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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication On and After the Morning of September 30, 1931 J O H N S. W O O D , Chairman and Federal Reserve Agent FEDERAL RESERVE NFLUENCED by the usual seasonal quietness and depressed business conditions elsewhere, the trend of commercial and industrial activi ties in the Eighth Federal Reserve District contin ued downward during August. Unusually hot weather during the first three weeks of September militated against the movement of many lines of merchandise, and interfered with plans for resump tion of operations at numerous manufacturing plants, with the result that signs of betterment in business which ordinarily appear at this time were less in evidence than in former years. Failure of commodity prices to advance or to exhibit a tenden cy to stabilize at their recent low levels, weakness in the security markets and the further decline in values of farm products combined to emphasize the cautious and conservative attitude of merchants and the general public in the matter of filling their requirements for goods. This was particularly the case with reference to future commitments, purchas ing being almost universally on a hand-to-mouth basis. I Without exception, the volume of business transacted in August by lines investigated by this bank was below that of the same month in 1930, and the average during the past decade. Barring a few classifications directly affected by seasonal consider ations, such as dry goods, men’s hats, stoves and groceries, the August volume was smaller than in July, and where increases occurred, they were less than the average in recent years. In the compari son with a year ago, a considerable part of the de cline was accounted for by the sharp decline in prices, the actual unit volume handled making a relatively much better showing than the dollar amount. Almost universally demands center on the cheaper descriptions of merchandise. Price conces sions are insisted upon by ultimate consumers, and this attitude ramifies back to wholesalers and manu facturers. The situation in iron and steel, building materi als and the general run of goods of the heavier and C. M . STEW ART. Assistant Federal Reserve Agent BANK OF ST* J. V I O N P A P I N , Statistician LOUIS more permanent sort, showed no improvement dur ing the period, August and early September witness ing the lowest point of the year in production and distribution of these commodities. Taken as a whole, the past thirty days were favorable for agri culture, and excepting cotton and several less im portant productions, the earlier indications of heavy yields and high quality were reiterated in the report of the U. S. Department of Agriculture based on September 1 conditions. Farm operations of all sorts have progressed well, save for some interruption in preparations for planting fall crops occasioned by the extremely high temperatures and lack of rain fall in early September. Measured by sales of department stores in the principal cities of the district, the volume of retail trade in August was 8 per cent smaller than during the same month in 1930 and for the first eight months the volume was approximately 11 per cent less than for the corresponding period a year ago. Combined sales of all wholesaling and jobbing firms reporting to this bank were 19 per cent smaller in August than for the same month in 1930, and 2 per cent less than the July total this year; for the first eight months this year the total was 14 per cent smaller than for the same period in 1930. The value of permits issued for new construction in the five largest cities of the district in August was 20 per cent and 39 per cent smaller, respectively, than a month and a year earlier. Construction contracts let in the Eighth District in August were 6 per cent less than in July and 30 per cent smaller than in August, 1930. Debits to individual accounts in August were 12.5 per cent smaller than in July, and about one-fourth smaller than in August, 1930; for the year through August the total was one-fifth less than for the same period in 1930. The amount of savings accounts on September 2 was slightly lower than a month and a year earlier. Due chiefly to backwardness in the movement of grain, cotton and fuel, freight traffic of railroads operating in this district failed to show the usual seasonal gain during the past thirty days, and the volume continued substantially below the similar period a year and two years ago. According to offi cials of the roads, competition of trucks, pipe lines and other means of transportation, figures more im portantly in their traffic than heretofore. For the country as a whole loadings of revenue freight for the first 35 weeks this year, or to August 29, totaled 25,658,035 cars, against 31,428,015 cars for the cor responding period last year and 35,377,737 cars in 1929. