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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication O n and After the Afternoon of September 29, 1934 JOH N S. W O O D , C hairm an and Federal Reserve A g en t FEDERAL RESERVE H O U G H somewhat spotty and irregular, both with reference to the several lines and geographic locations, general business in the Eighth District during the past thirty days was good. W hile the area has felt the effects of the record spring and summer drouth and high temper atures, serious damage has been confined only to certain sections, which by no means has been gen eral. Distributive trade has been in large volume, particularly so in the case of merchandise for ordi nary consumption. Durable goods, including iron and steel, lumber, and the general run of building materials, have made a relatively less favorable showing, though in these lines some seasonal better ment has taken place during the immediate past. The volume of wholesale and jobbing trade in August, according to interests reporting to this bank, was in excess of the same period a year ago, despite the fact that this year there was no threat of sharp price advances in the fall which was a stimulus to August buying in 1933. Crops, taken as a whole, have turned out much better in this district than in some other extended areas of the country. In fact, in the southern states, Tennessee, Kentucky, Mississippi and parts of Arkansas the chief crops in 1934 will be of consider able size. W inter wheat output for the district exceeds that of 1933, and prices realized for that grain this year are measurably above the average of the preceding several seasons. Prospects for cot ton and tobacco are not greatly below average, and certain typical southern productions, notably sweetpotatoes and peanuts, are of bumper proportions, the total exceeding both last year’s output and the average. The white potato crop is relatively sm all; the shortage of corn, hay, all feed and forage crops is pronounced. In the areas hardest hit by the drouth, farmers have been obliged to cut down the size of their herds to proportions which they will be able to take care of with roughage and other available feeds during the winter. In the fourth week of August the drouth was definitely broken and since that time precipitation has been general and ample for all T C . M . ST E W A R T , Secretary and Ass*t Fed eral R eserve A g en t BANK OF ST. J. V IO N P APIN , Statistician LOUIS purposes. The moisture has wrought great benefit to grow ing and unharvested crops, notably pastures, late fruits, emergency forage, etc. The rains have also served to improve the morale in farming com munities, and fall programs are being undertaken with considerably more optimism than was thought possible a few weeks back. A s an offset to losses in the drouth areas are the advanced prices for farm products and rental and benefit payments to farmers in connection with the Agricultural Adjustment Administration’s curtailment campaign. A s reflected by sales of department stores in the principal cities, retail trade was slightly larger than for the same month in 1933, and approximately 33 per cent in excess of the July total this year; cumulative total for the first eight months was larger by 18 per cent than for the comparable period in 1933. Combined sales o f all wholesaling and jobbing firms reporting to this bank in August were 22 and 19 per cent greater, respectively, than a month and a year earlier; cumulative total for the year to September 1 was 15 per cent larger than the same time a year ago. The dollar value of con tracts let for new construction in the five largest cities in August was 43.5 per cent larger than in July, but 82 per cent below the August total in 1933; for the first eight months the cumulative total was 55 per cent below the same period a year ago. Construction contracts let in the Eighth District in August were 15.5 per cent smaller than in July, and 31.9 per cent more than in August, 1933; cumulative total for the first eight months was 72.2 per cent greater than for the same time last year. Debits to individual accounts in August were 7.4 per cent smaller than in July and 6.6 per cent greater than in August, 1933; for the year to September 1 the cumulative total was larger by 11.8 per cent than for the like period in 1933. A ccording to officials of railroads in this dis trict freight traffic during the past several weeks has failed to develope the usual seasonal upturn. W ithal, volume for the year to date continues well above that of a year and tw o years earlier. The movement of livestock during the past tw o months has been considerably heavier than a year ago, due in large measure to the transfer of cattle purchased by the Government in drouth areas. The recent upturn in grain prices has had a stimulating effect on the movement of wheat, corn and oats. For the country as a whole loadings of revenue freight for the first thirty-five weeks this year, or to September 8, totaled 21,375,046 cars, against 19,625,542 cars for the corresponding period in 1933, and 19,168,184 cars in 1932. The St. Louis Terminal Railway Association, which handles interchanges for 28 con necting lines, handled 78,733 loads in August, against 72,704 loads in July and 75,980 loads in August, 1933. During the first nine days of Sep tember the interchange amounted to 22,962 loads, against 22,077 loads during the corresponding period in A ugust and 20,824 loads during the first nine days of September, 1933. Passenger traffic of the reporting lines in August was 11 per cent greater than during the same month last year. Due to lower fares the number of passengers carried showed a considerably larger gain than revenues received. