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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication in Afternoon Papers of September 30,1941
FEDERAL
RESERVE
BANK
OF
ST.
TTiy'TTwn
vJ JlNJLJLJtLfJLr
STATES
SAVINGS
BONDS
JRL J&m* dBms/mem
LOUIS
D E F E N S E SA V IN G S BO N D S
B y C lar ence M . S tew art
Cashier and Secretary of the Federal Reserve Bank of St. Louis, recently appointed Liaison Officer to cooperate with the
State Organizations of the Defense Savings Staff in the Eighth Federal Reserve District.
To help finance A m erica’s great defense efforts
and to m aintain our internal economic stability, the
T reasury D epartm ent placed three types of Defense
Savings Bonds on sale to the public on May 1 of
this year. They are known as Series E, Series F,
and Series G Bonds. Series F and G Bonds may be
purchased upon application to a Federal Reserve
Bank or the T reasurer of the U nited States. Bank
ing institutions generally may subm it applications
for account of custom ers. Series E Bonds may be
purchased from banks, post offices, and other quali
fied agencies, as well as from the Federal Reserve
Bank and its branches.
From the beginning of M ay through the third
week in September, about $1,500,000,000 of Defense
Savings Bonds and Stam ps were sold in the nation.
Through Septem ber 23, sales of Defense Savings
Bonds of all series (E, F, and G) by the Federal
Reserve Bank of St. Louis and other qualified issu
ing agents (other than post offi'ces) in the E ighth
Federal Reserve D istrict am ounted to $67,442,000.
Of this total the St. Louis reserve bank sold $46,511,000 Series F and G Bonds and $3,333,000 Series
E Bonds. D uring the period there were $17,033,000
Series F and G Bonds sold in St. Louis and vicin
ity alone. There were 945 qualified issuing agents
(other than post offices) in the E ighth D istrict for
Series E Bonds. These included 862 banks, 72 build
ing and loan and savings and loan associations, and
11 credit unions. T he num ber of banks qualified as
issuing agents represents more than 57 per cent of
all banks in the D istrict and is increasing daily.
Series E Bonds can be bought at cost prices from
$18.75 up to $750, and ten years from the date of
purchase they will have a m aturity value one-third
greater than their cost price; th at is, they will be
worth from $25 to $1,000. If these bonds are kept
until m aturity they will yield 2.9 per cent.
Series E Bonds are intended for the smaller in
vestor. They provide a splendid opportunity to put
away a p art of his income where it will earn a good
return. Should an em ergency arise w hereby the
purchaser is obliged to use p art or all of the money
th at he has invested in these securities, he can get
back his money with interest as shown on bond.
A grow ing num ber of companies are adopting
salary deduction plans, under which their employees
may voluntarily authorize the deduction of a fixed
am ount from their pay each pay-day, to accum ulate
money for the purchase of Series E Bonds.
Page 2
T o facilitate the purchase of Defense Savings
Bonds, the Treasury issues Defense Savings Stamps,
which range in price from 10c to $5 and are sold by
post offices, banks and a large num ber of cooperat
ing private concerns including m any retail stores.
As enough of the stam ps are accum ulated they may
be exchanged for interest-bearing Series E Bonds.
M any individuals purchase the stam ps at regular
intervals as a part of their running budgets.
A purchaser hesitating as to the am ount of money
to invest in Series E Bonds m ay be guided in his
choice by this f a c t: Should he, at any time, desire
to turn in a bond and receive p art of its equivalent
in cash and part in a bond of lesser denomination,
a new bond for the lesser am ount will be issued to
him, and it will be dated w ith the date of issue of
the original bond. Thus, he has nothing to lose by
buying a bond for the larger amount.
Much the same conditions prevail w ith regard to
Series F Bonds, except th at these are also available
for purchase by corporations and associations and
they provide an opportunity for persons w ith larger
incomes to make investm ents in excess of the limit
set for Series E Bonds.
Series F and G Bonds are issued in denomina
tions of $100 to $10,000 m aturity value. T heir yield
is about 2.5 per cent a year, and they m ature in
twelve years. The chief difference between them is
th at the Series F Bond is for individuals who wish
to let the interest accum ulate, and the Series G Bond
is for those who prefer to draw the interest every
six months.
The Series G Bonds provide an unusually a ttrac
tive opportunity for investm ent by corporations or
individuals, T hey are especially suited for sinking
funds or comparable situations. These bonds pro
vide an exceptional opportunity, also, for the invest
m ent of tru st funds and were, in fact, created largely
for th at purpose. They pay interest every six m onths
by check from the T reasury D epartm ent. They may
be redeemed on a m onth’s notice at any time after
six m onths from issue date.
An attractive feature for individuals possessing
Series G Bonds is th at in case of death, the bonds
are redeemable at par, regardless of any interest
th at has been paid. In such case, they will provide
the means for paying inheritance or other taxes, or
debts of the estate, thereby safeguarding the estate
and avoiding the possible necessity of liquidating
other assets at a sacrifice to m eet obligations.
SUMM ARY OF EI GHTH DIS TR IC T
A .
Sept. 1, 1941, comp, with
1940
A v. 1923-40
Agriculture:
Estimated yield of 7 crops................ .
— 6% — 5%
Aug., 1941, comp, w ith
July, 1941 A ug., 1940
Livestock:
— 4%
Receipts at National Stock Y ards. ...
— 5
Shipments from aforesaid Yards --Production and Distribution:
Sales by mfrs. and wholesalers.......... ...+ 12
+ 28
Department store sales..........................
— 1
Car loadings...........................................
