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MONTHLY REVIEW
O f Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
RELEASED FOR PUBLICATION ON THE AFTERNOON OF SEPTEMBER 30, 1937
FEDERAL
RESERVE
District Summary
Agriculture:
Yield’ 1936 ’1923-3*6 Av.
Estimated yield of 7 crops................. +58.6% + 6.2%
Aug. 1937, comp, with
Aug. 1936
Live Stock:
July, 1937
Receipts at National Stock Yards.....+33.2%
Shipments from aforesaid Yards...... +50.8
+23.0%
+ 44.8
Production and Distribution:
Sales by mfrs. and wholesalers.......... + 8.1
Department store sales....................... + 8.6
Car loadings......................................... — 0.7
— 8.4
+ 8.4
+ 4.8
Building and Construction:
t),i
. . 1
$ Number...+ 3.4
Bldg.permits,mcl.repairs j Cost
__13 3
Value construc. contracts awarded....— 5.2
Miscellaneous:
+11.7
-—27 3
— 6.7
Commercial failures { L ta W H tfeZ l'Z + S i
Consumption of electricity..................— 3.7
Debits to individual accounts............ —11.6
'+ 0 .9
+ 4.6
+10.4
Sept. 15/37 comp, with
Member Banks (24):
A ug.i8/37 Sept.i6,’ 36
Gross deposits..................................... + 1.6% — 0.2%
Loans.................................................... + 1.7
+18.6
Investments......................................... .— 3.1
— 11.7
H ILE many important lines of industry
and commerce in the Eighth District main
tained, and in some instances pushed fur
ther forward the gains of recent months, business
as a whole developed slightly slowing tendencies
during August and the first half of September. A c
tivities at numerous manufacturing plants through
out the period showed no recession from the high
levels which have been obtaining since last spring,
but with a decline in volume of new orders, this
pace has been at the expense of backlogs. This is
true particularly of the heavy industries, including
iron and steel, lumber, glass, quarry products and
the general run of building materials. As reflected
in returns of reporting merchants and transportation
statistics, distribution of commodities continues in
substantial volume, and is well extended over the
entire area. Of the wholesale and jobbing groups
investigated by this bank, drugs and chemicals and
hardware recorded increases in August over both
a month and a year earlier. Dry goods, furniture
and groceries showed increases from July to August,
but decreases under a year earlier. Boots and shoes,
W
BANK
OF
S T.
LOUIS
an important industry in the area, recorded a smaller
volume of sales in August than in the preceding
month and a year ago. The sharp decline in prices
of farm products, commodities generally and the
stock market since mid-August has had a tendency
to retard advance commitments in a number of lines.
In the iron and steel industry activities declined
somewhat during the last two weeks in August and
have receded further since that time. Shipments of
pig iron and scrap to district melters in August fell
slightly below July, but were approximately 15 per
cent greater than in August last year. At midAugust steel ingot production at mills in this area
was at 74.2 per cent of capacity as compared with
84 per cent a month earlier. Output of bituminous
coal at mines in the district in August declined
slightly from July, but was measurably greater than
a year ago. Production and shipments of lumber de
clined from the recent relatively high levels. For the
first time in a number of months there was a decline
in consumption of electric power by industrial users
in the principal centers, but the volume was 4.6 per
cent greater than in August, 1936. Industrial em
ployment and payrolls, which had tended upward
since early spring, showed no marked change as
contrasted with the preceding thirty days.
Dry hot weather prevailing over a considerable
area of the district in August and early September
reduced prospective yields of corn, hay, tobacco and
certain fruit and vegetable crops. Excessive rains
to the south interfered with the cotton harvest and
in a number of important growing sections, a spe
cific injury to the crop was reported. On the whole,
however, the U. S. Department of Agriculture’s
report, based on conditions as of September 1, tends
to confirm earlier estimates of crop yields largely
in excess of a year ago, and in the case of certain
productions greater than the average of recent years.
The season has been particularly favorable for food
crops, and production of feed and forage crops is
sufficiently large to permit of farmers feeding the
usual rations to livestock, with assurance of an
adequate carryover at the end of the season. De
Page 1
spite the recent declines in prices of farm products,
estimates of cash income from farm marketings, in
cluding Government payments, indicate a substan
tial increase over a year ago and an aggregate larger
than in any year since 1929.
Gauged by sales of department stores in the
principal cities, volume of retail trade in August was
8.6 per cent greater than in July and 8.4 per cent
larger than a year ago; for the first eight months
cumulative total exceeded that of the like interval in
1936 by 11.0 per cent. Combined sales of all whole
saling and jobbing firms reporting to this bank in
August were 8.1 per cent greater than for the pre
ceding month and 8.4 per cent less than a year a g o ;
cumulative total for the first eight months exceeded
that of the comparable period in 1936 by 16.9 per
cent. The dollar value of contracts issued for new
buildings in the principal cities in August was 14.7
per cent and 33.7 per cent smaller, respectively, than
a month and a year earlier and for the first eight
months the aggregate was 16 per cent greater than
for the same period in 1936. The dollar value of
construction contracts let in the Eighth District in
August was 6.7 per cent smaller than in July and 5.2
per cent smaller than in August a year a g o ; for the
first eight months the cumulative total was smaller
by 9.3 per cent than in the like interval in 1936.