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in August was 120,500 tons, against 108,902 tons in July and 114,941 tons in August, 1933. The general status of collections in the district during the past thirty days developed no marked change in trends observed during the similar period immediately preceding. Questionnaires addressed to representative interests in the several lines scattered through the district show the follow ing results: Excellent August, July, August, 1934............. 3.4% 1934............. 2.4 1933............. 4.7 Good Fair Poor 30.7% 30.2 37.0 56.8% 55.4 41.3 9.1% 12.0 17.0 Commercial failures in the Eighth Federal R e serve District in August, according to Dun and Bradstreet, numbered 25, involving liabilities of $336,146, against 18 defaults in July with liabili ties o f $148,738, and 45 insolvencies for a total of $843,060 in August, 1933. M AN U FA C TU R IN G AN D W H O L E S A L IN G Boots and Shoes — August sales of the report ing firms were 16 per cent greater than in the pre ceding month and one-fourth larger than the August, 1933, total. Stocks on September 1 were 9 per cent less than a month earlier, but approxi mately 83 per cent greater than a year ago. Some hesitation in purchasing has developed am ong cer tain retailers ow ing to belief that prices of hides may decline, ow ing to the Government’s drouth cattle-slaughtering program. Merchants generally, more particularly in the south are disposed to replenish stocks in anticipation of fall and winter demands. Prices were unchanged as contrasted with the preceding thirty days. Factory operations were reduced seasonally at the end of August, but many factories which suspended operations have resumed since the middle of September. Clothing — Advance purchasing in the apparel industry is reported in slightly heavier volume than at the corresponding period a year and tw o years earlier. Sales of work clothing have developed moderate improvement as contrasted with the pre ceding three or four months. Clearance of summer clothing, both men’s and w om en’s was reported generally the most thorough in recent years. August sales of the reporting clothiers were 56 per cent and 13.5 per cent greater, respectively, than a month and a year earlier. Inventories decreased 21 per cent between August 1 and September 1, but on the latest date were 23 per cent larger than a year ago. Drugs and Chemicals — There was a further decrease in demand for heavy drugs and chemicals from the general manufacturing trade, but this was more than offset by sales of seasonal merchandise, with the result that August sales of the reporting firms were 10 per cent larger than for the preceding month and 28 per cent greater than in August a year ago. Inventories increased slightly from August to September and on the first of the latter month were 3 per cent and 28 per cent greater than a month and a year earlier. D ry Goods — Some augmented buying was re ported as a result of the textile strike, but as a whole this disturbance has had little effect on the trade. Reporting firms are for the m ost part well stocked, and inventories of finished fabrics at mills are also of considerable size. The number of visit ing retail merchants in August at the chief distribut ing centers was large, and purchasing was on a liberal scale. Sales of the reporting interests in August were 55 per cent larger than during the preceding month, and 34 per cent in excess of the August total a year ago. Stocks on September 1 were slightly smaller than a month earlier, but approximately one-half larger than a year ago. Electrical Supplies — August sales of the re porting firms declined 18 per cent from July to August, a somewhat greater than the usual seasonal decrease, but the total was 29 per cent larger than in August, 1933. Stocks on September 1 were larger by 4 per cent and 35 per cent than a month and a year earlier. In the yearly sales comparison in creases were general throughout the entire line, but most marked in radio materials and household appliances. Demand for small motors for a variety of purposes continue at the high levels of recent months. Flour — Production at the twelve leading mills of the district in August totaled 248,471 barrels, against 205,240 barrels in July and 202,982 barrels in August, 1933. Purchasing from all sources con tinues on a necessity basis, there being little dis position to accumulate stocks for future use. Job bers and the large milling interests are not inclined to follow the upturn in prices, incident to the sharp advances in cash wheat values. Furniture — Further moderate betterment was noted in office furniture and equipment, also house hold furniture and furnishings. In spite of this, however, total sales o f the reporting firms in August receded about one-third from the same month a yeaf ago, though show ing a gain of 41 per cent over the preceding month this year. Inventories gained 39.5 per cent between August 1 and September 1, and on the latest date were 2 per cent smaller than a year ago. Groceries — A ugust sales of the reporting firms