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, interchanged 167,311 loads in August, against 171,931 loads in July and 197,862 loads in August, 1930. During the first nine days of September the inter change amounted to 42,356 loads, against 42,412 loads during the corresponding period in August, and 52,183 loads during the first nine days of Sep tember, 1930. Passenger traffic of the reporting roads in August declined 30 per cent as compared with the same month in 1930. Estimated tonnage of the Federal Barge Line, between St. Louis and New Orleans, in August was 104,000 tons, which com pares with 103,444 tons in July and 84,266 tons in August, 1930. Reports relative to collections during the past thirty days reflect little change from the unsatisfac tory conditions existing during the preceding several months. Universally there is a disposition to con serve cash and to postpone paying bills as long as possible. In the case of wholesale and jobbing inter ests, strong customers are meeting their obligations promptly, but others are slow in settling and numer ous requests for extensions are reported. Distribu tors of coal, pig iron, scrap iron, steel and the gen eral run of building materials report unsatisfactory conditions, with many accounts several months overdue. Since September 1 retailers in the larger cities report improvement in collections, due partly to the return of customers from vacations. Gener ally through the rural areas retail collections are backward. Questionnaires addressed to representa tive interests in the several lines scattered through the district showed the following results: E xcellent August, July, August, 1931..................0% 1931............. 1.5 1930............. 0.1 G ood Fair P oor 19.1% 16.2 8.5 59.1% 62.3 52.8 21.8% 20.0 38.6 Commercial failures in the Eighth Federal Re serve District in August, according to Dun’s, num bered 125, involving liabilities of $830,833, against 80 failures in July, with liabilities of $5,298,184, and 112 defaults for a total of $1,909,148 in August, 1930. The average daily circulation in the United States in August was $4,497,000,000, against $4,836,000,000 in July, and $4,476,000,000 in August, 1930 MANUFACTURING AND WHOLESALING Boots and Shoes — August sales of the report ing firms were 17 per cent smaller than for the same month in 1930, and approximately 12 per cent less than the July total this year. Stocks on September 1 were 11 per cent smaller than a year ago, and 1.3 per cent greater than on August 1 this year. De creases in both comparisons were quite general through all lines, but most pronounced in the more staple lines of men’s wear. No price changes were noted during the month, but as compared with a year ago the average is from 10 to 12 per cent lower. Factory operations were at a slightly reduced rate as compared with the preceding thirty days. Clothing — Reluctance on the part of retailers to stock up heavily on goods for late fall and winter distribution was reflected in a sharp decrease in ad vance orders of the reporting clothiers as compared with the corresponding period during the past sev eral years. Unseasonably warm weather and un certainty relative to styles and prices were other influences tending to hold down the volume of sales. As compared with a month and a year earlier, August sales of the reporting firms showed a de crease of approximately 50 per cent. Drugs and Chemicals — August sales of the re porting interests were 11 per cent smaller than for the same month in 1930, and .7 per cent less than the July total this year. There was the usual sea sonal increase in inventories, stocks on September 1 being 7 per cent greater than thirty days earlier, but 5 per cent smaller than on September 1 last year. The movement of hot weather goods was in con siderable volume, but other lines were relatively quiet. Dry Goods — Following the usual seasonal trend, sales of the reporting firms increased sharply from July to August, but the volume continued sub stantially below that of a year ago. Buyers gener ally are disposed to hold off awaiting more definite adjustment of prices. This is true particularly of goods based on cotton and silk. Advance sales in virtually all lines are considerably below those at the same time last year. Inventories continue to decrease, stocks on September 1 being 1.2 per cent and 40 per cent smaller, respectively, than thirty days and a year earlier. August sales of the report ing firms were 23 per cent smaller than for the same month in 1930, and 45 per cent greater than the July total this year. Electrical Supplies — Lessened demand for all lines in this classification was reflected in a decrease in August sales of the reporting firms of 57 per cent as compared with the preceding month and of 35 per cent as compared with August a year ago. Stocks on September 1 were 23 per cent smaller than thirty days earlier and 13 per cent less than on September 1, 1930. In the yearly comparison, a con siderable part of the decrease is accounted for by smaller sales of radio material, lamps and other household appliances. Flour — Production at the twelve leading mills of the district in August totaled 292,459 barrels, against 322,413 barrels in July and 351,423 barrels in August, 1930. Demand for flour continued to de crease during late August, millers at the end of that month reporting the slowest conditions ever experi enced in the trade. Ordinarily this is one of the most active periods of the year, but generally low con sumption has resulted in mills operating at barely half of capacity. Large buyers are taking no inter est in future requirements, purchasing being on a hand-to-mouth basis and centering