Officials of railroads operating in this district
report the movement of freight during August and
the first two weeks of September in heavier volume
than during any similar period since 1930. The
movement of grain and grain products was above a
year ago and a favorable showing was made by the
miscellaneous and merchandise L. C. L. classifica
tions. A moderate gain over a year ago was recorded
in the movement of coal, but forwardings of cotton
were considerably smaller than during the same
period in 1936. Reflecting generally improved eco
nomic conditions and intensive advertising cam
paigns, vacation travel was the heaviest in recent
years, August passenger traffic of the reporting lines
showed an increase of 9.0 per cent over the same
month in 1936. Estimated tonnage of the Federal
Barge Line between St. Louis and New Orleans
in August was 1.9 per cent greater than in July and
32.7 per cent larger than in August, 1936; for the
year to September 1, the cumulative total was slight
ly above that for the comparable period in 1936.
Collections generally during the past thirty days
showed little change as compared with the two or
three preceding months, and volume compared fav
orably with a year ago. September 1 settlements
with wholesalers in the principal distributing cen
ters were well up to expectations, and some im
Page 2
provement in retail payments was reported, ac
counted for partly by the return of numerous cus
tomers from vacations. Liquidation with country
banks and merchants in the winter wheat areas was
in considerable volume. Questionnaires addressed
to representative interests in various lines scattered
through the district showed the following results:
Excellent
August,
July,
August,
1937............. 3.3%
1937............. 2.5
1936............. 2.4
Good
53.0%
51.3
53.0
Fair
38.2%
23.5
41.0
Poor
5.5%
12.0
3.6
Commercial failures in the Eighth Federal Re
serve District in August, according to Dun and
Bradstreet, numbered 24, involving liabilities of
$217,000, which compares with 17 defaults with
liabilities of $133,000 in July and 24 defaults for a
total of $215,000 in August, 1936.
Detailed Survey
MANUFACTURING AND WHOLESALING
Net Sales
Stocks
Aug. 1937
8 months 1937
Aug. 31, 1937
compared with
comp, with same
comp, with
July, ’37 Aug., ’36
period 1936
Aug. 31, 1936
Boots and Shoes........ . — 12.8% — 23.2%
+ 2 0 .9 %
— 13.5%
Drugs and Chemicals.. + 2.4
+ 9.4
+ 4.5
+ 11.9
+ 52.3
+ 8.0
— 2.7
+ 54.0
Electrical Supplies...... — 12.8
+ 17.7
+ 36.3
+ 30.4
+ 12.9
— 9.4
+22.1
+28.1
+ 0.7
— 9.2
+ 5.1
+ 15.9
+ 3.2
+ 11.8
+ 22.0
+32.1
Lines of
Commodities
All above lines......... +
8.1
— 8.4
+ 16.9
+28.9
Automobiles — Combined passenger car, truck
and taxicab production in the United States in
August was 394,322 against 438,968 (revised figure)
in July and 271,274 in August, 1936.
Boots and Shoes — Heavy purchasing by re
tailers earlier in the year, mainly in anticipation of
an advance in prices, was in large measure account
able for the contraseasonal decline in sales of the
reporting interests from July to August, shown in
the above table. In the comparison with a year ago,
declines were quite general through all lines, but
relatively the most pronounced in the case of men’s
heavy shoes. There was no change in prices during
the past thirty days, but the average continues above
a year ago.
Clothing — August sales of the reporting cloth
iers were 58 per cent larger than in July and 12 per
cent smaller than the August, 1936, total. Stocks
decreased 17.2 per cent between August 1 and Sep
tember 1 and on the latest date were 5.5 per cent
larger than a year ago. Advance sales of men’s
suits and topcoats are reported in considerably
larger volume than at the corresponding period a
year and two years earlier. The trend of prices in
certain lines of apparel was slightly easier, in sym
pathy with the decline in raw materials.
Dry Goods — Demand for virtually all lines of
dry goods continued active, sales of the reporting
firms in August being the largest for the month,
with the exception of last year, since 1929. Reports
covering the first half of September indicate a vol
ume for the entire month about one-fifth greater
than in September a year ago. In the immediate
past there has been some hesitation in ordering for
spring distribution, attributable to the sharp decline
in cotton and other raw materials.
Electrical Supplies — While August sales of the
reporting firms showed a somewhat greater decline
from July than usual, the total for the month was
the largest for any August since these records
started in 1924, and cumulative sales for the first
eight months this year were also the highest of
record. The larger than ordinary decline during
August was attributable chiefly to the narrowed
outlet through the building industry. There was
also a recession in sales of household appliances and
radio materials.
Furniture — The increase in sales in this classi
fication from July to August was seasonal in char
acter, and about the average size. As has been the
case during the past two or three months, there was
a recession in demand for household furniture and
furnishings. There was also a decline in large stock
orders as compared with earlier months this year.
Sales of school and hospital furniture and equipment
were reported in considerable volume.
Groceries — Demand for groceries in the rural
areas was reported more active than at any similar
period during the past several years. In anticipation
of heavy fall requirements, incident to large crops
and increased farm income, retailers were disposed
to stock up more freely than heretofore. Through
out the season sales of canning and preserving sup
plies were in exceptionally heavy volume. Reflect
ing the decline in farm products, the trend of prices
during the past thirty days was noticeably lower.
Hardware — The recession in demand for build
ers’ tools and hardware, paints and kindred lines
was more than offset by increased demands for
merchandise consumed chiefly in the farming areas.
Advance sales of winter goods generally, are re
ported slightly larger than at the corresponding
period a year and two years earlier. Collections
are in the main satisfactory. Price changes during
the past thirty days were negligible.