Building and Construction:
....—21
Bldg. permits, incl. repairs |
—21
Value construction contracts awarded.. — 48
M iscellaneous:
— 8
~
• 1 rfailures
*1
Commercial
(S Number........
LiabiIities
—
1
Consumption of electricity..................
— 9
Debits to individual accounts..............
— 2
Life insurance sa les.............................
+ 1%
— 29
+
+
+
40
36
22
— 2
— 8
+ 122
—
—
+
+
+
45
71
26
32
6
Sept. 17/41, comp, w ith
Aug. 2 0 /4 1 !S ept., 18/40
Member Banks (24):
3% + 21%
Gross deposits......................................... , . . . +
+ 33
Loans ....................................................... . . . + 6
1
Investments............................................. . . . +
+ 19
A C T IV IT IE S in E ighth D istrict industry and
trade remained at very high levels during
A ugust and the first half of September, with
some lines moving to new highs. The defense pro
gram continued to create near boom conditions in
sections where its projects are developing. Com
modity prices rose further indicating continued
strong consumer demand coupled with actual and
anticipated shortages and rising costs. Shortages of
certain m aterials needed in defense production and
the possibility of greater priority restrictions tended
to create some apprehension concerning production
of consumer goods and advanced prices in the face
of probable price control legislation.
D uring A ugust the rate of industrial production
increased slightly more than seasonally. The Fed
eral Reserve Board's index adjusted for seasonal
variation advanced to 161 per cent of the 1935-1939
average as compared w ith 160 per cent for July and
159 per cent for June. Characteristic of activities in
the defense program sharp increases were evidenced
in machinery, aircraft, and railroad equipm ent indus
tries, with chemicals, leather goods, and explosives
also showing large gains. Production continued to
be considerably behind orders.
O utput of bitum inous coal at mines in this area
in A ugust increased 10 per cent over July and 18
per cent over A ugust, 1940. Steel ingot production
at mills in the district rem ained at the near capacity
rate of 98 per cent. T here has been virtually no
change in this rate for the past five months. Pig
iron production was begun at Granite City, 111., in
Septem ber m arking the first time in nine years that
pig iron has been produced in this area. A ugust
consumption of electricity by industrial users was
1 per cent less and 24 per cent more, respectively,
than a m onth and a year earlier. Production of lum
ber at mills in the district was at or near capacity
during August. New orders and shipments contin
ued to exceed production. Building activity, as re
flected by perm its granted and contracts let, showed
a decrease for A ugust from July and from a year
ago. Tonnage moved by the Federal Barge Lines
on the Mississippi River in A ugust decreased 2 per
cent from July but was 24 per cent greater than a
year ago, and cumulative tonnage during the first
eight m onths of this year exceeded that of the com
parable period in 1940 by 11 per cent. Load inter
changes for 25 connecting lines handled by the T er
minal Railroad Association of St. Louis during
A ugust were 2 per cent less than in July but 41 per
cent greater than in August, 1940. Cumulative total
of interchanges for eight m onths of this year ex
ceeded the similar period in 1940 by 28 per cent.
Both wholesale and retail distribution of mer
chandise during A ugust increased over July and
was considerably greater in volume than a year ago.
This bank's index of departm ent store sales, sea
sonally adjusted, reached a new high for the second
m onth in a row. A ugust sales of departm ent stores
in the principal cities of the district were 28 per
cent more than in July and 36 per cent greater than
a year earlier. Cumulative total for the first eight
m onths of the year was 21 per cent greater than
for the similar period in 1940. Sales in A ugust of
all wholesaling and jobbing firms whose statistics
are available to this bank were 12 per cent more
than in July and 40 per cent above a year ago.
Debits to individual accounts in A ugust were 9 per
cent less than in July and 32 per cent greater than
in A ugust, 1940. Gross deposits increased to a new
record high reflecting increased loans and invest
ments. General agricultural prospects in this dis
trict declined by about 1 per cent in August. Prices
of farm products continued to rise and prospects for
an excellent farm income for 1941 are indicated.
Farm labor shortages are developing in some sec
tions but production is being maintained at very
high levels through more efficient operation of farms.
In States wholly or partly w ithin the E ighth Dis
trict employment in non-agricultural industries in
July was 0.9 per cent greater than in June and 14.1
per cent greater than in July, 1940. In non-agricultural industries in the U nited States employment
increased 1.0 per cent from June to July and 10.7
per cent from July, 1940 to July, 1941.
Page 3
D E T A I L E D SU R VE Y OF D IS TR IC T
IRON AND STEEL
The continued pressure of defense requirem ents
and civilian dem and sustained activities in the iron
and steel industry in this area at extrem ely high
levels during A ugust and the first half of Septem
ber. As expected the greatest pressure came from
classifications filling orders for the defense program ,
notably engines, m achinery, airplanes, railroad
equipment, etc.
Dem and for sheets, strip, plates, and other flat
rolled m aterials continued strong. In past weeks
warehouse stocks have shrunk considerably. A lm ost
all production of sheets is for defense needs. Plates
remain very tig h t although some sources look for a
slight easing in the next few m onths. Scrap moved
somewhat better in the St. Louis area in late A u
gust with the character of m aterial indicating more
intensive efforts in collection, but the situation has
tightened m aterially in the past tw o weeks.
A new blast furnace for pig iron has been blown
in at Granite City, 111., and for the first tim e since
1932 pig iron will be produced in the St. Louis area.
The new plant will have a capacity of 700 tons daily,
and is expected to produce about 250,000 tons an
nually. T he plant will use northern iron ore at
present, but it is expected th at ore found in south
ern M issouri m ay be used to some extent in the
future. A second furnace m ay be rehabilitated and
be put in operation later this fall. This pig iron pro
duction should lessen som ew hat the demand for
scrap in the G ranite City section.