chiefly in low grade flours. In sympathy with the decline in cash wheat, flour prices receded further, with the average at the middle of September being the lowest in re cent times. Furniture — The moderate improvement in this classification, noted in the two preceding issues of this report, completely disappeared during August, sales of the reporting firms during that month show ing a decrease of about one-fifth as compared with July, and of more than one-fourth as compared with August, 1930. Stocks on September 1 were 12 per cent larger than thirty days earlier, but 40 per cent less than on September 1, 1930. Groceries — August sales of the reporting firms were slightly higher than in July, but the total was 9 per cent smaller than for the same month a year ago. Inventories continue to decline, stocks on Sep tember 1 being .6 per cent and 6 per cent smaller, respectively than a month and a year earlier. In the yearly comparison of sales, a considerable part of the decrease was due to lower prices. Advance ordering of canned goods is reported in smaller vol ume than at any similar period in recent years. Hardware— Sales of the reporting firms showed practically no change in August from the preceding month, but the total was approximately 6 per cent smaller than in August last year. Demand for build ers’ hardware and tools continues at a low ebb, and goods used mainly in the rural areas are also rela tively quiet. The trend of prices was lower, though no marked changes were reported as compared with the preceding thirty days. Stocks on September 1 were 6 per cent and 24 per cent smaller, respectively, than thirty days and a year earlier. Iron and Steel Products — The trend of activi ties in the iron and steel industry in this district con tinued downward. August and early September wit nessed the lowest average rate of operations at mills, foundries, machine shops and other ferrous working plants experienced since the present period of de pression set in. Demands of the principal consum ing industries, notably railroad, automotive and building, failed to expand, and purchasing by mis cellaneous users was on a hand-to-mouth basis. Manufacturers of farm implements and other com modities used chiefly in the rural areas reported that new orders booked were the smallest for any similar period in more than a decade. Shipments of stoves and furnaces increased in August as compared with the preceding month, but the gain in volume was of considerably less than the usual seasonal propor tions. Producers and distributors of sheets, tank plates and structural shapes reported no betterment in the demand for their commodities. Since Septem ber 1 there has been moderate improvement in speci fications for automotive castings, and foundries specializing in these materials reported the place ment of some new business for delivery through the fall and winter. Fabricators of structural iron and steel reported a further decrease in unfinished or ders, and new business booked consisted of small jobs. Reinforcing concrete bars and other items for use in road construction, municipal work and other outdoor engineering projects continued in relatively much better demand than other classes of steel goods. Prices of finished and semi-finished iron and steel showed no change worthy of note as contrasted with the preceding thirty days. The price of pig iron also held steady, but there was a further de cline in scrap iron and steel, a number of important grades, including car wheels and heavy melting steel, recording new low levels on the present retro grade movement. Purchasing of pig iron remains on immediate requirement basis, ordering for last quar ter delivery having failed to develop. For the coun try as a whole, the average daily output of pig iron was the smallest since October, 1921. Total produc tion in August was 1,277,242 tons, which compares with 1,462,270 tons in July and 2,525,105 tons in August, 1930. Production of steel ingots in the United States in August totaled 1,719,462 tons, against 1,876,149 tons in July and 3,060,763 tons in August, 1930. AUTOMOBILES Combined passenger car, truck and taxicab pro duction in the United States in August totaled 187,197, against 218,961 in July and 223,046 in August 1930. As has been the case for the past eight years, sales of dealers reporting to this bank were larger in August than during the preceding month. As compared with a year ago, however, the August volume showed a sharp decrease. In the month-tomonth comparison the increase extended to practi cally all makes of cars, but was most marked in sales of dealers handling the two principal makes of cheap priced vehicles. As has been the case for a number of months, business of distributors in the large cen ters of population was relatively much more active than in the small towns and country. The depressed prices of farm products and a general disposition on the part of farmers to economize and use their cash for liquidating urgent debts has resulted in further postponement in filling automobile requirements. Improvement from July to August was also shown in sales of replacement parts, accessories and general garage supplies. Activity in these lines wras attrib uted by dealers to the unusually large amount of reconditioning and repairing of old cars