Iron and Steel Products — Activities in the iron
and steel industry during August were well sus
tained, and at the highest rate for the month since
the predepression era. Since September 1 there has
been some slowing down in new orders for both raw
and finished materials, but during the first half of
the month shipments have been at about the same
average daily rate as in August. Backlogs of steel
mills have been noticeably reduced, and deliveries
on sheets, plates, bars, strip and other rolled items
are more prompt than in a number of months. New
ordering is reported to be more conservative than
earlier in the year. Schedules at steel casting plants,
particularly those specializing in railroad work, con
tinue at the high levels which have been in effect
since last spring. Steel ingot production in this
area at mid-September was at 74.2 per cent of capac
ity against 82.0 per cent a month earlier. Manufac
turers of stoves and heating apparatus report late
August and early September shipments the largest
for any similar period in recent years. Makers of
farm implements and tractors continue to operate
on full time schedules, and are still in arrears in de
liveries of certain products. Reports from the job
bing foundries reflect spotty conditions, with opera
tions at mid-September ranging from three to five
days per week. Outlet through the building industry
developed further contraction. Structural steel fab
ricating plants in the second week of September
were operating at about 50 per cent of capacity, as
contrasted with 75 per cent a month earlier. Less
than the usual contraction in ordering of tin plate
was noted, reflecting heavy requirements of contain
er manufacturers incident to the large fruit and
vegetable crops. August sales of warehouse and
jobbing interests fell slightly below the July vol
ume, but were the largest for any August since
1930. Aside from a rather sharp decline in iron and
steel scrap, prices of both raw and finished materials
showed little change as compared with the preced
ing thirty days. Current pig iron prices were ex
tended into the fourth quarter. Announcement was
made that owing to interruption of tungsten ore
shipments from China, prices of tool steel contain
ing tungsten will be advanced from 67c to 80c per
pound on October 1. Production of pig iron in
August, according to the magazine “ Steel” , reached
the highest level since August, 1929. The total out
put was 3,616,954 tons, against 3,501,359 tons in
July and 2,711,726 tons in August, 1936. Produc
tion of steel ingots in the United States in August
amounted to 4,861,789 tons, against 4,556,596 tons
in July and 4,184,287 tons in August, 1936.
MINING
Further liquidation of surplus stocks of bitu
minous coal accumulated early in 1937 in anticipa
tion of possible strikes was reported by industrial
consumers during July. Total stocks held by all
classes of industrial consumers declined from
Page 3
37.736.000 tons at the end of June to 37,000,000 tons
at the end of July, a decrease of 2 per cent. In pre
vious years stocks have usually increased during
July. Industrial consumption during August contin
ued on a large scale, and during the past several
weeks dealers and consumers generally have in
creased their purchasing in anticipation of a price
advance on October 1. Estimated production of soft
coal for the entire country in August was 33,665,000
tons, against 31,912,000 tons in July and 33,086,000
tons in August, 1936; for the year to September 1,
production amounted to 287,688,000 tons against
265.922.000 tons during the first eight months of
1936. At mines in this general area, August output
was 4.7 per cent more than a month earlier and 5.6
per cent smaller than in August, 1936; cumulative
production for the first eight months was larger by
2.6 per cent than in the like interval in 1936.
Mines in Illinois produced 3,005,108 tons in
August, against 2,732,473 tons in July and 3,262,884
tons in August, 1936. There were 120 mines in
operation in August and 27,999 men on payrolls,
against 113 active mines and 27,364 men on payrolls
during the preceding month.
R E TA IL TR A D E
Department Stores — The condition of retail
trade is reflected in the following comparative state
ments showing activities in the leading cities of the
district:
Stocks
Net Sales
on. Hand
Aug. 1937
8 mos. 1937 Aug. 31/37
compared with
to same comp, with
July, 1937 Aug. 1936 period ’ 36 Aug. 31/36
El Dorado, Ark......... — 6.2% + 3.7% + 9.2% + 7 .
Ft. Smith, Ark......... + 5.1
+ 15.6
6.2
0.1
Little Rock, Ark....... 4*13.9
+ 5.1
+ 6.3
+ 18.6
Louisville, K y........... + 3.2
6.0
+ 10.7
+ 15.4
Memphis, Tenn......... + 8.1
+ 9.4
20.8
11.1
Pine Bluff, Ark......... + L7
+ 4.5
— 10.7
+ 12.4
St. Louis, M o........... + 9.3
+ 8.9
+ 11.9
+ 16.0
Springfield, M o......... + 7.7
+ 15.1
11.8
6.0
All Other Cities......... + 15.7
+ 6.3
+ 18.2
+ 4.7
8th F. R. District..... 4* 8.6
+ 8.4
11.0
+ 16.4
+
+
+
+
+
+
+
Stock
Turnover
Jan. 1, to
Aug. 31,
1937 1936
1.90 1.79
1.61 1.63
1.68
1.88
2.62
1.99
2.17
2.45
1.61
1.94
2.29
2.75
2.07
2.45
2.57
1.69
2.01
2.41
Percentage of collections in August to accounts
and notes receivable on August 1, 1937, by cities:
Installment Excl. Instal.
Accounts
Accounts
El Dorado................ ^
..57.5%
Fort Smith...............
..31.3
Little Rock....... 12.1
..31.3
Louisville .........11.6
..50.1
Memphis .......... 21.2
..41.1
Installment Excl. Instal.
