give a Rat btd on wwk, is recorded in reports for August from leading cities and in many instances will only undertake & an * in this district. According to builders, contractors cost-plus basis. This arrangement, especially m and architectsinterviewed, the decrease is ascribable residential construction, is not inviting to those to unwillingness of investors to launch new buildwanting to bui!d. The United States Forestry Ser ing enterprises because of the high cost of materials, y j^ estimates that the country lacks 450,000 homes, uncertain labor market, and tight and high money. while other estimates range as high as 800,000 and The need for new construction is conceded, but ^ y ^ ] 000000. things from an investment standpoint are not aus' Comparative building figures for August in leading cities of the district follow : ____________________ MM________ AUGUST_________ M19 New Construction Repairs, etc. New Construction Permits Cost Permits * Cost Permits Cost S t Louis_________________ 398 $853,405 395 $350,925 410 $2,585,060 L ou isville________________ 39 952,850 132 75,900 63 350.300 M em phis_________________ 93 298,050 59 19,980 50 1,067,900 Little Rock_______________ 45 132,425 141 68J42 50 472^90 Repair*, etc. Permtts Cost 409 $ 7 g 3 g 124 % ZN 108 219,225 46 47,466 LIVE STOCK Increased marketing of grass cattle has featured the trade during the past two weeks, range cattle from the Southwest increasing along with native pasture cattle. Prices have moved in a rather irreg ular range, and have not been entirely satisfactory to producers. While ranges and pastures are mainly in good shape, the live stock industry is not in pros perous condition on the whole. The general state ment is that feed has been much too hi^h in tion to the price for live stock, especially feeders. Dairy and poultry industries are reported steaauy increasing. In some sections farmers have tncreasea home dairy industry, because of the g re a t demaao in large cities for whole mi!k, that is mtlk which the cream has not been separated. As reported by the St. Louis National Stock Yards, receipts and shipments of live stock at St. Louis in August, with comparisons for August, 1919, were as follow s: Cattle & Calves _ . 1920 1919 R eceipts--------------------------------------- 134,462 138,824 Shipm ents------------------------------------ 57,086 61,527 H ogs 1920 1919 201,215 166.807 101,796 118,375 Sheep 1920 1919 70,354 100,032 19,068 24.139 H orses & Mules 1920 1919 14,880 22,487 15,032 21,963 FINANCIAL order As contrasted with thirty days ago, there has been in recent weeks is still found necessary t no marked change in banking and financial condi that available resources may be so dtsposea tions in this district. The course of liquidation, effect best results in essentia! business, v while not rapid, is fairly consistent and steady, and high selling prices and enormous v o lu m e , 6 about as expected for this particular period. Agri of the season's crops has proved a f°rn n d a b l culturalists are cashing in their crops, and effects taking. The portion of this financing alM ^ of their payments are felt in country banks in some posed of has been adequately h a n d led , ana sections. Liquidation of merchandise has also pro undue impingement upon funds and cred tts req gressed satisfactorily in the main, inventories in a for the conduct o f regular c o m m e r c ia l nnes. ^ number of important lines being well under recent more expeditious forwarding of freight, due provement in transportation, has f u r t h e r pen ^ high levels. Withal the demand for money and credits has not diminished, and the same conserva the credit situation. Deposits, as shown tism and caution which has been practiced by statement of the Federal Reserve Bank o* St. and its branches, show on!y a minor variation as contrasted with thirty days ago. A slight increase was noted in bills discounted and minor gain in each reserves. Interest rates hold at their recent levels, and opinion among bankers leans to the belief that there will be little change in present quotations. Declines in volume of business ranging as high as 33-1-3 per cent are reported by commercial paper houses