by owners unable or unwilling to purchase new ones at this time. Demand for trucks, both for heavy and light service, continued active, August sales being about one-third larger than in July, and approximately the same as the August, 1930, volume. In the case of heavy trucks, the total was swelled by substantial additions to their fleets by several contractors en gaged in highway construction and river improve ment work. August sales of new passenger cars by the reporting dealers were 22 per cent larger than in June, but 23 per cent smaller than the August, 1930, total. Inventories continued the downward trend noted since early in the year, stocks of new cars in dealers’ hands on September 1 being 7 per cent smaller than thirty days earlier, and 35 per cent less than on September 1 last year. The used car market continued active, with a further substan tial reduction in stocks of salable cars on hand as compared with thirty days and a year earlier. The retail tire trade underwent further moderate better ment, being stimulated by the touring season and purchasing by automobile dealers to equip second hand cars. Deferred payment sales of dealers report ing on that detail in August constituted 48 per cent of their total sales, against 48 per cent in July, and 55.4 per cent in August, 1930. RETAIL TRADE The condition of retail trade is reflected in the following comparative statement showing activity at department stores in leading cities of the district: N et sales comparison A ug. 1931 8 months ending com p, to A u g. 31, 1931 to A ug. 1930 same period 1930 — 23.2% Evansville .... ...— 18.0% Little Rock..,....— 19.2 — 11.7 Louisville .... ....— 4.0 — 13.8 — 17.9 ,...— 14.9 — 17.2 6.2 — 8.8 — 8.9 Springfield, M o.— 11.4 8th District... 8.2 — 11.1 N et sales comparison A ug. 1931 8 months ending com p, to A u g. 31, 1931 to A ug. 1930 same period 1930 M en’ s furnishings ..— 22.3% — 7.8% Boots and shoes— 24.3 — 19.0 Stocks on hand A ug. 31, 1931 com p, to A ug. 51,1930 — 22.2% — 17.8 — 13.6 — 25.0 — 16.8 — 10.3 — 11.8 — 15.0 Stocks on hand A ug. 31, 1931 com p, to A ug. 31,1930 — 8.9% 4-12.4 Stock turnover Jan. 1, to A u g. 31, 1931 1930 1.34 T 2 l 1.54 1.71 1.75 1.80 2.00 1.93 1.66 1.67 2.41 2.42 1.09 1.01 2.16 2.12 Stock turnover Jan. 1, to A ug. 31, 1931 1930 1.92 2.14 2.00 2.00 BUILDING The dollar value of permits issued for new con struction in the five largest cities of the district dur ing August was 39.1 per cent less than in August, 1930, and 20.4 per cent smaller than the aggregate for July this year. According to statistics compiled by the F. W . Dodge Corporation, construction con tracts let in the Eighth Federal Reserve District in August amounted to $16,457,113 which compares with $17,542,682 in July and $23,320,280 in August, 1930. Production of portland cement for the country as a whole in August totaled 13,549,000 barrels, against 13,899,000 barrels in July and 17,821,000 barrels in August, 1930. Building figures for August follow : N ew Construction Permits *C ost 1930 1931 1930 1931 360 $ 146 $ 142 Evansville .. 197 136 24 23 Little R ock 24 325 Louisville .. 63 99 93 277 683 432 M em phis .... 78 322 727 794 St. Louis.... 316 Repairs, etc. Perm its * £ o st 1931 1930 1931 1930 52 85 $ 15 $ 20 48 81 19 82 64 58 58 67 176 53 90 28 282 287 209 493 A u g. totals 678 1,237 $1,266 $2,080 1,590 2,191 July totals 615 1,147 3,700 1,249 June totals 763 1,144 * In thousands of dollars (000 om itted). 616 560 656 $ 400 530 335 ~559 589 848 $687 378 666 CONSUMPTION OF ELECTRICITY Public utilities companies in the five largest cities of the district reported consumption of electric current during August by selected industrial cus tomers as being 4.3 per cent larger than in July, and 3.0 per cent smaller than in August, 1930. Detailed figures follow : N o. of A ugust, July, 1931 1931 Customers * K .W .H . * K .W .H . 2,428 2,472 Evansville .... 40 2,253 L ittle R ock.. 35 2,087 7,201 7,226 L ouisville .... 85 1,047 1,780 20,659 19,762 T otals ..........352 34,155 * In thousands (000 om itted). 32,760 A u g., 1931 com p, to July, 1931 — 1.8% — 7.4 — 0.3 + 70.0 + 4.5 + 4.3 A ugust, A ug. 1931 com p, to 1930 * K .W .H . A u g. 1930 1,848 ‘ + 3 1 .4 % — 8.9 2,290 — 4.7 7,558 + 7 4 .9 1,018 22,499 — 8.2 35,213 — 3.0 The following figures, compiled by the U. S. Department of the Interior, show kilowatt produc tion both for lighting and industrial purposes for the country as a whole: B y water pow er July, 1931..............................2,735,938,000 Tune, 1931..............................2,883,721,000 July, 1930..............................2,883,391,000 B y fuels 4.994.837.000 4,994,837,000 4.630.457.000 5.015.753.000 T otals 7,730,775,000 7.514.178.000 7.899.144.000 AGRICULTURE With the exception of cotton, crops generally in the Eighth Federal Reserve District underwent fur ther improvement from August to September. High er yields than in 1930 are the rule, and of the princi pal productions, hay and white potatoes are the only ones which are below the eight-year (19231930) average. Weather during August was favora ble for growth and development of practically all crops. During the last half of that month many sec tions received the heaviest rains since prior to the record drouth of 1929, and water shortages were largely