Accounts
Accounts
Pine Bluff .... ...........30 2 %
Springfield ............................... 28.6
St. Louis........... 18.0 ............49,2
Other Cities..... 13.8 ............37.8
8th F. R. Dist..l6.2 ........... 45.1
Specialty Stores — August results in men’s fur
nishings and boot and shoe lines are shown in the
following table:
Stock
Stocks
Net Sales
on Hand Turnover
Aug. 1937
8 mos. 1937 Aug. 31/37 Jan. 1, to
compared with
to same comp, with Aug. 31,
July, 1937 Aug. 1936 period ’ 36 Aug. 31/36 1937 1936
Men’s Furnishings....— 7.2% — 3.5% + 5.0% + 1 5 .6 % 1.58 1.65
+ 15.0
+ 17.0
+ 38.2
4.30 4.42
Boots and Shoes....... + 3.7
Percentage of collections in August to accounts
and notes receivable on August 1, 1937:
Men’ s Furnishings............... 34.0%
Page 4
Boots and Shoes....................36.4%
AGRICULTU RE
Weather conditions in the Eighth District dur
ing August and the first half of September varied
widely. Conditions approaching drouth prevailed
over extensive areas, while elsewhere rainfall was
excessive. The effects of these extremes on crop
prospects were detrimental in greater or lesser de
gree, but, according to the U. S. Department of
Agriculture and the agricultural departments of the
several states, indications still are for heavy produc
tion, generally exceeding that of a year ago, and in
the case of certain crops and localities, well above
the average in recent years. In a number of impor
tant producing sections, the hot, dry weather re
duced prospective yields of corn, grain sorghums,
legumes, late hay crops and certain fruits and vege
tables. Outside the dry area the heavy rains inter
fered with the garnering of some crops, notably
cotton and tobacco, but were of benefit to pastures,
commercial vegetables, gardens and tilth of the soil.
Harvesting and threshing of small grains had been
virtually completed at mid-September, with latest
returns indicating no change in earlier official fore
casts for wheat, but somewhat heavier yields of oats.
Reduction of prospects for corn, soy beans, grain
sorghums and late hay in the dry sectors is not be
lieved to be sufficiently drastic to markedly affect
the district feed status. Feed crops in the south
were almost universally large, and generally
throughout the district it is estimated that feed on
farms is in ample volume to permit farmers to feed
heavier rations to livestock than a year ago, and still
have an adequate carryover at the end of the season.
Prices of farm products, including such impor
tant items as cotton, corn, wheat and potatoes, de
clined sharply during the past thirty days. The
downturn also affected values of livestock and poul
try. As of September 11, the farm products group
of the Bureau of Labor Statistics Price Index stood
at 84.5 per cent of the 1926 average, a decline of .1
per cent from the preceding week and comparing
with 87.5 per cent on August 14; 84.6 per cent on
September 12, 1936; 81.2 per cent on September 14,
1935 and 55.9 per cent on September 16, 1933.
Combined receipts from the sale of principal
farm products and Government payments to farmers
in states including the Eighth District during the
periods January-July, 1935, 1936, 1937 and during
July, 1936 and 1937, are given in the following table:
(In thousands
January-July
of dollars)
1935
1936
1937
Indiana ............. ....$130,413 $148,889$171,328
Illinois ................... 215,484255,784
286,125
Missouri ............... 122,881
134,003 143,143
Kentucky ............. 78,169
62,151
97,546
Tennessee ............. 55,775
50,884
70,059
Mississippi ........... 39,342
36,833
61,226
Arkansas ............... 43,629
33,942
53,767
Totals............... 685,693
722,486
883,194
July
1936
1937
$ 27,148 $ 30,031
51,537
52,679
26,251
33,084
9,546
11,746
7,887
9,092
3,423
4,643
5,382
5,591
131,174
146,866
Corn — Hot, dry weather during August and
the first weeks of September reduced corn prospects
materially in the Eighth District and the country
as a whole. In this area deterioration was confined
chiefly to late planted corn, and more particularly
crops on the uplands. However, the district yield
will heavily exceed that of 1936, and is measurably
larger than the average during the preceding four
teen years. In its report based on conditions as of
September 1, the U. S. Department of Agriculture
estimated the yield in this district at 356,137,000
bushels, a decrease of 3,569,000 bushels from the
August 1 forecast, and comparing with 202,726,000
bushels harvested in 1936 and the 14-year average
(1923-1936) of 327,361,000 bushels. In the northern
tiers of the district approximately 75 per cent of
the corn crop was safe from frost damage at midSeptember; silo filling was in full swing and feed
ing of new corn increasing rapidly.
Cotton — In its September 1 report, the U. S.
Department of Agriculture estimates the output of
cotton in the Eighth District at 3,879,000 bales, an
increase of 143,000 bales over the August 1 forecast
and comparing with 3,404,000 bales in 1936 and the
14-year average (1923-1936) of 2,763,000 bales. Pick
ing has become general, but the movement from
producers’ hands is noticeably slower this year than
in 1936. Heavy rains during late August and early
September delayed harvesting, and in a number of
localities resulted in considerable damage to the
crop. A number of gins and mills were temporarily
closed down in an effort to reduce losses to staple
and seed because of the excessive moisture. A scar
city of pickers is reported from scattered localities
in the Mississippi Delta and Arkansas. Prices con
tinued to decline, reaching a new low on the down
ward movement in the second week of September.
In the St. Louis market the middling grade ranged
from 8.75c to 10.65c per pound between August 16
and September 15, closing at 8.85c on the latest date,
which compares with 10.65c on August 16 and 13.00c
on September 15, 1936. Combined receipts at
Arkansas and Missouri warehouses from August 1
to September 10 totaled 81,590 bales, as against
147,812 bales during the same period a year ago.