As of m id-Septem ber steel ingot production at
mills in this section was at 98 per cent of capacity,
the same as during the preceding five m onths, and
comparing w ith 80 per cent a year ago, and 66.5 per
cent in Septem ber, 1939.
Production of pig iron in A ugust for the entire
country, according to the m agazine “Steel,” was the
highest of record w ith a tonnage of 4,784,639. This
was slightly g reater than July production of 4,766,216 tons and 13 per cent above A ugust, 1940, pro
duction of 4,234,576 tons. Steel ingot production in
the U nited States in A ugust was 7,000,957 tons,
compared w ith 6,821,682 tons in July and 6,186,383
tons in A ugust, 1940.
MINING
Coal — Both industrial and domestic demand for
bitum inous coal rem ained strong during A ugust.
A t mines in this area production in A ugust was 10
per cent more than in July and 18 per cent greater
than in A ugust, 1940. F or the first eight m onths
of this year output exceeded th at of the correspond
Page 4
ing period last year by 4 per cent. In Illinois there
were 88 mines in operation in A ugust w ith 24,311
men on payrolls, compared w ith 89 active mines
and 24,667 operatives in July.
WHISKEY
Due to m ergers and com binations the num ber of
distilleries in K entucky declined from 61 to 57 in
A ugust. Of these, 19 were in operation on A ugust
31 as compared w ith 25 a m onth earlier. T rade
sources report th a t because of increased demand
for whiskey practically all of the distilleries in the
State will be in operation next fall.
The general price structure of bulk whiskey re
mains firm w ith the price trend of aged whiskey
rising steadily. T here is some apprehension about
possible restrictive legislation concerning produc
tion. Cost of cooperage has risen considerably over
last year w ith a scarcity of whiskey barrels apparent
for the past few months.
AGRICULTURE
Farm ing Conditions — Despite m ore favorable
w eather conditions in A ugust and early Septem ber
crop prospects in the E ighth D istrict declined
slightly. Considerable deterioration of corn and
cotton is indicated. T he form er crop had been dam
aged so badly by drouth in M issouri and southern
Illinois th at precipitation during the past m onth
made little headway in bettering its condition.
O n Septem ber 1, total farm employm ent in the
U nited States, according to U. S. D epartm ent of
A griculture estim ates, was at the lowest point for
th at date since the series was initiated in 1925.
Dem and for farm workers continued strong w ith
supply down due to increased possibilities of indus
trial employm ent and the rising num ber of those
inducted into the arm y. Despite the decline in
w orkers farm production rem ains high.
R eturns from crops and from livestock and live
stock products in July were sharply higher than a
year earlier. F or the seven m onths of 1941 returns
from cotton, cottonseed, m eat anim als, dairy prod
ucts, and poultry have shown the greatest increases.
Prices received by farm ers increased from m id-July
to m id-August. On A ugust 15 the index of prices
received by farm ers for all farm commodities stood
at 131 per cent of the 1909-1914 average, compared
w ith 125 on July 15 and 96 on A ugust 15, 1940.
Corn — T he U. S. D epartm ent of A griculture’s
Septem ber 1 estim ate indicates a corn crop in the
E ighth D istrict of 333,438,000 bushels, a decrease of
3 per cent from a m onth earlier, but 2 per cent over
the 1940 harvest of 326,128,000 bushels. In m any
sections of this area the crop was benefited by rain
fall in the latter p art of A ugust and early Septem
ber. Lack of m oisture damaged corn in Missouri
more than any other crop. Corn is m aturing rapidly
throughout the D istrict w ith m ost of the harvest
now safe from frost.
Cotton — An E ighth D istrict cotton crop of 3,214,000 bales is forecast by the U. S. D epartm ent
of A griculture as of Septem ber 1. This represents
a decrease of 9 per cent from the A ugust 1 estimate
of 3,546,000 bales, and of 2 per cent from 1940 pro
duction of 3,277,000 bales.
D uring A ugust and the first part of September
w eather conditions were not unfavorable for cotton
grow ing bu t weevil infestation increased and fre
quent showers made poisoning difficult. Certain
sections reported plant defoliation by leaf worm
activity. T he crop is two to three weeks earlier than
last year w ith receipts and shipm ents at compresses
in much g reater volume than at the same tim e a
year ago. Picking and ginning are well advanced
in m ost sections of the D istrict.
•Cotton prices advanced strongly during A ugust
and the first p art of Septem ber reaching the highest
point in 12 years at m id-Septem ber. D espite the
high levels trade reports indicate th at a large pro
portion of the crop will go into Governm ent loans.
Dom estic mill activity during the past m onth de
clined som ew hat from the record high of July but
was substantially g reater than a year ago. Demand
rem ained brisk for finished goods but slackened for
unfinished goods, and offerings by mills were few.
Mill m argins narrow ed further. In the St. Louis
m arket prices on m iddling grade cotton ranged from
15.60c per pound on A ugust 16 to 18.10c on Sep
tem ber 15, which compares w ith 15.55c on A ugust
15 and 9.40c on Septem ber 15, 1940.
Fruits and Vegetables — O w ing to somewhat
more favorable w eather, grow ing conditions for
vegetables im proved during the past m onth. H ow
ever, cool tem peratures and light showers which
prevailed in some sections were insufficient for the
best developm ent of certain crops, such as snap
beans, sw eet corn and tom atoes. Prospects for the
E ighth D istrict indicate sm aller supplies of white
potatoes and truck crops for m arket, but larger sup
plies of sweet potatoes and truck crops for proces
sing. T hroughout this area fruit crop prospects are
considerably better than in 1940.
