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ANNUAL STATEMENT
AND REPORT

FEDERAL RESERVE
BANK OF ATLANTA
FOR THE YEAR 1955




Annual Statement and
Report
For the Year 195 5
The South and
the Sixth Federal Reserve District
in the Mid'Twentieth Century
Review of Banking Developments

F ederal R




eserv e

Bank

of

Atlanta

FEDERAL RESERVE BANK OF A T L A N T A
February 15, 1956
To the Member Ban\s of the
Sixth Federal Reserve District:
Presented herewith is the Forty'first Annual Statement and Report
of the Federal Reserve Bank of Atlanta.
Usually in the past, we have presented only our statement of
financial condition, our earnings report, and lists of our directors,
member of the Federal Advisory Council, members of the Industrial
Advisory Committee, and our officers. From time to time, however,
we have included certain comments on economic and financial condi'
tions in our District, together with somewhat detailed descriptions
of our services and functions.
For the year 1955, we have prepared such an extended report. The
greater part of the publication is devoted to a review of the economic
expansion and achievements in the Sixth Federal Reserve District in
the twentieth century. The smaller part of the report is confined to
considerations relating to the Bank itself.
It is hoped that this statement and report will adequately serve
its purpose. Although the publication was prepared primarily for
member banks, copies are available to others upon request as long as
the supply lasts.




President

TABLE OF CONTENTS
T h e S o u th and t h e Sixth F ed eral R eserve D is tric t
^aSe
in t h e M id-T w entieth C e n t u r y .....................................5
A Modern Miracle of Economic A chievem ent.......................... 5
A More Productive Econom y.................................................... 7
Occupational S h i f t s ......................................................... 9
Higher Productivity and Higher W a g e s .......................... 11
A More Productive A g r ic u ltu r e .....................................13
Size and Complexity of Farm Econom y..................... 13
Fewer Farms and F arm ers.......................................... 15
Greater Livestock Production.....................................17
Changing Pattern of Forest U s e ................................17
A Greater Capital Investm ent.................................................... 17
Capital Investment in M anufacturing............................... 17
Wartime I n v e s tm e n t............................................... 19
Postwar Investm ent.................................................... 20
More Capital in Agriculture............................................... 20
Sources of C a p ita l..........................
.......................... 22
Savings A ccum ulation............................................... 23
Stronger Banking R e so u rc e s.....................................24
Strengthened Nonbanking Financial Resources . . 26
A More Efficient Labor F o rc e .................................................... 26
Better Farm Living
..........................................................27
Better H e a l t h .................................................................... 28
Better Housed, Clothed, and F e d .....................................29
Better Educated
...............................................................31
A New Economic F ro n tie r..........................................................33
R eview of Banking D e v e l o p m e n t s .....................................35
Changes in the Bank’s Financial S ta tu s .....................................35
Volume of O p e ra tio n s ...............................................................37
Building P rogram ......................................................................... 40
Changes in Membership in the Sixth D is tr ic t.......................... 40
Additions to Par L i s t ............................................................... 41
Directors and O f f i c e r s ............................................................... 42




[3 ]




THE SOUTH AND THE SIXTH
FEDERAL RESERVE DISTRICT IN
THE MID 'TWENTIETH CENTURY
A M ODERN M IRACLE OF ECONOMIC ACHIEVEM ENT
The extraordinary expansion of the economic power of the United
States and the enormous growth in the productivity of its economy
have constituted one of the economic miracles of the twentieth
century. Within that larger miracle, however, there lies a minor
one that merits more than passing attention. This lesser miracle
is the evolution of the South from its status as “the nation’s number
one economic problem” to its present position as one of the nation’s
most vigorously expanding frontiers.
Although the levels reached in most economic categories still
lag behind the United States averages in the states that lie wholly or
partially within the District served by this Bank, progress has nevertheless been rapid. So rapidly, indeed, is progress being made that the
day when the South will stand at least at the level of the national
average seems already in sight.
The most general basis on which the operations of an economy
may be judged is income. Between 1930 and 1954, total personal
income of individuals increased much more rapidly in the six states
of this District than in the country as a whole— 429 percent against
272 percent. Population increased 33 percent in the District and 31
percent in the nation, but per-capita income in both areas increased
less than total income. The per-capita rate of gain, however, was
higher in the District (299 percent) than in the nation (184 percent).
The same picture emerges when income is considered in dollar
terms. By present standards, per-capita income in 1930 was low
everywhere. For the United States it amounted to $624. In the
states of this District, it was, of course, much lower, being only
$312, or 50 percent of the national figure. By 1954, however, per-




m

PERSONAL INCOME
United States and Sixth District States, 1929'54
Billions of Dollars
Billions of Dollar*

