MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication On and After the Afternoon of May 31, 1929 ROLLA WELLS, C. M. STEWART, J. VION PAPIN, Chairman and Federal Reserve Agent Assistant Federal Reserve Agent Statistician FEDERAL RESERVE BANK OF ST. LOUIS UE to extremely unfavorable weather, cer­ a loss of 0.6 per cent as compared with the same tain lines of business in this district devel­ month last year. Moderate increases were made in D oped declining tendencies during the past the same comparison by five and ten cent stores, mail thirty days. Temperatures during April and early order houses and chain stores. Debits to checking May were unseasonably low, which, coupled with al­ accounts in April were 5.6 per cent larger than for most incessant rains, served to retard distribution of the same month in 1928, and the total for the first seasonal merchandise and to interfere with outdoor four months of the year was greater by 5.7 per cent occupations. Serious flood conditions prevailed than for the corresponding period last year. along the Mississippi River and its tributaries, and Preparation for and planting of spring crops many sections were visited by severe hail and wind was generally retarded by the excessive rainfall and storms which wrought considerable damage to crops unseasonable temperatures. Seeding of corn is back­ and property. Despite these handicaps, however, ward and in many important growing areas, several business and industry as a whole made a good show­ weeks of clear, warm weather will be needed to dry ing with sales volume in a majority of the lines in­ the soil sufficiently to permit of its cultivation. Con­ vestigated being larger than at the corresponding siderable actual damage to growing crops was period a year ago. As was the case earlier in the wrought by the high water, and reseeding will be year, relatively greater activity was noted in indus­ necessary in many sections. Some injury to fruit try than in distribution of merchandise. crops resulted from the snow and low temperatures W hile receding slightly from its peak for the early this month, but latest reports indicate the ex­ year, the iron and steel industry continued at a high tent of the damage is considerably less than was at rate of activity. There was the usual seasonal de­ first believed. Save where affected by local condi­ crease in sales of automobiles from March to April, tions, the employment situation underwent no but the total for April showed a substantial gain marked change as contrasted with the preceding over the same month a year earlier. A higher rate thirty days. of operations was reported by lumber mills, fire clay Conditions in the bituminous coal trade were product manufacturers, glass plants and quarries. quiet, and operators in all the chief fields of the dis­ Some textile mills increased their activities, while trict complained of backwardness in contracting, others curtailed their outputs, with the average rate both by retail dealers and industrial consumers. of operations being about the same as during the There is a disposition on the part of all users of month before. Building receded as compared with coal to purchase closely, and to take their chances a year ago, being interrupted in St. Louis by indus­ trial disputes. in the open market rather than cover their pros­ pective requirements with contracts. The unseason­ The distributive trade, both wholesale and re­ able cold wet weather in April and early this month tail, suffered from the effects of the unseasonable had a temporary stimulating effect on heating coal, and wet weather. This was true particularly of the but demands thus created were mainly satisfied by agricultural sections, and areas affected by the over­ shipments from yards and failed to appreciably flows. Withal, increases over a year earlier were shown in sales of wholesalers of clothing, dry goods, affect the movement from mines. In sections of drugs and chemicals, hardware, men’s hats and sev­ Illinois, mines were operating only two days per eral other less important classifications. As indi­ week, while in Kentucky and elsevvhere many mines cted by sales of department stores in the principal w*>re closed by the high water. There were further cities of the district, retail trade in April recorded rather sharp price recessions on the higher priced Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis prepared coals which brought the average quota­ year ago. Answers to questionnaires addressed to tions on all grades to the lowest levels in several representative interests in the several lines scattered years. While industrial consumption was high, through the district showed the following results: manufacturers and public utility companies were Excellent Good Fair Poor cutting heavily into reserve stocks rather than in­ April, 1929................... 2.6% 36.7% 50.6% 10.1% creasing their commitments. Kentucky mines which March, 1929..................4.1 30.6 50.0 15.3 usually ship heavily for the lake trade report that April, 1928................... 1.4 26.4 59.9 12.3 business has been slow in materializing this season. Commercial failures in the Eighth Federal Re­ Purchasing by the railroads generally was in small serve District in April, according to Dun’s num­ volume. Production of soft coal for the country as bered 126, involving liabilities of $1,992,932, against a whole, during the present calendar year to May 11, 123 defaults in March with liabilities of $1,897,665, approximately 112 working days, totaled 189,649,- and 97 failures for a total of $1,208,376 in April, 1928. 000 tons, against 174,962,000 tons for the corres­ The average daily circulation in the United ponding period in 1928, and 215,861,000 tons in 1927. States in April was $4,679,000,000, against $4,709,- According to officials of railroads operating in 000,000 in March, and $4,730,000,000 in April, 1928. this district, freight traffic continued in larger vol­ ume than usual at this season of the year. Despite MANUFACTURING AND WHOLESALE interference to transportation in many sections by the high water, the movement of early farm pro­ Automobiles — Combined passenger car and ducts was large, and loadings of merchandise and truck production in the United States during April miscellaneous freight maintained the high records totaled 584,733, which compares with 572,825 in of the past several months. Gains over a year ago March and 413,314 in April, 1928. were noted in the movement of coal, ore and forest As has been the case during the past several products. For the country as a whole, loadings of years, there was a decrease in distribution of auto­ revenue freight for the first seventeen weeks this mobiles in this district during April as compared year, or to April 27, totaled 16,130,658 cars, against with March, but there was a remarkably large gain 15,532,503 cars for the corresponding period in 1928, in April distribution over the corresponding month and 16,416,714 cars in 1927. The St. Louis Terminal last year. A considerable part of the decrease in tfce Railway Association, which handles interchanges month-to-month comparison was accounted for by for 28 connecting lines, interchanged 241,881 loads, smaller sales of country dealers. The unusually in April, which compares with 255,717 loads in heavy precipitation in April, resulting in poor condi­ March, and 214,952 loads in April, 1928. During the tion of dirt roads and serious floods in many sec­ first nine days of May the interchange amounted to tions, had a tendency to cause postponement in fill­ 72,140 loads, against 70,280 loads during the cor­ ing automobile requirements. Dealers in large responding period in April and 65,410 loads during centers also reported that the unfavorable weather the first nine days of May, 1928. Passenger traffic interfered with their business. In the yearly com­ of the reporting roads decreased 5.0 per cent in April parison the major part of the increase was found in as compared with the same month in 1928. Esti­ the cheap priced vehicles, though gains were quite mated tonnage of the Federal Barge Line between general in virtually all lines. April sales of new St. Louis and New Orleans in April was 133,300 passenger cars by 360 dealers scattered through tons, against 104,483 tons in March, and 112,960 tons new passenger cars by 360 dealers scattered through in April, 1928. the district were 10.2 per cent smaller than in Collections generally through the district devel­ March, and 67.5 per cent larger than in April, 1928. oped no marked change as contrasted with the pre­ Stocks of new cars in dealers’ hands on May 1 were ceding thirty days, continuing to be substantial in 8.7 per cent larger than thirty days earlier, and 21.2 the large centers of population, particularly with ref­ per cent greater than on May 1, 1928. The status erence to wholesalers, jobbers and manufacturers. In of the used car market developed no change worthy the flooded sections backwardness is complained of, of note as compared with the preceding thirty days. and elsewhere excessive rains interfered with com­ Stocks gained slightly, the total on hand on the munications and tended to Hold down settlements. first of this month being 6.2 per cent larger than on Country retailers complained of some slowness in April 1, and 16.2 per cent greater than on May 1, their collections, which, however, they attribute 1928.