Stocks on hand as of September 10 amounted to
218,153 bales, against 357,726 bales on the corre
sponding date in 1936.
Fruits and Vegetables — Despite deterioration
in certain sections where rainfall was inadequate
during August and the first half of September, pros
pects for fruit and vegetable crops in the district
as a whole are the most favorable in a number of
years. Most vegetable crops for canning, quick
freezing and other manufacture are in abundant sup
ply, with record or near-record packs indicated for
several important species. Apple prospects declined
somewhat during August, but the yield will still be
well above a year ago and the average. In its report
based on conditions as of September 1, the U. S.
Department of Agriculture estimates the yield of
apples in states including the Eighth District at
25.070.000 bushels, a decrease of 159,000 bushels
under the August 1 forecast and comparing with
5.590.000 bushels harvested in 1936 and the 5-year
(1928-1932) average of 15,199,000 bushels. In these
states the peach crop is estimated at 10,538,000
bushels, against the virtual failure o f 3,422,000
bushels in 1936 and the 5-year average of 7,265,000
bushels; pears, 3,260,000 bushels, against 1,352,000
bushels in 1936 and the 5-year average of 1,870,000
bushels; grapes, 44,070 tons, against 25,060 tons in
1936 and the 5-year average of 33,010 tons; peanuts,
31.770.000 pounds, against 31,095,000 pounds in 1936
and the 5-year average of 33,113,000 pounds. Sweet
potato prospects improved slightly during August,
the September forecast being for 19,503,000 bushels,
which compares with 15,031,000 bushels in 1936 and
the 5-year average of 17,483,000 bushels. In the
district proper the white potato crop is estimated at
12.986.000 bushels, against 8,333,000 bushels har
vested in 1936 and the 14-year (1923-1936) average
of 13,562,000 bushels. Garden crops, melons and
truck crops generally have yielded well this year.
Livestock — Reports from practically all sections
of the district indicate little change in the condition
of livestock during the past thirty days as compared
with high average which has obtained since early
spring. Pastures deteriorated in a number of sec
tions under lack of moisture and high temperatures
during August and early September; however, in
the district as a whole the September 1 condition
averaged higher than on the same date in seven of
the eight years from 1929 to 1936. Hay production
in the Eighth District is estimated at 6,058,000 tons,
as against 4,447,000 tons in 1936 and the 14-year
(1923-1936) average of 6,509,000 tons.
Receipts and shipments at St. Louis reported
by the National Stock Yards were as follows:
_________Receipts ______
Shipments________
Aug.,
July,
Aug.,
Aug., July,
Aug.,
1937
1937
1936
1937
1937
1936
Cattle and Calves..... 198,719 143,858 150,350
137,565 93,394
83,170
Hogs .......................... 126,231 107,847 148,050
71,578 66,701
94,484
3,935
5,869 3,824
3,189
4,663
Horses and Mules..... 3,829
Sheep ......................... 133,509 91,521
63,486
66,130 21,818
10,452
Totals..................... 462,288 347,161 367,755
279,097 185,102 192,769
Tobacco — In its report based on September 1
conditions, the U. S. Department of Agriculture
estimates Eighth District production of all types of
tobacco at 271,906,000 pounds, which is 349,000
Page 5
pounds below the August forecast and compares
with 176,784,000 pounds harvested in 1936 and the
14-year average of 287,796,000 pounds. Quite gener
ally growth of the crop was retarded in August
because of lack of precipitation. The dry spell was
followed by general rains which improved the con
dition of late tobacco, but in some localities inter
fered with cutting and housing. Farmers have taken
advantage of every opportunity to harvest and pre
pare the leaf and as of mid-September approximate
ly two-thirds of the burley crop had been cut and
housed. Growers in certain localities have experi
enced considerable difficulty in procuring labor for
harvesting.
In the one sucker district the crop has improved
steadily and is maturing satisfactorily. Cutting and
housing in the eastern fired district tributary to
Hopkinsville, Springfield and Clarksville progressed
slowly up to September 10. Farmers are selecting
ripe plants and permitting the remainder of the crop
to mature before cutting. About 40 per cent of the
crop in that district had been cut as of September 16.
first 36 weeks this year, or to September 4, totaled
26,660,535 cars, against 23,876,296 cars in 1936 and
21,075,543 cars in 1935. Estimated tonnage of the
Federal Barge Line between St. Louis and New
Orleans in August was 182,500 tons, against 179,172
tons in July and 137,546 tons in August, 1936; cumu
lative tonnage for the first eight months this year
was 1,164,452 tons as compared with 1,164,325 tons
during the like interval in 1936.
CONSUM PTION OF ELE C TR IC ITY
Public utilities companies in six large cities of
the district report consumption of electric current
by selected industrial customers in August as being
3.7 per cent smaller than in July and 4.6 per cent
more than in August, 1936. Detailed figures fo llo w :
(K .W .H . No. of
Aug.,
in thous.) Custom1937
ers
K .W .H .
Evansville..... 40
3,078
Little Rock.. 35
2,398
Louisville .... 82
9,916
Memphis ..... 31
2,231
Pine Bluff.... 20
552
St. Louis.....189
28,077
Totals..... 397
46.252
July,
Aug. 1937
1937
comp, with
K .W .H .