were approximately 16 per cent larger, than a month and a year earlier, respectively, the gain in both comparisons being attributed in large meas ure to higher prices. Demand for canned goods was active, many retail merchants and householders being disposed to stock up in anticipation o f higher prices later in the season. Stocks on September 1 were slightly smaller than a year earlier, but 4 per cent greater than on A ugust 1 this year. Hardware — Business in this classification was spotty, with results in the drouth areas relatively poor. Since the last week of August orders have picked up substantially, the rains serving to stimu late buying in the rural areas. August sales of the reporting firms were 4 per cent larger than in July, but 9 per cent under the August, 1933, total. Stocks showed little change as contrasted with a month and a year ago. Iron and Steel Products — The last half of August and the first week o f September were marked by a further general slowing down in activi ties in the iron and steel industry in this area. There was a general disposition on the part o f consumers of both raw and finished materials to use up inven tories acquired earlier in the year before making new commitments. The movement and new pur chasing of pig iron during August aggregated less than in any preceding month this year. W hile books of blast furnaces have been opened for fourth quar ter business at prices the same as prevailed in the third quarter, inquiries and sales have been on a very limited scale. Distributors of iron and steel goods from store report August v ol ume slightly below that of the preceding month and the corresponding period a year ago. Extreme quietness in the iron and steel scrap market has been accompanied by a decrease in prices to the lowest levels in recent months. A t the middle of September, operations at district steel mills were slightly above the low point of the year, but meas urably below the June, July and August average. Jobbing foundries are relying mainly on miscel laneous and stove work, and are averaging tw o to three days g. week. Aside from the drop in scrap, there were no changes in prices of iron and steel commodities w orthy of note. H owever, September is likely to bring the first real test of steel prices since their advance three months back, as consum ers thus far have operated largely on inventories previously acquired. For the country as a whole production of pig iron in August, according to the magazine “ Steel” , amounted to 1,060,187 tons, the smallest since May, 1933, and comparing with 1,228,544 tons in July and 1,833,265 tons in August, 1933. Steel ingot production in the United States also dropped sharply in August, the total for that month amounting to 1,363,359 tons, against 1,472,584 tons in July and 2,863,569 tons (revised figure) in August, 1933. R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statements showing activi ties in the leading cities of the district: Department Stores Stocks Stock Net sales comparison on hand turnover Aug. 1934 8 months ended Aug. 31, 1934 Jan. 1, to comp, to Aug. 31, 1934 to comp, to Aug. 31, Aug. 1933 same period 1933 Aug. 31,1933 1934 1933 El Dorado, A rk ....+ 2 9 .3 % + 3 9 .9 % — 0.2% 1.72 1.32 Evansville, Ind......— 1.0 + H-3 — 10.5 1.24 1.17 Fort Smith, Ark....— 2.5 -f27.1 — 0.6 1.37 1.25 Little Rock, Ark...-f- 3.1 + 3 0 .5 — 1.3 1.48 1.42 Louisville, K y....... — 13.9 4* 8.8 — 1.4 2.07 2.04 Memphis, Tenn.....+ 9.7 + 2 4 .9 + 1.6 2.08 1.88 St. Louis, M o........+ 1.2 + 1 6 .2 + 0.8 2.31 2.27 Springfield, M o.....+ 5.6 + 3 0 .1 — 1.4 1.21 .97 All Other Cities....+ 1 5 .7 + 2 7 .4 + 4.2 1.83 1.63 8th F. R. District.. + 0.8 + 1 8 .0 + 0.3 2.10 2.02 Percentage of collections in August to accounts and notes receivable first day of August, 1934. (Percentage of collections by cities). El Dorado, Ark........................34.8% Memphis, Tenn.........................36.8% Fort Smith, Ark...................... 33.5 Springfield, M o.........................22.8 Little Rock, Ark..................... 29.3 St. Louis, M o............................44.1 Louisville, K y ................. -........ 48.3 All Other Cities.......................27.5 8th F. R. District......................... 40.7% Retail Stores Stocks N et sales comparison on hand Aug. 1934 8 months ended Aug. 31, 1934 comp, to Aug. 31, 1934 to comp, to Aug. 1933 same period 1933 Aug. 31,1933 Men’s Furnishings ......— 13.3 Boots and Shoes .................. — 11.7 + 2 4 .7 % 6.8 Stock turnover Jan. 1, to Aug. 31, 1934 1933 + 2 8 .4 % 1.50 1.61 + 1.97 1.91 4.1 AU TO M O B ILE S Combined passenger car, truck and (taxicab production in the United States in August, was 234,809, against 266,576 (revised figure) in July and 236,480 in August, 1933. August sales of new passenger cars by the re porting interests were 2 per cent greater than for the same month in 1933, and 15 per cent below the July total this year. Generally dealers are pursuing a conservative policy in the matter of inventories, and indications point to unusually small stocks of the present year’s models at the end of the season. Stocks in dealers’ hands as o f September 1 were 4 per cent less than on August 1 and about 42 per cent larger than a year ago. Sales of used cars in August were also moderately in excess of a year ago but approximately 7 per cent below the July total this year. Stocks of secondhand cars on hand as of Sep tember 