The most general basis on which the achievement of the Sixth Federal Reserve
District can be judged is personal income, which advanced 429 percent in Dis­
trict states between 1930 and 1954, compared with 272 percent in the nation.

capita income had risen to $1,770 in the nation and to $1,244 in
this District. The District figure had grown to 70 percent of the
national average, which represented a phenomenal improvement.
This rising per'capita income was producing effects in every
aspect of life. Even a casual visitor to the South could not fail to
notice the amazing changes that have taken place over the last
several decades—the many hundreds of miles of improved roads,
the new schools and hospitals, the towering skylines of the cities, the
thousands of new homes in the suburbs, the streets crowded with
new cars, the replacement of many wooden shacks in the country
by neat comfortable farm homes, and the virtual replacement of the
mule by the tractor. Equally important, but not so evident to the
eye, have been improvements in public health and education; the
multiplication of cultural organizations such as orchestras, opera
groups, libraries, art galleries and exhibitions, and, above all, the




[6 ]

lively spirit of enterprise and regional pride that pervades the
South today.
This spectacular improvement in the level of living is rooted, of
course, in the changing characteristics and operations of the Southern
economy. It shall be the task of this report to examine these in
somewhat more detail for that part of the Southern economy lying
within the Sixth Federal Reserve District.
A MORE PRODUCTIVE ECONOMY
Increased productivity is the key not only to American economic
progress but to the growth of income in the South as well. Rising
PER'CAPITA PERSONAL INCOME
Percent of U.S.

Ala.

Sixth District States, 1929-54

Flo.

Go.

La.

Miss.

Tenn.

A greater-than-national rate of growth in income brought per-capita income in
District states from 52 percent of the national average in 1929 to 70 percent
in 1954.




[7 ]

per-capita incomes in the South are an indication that Southern
labor is becoming more productive. Measured either in dollar or
real terms, each worker now produces more goods and services than
at any other time in the region’s history. Although the increased
productivity of the South’s economy is easy to recogni2£, its explana­
tion is difficult because of the complexity of the area’s economic
structure. The changes in the South, of course, are much like those
taking place elsewhere. The South, however, has more than shared
in the national expansion.
Of the many social and economic changes that have taken place,
those that are most closely associated with greater productivity are:
( 1) a shift of the working force from less productive to more
productive types of work; ( 2 ) heavier capital investments; and
(3) increasing efficiency of the labor force.
RELATIVE IMPORTANCE OF EMPLOYMENT
BY M AJOR IND USTRIAL GROUPS
Sixth District States, 1920-50
Percent of Total Employment

Need for less labor in agriculture, because of increased productivity there and
economic opportunities elsewhere, led to the shift of the labor force that
reduced agricultural employment from over 50 percent of the total in 1920
to only a little over 20 percent in 1950.




[8 ]

M AJOR SOURCES OF PERSONAL INCOME
Sixth District States, 1929 and 1955
Percent of Total Income
O

4

8

1 '
—

12

16

20

24

I— i— r— i— i— i— r

'))))))i)i))))))7mnn+-\***

FARM INCOME
NONFARM INCOME
WAGES AND S A L A R IE S

^1955

Mfg. and Mining
Trade and Service
Transp. and Pub. Util.
Government
Construction
Financial

Other
PROPERTY AND
PROPRIETORS*
TRANSFER PAYMENTS
In 1929 the District was predominantly an agricultural region. Now, with
sources of income more diversified, its economy is both more productive and
better balanced.