July, 1937
3,680
— 16.4%
2,377
+ 0.9
10,510
— 5.7
2,112
+ 5.6
743 — 25.7
28,596
— 1.8
48,018
— 3.7
Aug., Aug. 1937
1936 comp, with
K .W .H . Aug. 1936
3,141
— 2.0%
2,392
- f 0.3
9,104
+ 8.9
2,233
— 0.1
420
+ 31.4
26,918
+ 4.3
44,208
+
4.6
COM M ODITY PRICES
BUILDING
Range of prices in the St. Louis market be
tween August 16, 1937, and September 15, 1937,
with closing quotations on the latter date and on
September 16, 1936, follows:
The dollar value of permits issued for new con
struction in the five largest cities of the district in
August was 14.7 per cent smaller than in July and
33.7 per cent less than the August, 1936, total. A c
cording to statistics compiled by the F. W . Dodge
Corporation, construction contracts let in the Eighth
Federal Reserve District in August amounted to
$16,160,000 which compares with $17,054,000 in July
and $17,313,100 in August, 1936. Building figures
for August follow s:
High
$1.03
$
1.0354
1.0454
1.05
1.07
1.03
1.08
1.09%
1.16**
1.14*6
1.13*4
1.1854
1.19
.943/4
.54*4
.62*4
1.04
1.06
1.04
.63%
.65
1.07
1.09
1.14*4
.96%
.92**
1.15
1.24
.29
•295*
.20%
•3154
.3254
.30 ^
.32
.32*4
5.45
7.05
.0875
8.75
5.45@ 5.95
7.05@ 7.45
.0885
10.25@ 12.60
Tt-VO
OO
Wheat
*Sept................... ...per bu..$1.12
<<
*Dec...................
1.13H
*May ...............
1.19*4
*No. 2 red winter “
1.1654
“
*No. 2 hard “
1.10
Corn
“
*Sept..................
1.08*4
(t
*Dec....................
.6854
“
*May ............... .
.70
**
*No. 2 mixed ..,
1.08
“
*No. 2 white ...
1.09
Oats
“
*Sept...................
.3234
*Dec....................
.31
♦May ................
•325*
*No. 2 white
.34
Flour
Soft Patent......
6.25
Spring “ ......
8.05
Middling Cotton. ..per lb.
.1065
Hogs on hoof......,.per cwt.12.75
*Nominal quotations.
Close
Sept. 15, 1937
Sept. 16, 1936
Low
$
.46
5.35 @ 5.85
7.55 @ 7.75
.1300
7.75@10.90
(Cost in
thousands)
Evansville....
Little Rock
Louisville....
St.
Louis....
New Construction
Permits
Cost
1936
1936
1937
1937
6
55
$ 210 $ 149
364
126
14
41
115
431
1,357
228
25
195
286
520
504
241
413
283
Aug. Totals 668
July
650
June
“
770
620
567
542
TRAN SPORTATION
The St. Louis Terminal Railway Association,
which handles interchanges for 28 connecting lines,
interchanged 95,935 loads in August, against 96,594
loads in July and 91,507 loads in August, 1936. Dur
ing the first nine days of September the interchange
amounted to 24,759 loads, which compares with
27,937 loads during the corresponding period in
August and 24,500 loads during the first nine days
of September, 1936. Passenger traffic of the report
ing roads in August increased 9 per cent in passen
gers carried and a like amount in revenue as com
pared with the same month a year ago. For the
entire country, loadings of revenue freight for the
Page 6
1,704
1,998
2,987
2,571
1,380
1,144
Repairs, etc
Cost
Permits
1937 1936
1937 1936
92
$ 134 $ 55
184
37
26
54
84
269
46
213
88
73
46
91
149
357
169
202
84
711
684
815
615
656
673
570
624
549
~557
491
408
LIFE INSURANCE
Sales of new, paid-for, ordinary life insurance in
states including the Eighth District during August,
the preceding month, and a year ago, together with
the cumulative totals for the first eight months this
year and the comparable period in 1936 are shown
in the following table:
(In thousands
Aug.,
July,
Aug.,
Cumulative Totals
of dollars)
1937
1937
1936
1937
1936
Arkanssas........ $3,701 $ 3,861 $ 3,613
$ 31,633 $ 30,451
Illinois..............
43,735
46,774
41,454 397,941
368,684
Indiana............. 13,216
14,019
12,544 115,993
110,349
Kentucky.........
6,827
7,139
5,953
51,795
51,464
Mississippi.......
3,250
3,332
3,042
28,760
24,674
Missouri...........
16,428
19,842
16,226 156,455
147,108
Tennessee........
8,650
8,017
7,313
68,170
60,730
Totals...........
95,807
United States... 546,067
102,984
588,523
Cumul.
change
+ 3.9%
+ 7.9
+ 5.1
+ 0.6
+ 16.6
+ 6.4
+ 12.3
90,145
850,747
793,460 +
534,077 4,950,941 4,687,686 +
7.2
5.6
M ONEY AND BANKING
In the Eighth District the banking and financial
situation during the past thirty days was character
ized by a further improvement in demand for credit.
The betterment extended to all the principal borrow
ing groups, but was most pronounced in the case of
mercantile and manufacturing interests, reflecting
the usual seasonal expansion in commitments to
finance merchandise for fall and winter distribution.
Requirements for financing the crop movement in
creased markedly, particularly in the cotton and
tobacco producing areas. Borrowing of country
banks from their city correspondents increased
moderately, and employment of Federal Reserve
accommodation by member banks broadened. In
the third week of September bills discounted by this
bank rose to the highest point of the year, and the
total was approximately eight times larger than at
the corresponding period in 1936. Increase in the
demand for currency was reported in somewhat
greater than the usual seasonal volume.