in August as compared with the same month in 1919. As has been the case for a considerable while, city banks are not purchasing this sort of paper, their resources being used entirely to ac comodate their regular customers. Since September 1 country banks in some agricultural sections have taken on moderate amounts of commercial paper, making the purchases through their city correspon dents. Rates are uniformly 8 per cent, with many interests of exceptional business standing seeking accommodation at that figure. INTEREST RATES Between August 16 and September 15 the high, low and customary interest rates prevail ing in St. Louis, Louisville and Little Rock, as reported by the banks in those cities, were as follows: St. Louia__________Louisville________ Little Rock Customers' Prime Commercial Paper: H L C H L C L C 30 to 90 days__________________________________ 7% 6% 7 7 6 6 7 7-8 4 to 6 months--------------------------------------------------- 7% 6% 7 7 6 6 7 7-8 Prime Commercial Paper purchased in open market: 30 to 90 days---------------------------------------------------------------- -— 8 8 8 4 to 6 months--------------------------------------------------------- ------------ ------- 8 8 8 Loans to other banka_______________________________7 6% 6?% 6 5% 6 Bankers' Acceptances of 60 to 90 days: Endorsed _____________________ ___ ___________________ ____ _____ — — ___ Unendorsed __________________________________ 6% 6% 6% 6% 6% 6% Loans secured by prime stock exchange collateral or other current collateral: 8 Demand ______________________________________ 7 6% 7 6 6 6 8 3 months______________________________________ 7% 7 7 6 6 6 8 7 6 6 6 3 to 6 months_________________________________ 7% 7 8 Cattle Loans______________________________________ 8 7 7% 6 6 6 8 Commodity paper secured by warehouse receipts, etc— 7% 7 7 6 6 6 7-8 Loans secured by Liberty Bonds and Certificates_____ 7 6 7 6 6 6 CONDITION OF BANKS The condition of banks in this district, and changes since a month ago and last year, are re fleeted in the following comparative statement, showing the principal resources and liabilities of memSept. 10,1920 35 Number of banks reporting._____________________ $ 16,923,000 tL S. Bondds to secure circulation_______________ . 13,299,000 Other U. S. Bonds, including Liberty Bonds--------. 2,686,000 U. S. Victory Notes___________________________ . 5,615,000 U. S. Certificates of Indebtedness_______________ . 38,523,000 Total U. S. Securities owned_________________ Loana and investments, including bills rediacountedt with F. R. Bank: Loana aecured by U. S. War Obligations--------------------. 31,790,000 Loana aecured by atocka and bonds other than U. S. 126.393.000 War Securities_______________________ ______ 417.187.000 with F. R. Cash m Time deposits_______ Government deposits. 613.893.000 41,527,000 9,580,000 325.285.000 125.566.000 759,000 Aug. 13,1920 35 $ 16,924,000 13.295.000 2.675.000 5.036.000 37,930,000 Sept 12,1919 35 $ 17,154.000 14.920.000 9,855,000 31.473.000 73.402.000 33,534,000 --------------- 125.744.000 410.891.000 --------------- 608.099.000 41.138,000 9.390.000 330.212.000 124.767.000 1.564.000 459.402.000 41,022,000 9.864.000 325.379.000 101.545.000 15.822.000 DEBITS TO IN DIVID U AL ACCOUNTS The following table, compiled from figures furnished by the several clearing houses, gives the ytal debits charged by banks to checking accounts, savings accounts and trust accounts of individuals, urms, corporations and U. S. Government, also certificates of deposit, cashiers' checks and expense checks Paid, in the leadnig cities of this district during the past month, with comparisons for the preceding mont 1 and corresponding period a year ago. Charges to accounts of banks and bankers are not included. These figures are considered the most reliable index available for indicating actual spending by the public during the periods which they cover. Debits to depositors' accounts for four wecka ending: Sept. 15,1920 St Louis____ ____________________________:_________ $557,166,000 Louisville________________________________________ 109,921,000 M^nphia_______________________________________ ___ 121,807,000 Little