Livestock — Production of feed grain this year
in the U nited States will be above average but not
equal to prospective feeding requirem ents, accord
ing to the Septem ber 1 report of the U. S. D epart
m ent of A griculture. It is anticipated th at some of
the large stocks accum ulated in past years will be
utilized. In this area estim ated production of tam e
hay is som ewhat lower than last year but consider
ably greater than the 18-year (1923-1940) average.
Livestock prices moved sharply upward in A ugust
and early Septem ber but declined slightly at midSeptember. H og prices reached the highest point
since September, 1937. Average prices on hogs at
St. Louis betw een A ugust 16 and September 15
ranged from $11.33 to $12.15 per cwt., closing on
the latter date at $11.94. F or the same period in 1940
the range was from $6.35 to $7.45, closing at $6.49.
Rice — Prospects for the A rkansas rice crop im
proved during A ugust. The report of September 1
indicates a crop of 11,128,000 bushels, an increase
of 642,000 bushels over the A ugust 1 forecast. Both
yield per acre and acreage planted are estimated
above 1940 and the 10-year (1930-1939) average.
W eather during A ugust was generally favorable for
growing and early varieties are reaching m aturity
in all sections. W hile rains have delayed harvest
ing, cutting of early rice is under way with threshing
expected to begin shortly.
Tobacco — T he U. S. D epartm ent of A griculture
estimate of Septem ber 1 indicates virtually no
change in the prospective yield of the tobacco crop
in the Eighth D istrict. For all types of tobacco the
forecast is 233,008,000 pounds, compared w ith 232,975,000 pounds a m onth earlier.
More favorable w eather conditions in late A ugust
and early Septem ber hastened the grow th of early
tobacco and advanced the grow th of late tobacco.
Recent activities in old crop stocks have m easurably
reduced quantities held by dealers. An indication of
considerably higher prices for this year’s crop was
evidenced by opening week sale prices for E astern
Carolina flue cured tobacco. The general average
price per cwt. for the week was $29.51 compared
with $17.96 per cwt. in the opening week of 1940.
COST OF L IV IN G A N D P R IC E S
The cost of living in 20 cities in the U nited States
rose 0.8 per cent from Ju ly 15 to A ugust 15 and
7.7 per cent from June 15, 1940 to A u g u st 15, 1941,
according to the Bureau of Labor Statistics. Living
costs in St. Louis, the only E ighth D istrict city for
which m onthly indexes are available, rose 0.4 per
cent and 5.5 per cent, respectively, in the same
intervals.
Food costs in 51 cities in the U nited States rose
1.2 per cent betw een July 15 and A u g u st 12, and
12.3 per cent from A ugust 13, 1940 to A u gust 12,
1941. In the year ending A ugust 12 food costs in
the four E ighth D istrict cities covered by the in
dexes rose m ore than the U nited S ta te s average
Page 5
with Memphis showing the m ost pronounced gain,
16 per cent. For the m onth ending A ugust 12, food
costs in Louisville declined slightly, those in St.
Louis rose less than the national average, while
those in L ittle Rock and Memphis increased more
than the average.
W holesale prices of all commodities have advanced
17.6 per cent in the past year with a rise of 2.2 per
cent in the last month. Farm products and foods
show the greatest rises w ith the former advancing
37.1 per cent in a year and 6.0 per cent in the last
month, and the latter 25.0 per cent and 2.8 per cent,
respectively, for the same intervals.
B A N K IN G A N D FIN A N C E
D uring A ugust and the first half of September
the upward trend in demand for credit in the Eighth
D istrict continued, w ith some irregularities with
regard to geographic sections. Requirements re
mained well diversified. P a rt of the increased de
mand is attributed to construction activities in
defense areas and to the desire of business institu
tions, particularly smaller ones, to increase inven
tories. A few localities report th at loans are slightly
down from recent levels, or at best have shown very
small increases. There is some apprehension regard
ing the effect of priorities restrictions on industries
with the consequent possibility of reduced credit
demand. Interest rates were virtually unchanged
from the low levels of recent months.
M ember Banks — Between A ugust 20 and Sep
tem ber 17 total loans and investm ents of reporting
m em ber banks in the principal cities of the District
increased 3 per cent, and on the latter date were 25
per cent greater than a year ago. Investm ents were
up only 1 per cent in the four-week period but loans
increased 6 per cent. Loan volume of reporting
banks is one-third greater than last year. Gross
deposits continued to rise sharply, and at $1,339,446,000 on Septem ber 17 reached a new peak. Total
reserve balances declined slightly and at the close
of the four-week period were 1 per cent and 2 per
cent less, respectively, than a month and a year ago.
T h e aggregate am ount of savings deposits in se
lected m ember banks on Septem ber 3 was 0.2 per
cent less than on A ugust 6, and 0.4 per cent greater
th an on Septem ber 4, 1940.
Since the preceding issue of this review the fol
low ing banks have become members of the Federal
R eserve S y stem : The State Bank of Salem, Salem,
In d .; Com m unity Bank, Steelville, Mo.; The Farm
ers and M erchants Bank of Vandalia, Vandalia, 111.;
T eutopolis State Bank, Teutopolis, 111.; Bank of
L incoln County, Elsberry, Mo., and The Union
Savings Bank of St. Charles, St. Charles, Mo.