relieved, particularly in Illinois, Missouri and Kentucky. Harvesting of wheat was completed under favorable conditions, and considerable pro gress has been made in preparations for the new crop. For the most part the favorable prospects of earlier in the season for fruits and vegetables were maintained, and yields in the chief producing areas promise to be the largest in recent years. Unseason ably warm weather since September 1 has done some damage to corn and other crops in certain sections, but the high temperatures were beneficial for cotton and tobacco. Generally conditions on farms are more favora ble than at this time a year and two years ago. Feed and food are in abundant supply and will enable farm populations to carry through the winter com fortably, besides tending to reduce production costs of next season’s crops. Prices of virtually all agri cultural products continued at the depressed levels of the preceding thirty days, some establishing new low records on the downward movement. In many instances farmers are holding their grain for more favorable marketing conditions, or with the view of feeding it to livestock. The condition of livestock is universally high, and while prices are low, they still offer moderate profit margins. The supply of farm labor continued considerably in excess of de mand in all states of the district. Corn — Prospects for this crop improved during August, and based on the September 1 condition the U. S. Department of Argiciilture estimates the output in the Eighth District at 399,659,000 bushels, an increase of 15,160,000 bushels over the August forecast, and comparing with 183,254,000 bushels harvested in 1930, and an eight-year average of 342,534,000 bushels. The extreme high temperatures since September 1 have pushed the crop along so that an unusually large percentage is virtually made and past danger from frost. The heat resulted in some damage to the crop, particularly on the high lands, but in the river bottoms the outlook is for heavy yields of high quality. Winter Wheat — No change took place during August in the estimate of winter wheat, the indi cated output in this district being 65,264,000 bushels, against 43,819,000 bushels harvested last year and an eight-year average of 49,921,000 bushels. While some delay was occasioned by hot, dry weather in August and early this month, plowing for the new crop made good headway, and seeding will be well under way during the next two weeks. Indications are for a smaller acreage than last year, the average reduction for the district being about 10 per cent. Fruit and Vegetables — Marketing conditions for fruits and vegetables continued unfavorable dur ing the past thirty days. Unusually heavy yields in this district and other parts of the country resulted in very low prices, in many instances below pro duction and shipping costs. Harvesting of apples, peaches and grapes progressed well, and universally yields are heavy and quality high. Based on the September 1 condition,the U.S.Department of Agri culture estimates the apple crop in states entirely or partly within the Eighth District at 38,583,000 bushels, of which 4,504,000 barrels represent com mercial crop, against 12,935,000 bushels, with 1,666,000 barrels commercial crop in 1930, and a 5-year average of 21,349,000 bushels, of which 2,263,000 barrels were commercial crop. The output of peaches in these states is estimated at 16,587,000 bushels, against 1,315,000 bushels in 1930, and a 5-year average of 8,495,000 bushels. Grape prospects improved moderately in August, the forecast being for 43,580 tons, against 33,831 tons in 1930, and a 5-year average of 32,387 tons. In all the principal producing areas prospects for peanuts are excep tionally good, the total yield for states of the dis trict being 31,750,000 pounds, against 19,550,000 pounds in 1930, and a 5-year average of 30,466,000 pounds. For the district proper the yield of white potatoes is forecast at 13,209,000 bushels, against 12,742,000 bushels harvested in 1930, and an 8-year average of 15,050,000 bushels. The condition of gardens on September 1 was generally favorable, but considerable deterioration has taken place since that date, due to hot, dry weather and insect pests. Livestock— The condition of livestock through out the district continued high during the past thir ty days, with favorable weather and more ample water supplies than for a number of months. De spite low prices, the movement to market was on a liberal scale. Milk production picked up during August, and average per cow was slightly higher than last year. Egg production showed a slight sea sonal decline, but held up well. The U. S. Department of Agriculture estimates the production of tame hay in this district at 6,839,(XX) tons, which compares with 5,033,000 tons last year and an 8-year average of 7,616,000 tons. The condition of pastures on September 1 was higher in all states of the district than a year ago, but with the exception of Tennessee, was lower than the 10-year (1920-1929) average. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follows: R eceipts A u g., July, A ug., 1931 1931 1930 Cattle and calves........124,255 103,040 125,393 H ogs ............................190,104 170,496 210,960 H orses and m ules...... 2,358 1,675 976 Sheep ........................... 