1 were 6 per cent smaller than a month earli er and 10 per cent greater than on September 1, 1933. A ccordin g to dealers reporting on that item, deferred payment sales in A ugust constituted 51.5 per cent of their total sales, against 51 per cent in July and 44 per cent in August, 1933. B U IL D IN G T he dollar value of permits issued for new con struction in the five largest cities of the district in August was 43.5 per cent more than in July, and 82.2 per cent less than the August, 1933, total. A c cording to statistics compiled by the F. W . D odge Corporation, construction contracts let in the Eighth Federal Reserve District in August amounted to $8,228,255 which compares with $9,738,809 in July, and $6,237,834 in August, 1933. Building figures for August fo llo w : New Construction Permits *Cost 1934 1933 1934 1933 Evansville .. 26 134 $ 15 $ 34 2 Little Rock 14 1 8 41 42 221 291 Louisville .. Memphis ... 76 63 100 83 St. Louis.... 173 222 353 3,461 Aug. totals 318 475 $ July 281 476 June “ 307 420 *In thousands of dollars (000 690 $3,877 481 3,615 368 792 omitted). Repairs, etc. *Cost Permits 1933 1934 1933 1934 56 $ 9 347 66 $ 105 21 13 79 55 28 38 46 37 114 121 27 195 218 78 147 807 648 657 522 447 526 $ 210 228 210 $261 318 257 CONSUM PTION OF E LEC TR IC ITY Public utilities in the five largest cities of the district report consumption of electric current by selected industrial customers in August, as being about 1.6 per cent smaller than in July, and 1.8 per cent more than in August, 1933. Detailed figures fo llo w : No. of Aug., July, Aug. 1934 Custom1934 1934 comp, to ers ^ K .W .H . * K .W .H . July 1934 Evansville .... 40 2,488 2,357 + 5. Little Rock... 35 2,339 2,125 -f-10.1 Louisville .... 83 7,790 7,499 + 3.9 Memphis ..... 31 1,798 2,032 — 11.5 St. Louis..... 193** 18,829 19,759** — 4.7 Totals ..........382 33,244 *In thousands (000 omitted). **Revised figures. 33,772** — 1.691 Aug., 1933 * K .W .H . 1,921* 2,026 7,419* 1,450 19,832* 32,648** Aug. 1934 comp, to Aug. 1933 + 2 9 .5 % + 15.4 + 5.0 + 2 4 .0 — 5.1 + 1.8 A G RICU LTU R E Crop prospects as a w hole in the Eighth D is trict deteriorated further during August, the first three weeks of that month witnessing a continuance of the record drouth and high temperatures which had obtained over extended sections with practi cally no break since last May. O f the principal crops those sustaining a decline in indicated yield from July to A ugust were corn, cotton, and oats. The reduction in corn prospects brings the indicated yield to the lowest on record for this district. Hay and tobacco prospects bettered somewhat during August, but even with this improvement the output of tame hay this year will be only about one-half the 11-year (1923-1933) average and a severe short age of all forage and feed crops is indicated. Im provement in a number of the lesser crops, notably fruits and vegetables, took place during August, among the productions showing betterment being sweet potatoes, apples, peaches, pears and some other truck crops. Grape prospects declined slight ly, and the crop is later than average. During the last week of August the drouth was broken by general and abundant rainfall, which continued intermittently through the first three weeks of September. Although this precipitation was too late to greatly benefit corn and cotton in some localities, it resulted in improved grow ing con ditions in areas hardest hit by the drouth. Its re sults were particularly favorable to sweet potatoes, late white potatoes, apples, late hay and legume crops, pastures, tobacco, onions, cabbage, and other crops still growing. In many sections these crops may still achieve considerable growth provided kill ing frosts are sufficiently delayed. H owever, most beneficial results of the rains were to be found in the case of livestock, long depleted water supplies being replenished and pastures in numerous locali ties being sufficiently improved to becom e usable. Less tangible, but of considerable importance, was the improvement in morale in counties where the drouth had produced apparently hopeless condi tions. A tabulation showing the probable distribution estimated in connection with the Agricultural A d justment Administration, rental and benefit pay ments, to producers in states of the Eighth District cooperating in the 1933-1934-1935 program of wheat, cotton, corn, hogs, and tobacco, follow s : Cotton 1933-34 Program Arkansas . .$22,339 ' Illinois ...................... Indiana ..................... Kentucky .... 108 Mississippi 23,112 Missouri ..... 4,418 Tennessee .. 7,351 (In thousands of dollars 000 omitted) Wheat Tobacco Com Hogs 1933-35 1933-34 1934 1934 Program Program Program Program $ 6 $........... $ 266 $ 845 5,075 1 17,100 21,155 3,857 431 7,641 16,660 509 11,571 1,170 1,810 ................................. 21 50 3,139 288 8,666 17,105 263 3,317 1,298 2,265 8th $12,849 Dist.......