Page 6
P R O D U C T IO N O F B IT U M IN O U S C O A L
( I n th o u san d s
A ug. ,’41 com p, w ith
of tons)
A u g .,’41
J u ly ,’41
A u g .,’40
J u ly ,’41 A u g .,'40
U nited S ta tes___
I l l i n o i s ..................
45,650
4,151
43,300
4,118
39,010
3,496
+
+
5%
1
+17%
+19
FA R M IN C O M E I N C L U D IN G G O V E R N M E N T
B E N E F IT PA Y M E N T S
( I n th o u san d s
________ J u ly
C um ulative for 7 m onths
of d ollars)
1941
1940
1941
1940
1939
A rk a n s a s ................
Illin o is .....................
I n d i a n a ..................
K e n tu c k y ................
M ississip p i..............
M isso u ri..................
T e n n e s s e e ..............
$ 7,998
64,473
34,868
14,863
5,283
35,279
11,296
$ 6,448
46,476
27,890
11,891
3,60,5
29,384
9,237
T o ta ls ................ 174,060
$ 72,368 $ 53,225
$ 50,397
358,921
314,755
288,442
189,130
163,923
145,767
97,552
88,889
82,454
61,849
53,901
55,669
182,463 151,068
134,945
80,895
67,883
66,913
134,931
1,043,178
893,644
824,587
R E C E IP T S A N D S H IP M E N T S A T N A T IO N A L ST O C K Y A R D S
________R eceipts_______ _______ Shipm ents_______
A ug.,
J u ly ,
A ug.,
A u g .,
J u ly ,
A ug.,
1941
1941
1940
1941
1941
1940
C attle and C alv es......... 127,453
H o g s .................................. 194,751
H orses and M u l e s ___
1,414
S h e e p .................................. 98,648
T o ta ls ........................... 422,266
114,019 122,761
204,338 215,7'04
149
1,116
119,538 77,099
438,044 416,680
52,180 41,859 56,195
61,951 72,404 96,799
1,366
74
1,186
29,499 37,812 24,052
144,996 152,149 178,232
B U I L D I N G P E R M IT S
N ew C o n stru ctio n
R epairs, etc.
N um ber
N um ber
C ost
Cost
1941 1940
1941
1940
1941 1940 1941 1940
(C ost in
th o u san d s)
L ittle R ock
L o u is v ille .........
A u g u st T o tals .
Ju ly
“ .
28
43
57
40
178
159
230
547
295
340
788 1,129
1,260
964
$ 119
134
504
757
1,813
3,327
1,977
$
106
801
363
685
650
2,605
3,891
134
108
38
498
153
931
904
118
87
50
177
199
631
723
$ 72
111
55
285
398
921
590
$ 73
72
23
134
205
507
647
V A L U E C O N S T R U C T IO N C O N T R A C T S L E T
( I n thou san d s
A u g .,’41 comp, w ith
of dollars)
A u g .,’41
J u ly ,’41 A u g .,’40
J u ly ,’41 A u g .,’40
T o ta l 8 th D is t.. . $55,793
$101,256
S o u rce : F . W . D odge C orporation.
(K .W .H .
in th o u s.)
$25,170
— 48%
+122%
C O N S U M P T IO N O F E L E C T R IC IT Y
A ug.,
N o. of A ug.,
A u g u st, 1941
Ju ly ,
C ustom 1941
1941
1940
com pared w ith
ers* K .W .H . K .W .H .
K .W .H . Ju ly , 1941 A ug., 194C
5,483
2,884
14,344
4,153
949
59,140
86,953
E vansville . .
L ittle R ock . .. .
40
5,137
35
2,949
82
14,738
31
4,390
20
1,100,
P in e B luff . .
58,0,84
. . . 125
. .. 333
86,398
*Selected in d u stria l custom ers.
4,361
2,357
11,963
2,758
529
47,763
69,731
— 6%
+ 2
+ 3
+ 6
+ 16
— 2
— 1
+ 18%
+ 25
+ 23
+ 59
+ 108
+ 22
+ 24
W H O L E S A L E P R IC E S IN T H E U N IT E D S T A T E S
B u reau of L ab o r
S tatistics
Sept.
S ept. A ug.
Sept. Sept. 13,’41 comp, w ith
(1926= 100.)
13,’41
6,’41 16,’41
14,’40 A ug. 16/41 Sept. 14,’40
A ll C om m odities. . 91.6
F a rm P ro d u cts . 91.6
89.1
91.6
91.0
89.1
88.6
91.4
89.6
86.4
86.7
90.7
77.9
66.8
71.3
82.5
+
+
+
+
2.2%
6.0
2.8
1.0
C O ST O F L IV I N G
B u re au of L a b o r
S ta tistic s
A ug. 15, J u ly 15, Ju n e 15, A ug. 15,’41
(1935-1939= 100)
1941
1941
1940,
J u ly 15,’41
U n ite d S ta te s ..........
St. L o u is ..................
106.0
105.0
105.2
104.6
98.4
99.5
Hh i 7 .6 c.
-37.1
-25.0
-J-11.0
comp, w ith
J u n e 15,’40
+ 0.8%
+ 0,.4
+7.7%
+ 5.5
A ug. 12,’41
J u ly 15/41
comp, w ith
A ug. 13/40
C O ST O F F O O D
B u re au of L a b o r
S ta tistic s
A ug. 12,
(1935-1939= 100)
1941
Ju ly , 15, A ug. 13,
1941
1940
U . S. (51 cities) . . . 108.0
St. L o u is .................. 109.4
L ittle R o c k ......... .... 108.1
L o u is v ille ................107.8
M em p h is.................. 108.2
106.7
108.5
104.9
107.9
105.7
96.2
96.1
93.4
93.3
93.3
+
+
+
—
+
1.2%
0,8
3.1
0.1
2.4
+ 1 2 .3 %
+ 1 3 .8
+ 1 5 .7
+ 1 5 .5
+ 1 6 .0
W H O L E S A L IN G
Lines of Commodities
N et Sales
F E D E R A L R E S E R V E O P E R A T IO N S D U R IN G A U G U S T , 1941
(Incl. Louisville, Memphis, L ittle Rock branches) Pieces
Am ounts
Stocks
D ata furnished by Bureau of Census,
U . S. D ept, of Commerce.