O c c u p a t io n a l S h if t s

One reason for the South’s low income in earlier years was the
large proportion of its population working on farms, where pro­
ductivity was comparatively low. The shift from agricultural to
nonagricultural occupations, therefore, other things being equal,
has meant an increase in output per worker.
In the Sixth District states, 52 out of every 100 workers in 1920
were working on farms, whereas only 13 were working in manu­
facturing. After that, each census showed workers leaving the
farms in increasing numbers for higher paid work elsewhere. By
1950, only 23 out of each 100 workers were still on the farms, and
18 were working in factories. The workers that left the farm were
able to do more productive work elsewhere, and those remaining




[9 ]

on the farm found their share of the income larger. Since the per'
capita income on farms was less than one-third of that in other
occupations, the shift from farm work was a major cause of
increasing income in the area.
The change in the Sixth District’s occupational structure, of
course, has been accompanied by a change in its sources of income.
In 1929, about one-fifth of total personal income came from agri­
culture. Manufacturing and mining accounted for only about 14
percent of the total, and trade and service payrolls for 18 percent.
Now, however, only about 7 cents of every dollar received comes
irom agriculture, whereas 18 cents comes from manufacturing and
mining, 19 cents from trade and service payrolls, and 14 cents from
government payrolls. While becoming more productive, the Dis­
trict's economy has also become more diversified.
POSTW AR GROW TH IN M A N U FA CTU RIN G
EMPLOYMENT BY TYPES
Percent Change 1955 from 1947
Sixth District States
HIGH PRODUCTIVITY
IN D U STR IES
Percent Change

MEDIUM PRODUCTIVITY
INDUSTRIES
Percent Change
701

LOW PRODUCTIVITY
INDUSTRIES
Percent Change
701

60|-Tronsportotion
Equipment"*^

District manufacturing is now more productive in terms of value added per
worker, since postwar growth in manufacturing employment has been in those
industries with high productivity per worker.




[10]

DISTRIBUTION OF M A N U FA C TU R IN G
EMPLOYMENT BY TYPES
Sixth District States, 1939, 1947, 1955
Percent of Total Mfg. Emp.
too i---------------------------------

^ Other
so

*
^
*
*

Transportation Equipment
Chemicals and Allied Products
Primary and Fab. Metals
Paper and Allied Products
< Food Processing

60

wm
40

< Lumber and Wood Products

I

20

(incl. Furn. and Fixtures)

* Textiles and Apparel
1939

1947

1955

It was the shift to industries with higher productivity and higher wages that
accounted for the greater-than-national rate of growth in manufacturing
income in the District. W a ge s per production worker and value added per
worker increased from about two-thirds of the national average in 1939 to
about three-fourths in 1953.

H ig h e r P ro ductivity

and

H ig h e r W

ag es

What a manufacturing worker gets in wages depends largely
upon the value of the product turned out by the establishment in
which he works. Those industries with the highest value added per
worker, the more productive ones, tend to pay higher wages. Value
added per production worker per year ranges widely from industry to
industry: in 1952 the low in the District was $3,150 in lumber, and
the high was $22,517 in petroleum and coal.
Until recent years, most of the region’s factory workers were
employed in fields where productivity per worker was low. Textile,
lumber, and apparel manufacturing all have low productivity per
worker and they accounted for three'fifths of total manufacturing
employment in the District states in 1939. Fortunately, much of
the District’s industrial growth since then has been in types of
manufacturing with relatively high productivity, namely, new or




[11]

M ANUFACTURING EMPLOYMENT AN D PAYROLLS
Sixth District States and United States
1947'49 = 100
Percent
200

P ercen t

“T
1
--- T
UNITED STATES
P o y r o ll* ^ ^ ^ ^ /

Employment

+* f

1 i i i i 1i i i i 1 i i i i
*50
*55
’4 0
'45
I
i
ALABAMA

1
P o y r o ll* ** ^ ^ ^

Employment
11 1 1 1 11 i i i 1 i i i i
‘40
*45
*50
*55
_I
l
1
y
FLORIDA
Poyroll*‘5 ^ r ^
/ A

- y

j

V

Employment

i i i i i 1 i i i i 1 i i i i
‘4 0
'45
‘50
*55
l
i
GEORGIA

i
Poyrollt-a
^

7
’ "
Employment

1 i i i i I t l_i_I _i_i i i
_1
'40
45
50
55
Greater productivity in manufacturing, reflected in payroll expansion, has
characterized postwar developments in each District state. The diversification
that accompanied improved productivity also made the region better able
to withstand the adverse effects of a recession such as occurred in 1953-54.