$57,328 $15,608 $36,162 $59,890 Totals $ 23,456 43,331 28,589 15,168 23,183 33,616 14,494 $181,837 Prospective crop yield combined per acre in all states of the United States of 33 important crops as of September 1, expressed as a percentage of the 10-year (1921-1930) average yield, is estimated by the Department of Agriculture at 77.5 per cent. In states of the Eighth District the percentages of the average are as fo llo w s : Indiana, 83.5; Illinois, 69.1; Missouri, 45.1; Kentucky, 103.4; Tennessee, 105.8; Mississippi, 101.9; and Arkansas, 78.9. These percentages illustrate accurately the effects of the 1934 drouth, the southern states, aside from Arkan sas show ing results above average, while in M is souri, Illinois and Indiana (M issouri in particular) heavily reduced production is indicated. Winter Wheat — In its report based on Sep tember 1 conditions, the U. S. Department of A gri culture makes no revision in its estimate of winter wheat production in the Eighth District. The yield is estimated at 44,813,000 bushels, which compares with the short crop of 38,434,000 bushels harvested in 1933, and an 11-year average (1923-1933) of 49.096.000 bushels. Insofar as surface moisture is concerned, conditions for soil preparation and seed ing winter wheat have been vastly improved over the entire district by the recent precipitation. These operations have made considerable progress, and in some important producing counties are up to the seasonal schedule. The recent upturn in prices has stimulated the movement to market, and while considerable wheat will be held for feeding live stock during the winter, farmers are generally dis posed to market their grain in order to obtain cash for current needs. Corn — In addition to a decrease in Eighth District corn prospects of 111,694,000 bushels from June to July, there was a further reduction of 13.543.000 bushels in August, the heaviest indicated loss for any similar period of record. The U. S. Department of Agriculture’s September 1 report places the yield in this district at 174,782,000 bush els, which contrasts with 296,955,000 bushels har vested in 1933, and an eleven year average of 346.344.000 bushels. The principal cause of the vir tual failure was the record spring and summer drouth, but this was augmented by heavy chinch bug infestation and depredation of ear worms. In certain important sections, notably in Missouri and Illinois production is nil. Some fields will be bene fited by the belated rains in August and September, but this portion of the crop is small. Prices have advanced to the highest levels in recent years, but in practically all areas production is insufficient for home requirements, and saleable surpluses are negli gible. In Missouri the September 1 condition was 9 per cent of normal, and indications are for the small est yield on record. Fruits and Vegetables — Due mainly to recent rains, prospects for fruits and vegetables and farm gardens improved somewhat between August 1 and September 1. H owever, yields as a whole in this district will be below average, and in the case of a number of crops, under a year ago. The poorest pros pects exist in northern stretches of the district, pros pects in the south being relatively favorable. W hite potato prospects in the district proper decreased slightly, the September 1 estimate being 8,727,000 bushels, against 9,107,000 bushels harvested in 1933, and an 11-year average (1923-1933) of 13,967,000 bushels. Precipitation, since the third week of August has helped late vegetable crops and checked the drop and aided the fill of apples. In states part ly or entirely within the Eighth District the apple crop is estimated at 7,526,000 bushels, of which 3.077.000 represents commercial crop, against 12.784.000 bushels with 5,044,000 bushels commer cial crop in 1933, and a 5-year (1927-1933) average of 15,181,000 bushels of which 6,653,000 bushels were commercial production; peaches, 6,341,000 bushels, against 3,909,000 bushels in 1933 and a 5-year average of 8,116,000 bushels; sweet potatoes, 16.740.000 bushels against 15,960,000 bushels in 1933 and a 5-year average of 15,873,000 bushels; pears, 1.688.000 bushels, against 883,000 bushels in 1933 and a 5-year average of 1,706,000 bushels; grapes, 30,460 tons against 33,136 tons in 1933 and a 5-year average of 29,341 tons; peanuts, 41,800,000 pounds, against 36,845,000 pounds in 1933 and a 5-year aver age of 27,701,000 pounds. Livestock — The total or partial failure of the corn and hay crops in many localities has had the result of heavy curtailment in herds, and farmers are planning to dispose of more cattle before cold weather. The number of dairy cattle in many in stances is being cut down to a size which will permit of their being fed through the winter on roughage and other available feed. The number of cattle and hogs on feed is considerably below a year ago and the average in recent years. Recent rains have con siderably improved pastures, and many which had been unserviceable for six weeks or longer are now being grazed. Milk production as a whole has shown a marked decrease, particularly in Missouri and Illinois. Eighth District tame hay production, based on the September 1 condition, is estimated at only 3.750.000 tons, which compares with 5,249,000 tons in 1933 and an 11-year average of 6,832,000 tons. Receipts and shipments, at St. Louis as reported by the National Stock Yards, were as follow s: Receipts Aug., July, Aug., 1934 1934 1933 Cattle and Calves......339,350 215,455 114,927 Hogs ........................... 170,745 238,076 292,906 Horses and Mules.... 6,281 4,432 4,492 Sheep ........................... 