Member Banks — Between August 18 and Sep
tember 15, total loans of the reporting member
banks increased 1.7 per cent and on the latter date
recorded a new high for the year and an increase of
18.6 per cent over the total on the corresponding
report date in 1936. Gross deposits, which had de
clined in August, moved sharply upward during the
first half of September, and at the middle of the
month were about on a parity with a year earlier.
Investments decreased 3.1 per cent and reserve bal
ances increased 5.3 per cent in the four-week period.
Statements of the principal resource and liabili
ty items of reporting member banks follow :
Sept. 15, Aug. 18, Sept. 16,
(F or 24 banks— in
thousands of dollars)
1937
1936
1937
Loans— total ......... ....... ........ .............................$313,690 $308,217 $264,197
Commercial, industrial, and agricultural:
On securities................................................ 55,874
54,858
Otherwise secured and unsecured........... 136,630
131,462
Open market paper.......................................... 11,701
11,451
Loans to brokers and dealers........... ............
5,891
6,070 6,752
Other loans for purch. or carry, securities 12,389
12,484 *
Real estate loans..........................................
45,869
45,547 43,637
Loans to banks................................................
7,554
8,279 8,087
Other loans:
On securities................................................ 11,288
11,807
Otherwise secured and unsecured........... 26,494
26,259
Investments— total ............................................ 352,046
363,303398,477
217,243231,692
U. S. Gov’ t obligations............................... 205,495
Obligations guaranteed by U. S. Gov’ t.... 45,735
45,941 58,258
Other securities................................................ 100,816
100,119108,527
Gross deposits........................ ....... ..................... 882,352
868,318883,771
Demand deposits.... ........................................ 692,203
677,927698,871
Time deposits................................................... 190,149
190,391184,900
Borrowings .................. .................................................................................. ..........
* Comparable figures not available.
Loans and Investments
Gross
Borrow(B y cities,
Number
Discounts
in Securities
Deposits
ings
Sept. 15, 1937) Banks
$185,350
$242,363
$557,665
................
St. Louis..................... 9
58,521
33,708
125,233
................
Louisville ................... 5
45,041
46,983
123,636 ................
Memphis .................... 3
10,748
12,833
35,205
................
Little Rock.................4
__________________
14,030
16,159
40,613
................
Evansville
...................3
The resources of these reporting member banks comprise approxi
mately 63.6% of the resources of all member banks in this district.
The aggregate amount of savings deposits held
by selected member banks on September 1 declined
slightly from a month earlier, but was 5.2 per cent
greater than on September 2, 1936.
At downtown St. Louis banks as of the week
ending September 15, interest rates charged were as
follows: Customers’ prime commercial paper, \y2
to 5 per cent; collateral loans, 2y2 to 6 per cent;
loans secured by warehouse receipts, 2 to 5 per cen t;
interbank loans, 3y to 4 per cent and cattle loans
4y2 to 6 per cent.
Federal Reserve Operations — Effective Sep
tember 2 the Federal Reserve Bank of St. Louis
established a rate of \y2per cent per annum on re
discounts of eligible paper for member banks and
on member banks’ collateral notes, under Section 13
and 13a of the Federal Reserve Act as amended, and
also a rate of 2 per cent per annum on advances to
member banks under Section 10b of the Act. This
is a reduction of one-half per cent in each rate.
Following is a complete schedule of rates of this
bank for accommodations:
(1) Rediscounts and advances to member banks, under
Section 13 and 13a........................................................\X
A % per annum
(2) Advances to member banks, under Section 10b........... 2 % per annum
(3) Rediscounts, purchases, and advances to member
banks, nonmember banks and other financing in
stitutions, under Section 13b:
(a) On portion for which financing institution
is obligated........................................................3J^% per annum
(b) On remaining portion....................................... 4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing in
stitutions, to rediscount, purchase, or make ad
vances, under Section 13b............................................ J4% flat
(5) Advances to established industrial or commercial ( 4 % to
businesses, under Section 13b................................. \ 5j£% per annum
(6) Advances to individuals, firms and corporations,
including nonmember banks, secured by direct
obligations of United States under Section 13....... 4 % per annum
Changes in the principal assets and liabilities of
this bank appear in the following table:
Sept. 18,
1937
.,$
267
682
85
... 111,385
(In thousands of dollars)
Other advances and rediscounts..
U. S.
Ratio of reserve to deposit
and F. R. Note liabilit
Sept. 18,
1936
$
523
85
87
129,927
112,419
112,168
130,622
... 294,197
... 220,302
... 180,565
288,168
213,660
180,104
249,030
198,582
172,657
Total earning assets.................. ............
Total deposits
Aug. 18,
1937
$
301
396
86
111,385
>..
1,037
1,039
1,517
...
73.4%
73.2%
67.1%
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
Aug.,
1936
Aug.,
(In thousands
of dollars)
1937
East St. Louis and Natl.
Stock Yards, 111..$ 37,816
El Dorado, Ark.... .
4,943
Evansville, Ind.... . 34,038
Fort Smith, Ark... . 10,725
Greenville, Miss...,
3,849
1,453
Helena, Ark..........
Little Rock, Ark.... 32,754
Louisville, K y...... . 150,903
Memphis, Tenn.... . 99,844
6,162
Owensboro, Ky.... .