A ugust , 1941
compared with
July,’41 A ug., 40
A utom otive S u pplies................................
B oots and S h o es.......................................
Dry G o o d s ..................................................
Electrical Su pplies.....................................
Furniture.......................................................
G roceries.......................................................
Hardw are........................... ...........................
M achinery, Equipment and Supplies.
Plum bing Supplies . . . . ................ ..
Tobacco and its P rodu cts.....................
M iscella n eo u s..............................................
Total all lin es..............................................
+ 16%
— 1
+33
+ 4
+ 6
+ 19
+ 11
— 7
+ 11
+ 3
+ 2
+ 12
A ug. 31, 1941
comp, with
A ug. 31, 1940
+ 49%
+25
+ 47
+80
+40
+29
+ 63
+23
+ 15
+26
+36
+ 40
... %
-1 3
[-31
-3 4
-12
-58
+ 20,
+ 14
Stocks
on Hand
Stock
Turnover
A ug. 31/41
comp, with
A ug. 31,’40
Jan. 1, to
Aug. 31,
1941 1940
hi 7
K20
R E T A IL T R A D E
Department Store Sales
N et Sales
A ugust, 1941
compared with
July,’41 A u g .,’40
8 mos. ’41
to same
period ’40
+ 20%
+ 16%
Ft. Smith, A r k ...
+37%
+ 29
+27
L ittle Rock, Ark.
+35
1.99 1.63
+ 16
+
32
Pine Bluff, A rk..
+35
+27
E. S.t. Louis, 111.
+28
+ 14
2.69 2.58
+ 13
Quincy, 111............
+51
+ 15
E vansville, I n d .. .
+19
*3.28 2.80
+ 37
+ 38
Louisville, K y .. . .
2.82 2.82
+ 27
+ 16
St. Louis, M o .. ..
2.18 2.37
+43
+ 84
Springfield, M o .. .
+
4
3
Jackson, Tenn. . .
2.25 2.19
+ 36
+20
M emphis, T en n .. .
2.02 2.01
21
*A11 other c itie s. .
+ 19
2.72 2.62
+30,
+21
8th F. R. D istrict
*EJ Dorado, Fayetteville, A rk.; Alton, Harrisburg, M t. Vernon, 111.;
Vincennes, I n d .; D anville, H opkinsville, K y .; Chillicothe, Mo.
Trading days: A ug., 1941— 2 6 ; July, 1941— 26; A ug., 1940^-27.
O utstanding orders of reporting stores at the end of A ugust, 1941,
were 104 per cent greater than on the corresponding date a year ago.
Percentage of accounts and notes receivable outstanding A ugust 1,
1941, collected during A ugust, by cities:
+
Installm ent E xcl. Instal.
A ccounts
A ccounts
Installm ent E xcl. Instal.
A ccounts
A ccounts
Fort S m ith . .
L ittle R eek . .
L ouisville . . .
Memphis . . . .
..%
12
17
23
38%
35
49
42
Q u in cy ............
St. L o u is .. . .
Other cities. .
8th F. R. D ist.
50%
53
42
48
19%
19
13
18
I N D E X E S O F D E P A R T M E N T S T O R E S A L E S A N D ST O C K S
8th Federal Reserve D istrict (1923-1925 = 100):
June, A ug.,
A ug.,
July,
1940.
1941
1941
1941
78
82
92
Sales (daily average), U n a d ju s te d ............. . 106
104
119
100
Sales (daily average), Seasonally adjusted. . 141
76
66
77
Stocks, U n a d ju sted ..,* ......................................... . 89
67
80
81
. 90
Stocks, Seasonally adjusted. . . .....................
Trading days: A ug., 1941— 2 6 ; July, 1941— 2 6 ; A ug., 1940.— 27.
S P E C IA L T Y ST O R E S
N et Sales
8 mos. ’41
A ugust, 1941
to same
compared with
July,’41 A u g .,’40 period ’40
Stock
Turnover
Jan. 1, to
A ug. 31,
1941 1940
Stocks
on Hand
A ug. 31,’41
comp, with
A ug. 31,’40
M en’s Furnishings
+18% +37%
+26%
+31%
1.89 1.59
B oots and S h o es. .
+24
+27
+20
+25
5.69 4.85
Percentage of accounts and notes receivable outstanding A ugust 1,
1941, collected during A u g u s t:
M en’s F u rn ish ings....................... 35%
Boots and S h o es............................ 39%
C H A N G E S I N P R I N C IP A L A S S E T S A N D L I A B I L I T I E S
F E D E R A L R E S E R V E BA*NK O F ST. L O U IS
Change from
Sept. 17,
Aug. 20, Sept. 18,
1941
1940,
(I n thousands of dollars)
1941
Industrial advances under Sec. 13b......... . $ ............
192
Other advances and red iscoun ts................