Rock— ____________________________________ 35,386,000 Evansville ___ _____________________________________ 19,243,000 Total $843^000 Aug. 11,1920-------------Sept. 17,1919 $556,670,000 $604,071,000 124,116,000 132.153.000 98.817.000 104.096.000 35.861.000 30.551.000 18.853.000 19.721.000 $834,317,000 $890,592,000 FEDERAL RESERVE OPERATIONS There has been no change in the normal discount rates of the Federa! Reserve Bank of St. Louis last report. In August this bank discounted a total of $205,721,345 of paper for 285 member banks, which n an increase of $12,877,937 over the amount discounted in July and an increase of 10 in the number of bada accommodated. Acceptances purchased during August amounted to $985,000. a decrease of $1,055,770 wa der the preceding month. The resources and liabilities of the Federal Reserve Bank of St. Louis on September 17, 1920, as compared to a month ago and a year ago, are shown in the following statement: RESOURCES: Sept. 17,1920 Gold Coin and Certificates________________________________ — $ 3.445.000 8.561.000 Gold Settlement Fund—F. R. Board-----------------5.238.000 Gold with Foreign Agencies---------------------------- Aug. 13,1920 $ 2,997,000 10.027.000 5.242.000 Sept. 12,1919 $ 2,524,000 11,979,000 Tota! gold held by bank........................................................... 17,244,000 18,266,000 14.503.000 Gold with Federal Reserve Agent................................................. Gold Redemption Fund------------------------------------------- ---------- 47,892,000 5,678,000 44.303.000 6.474.000 54.721.000 5.743.000 70,814,000 69.043.000 74.967.000 7,836,000 8.066.000 5.272.000 ..... 78,650,000 77.109.000 80.239.000 ..... ..... .... 44,469,000 76,578,000 1,720,000 41.547.000 70.212.000 2,160,000 60.400.000 14.230.000 14.918.000 .... 122.767.000 113.919.000 89.548.000 U. S. Government Bonds__ ______________________ __________ U. S. Certificates of Indebtedness------------------------------------------ 1,153,000 17,325,000 1,153,000 17.257.000 1.153.000 17.068.000 141,245,000 132.329.000 107,769,000 866,000 56,076,000 623.000 414.000 866.000 44.890.000 524.000 342.000 691.000 57.559.000 660.000 563,000 Total Resources...-................................................................. - 4277.874.000 $256,060,000 $247.481.000 4,304,000 5,884,000 4.272.000 5.884.000 4.005.000 2.589.000 Government Deposits________________ _________ _____________ io 424000 Due to Members—Reserve Account.......................... 63 Deferred Availability Items_____________________ ____ 45^234^000 Other Deposits, including Foreign Government Credits............ ljl70j000 833,000 64.993.000 39.542.000 1,600,000 2.542.000 62.441.000 46.089.000 4.512.000 Tota! Gross Deposits..-............................................................. 120,561,000 106.968.000 115.584.000 134 gyg QQQ 128.262.000 8.864.000 1.810.000 108.039.000 16.278.000 986,000 $256,060,000 $247.481000 Total Gold Reserves-------------------------------- ..... Legal Tender, Notes, Silver, etc.--------------------Tota! Reserves. Bills Discounted: Secured by U. S. War Obligations------BiHs Discounted: A!! Other._________________________ Bills Purchased in Open Market---------------------------------Tota! Bills on Hand. Tota! Earning Assets. Bank Premises___________________________ ___ ____________ UncoMected Items and other deductions from Gross Deposits__ 5 per cent Redemption Fund against F. R. Bank Notes____ __ A!! Other Resources___________________________________ LIABILITIES: Capita! c , Paid in. -----------------------------------------------------Surplus ------------------------------------------------------------------------------ F. R. Notes in actua! circulation - ......................... ................... *<*ua! circulation---------------- - " " I " " " !- AM Other Liabilities. ------------------------------------------------------ 10!l65!000 2,382,000 Tota! Liabilities. $277,874,000 Contingent liability as endorser on paper rediscounted with or sold to other F. R. Banks___________________ ___________ 27 979 000 Contingent liability on biHs purchased for foreign correspondents 752^000 Compiled September 18, 1920 20.941.000 752,000
@FedFRASER