52,276 79,867 60,172 Shipments Aug., J.uly, Aug., 1934 1934 1933 210,898 110,178 57,711 125,139 148,846 160,089 6,548 4,075 4,123 18,877 15,308 8,632 Cotton — Prospects for cotton in all states of the Eighth District declined during August, accord ing to the U. S. Department of Agriculture in its report based on conditions as of September 1. On that date the estimated yield for the district proper was 1,801,000 bales, a decrease of 248,000 bales under the August 1 forecast and comparing with 2,554,000 bales harvested in 1933 and a 10-year average (1923-1932) of 2,705,000 bales. For the country as a whole there was an increase in prospects of 57,000 bales between August 1 and September 1, the esti mate on the latest date being for 9,252,000 bales, which is 3,795,000 bales less than produced in 1933 and 5,414,000 bales less than the 5-year (1928-1932) average. Deterioration in this district was due almost entirely to drouth conditions existing during the first three weeks of August. Since that time there has been abundant moisture which has bene fited that part of the crop which had not stopped bloom ing. The rains, however, have interfered with picking, which has becom e general, and dry weath er is now required to get cotton out of the fields. Since September 4 the movement of cotton to manu facturing centers has been interfered with to a con siderable extent by the textile strike. Instructions have been received by numerous cotton merchants to discontinue shipments until further orders. Rail road officials report that in this area the strike thus far has had no effect on the movement of cotton to and from gins to compress points. Prices of raw cotton have receded from the high point of the year, reached the third week of August, but continue sub stantially higher than a year ago. In the St. Louis market the middling grade ranged from 12.40c to 13.35c per pound between August 15 and September 15, closing at 12.40c on the latter date, which com pares with 13.10c on A ugust 15 and 9.15c on Sep tember 15, 1933. Stimulated by the highest prices realized in recent years, the movement of cotton seed to mills since A ugust 1 to date was in consid erably larger volum e than during the comparable period in 1933. Receipts of cotton at Arkansas compresses A ugust 1 to September 14 totaled 121,450 bales, against 40,472 bales for the corres ponding period a year ago. Stocks on hand as of September 14, totaled 329,315 bales, against 264,842 bales on A ugust 10, and 248,353 bales on the corresponding date last year. A ccording to the National Fertilizer Association, sales of fertilizer tags in states of the Eighth District for the period January to August, inclusive, totaled 492,143 tons, against 310,376 tons during the comparable period last year and 288,444 tons in 1932. Through August 16, rental payments to cotton farmers in states of the Eighth District cooperating in the Govern ment’s acreage adjustment program amounted to $9,737,666. Tobacco — Eighth District tobacco prospects improved in August, the September 1 estimate of the U. S. Department of Agriculture being for 230.843.000 pounds, an increase of 13,111,000 pounds over the August 1 forecast, and comparing with 277.750.000 pounds harvested in 1933 and an 11-year average (1923-1933) of 304,854,000 pounds. Reports from the burley districts are generally satisfactory; weather has been such as to permit cutting and housing the crop. Cool nights and heavy dews have retarded maturity of a considerable part of the crop. A ccording to unofficial estimates, the early portion of the crop — representing 60 per cent of the total— had been cut and housed at mid-September. This tobacco is curing satisfactorily and indicates a good yield per acre. T o date there has been no indication of houseburn or other barn damage. Harvesting of the air-cured crop is progressing slow ly as farmers realize the importance of letting the leaf develop and cure before cutting and housing. In the eastern and western dark fired district, harvesting continues somewhat backward, with weather conditions about the same as in the burley areas. Due to reduced acreage there is sufficient barn room to house and cure the crop and prevent sweating and houseburn damage. C O M M O D IT Y P R IC E S Range of prices in the St. Louis market be tween August 15, 1934, and September 15, 1934, with closing quotations on the latter date, and Sep tember 15, 1933, follow s: High Low Wheat .per bu..$1.06 ... “ 1.08 *May .................. ... “ 1.08H No. 2 red winter “ 1.07 No. 2 hard “ 1.15 Com *Sept..................... ... “ .80 *Dec...................... ... “ .81 H .84^4 *May .................. ... “ .82 *No. 2 mixed ...... “ *No. 2 white ... ... “ .86 Oats .60 *No. 2 white .. ... “ Flour Soft patent....... ..per bbl. 7.40 Spring “ ...... .. “ 8.05 Middling Cotton..per lb. .1335 Hogs on hoof......per cwt. 8.05 *Nominal quotations. $ .98*/* l.OOVz 1.01J4 1.00 1.07 •73 'A .7 SVa ___________ Close____________ Sept. 15, 1934 Sept. 15, 1933 $ 1.0234 $ 1.03& 1.03^4 1.04 .91 .89 1.11 -89J4 .92 X .95 y2 @ .91'A @ .89 y .48 .79 .79 .76 .76 •77*4 .79 .83 @ .5224i@ .58% \@ .48 @ .51 @ A8H .53 .5934 A 8 l/2 .51 .56 .37 @ .37y2 6.35 6.35 @ 6.85 @ 6.85 .0915 @ 4.90 -77H 6.70 7.40 .1240 3.00 6.90@ 7.20 7.40@ 7.55 .1240 4.25@ 7.25 3.10 .