. 105,517
T otal earning a sse ts......... . ....................... . 105,709
+
95
+
+
95
+
5
103
7,353
7,255
T otal reserves..................................................... , 562,360
399,319
F. R. N otes in circulation.......................
. 270,120
+ 1,605
+ 2,887
+ 11,415
+
+
+
91,743
20,374
69,824
Industrial commitments under Sec. 13b.
—
+
337
705
1
Checks (cash item s) han dled................................
5,300,945
$1,531,477,399
Collections (non-cash item s) handled................
56,657
36,334,833
Transfers of fu nds.......................................................
4,618
362,958,074
Currency received and counted.............................. 9,912,077
33,283,177
Coin received and counted........................... .. . . . 11,276,80,1
1,131,530
Rediscounts, advances and com m itm ents......... ............16
381,200,
N ew issues, redemptions, and exchanges of
securities as fiscal agent of U . S. Govt., etc.
55,341
34,676,059
Bills and securities in custody— coupons clipped 8,304
...............................
R A T E S OF T H I S B A N K F O R A C C O M M O D A T IO N S U N D E R
T H E F E D E R A L R E S E R V E AC T
Advances to banks, secured by direct obligations of
>per annum
the United States, under paragraph 13 of section 1 3 .. 1
Advances to member banks, secured by direct obliga
tions of the U nited States or by such Government
guaranteed obligations as are eligible for collateral,
i per annum
under paragraph 8 of section 13.............................................. 1
Rediscounts and other advances to member banks un
der sections 13 and 13a....................................................., . . . . 1 ^ % per annum
Advances to member banks under section 1 0 (b ).
Advances to individuals, firms, and corporations, other
than banks, secured by direct obligations of the
U nited States, under paragraph 13 of section 1 3 ...........
Industrial advances to member banks, nonmember
banks, and other financing institutions under sec
tion 13 b :
■i % to
(a) On portion for which such institution is obligated 1{ 2 % per annum
(b) On remaining portion — N o charge to financ
ing institution. Federal Reserve Bank w ill
retain interest collected from borrower.
Advances to established industrial or commercial ( 3y2 % to
per annum
businesses under section 13b.................................. ..
Commitments to member banks, nonmember banks,
and other financing institutions, under section 1 3 b .. . .1
* per annum
P rovid ed: that on commitments issued for periods of 90 days or less the
minimum charge shall be 54 of 1% flat; and further provided, that on
commitments for loans secured by assignm ent of “ Em ergency P lant F acil
ities Contract” w ith the U nited States Government, the rate may be as
low as J4 of 1% per annum.
y*
\5y2
P R IN C IP A L R E S O U R C E A N D L IA B IL I T Y IT E M S
O F R E P O R T IN G M E M B E R B A N K S
(In thousands of dollars)
Sept. 17,
1941
A ug. 20,
1941
Sept. 18,
1940.
Commercial, industrial, agricultural 1
$256,213 +20,, 132 + 74,370
Open market paper..........................
21,940 +
650 + 12,187
Loans to brokers and dealers..............
4,206 +
385 +
447
Other loans to purchase and carry securities.. 11,938
193
597
Real estate loan s.......................................
, 60,041 +
377 +
4,359
Loans to banks............................................
1,098 +
74
985
, 80,684 + 5,086 + 17,320
Treasury bills ,
3,174 + 1,999
7,426
Treasury notes
. 34,814
- 0 - .— . 3,392
U. S. b o n d s..,
, 220,386 +
481 + 71,437
t 79,671
34 +
7,906
, 110,632 +
221 +
2,359
20,1,973
1,239 + 25,160
. 593,223 — 2,199 + 94,066
Time d e p o sits..............................................
, 190,828 .— . 169 +
429
U. S. Government deposits..................
, 24,917 + 2,535 +
9,710
Interbank deposits................ ....................
. 443,764 + 2 2 ,4 3 4 + 94,809
*Other than interbank and Government deposits, less cash items on
hand or in process of collection.
Above figures are for 24 member banks in St. Louis, Louisville, M em
phis, L ittle Rock and E vansville. Their resources comprise approximately
75% of the resources of all member banks in this district.
D E B IT S TO IN D IV ID U A L A C C O U N TS
A ug.,
A ug., A u g .,’41 comp, w it!
July,
1941
1941
1940 July,’41 A u g .,’40
5,923 $ 6,304 $
E l D orado,. . . . ,Ark.$
5,339 __ 6%
+ 11%
“
14,810
Fort Smith,
14,931
11,672 — 1
-27
“
1,407
1,498
1,170 — 6
-20
Little Rock, . .. . “
49,645
53,986
33,997 — 8
-46
“
7,890
8,168
Pine Bluff, . . . .
6,296 — 3
-25
Texarkana, Ark.-Tex.
8,942
9,372
6,916 — 5
-29
E .S t.L .-N at.S.Y '.,111.
57,686
56,281
2
40,928 +
-41
Q uincy,............. .. “
10,774
10,803
8,733
-0-23
E vansville,......... , Ind.
42,206
46,788
31,993 — 10
1-32
L o u isv ille ,...........K y . 232,727
255,609
155,143 — 9
+ 50
Owensboro, . . .
6,678
6,747
6,072 — 1
MO
5,652
Greenville,......... M iss.
5,371
5
4,285 +
h-32
.M o. 683,420
759,300
548,980
10
+24
“
2,591
2,574
2,155 +
1
+20
“
20,362
Springfield,
21,382
15,553
5
+ 31
Tenn. 158,009
176,293
115,099 — 10
+ 37
1,308,722 1,435,407
994,331 — 9
+32
(In thousands
of dollars)
C O M M E R C IA L F A I L U R E S IN E IG H T H F. R. D IS T R IC T
A u g .,’41 comp, w ith
A ug., ’41
July,’41
A u g .,’40
July,*41 A u g .,’40
23
25
N u m b e r ................