[12]

expanded automobile plants, pulp and paper mills, rayon plants,
oil refineries, synthetic ammonia plants, machinery factories, and a
host of others. As a result, value added, as well as wages, per
production worker increased from about two-thirds of the national
average in 1939 to about three-fourths in 1953.
A M ore P ro d u ctiv e A g r ic u l t u r e

Although agriculture has diminished in importance as a source
of income, it has nevertheless contributed its share to a more pro­
ductive economy. Fewer farm workers are now able to supply
themselves and others with a large volume and a great variety of
nutritious foods and to supply industry with many important raw
materials as well.
Size and Complexity of Farm Economy: In District states, farm
cash receipts and farm income in kind totaled 3.4 billion dollars in
1954— 11 percent of the national total—and personal income from
agriculture accounted for 8 percent of the area’s total income, com­
pared with 5 percent in the nation. Because of a wide range in soil
SOURCES OF FARM CASH INCOME
Sixth District States, 1930 and 1954
Percent of Total

1930

1954

W ith farm cash receipts and income in kind valued at 3.4 billion dollars in
1954, the District economy is still heavily weighted by agriculture. It is, how­
ever, much different now than it was in 1930, with less emphasis on crops and
more on cattle and livestock products.




[13]

types and in topographic characteristics, in addition to favorable
climatic conditions, District agriculture is quite diversified even
though cash crops like cotton and peanuts predominate in some areas.
Cash crops continue to be more important than livestock. In
1954, about two-thirds of the 2.9 billion dollars of cash receipts
from farm marketings came from the sale of crops. Cotton sales
brought in 40 percent of the crop income. Tobacco, rice, and pea'
nuts, however, were also important, bringing in 9, 4 and 2 percent,
respectively. Additional crop income was received from the sale
of a wide variety of vegetables, fruits, and seeds. The other third
of farmers’ cash receipts in District states came from sales of live­
stock products. Sales of poultry products accounted for about a
fourth of livestock receipts.
Receipts from livestock and livestock products have been growing
rapidly. Such receipts amounted to only 22 percent of total farm
cash receipts in District states in 1930, compared with 38 percent
in 1954. Receipts from crops have taken a lesser place. Cash income
NUMBER OF FARMS A N D A V ERAG E SIZE OF FARM
Thousands

Sixth District States, 1910-50

Acres

Agricultural production is now greater than it was earlier in the century,
although between 1910 and 1950 the number of farms declined from 1,245,000
to 1,073,819. The increase in the average size o f farm typifies the changes that
have helped to raise productivity.




[14}

AVERAGE ACRES HARVESTED A N D YIELDS PER ACRE
IM PORTANT CROPS
Sixth District States
Crop and Period

Percent Change

Cotton Lint
1909-18 TO 1943-02

Peanuts
1928-32 TO 1950-94

Rice
1923-27 TO 1950-54

Tobacco
1923-27 TO 1950-54

Oats
1923-27 TO 1950-54
-5 0

0

+50

+100

District agriculture at mid-century is a more productive agriculture. Each acre
now produces more. Cotton, for example, in 1909-18 yielded 175 pounds per
acre; in 1943-52 it yielded 312 pounds, and in 1955 about 490 pounds.

from cotton lint and seed, for example, accounted for about 43
percent of farmers’ income in 1930 but only 25 percent in 1954.
Fewer Farms and Farmers: One striking feature of the District’s
agriculture is its greater production with a smaller labor force on
fewer farms. Number of farms and farm operators and the farm
population in District states are now at the lowest point ever
reached. From 1910 to 1950 the number of farms and farm opera'
tors declined 14 percent to a total of 1,073,819. Meanwhile, the
average si2£ of farm rose from 85 acres to 130 acres.
Despite the decline in the number of farms and in the farm
population since the early 1900’s, farm income has increased. Per'
sonal income to farm operators and hired hands rose 70 percent
between 1929 and 1954. On a per-capita basis, it went from $156 to
$384, but it failed to keep pace with the national rise—from $237 in
1929 to $689 in 1954. Additional income from off the farm lifted




[1?]

the total income per person on farms in 1954 to about $512 in the
District and $918 in the nation.
Even though District farmers reduced their harvested acreage of
cropland, total output of crops rose about a third between the
1920'24 period and the 1950-54 period. Crop production per acre
in the Southeast increased by about 30 percent between 1920 and
1954; the comparable gain for the United States was 17 percent.
Per-acre yields of some District crops rose sharply. Yields of cotton,
for example, went from 165 pounds per acre in 1910 to 314 pounds
in the 1944-53 period. Rice, com, tobacco, and peanuts made com­
parable gains in per-acre yields. In terms of output per man-hour, the
production of all crops increased about 100 percent between 1920-24
and 1950-54.
LUMBER PRODUCTION A N D PULPWOOD H ARVESTED
Sixth District States, 1947-54
Billions of Bd. Ft.