52,267 67,479 45,110 Shipments A u g., July, A u g., 1931 1931 1930 84,186 69,748 80,043 152,715 136,804 183,084 1,740 1,550 966 12,332 17,075 10,782 Cotton — The U. S. Department of Agriculture in its report as of September 1 estimates the output of cotton in the Eighth District at 3,065,000 bales. This represents a decrease of 263,000 bales from the August 1 forecast, and compares with 2,289,000 bales harvested in 1930, and an 8-year average (19231930) of 2,644,000 bales. The decrease from August to September occurred mainly in the Delta sections of Mississippi and Arkansas and was due to weather conditions which caused excessive growth of the plant, accompanied by poor fruiting and an increase in boll weevil activities. Since September 1 weather generally over the district has been favorable for development of the crop, and picking. Owing to peculiar circumstances, however, gathering the crop has progressed slowly. Due to low prices, farmers are unwilling to employ pickers. In addition, the foliage is unusually heavy, making fields difficult to penetrate. In the northern counties the crop is about two weeks late, but recent high temperatures have been beneficial,and picking will be in full swing by the last week in September. Demand for raw cotton continued sluggish, with consumers being disposed to mark time and await crop and general economic developments. Prices receded further, recording new lows on the movement, and in late years. In the St. Louis market the middling grade ranged from 6.05c to 6.8Qc per pound between August 15 and September 15, closing at 6.05c per pound on the latter date, which compares with 7c on August 15 and 9.85c on September 15, 1930. Stocks of cotton in Arkansas Warehouses on Sep tember 11 totaled 80,630 bales, against 86,185 bales on August 14, and 100,873 bales on the correspond ing date in 1930. Rice — The condition of the rice crop in Arkan sas on September 1 was considerably higher than a 3'ear earlier, but due to smaller acreage the indicated yield of 7,650,000 bushels is 260,000 bushels smaller than in 1930, and compares with a 5-year average of 8,310,000 bushels. Tobacco — Prospects for this crop improved during August, the Government's estimate of the combined yield of all types in the Eighth District, based on the September 1 condition, being 400,596,000 pounds, an increase of 24,219,000 pounds over the August 1 forecast and comparing with 306,070,000 pounds harvested in 1930, and an 8-year average of 295,534,000 pounds. Good rains during late August and the first days of September benefitted late plants but made cutting and housing of early plantings uncertain, with complaints, in some sec tions, of houseburn. Dry, warm weather since the first week in September has corrected the condition of leaf in barns, and was ideal for the growing crop and harvesting operations generally. Quality is mainly satisfactory to growers, and more than the usual care is being taken this season in selecting, cutting and housing the riper plants and permitting undeveloped ones to mature before harvesting. Commodity Prices — Range of prices in the St. Louis market between August 15, 1931 and Septem ber 15, 1931, with closing quotations on the latter date and on September 15, 1930, follow : Close Sept. 15, 1930 Sept. 15, 1931 H igh L ow $ .80 $ .46*£ ...per bu..$ .47*4$ .43 .S37A .... “ .52 •45^ •48J4 .52** .90*4 •50 *4 .... “ .52*4 $ .49 @ A9V2$ .8&A@ .89 .46 N o. 2 red winter “ .49 *4 .48 @ .48^4 .83 *4 @ .49 •43J4 .84 N o. 2 hard...... Corn .35*6 .... “ .3 9 ^ .8654 .37*4 .42 .... “ .4 3*4 •88*4 -4154 .95 .48 @ .48 *4 .94 y2 @ .41 .48 5^2 N o. 2 m ixed.... .... “ .49 @ . 4 9 y2 .9654 @ .43 .97 .50 N o, 2 white..... Oats .39 @ .39*4 .24 .23 * 4 @ .24 N o. 2 w hite..... •19# F lour 4.50 @ 5.00 3.25 @ 4 .0 0 3.25 Soft patent...... ...per bbl. 4.15 4.60 @ 4.90 3.75 @ 4 .0 0 3.15 4.25 Spring patent.. .. ./ “ .985 .0605 .0605 .068 M iddling cotton.. ..per lb. 3.75 @ 6 .00 8.25 @11.05 3.75 H ogs on h o o f...... .p ercw t. 7.50 W heat FIN AN CIAL Demand for credit from commercial and indus trial sources in this district during the past thirty days was marked by further slight contraction. Due chiefly to smaller inventories, lower prices and liber al cash resources, requirements of wholesaling and jobbing establishments for financing merchandise for fall and winter distribution were smaller than at any similar period in recent years. Liquidation by these interests with their banking connections were for the most part in larger volume than new commitments and renewals. Recourse upon banks, both city and country, tween August 19, 1931 and September 16, 1931 and for financing the harvesting and movement of crops, on the latter date were 5 per cent smaller than on which ordinarily at this season is subject to marked September 17, 1930. Composite statement follows: *A ug. 19, *Sept. 17. Sept. 16, expansion, is considerably less than in former years. 1931 1930 1931 The principal reasons for this are that prices of farm Num ber o f banks reporting............ t24 t25 t25 Loans and discounts (incl. rediscounts) products are at lower levels than in the past, wheat Secured by U . S. G ovt, obligations $162,229 and other stocks and bonds....$160,654 $227,232 All other loans and discounts.... 