Liabilities.............. $183,000
$184,000,
Source: D un and Brad street.
(Completed September 23, 1941)
42
$638,000
— 45%
— 71
Page 7
N A TIO N A L SUM M ARY O F CO N D ITIO N S
INDUSTRIAL PRODUCTION
B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E SY ST E M
Federal Reserve index of physical volume of production,
adjusted for seasonal variation, 1935-39 average = 100. B y
months, January, 1935 to A ugust, 1941. Latest figure 161.
FREIGHT-CAR LOADINGS
Federal Reserve index of total loadings of revenue freight,
adjusted for seasonal variation, 1935-39 average = 100.
Subgroups shown are expressed in terms of points in the
total index. B y months, January, 1935 to August, 1941.
WHOLESALE PRICES OF BASIC COMMODITIES
180
160
140
120
100
Bureau of Labor Statistics* indexes based on 12 foodstuffs
and 16 industrial materials, A ugust 1939 = 100. Thursday
figures, January 3, 1935 to September 11, 1941.
MONEY RATES IN NEW YORK CITY
TR!LASURY BO NDS "
‘Z
- \ A \ s
\
An
TREASURY NOTES
' W
v
i
Vi
I 1,
TREASl JRY B IL L S
_____
(935
1936
A
.
-
-A--~
/W *A
1937
W eekly averages of daily
Treasury notes, Treasury
average discount of new
within week. For weeks
tember 13, 1941.
Page 8
yields of 3- to 5-year tax-exempt
bonds callable after 12 years, and
issues of Treasury bills offered
ending January 5, 1935 to Sep
Industrial activity increased further in August and the first half of Sep
tember, and commodity prices continued to advance. Distribution of com
modities to consumers expanded considerably.
Production — In August industrial output increased somewhat more than
seasonally and the Board’s adjusted index advanced from 160 to 161 per cent
of the 1935-39 average. There were sharp further advances in activity in the
machinery, aircraft, shipbuilding, and railroad equipment industries. Lumber
production also increased, while furniture production, which had been unus
ually large in July, showed less than the customary seasonal rise in August.
Output of steel and nonferrous metals continued at near-capacity rates.
In the automobile industry output of finished cars declined sharply as
plants were closed during the changeover to new model production and out
put in factories producing bodies and parts also was reduced considerably.
In the first half of September automobile assemblies increased as production
of new models was begun but from now on, owing to Government restriction
on passenger car production, output will be considerably below that during
the previous model year.
In most nondurable goods industries production in August continued
around the high levels reached earlier this year. At cotton mills activity
declined slightly from the record level reached in July, while at woolen mills
there was some increase. Rayon output continued at peak levels. In the silk
industry operations were curtailed sharply, as the Government requisitioned
all supplies of raw silk, and deliveries of silk to mills declined from 28,000
bales in July to 2,000 in August. Rubber consumption also decreased, owing
to a Government curtailment program. Shoe production, which had been
unusually large, increased less than seasonally in August, and output of man
ufactured food products and chemicals showed seasonal increases from the
high levels prevailing in June and July.
At mines coal production in August, as in other recent months, was unus
ually large for the season, and output of crude petroleum rose to a record
level of 4,000,000 barrels daily in the latter part of the month. Iron ore ship
ments down the Lakes amounted to 11,500,000 tons, the largest monthly total
on record. Value of construction contract awards showed a further sharp
increase in August and was about four-fifths larger than a year ago, accord
ing to F. W. Dodge Corporation reports. The rise from July was substantial
for all general types of construction but was most pronounced for publiclyfinanced projects. Awards for residential building continued to increase.
Distribution — Sales of general merchandise rose sharply in August and
were at an extremely high level for this time of year. The Board’s seasonally
adjusted index of department store sales advanced to 133 per cent of the
1923-25 average as compared with 115 in July and an average of 103 in the
first half of this year. In the early part of September department store sales
declined from the peak reached in the latter part of August.
Railroad freight-car loadings in August were maintained in the large
volume reached in June and July. Coal shipments increased, following some
reduction in July, while loadings of grain, which had been large since last
spring, declined.
Commodity Prices — Wholesale prices of most groups of commodities
continued to advance from the middle of August to the middle of September.
Prices of grains, other foodstuffs, and cotton showed large increases and
there were advances also in prices of a number of industrial commodities not
covered by Federal price ceilings. Fragmentary data available indicate that
retail prices of foods and other commodities rose further during this period.
Agriculture — The outlook for agricultural production in 1941 showed
little change during August. Crop prospects were reduced slightly by drouth
but aggregate crop production is expected to be two per cent larger than last
year and the largest for any year except 1937. Total marketings of livestock
and livestock products will probably be the largest on record. Preliminary
estimates of the Department of Agriculture indicate that cash farm income,
including Government payments, will be about $10,700,000,000, compared with
$9,120,000,000 in 1940.
Bank Credit— Commercial loans at reporting member banks in 101 cities
continued to rise substantially during the four weeks ending September 10.
Bank holdings of United States Government securities showed little net
change, while holdings of other securities increased somewhat at New York
City banks. As a result of the expansion in loans and investments bank
deposits continued to increase.
United States Government Security Market — Prices of Treasury
bonds increased in the latter part of August but subsequently declined some
what in the first part of September. On September 15, the partially taxexempt 2% per cent 1960-65 bonds were yielding 2.06 per cent compared
with the record low yield of 2.02 per cent. Yields on Treasury notes showed
little change in the period.
@FedFRASER