Pine Bluff, Ark.... .
7,878
8,151
Quincy, 111............
St. Louis, M o...... . 567,750
1,991
Sedalia, M o..........
Springfield, Mo.... . 14,783
Texarkana, Ark.-Tex. 7,600
$ 35,489
5,620
40,530
11,524
4,678
1,577
34,488
170,452
109,696
6,134
8,980
8,664
656,900
1,974
15,798
8,414
$ 30,382
4,092
27,519
9,632
3,843
1,384
29,449
141,576
101,824
5,219
6,984
7,488
505,754
1,856
13,915
6,193
, 990,640
1,120,918
897,110
(Completed September 23, 1937)
July,
1937
Aug., 1937, comp, with
July, 1937 Aug. 1936
- f 6.6%
— 12.0
— 16.0
— 6.9
— 17.7
— 7.9
— 5.0
— 11.5
— 9.0
+ 0.5
— 12.3
— 5.9
— 13.6
4- 0.9
— 6.4
— 9.7
+24.5%
+ 20.8
+23.7
+ 11.3
+ 0.2
+ 5.0
+ 11.2
+ 6.6
— 1.9
+ 18.1
+ 12.8
+ 8.9
+ 12.3
+ 7.3
+ 6.2
+22.7
— 11.6
+ 10.4
Page 7
N A T IO N A L SU M M AR Y OF BUSINESS CO N D ITIO N S
B Y B O ARD OF G O V E R N O R S OF F E D E R A L R E S E R V E SYSTEM
INDUSTRIAL PRODUCTION
Index of physical volume of production, adjusted for sea
sonal variation, 1923-1925 average = 100. By months, Jan
uary, 1929, through August, 1937. Latest figure 117.
FACTORY EMPLOYMENT AND PAYROLLS
Indexes of number employed and payrolls, without adjust
ment for seasonal variation, 1923*1925 average = 100. By
months, January, 1929, through August, 1937. Latest fig
ures employment 102.2, payrolls 103.7.
In August industrial activity advanced from the level of the two
preceding months and on a seasonally adusted basis was close to the
volume of last spring. Early reports for September indicate a decline
in steel output and a seasonal decrease in the production of automobiles.
Production and Employment — Volume of industrial production, as
measured by the Board's seasonally adjusted index, was 117 per cent of
the 1923-1925 average in August as compared with a level of 114 per
cent in June and July and 118 per cent during the spring. Steel produc
tion rose slightly further and was close to the high level prevailing
before strikes curtailed output in June. Automobile production was
maintained in considerably larger volume than is usual in the month
preceding the shift to new model production. Lumber output declined,
following a period of increase. In the nondurable goods industries
output increased in August, reflecting chiefly increases at cotton and
woolen textile mills, following considerable declines in the preceding
month. Activity at meat packing establishments increased somewhat
from an extremely low level. Shoe production showed less than the
usual seasonal rise. At mines, output of coal increased less than season
ally, while crude pertoleum production continued to expand. Value of
construction contracts awarded, as reported by the F. W. Dodge Cor
poration, declined somewhat in August and the first half of September.
Awards for private residential building showed little change and were
in about the same volume as in the corresponding period in 1936, while
publicly-financed residential building declined and was in considerably
smaller volume than last year.
Factory employment, which had increased in July, showed less than
a seasonal rise in August. Factory payrolls increased by about the usual
seasonal amount. The number employed at steel mills increased some
what further, while at automobile factories, railroad repair shops, and
sawmills employment declined. In the textile industries employment
in the production of fabrics decreased somewhat, while employment in
the production of wearing apparel increased. Changes in employment
in most other manufacturing industries were small.
Agriculture — Department of Agriculture crop estimates, based on
September 1 conditions, were about the same as the estimates a month
earlier, except for an increase in cotton and a decrease in corn. Output
of leading crops is substantially larger than last season. Supplies of
livestock and meats are expected by the Department of Agriculture to
continue smaller than last year.
Distribution — Mail order sales and sales at department stores
showed somewhat less than the usual seasonal increase from July to
August. Freight-car loadings continued at the level of the previous
month.
Wednesday figures, January 3, 1934, through September
22, 1937.
Commodity Prices — Cotton prices declined considerably further
from the middle of August to the third week of September and there
were smaller decreases in cotton goods, silk, hides, steel scrap, copper
scrap, and lumber. Prices of livestock and livestock products, after
some decline in the latter part of August and the first week of Septem
ber, advanced sharply in the middle of September.
Bank Credit— Excess reserves of member banks increased in the
five-week period ending September 22 from $800,000,000 to $1,000,000,000
as the result of a release of gold by the Treasury from its inactive
account. The bulk of the increase in excess reserves went to New York
City banks and on September 22 these banks had excess reserves of
$350,000,000; Chicago banks had $50,000,000, and banks elsewhere
$600,000,000. Commercial loans at reporting member banks in 101 lead
ing cities, reflecting in part seasonal demands, continued to increase
substantially during the four weeks ending September 15, both in New
York City and outside. Holdings of United States Government obliga
tions and of other securities showed a further decrease, with the result
that total loans and investments declined somewhat.
Wednesday figures of estimated excess reserves for all
member banks and for New York City, January 6, 1932,
through September 22, 1937.
Page 8
Money Rates — Rates on 9-month Treasury bills declined from 0.71
per cent early in September to 0.44 per cent later in the month, and
average yields on long-term Treasury notes declined from about 1-5/8
per cent to below 1-1/2 per cent.
@FedFRASER