240,786 238,236 283,288 farmers are holding their grain where able to do so, Total loans and discounts.................$401,440 $400,465 $510,520 and financing is being done to a large extent through Investments 33,727 U . S. Government securities.... 83,807 76,105 acceptances and loaning agencies other than the Other securities.............................. 138,146 124,149 144,656 commercial banks. Farmers are also doing an unus Total investments................................ $221,953 $157,876 $220,761 44,440 Reserve balance with F . R. bank.. 41,097 42,165 ually large amount of their own work, thus reducing Cash in vault......................................... 6,245 6,201 5,581 Deposits the volume of currency needed for paying hired help. N et demand deposits..................... 339,488 370,674 351,016 Tim e deposits.................................. 234,029 237,323 239,410 In the immediate past agricultural demands Government deposits..................... 11,575 893 1,538 have expanded in the south, mainly for financing the Total deposits.......................................$585,092 $589,232 $611,622 Bills payable and rediscounts with harvesting and early movement of the cotton, tobac Federal Reserve Bank................. 4,778 2,295 5,307 *In thousands (000 om itted ). co and rice crops. There has also been some expan t Increase due to substitutions for closed banks. These banks are located in St. Louis, Louisville, M em phis, L ittle R ock , and Evansville, and their sion in demauds from the canning and packing in total resources com prise approxim ately 52.6 per cent o f all member banks in this district. dustries, purely seasonal in character. These require Debits to Individual Accounts — The following ments, however, have been easily met, and were not table gives the total debits charged by banks to sufficient to appreciably affect the situation as a checking accounts, savings accounts, certificates of whole. Banks specializing in livestock loans report deposit accounts and trust accounts of individuals, a fair request for funds for conditioning cattle and firms, corporations and U. S. Government in leading hogs for market. cities of the district. Charges to accounts of banks Between August 12 and September 9,total loans are not included. of the reporting member banks showed only minor *A ug., *July, *A ug. A u g. 1931 com p, to variation, and at $402,391,000 on the latter date were 1931 1931 July, 1931 A ug. 1930 1930 East St. Louis & Natl. about one-fifth smaller than a year a g o ; investments Stock Yards, 111..$ 27,735 $ 28,881 $ 37,817 — 4.0% — 26.7% El D orado, Ark..... 4,957 4,529 6,463 + 9.4 — 23.3 decreased 3.1 per cent, but the total of $214,433,000 Evansville, Ind.... . 21,497 26,310 26,203 — 18.0 — 18.3 Fort Smith, Ark... . 8,187 9,350 11,189 — 12.5 — 26.8 represented an increase of 35.2 per cent over that on Greenville, Miss.... 2,185 2,852 3,138 — 23.4 — 30.4 Helena, A rk........... . 1,923 2,537 3,402 — 24.3 — 43.5 September 10, 1930. Deposits receded slightly dur L ittle R ock, A rk.. 24,096 26,496 37,897 — 9.1 — 36.4 Louisville, K y ....... . 117,526 131,974 176,941 — 11.0 — 33.6 ing the period, reaching a new low point for the year Memphis, T en n .... . 77,131 92,027 112,311 — 16.2 — 31.3 Ow ensboro, Ky.... . 4,626 5,162 5,944 — 10.4 — 21.2 in the second week of September. The volume of Pine Bluff, Ark... . 5,561 6,608 6,968 — 25.9 — 20.2 7,470 Quincy, 111............ . 8,221 8,941 — 9.2 — 16.5 borrowing by all member banks from the Federal St. Louis, M o ........ . 492,898 565,493 619,791 — 12.8 — 20.5 Sedalia, M o........... . 3,089 3,441 3,928 — 10.2 — 21.4 reserve bank averaged higher than during the pre Springfield, M o.... . 10,998 12,120 13,853 — 9.3 — 20.6 **Texarkana, ceding thirty days, but continued substantially be A rk .-T e x ........ . 7,847 8,957 11,893 — 12.4 — 34.1 T otals............. .$817,726 $934,958 $1,086,679 — 12.6 low the corresponding period a year earlier. The — 24.7 *In thousands (000 om itted). ^Includes one bank in Texarkana, T exas, not in E ighth District. sustained demand for currency was reflected in a steady increase in the volume of Federal reserve Federal Reserve Operations — During August notes in circulation. the Federal Reserve Bank of St. Louis discounted No change worthy of note took place in interest for 191 member banks against 187 in July and 220 in August, 1930. The discount rate remained un rates charged customers by the commercial banks. changed at 2y2 per cent on all classes and maturities A t the St. Louis banks current rates were as fol of paper. Changes in the principal assets and liabili lows: Prime commercial paper, 2 to 5 per cent; ties of this institution appear in the following table: collateral loans, 3 to Sy2 per cent; loans secured by *Sept. 17, *Sept. 17, *A ug. 17, warehouse receipts, i l/ 2 to Sy2 per cent; interbank 1930 1931 1931 $11,758 loans, Zy2 to Sy2 per cent and cattle loans, 5 to 6 .$13,871 $17,858 Bills discounted....................................... 10,350 . 1,106 1,752 Bills bought.............................................. 23,899 30,476 . 30,708 U . S. Securities....................................... per cent. Federal Inter. Cr. Bk. Debentures.. 630 40 . 1,103 ........39 1,141 Condition of Banks — Loans and discounts of .