$ iy2 F IN A N C IA L General trends in the banking and financial status in the Eighth District during the past thirty days showed little variation from the preceding two or three months. There was a slight improvement in demand for commercial credit, but liquidation of prior indebtedness continued on a large scale, with the result that the total loans and discounts item at mid-September was approximately the same as a month earlier. In the immediate past moderate expansion has taken place in inquiries for funds to be used in connection with the harvesting of tobac co. Recourse upon the commercial banks for financ ing the cotton crop so far this season has been in measurably smaller volume than in past years. In certain sections, notably in the south, demand for funds to purcBase and condition livestock for mar ket has broadened to some extent. Between August 15 and September 12, total loans of reporting member banks in the principal cities increased 0.5 per cent, and at $209,980,000 on the latest date were 8.7 per cent smaller than a year ago. Total investments of these institutions during the four-week period decreased 1.3 per cent, the loss being ascribable to smaller holdings of U. S. Government securities; all other securities showing an increase of 6.8 per cent. Deposits m oved upward, the total of $544,970,000 recorded on September 12 representing a new high for the year. Reserve bal ances increased 9.9 per cent to $84,866,000, only slightly under the year’s peak, and 59.6 per cent above the corresponding period in 1933. There was a slight increase in borrowings of all member banks from the Federal Reserve bank between August 19 and September 19, but throughout the period the total was greatly below a year earlier. Applications for industrial loans and com m it ments, under Section 13b of the Federal Reserve Act, approved June 19, 1934, have been in substan tial volume. A s of September 19, advances made by this bank amounted to $192,000 and com m it ments to $132,000. The amount of savings deposits held by selected banks as of September 5 was 1.4 per cent greater than on August 1, and 16.7 per cent in excess of the total on September 6, 1933. Interest rates remained at, or around the low levels of recent months. A t St. Louis banks, as of the week ended September 15, current rates were as follow s: Customers’ prime commercial paper, 1^2 to 6 per ce n t; collateral loans, Zy2 to 6 per ce n t; loans secured by warehouse receipts 2 to 6 per ce n t; interbank loans, 5 to 6 per cent and cattle loans, 4 to 6 per cent. Condition of Banks — Loans and discounts of the reporting member banks on September 12, 1934, showed an increase of 0.5 per cent as contrasted with August 15, 1934. Deposits increased 0.9 per cent between August 15, 1934 and September 12, 1934 and on the latter date were 17.4 per cent great er than on September 13, 1933. Composite state ment follows : •Sept. 12, 1934 Number of banks reporting............ 19 Loans and discounts (incl. rediscounts) Secured by U . S. Govt, obligations and other stocks and bonds....$ 71,473 All other loans and discounts.... 138,507 *Aug. 15, 1934 *Sept. 13, 1933 19 $ 76,198 132,788 $ 88,251 141,706 Total loans and discounts.................$209,980 Investments U. S. Govt, securities...................$182,580 Other securities.............................. 114,455 $208,986 $229,957 $193,961 107,133 $140,473 101,979 Total investments............................... $297,035 $301,094 $242,452 Reserve balance with F. R. Bank..$ 84,866 Cash in vault....................................... 8,691 Deposits Net demand deposits........... ......... $349,393 Time deposits.................................. 165,807 Government deposits..................... 29,770 $ 77,186 7,775 $ 53,173 6,329 $341,147 165,599 33,185 $280,249 159,778 24,014 Total deposits............. ........................$544,970 $539,931 $464,041 Bills payable and rediscounts with Federal Reserve Bank................................. .............. ............... •In thousands (000 omitted). The total resources of these banks comprise approximately 62.0% of all member banks in this district. Federal Reserve Operations — During August, the Federal Reserve Bank of St. Louis discounted for 8 member banks against 7 in July, and 67 in August, 1933. The discount rate of this bank re mained unchanged at 2 y2 per cent. Changes in the principal assets and liabilities o f this institution appear in the follow ing ta b le: *Sept. 18, 1934 ..$ 353 •Aug. 18, 1934 $ 267' Sept. 18, 1933 $ 3,677 93,200 122 ** 93,200 122 83,122 174 .$ 93,675 $ 93,589 $ 86,973 ,.$193,873 „ 145,410 .. 135,685 $186,001 139,359 134,379 $147,395 86,362 134,845 1,242 67.9% 66.6% Bills bought ............................................... U . S. Securities......................................... .. Participation in Inv. Foreign Banks.. Total F. R. Bank Notes in circulation.. Ratio of reserve to deposits . 69.0% *In thousands (000 ommitted). Debits to Individual Accounts — The follow ing table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included. •Aug., 1934 East St. Louis and Natl. Stock Yards, 111..$ 21,996 El Dorado, Ark..... 3,251 Evansville, Ind..... 16,560 Fort Smith, Ark.... 6,930 Greenville, Miss.... 2,617 Helena, Ark.......... 1,441 Little Rock, Ark... 22,344 Louisville, K y........ 116,112 Memphis, Tenn..... 79,601 Owensboro, K y..... 3,275 Pine Bluff, Ark.... 4,323 5,695 Quincy, 111............. St. Louis, M o........ 390,897 1,576 Sedalia, Mo............ Springfield, M o..... 10,889 ••Texarkana. Ark.-Tex......... 4,773 Totals ............... .....