$47,418 $52,146 $45,167 the reporting member banks on September 16, 1931 F. R. N otes in circulation.... , 75,926 64,423 73,689 T otal deposits.............................. . 72,717 77,662 73,961 showed an increase of .2 per cent as contrasted with Ratio of reserve to deposits and F. R. N ote Liabilities 74.7% . 73.5% 71.5% August 19, 1931. Deposits decreased 1 per cent be *In thousands (000 om itted). (Compiled September 23, 1931). BUSINESS CONDITIONS IN TH E UN ITED STATES PRODUCTION AND EMPLOYMENT — Industrial production, as measured by the Board’s seasonally adjusted index declined from 83 per cent of the 1923-1925 average in July to 80 per cent in August, which compares with the previous low level of 82 per cent for December, 1930. Output of steel, which ordinarily increases in August, declined further to 31 per cent of capacity, reflecting in part, curtail ment in automobile production. Lumber output also de creased, contrary to seasonal tendency. Activity at textile mills and shoe factories showed about the usual seasonal changes, and production in these industries continued to be PRICES — The general level of wholesale prices in creased from 70 per cent of the 1926 average in June and July, to 70.2 per cent in August, according to the Bureau of Labor statistics, reflecting increases in the prices of livestock, meats, dairy products and petroleum, offset in large part by decreases in the prices of grains, cotton, and cotton textiles. During the first three weeks of September, prices of live stock, meats, hides, and cotton declined, while prices of dairy products continued to increase. BANK CREDIT — Volume of reserve bank credit, which had increased by $240,000,000 during the month of in substantially larger volume than a year ago. In the latter part of August, output of crude petroleum decreased 30 per cent, the reduction being in East Texas, following earlier curtailment in the Oklahoma fields. In the middle Sep tember production increased somewhat. Volume of factory employment, which usually increases at this season, showed little change from the middle of July to the middle of Au gust. The number employed in the clothing and shoe indus tries and in canning factories increased, while employment at steel mills, automobile plants, foundries and car building shops declined. Value of building contracts as reported by the F. W. Dodge Corporation, continued to decline in August, and for the first eight months of 1931 was 31 per cent less than in the corresponding period of 1930, reflecting decreases of 18 per cent in contracts for residential building, 30 per cent for public works and utilities, 54 per cent for factories and 56 per cent for commercial building. Depart ment of Agriculture crop estimates based on September 1 conditions were about the same as estimates made a month earlier. High yields per acre and large crops were indicated for cotton, winter wheat and tobacco, while crops of spring wheat and hay were expected to be unusually small, chiefly August, increased further by $70,000,000 in the first part of September, and in the week ending September 19, averaged $1,265,000,000. The demand for additional reserve bank credit arose chiefly from an increase of $295,000,000 in the volume of currency outstanding. There were also further transfers to the reserve banks by foreign correspondents of funds previously employed in the acceptance market, offset in large part by a growth of $60,000,000 in the country’s stock of monetary gold. Following the suspension of the Gold Standard Act by Great Britain, more than $100,000,000 in gold was added to the amount held by the Federal re serve banks under earmark for foreign account, and there was a corresponding decrease in the country's stock of monetary gold. Loans and investments of reporting mem ber banks in leading cities, after declining in July and the first half of August, showed little change in the three week period ending September 9. There was a further decline in loans on securities, while the banks’ holdings of investments increased somewhat. In the following week, the banks added $227,000,000 to their holdings of United States gov ernment securities when an issue of $800,000,000 of United States government bonds was brought out, while holdings 1927 1926 1929 1930 "1931 M onthly averages o f w eekly figures fo r reporting m em ber banks in leading cities. Latest figures are averages o f first three w eeks in September. on account of dry weather. The corn crop was estimated at 2,715,000,000 bushels, 600,000,000 bushels larger than last year, but 50,000,000 bushels smaller than the five year average. DISTRIBUTION — Daily average freight car loadings declined somewhat in August, contrary to the seasonal movement, while department store sales increased, but by an amount slightly smaller than is usual in August. of other securities were reduced by $40,000,000. Loans on securities continued to decline and all other loans were also reduced, contrary to the usual seasonal tendency. Money rates in the open market continued at a low level. On September 22 the rate on bankers’ acceptances advanced from % of 1 per cent to 1 per cent. Yields on high grade bonds increased during the last half of August and the first part of September.
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