$692,280 1934 $ 21,034 3,720 19,198 7,235 2,612 1,439 20,149 125,841 87,428 3,408 4,404 5,603 427,283 1,618 11,610 •Aug., _1933 $ 20,313 2,937 15,005 6,690 2,148 1,051 16,295 105,553 66,816 2,268 3,599 4,944 386,800 1,227 8,665 4,683 4,897 $747,265 $649,208 Aug., 1934 comp, to July 1934 Aug. 1933 + — 4.6% 12.6 — 13.7 — 4.2 + 0.2 + 0.1 + 10.9 — 7.7 — 9.0 — 3.1 — 1.8 + 1.6 — 8.5 2.6 6.2 — — + 1.9 — 7.4 •In thousands (000 omitted). ••Includes one bank in Texarkana, Texas not m Eighth District. (Compiled Sept. 24, 1934) + 8.3% + 10.7 + 10.4 + 3.6 +21.8 + 3 7 .1 + 3 7 .1 +10.0 + 19.1 + 4 4 .4 +20.1 + 15.2 + 1-1 + 2 8 .4 + 2 5 .7 — 2.5 + 6.6 B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Total output of industry, which usually increases at this sea son, showed little change in August. Factory employment and payrolls increased between the middle of July and the middle of August by about the usual seasonal amount. Distribution of com modities at department stores showed a more than seasonal growth. PRODUCTION AND EM PLO YM ENT — Output of basic industrial products, as measured by the Board’s index, which makes allowance for usual seasonal changes, declined from 75 per cent of the 1923-1925 average in July to 73 per cent in August. At steel mills production continued to decline during August DISTRIBU TIO N — Volume of freight car loadings, which usually increases at this season, showed little change in August. Shipments of miscellaneous freight showed no seasonal expan sion, while shipments of livestock increased considerably. Department store sales increased by an amount substantially larger than is usual in August and were 2 per cent higher than a year ago. CO M M ODITY PRICES — Wholesale prices of commodi ties increased in August and the first week of September, reflect ing sharp advance in the prices of farm products and foods. H og prices advanced rapidly during the month of August and in the Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1 9 2 6 = 1 0 0 ). Latest figures September 15, farm products 73.7, foods 76.2, other commodities 78.5. and the early part of September, contrary to seasonal tendency; in the middle of September a slight increase in activity was reported. Output of automobiles, which had been maintained at a relatively high rate during the spring and early summer, declined in August. Lumber production showed an increase. In the cotton textile industry production was in larger volume in August than in July but was retarded by the strike in the first three weeks of September. At meat-packing establishments out put in August was larger than in any other recent month, accom panying heavy marketings of cattle from drought areas. Factory employment showed a seasonal increase between the middle of July and the middle of August, reflecting consider able growth in employment in the wearing apparel, canning, and meat packing industries, while employment in the iron and steel industries and at railroad repair shops declined. The value o f construction contracts awarded, as reported by the F. W . Dodge Corporation, was about the same in August as in each of the four preceding months. latter part of the month cattle prices also showed a marked increase. Since the beginning of September, prices for both hogs and cattle have declined somewhat, and in the middle of the month there have also been decreases in the prices of wheat and cotton. In August, as in other recent months, there was little change in prices of commodities other than farm products and foods. BANK CREDIT — A seasonal increase in demand for cur rency by the public and an increase in Government deposits at the Reserve banks were reflected in a decline in member bank reserve balances between the middle of August and the middle of September. On September 19, reserve balances were about $1,700,000,000 in excess of legal requirements. There was little change in the volume of Reserve bank credit during August and September. Total loans and investments of reporting member banks showed little change between August 15, and September 19; loans, other than security loans increased by $170,000,000 and holdings of securities by $50,000,000, while security loans declined B ILL IO N S OF D OLLARS B ILLIO N S OF DOLLARS Indexes of daily average value of sales. (1923-1925 = 100). Latest figures August, preliminary adjusted 79, unadjusted 60. Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for September 19. Department of Agriculture estimates as of September 1, indicate a corn crop 40 per cent smaller than the average for the five years 1927-1931 and other feed crops also are expected to be unusually small. The condition of pastures on September 1, was poorer than in any other recent year but some improvement has been reported in the early part of September. The spring wheat crop, estimated at 93,000,000 bushels, is about one-third of the five year average and the winter wheat crop is also small. The cotton crop is estimated at 9,300,000 bales, a sharp reduction from other recent years. by $200,000,000. The increase in loans other than on securities occurred largely at banks in New York City and in the western districts and reflected chiefly a growth in direct loans to cus tomers for ordinary commercial purposes and for financing the harvesting of crops. The banks’ holdings of acceptances and commercial paper, which also reflect current business financing, increased during the period. Short term money rates continued at low levels. Yields on both United States Government and corporate bonds increased during August and the first half of September.
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