Millions of Cords

Forests cover over half the land area in District states, and more persons
depend upon the wood products industry, including lumber, pulp and paper,
furniture, and others, for their livelihood than upon any other type of manu­
facturing. It is a changing industry, however, with pulpwood assuming a more
dominant role as lumber output declines.




[16]

Greater Livestock Production: Total output of all livestock and
livestock products almost doubled in the District between the
1920-24 period and the 1950-54 period. Larger total livestock pro­
duction was due chiefly to the enlargement of flocks and herds.
Improved efficiency, however, also contributed to the expansion,
especially in poultry production, but improvement in efficiency in
livestock production has lagged far behind that in crop production.
Changing Pattern of Forest Use: The South has enjoyed not
only greater returns from crops and livestock but also increasing
returns from its forest land. Because of a dimate favorable for
growth of trees, especially the heavy rainfall, much of the land area
in the six states has always been covered by forests. According to
the latest statistics, over half the land in the District states is still
covered by forests.
District forests are well adapted to commercial production of
lumber and other forest products. Although lumber production
declined during the first half of the century, the harvesting of
pulpwood became a significant source of revenue for District land
owners. In 1954, about 35 percent of the United States’ consump­
tion of pulpwood was met from District forests. The steady rise
in such consumption in the nation (from 3 million cords in 1909
to 29 million in 1954) suggests an even greater dependence upon
District forests in the future.
A G REATER CAPITAL IN V ESTM EN T
How much a worker produces depends in part upon the skills he
possesses but chiefly upon the kind and quality of tools and ma­
chines with which he works. Much of the increased output in
manufacturing and agriculture in the Sixth District, therefore, must
be imputed to the massive capital investments that provided workers
and farmers with more and better tools.
C a p it a l I n v e s t m e n t

in

M a n u f a c t u r in g

Because the kinds of tools and machines and other equipment
with which he works are so important in determining the output
of the average manufacturing worker, capital investment per worker
is a rough measure of the value of production and wages per worker.
Manufacturing in the Sixth District, as well as in the entire South,




[17]

EXPENDITURES FOR NEW M A N U FA CTU RIN G
PLANTS A N D EQUIPMENT
Sixth District States, Selected Years
Percent of U. S. Total

'3 9

*47

Billions of Dollars
.5

Total Expenditures, 1951 -5 3
E3 New Structures and Plants

.4

EES New Machinery and Equipment

3h.2
.1
Tenn.

Ala.

Fla.

Miss.

The steadily increasing share of investments made in new manufacturing plant
and equipment provides the basis for greater income from manufacturing in
the District. Amounting to 779 million dollars in 1953 (the latest available
official data) such expenditures in the six states probably exceeded a billion
dollars in 1955.

for many years was concentrated in those types requiring relatively
little capital investment per worker. Much more capital investment
is required per worker in the chemicals and allied products industry,
where productivity and wages are high, than in lumber and wood




[18]

RELATIVE IMPORTANCE OF
EXPENDITURES FOR NEW PLAN TS A N D EQUIPM ENT
Sixth District States, 1947 and 1952'55
Percent of Total
0

10

1
IN D U S T R IE S

W IT H

H IG H

VALUE

ADDED

PEW

1 I

'

20

T

W ORKER

30

i—

I

40

r

4 rl9 4 7

Chemicals and Petroleum Prods.
Paper and Allied Products
in d u s t r ie s

w it h

m e d iu m

value

added

per

w orker

Primary and Fabricated Metals
Food and Allied Products
in d u s t r ie s

w it h

low

value

added

per

w o rker

Textiles and Apparel
Lumber and Wood Products
N O T C L A S S I F IE D

All Other

» I i

1

1 » I

Greater productivity in District manufacturing stems not only from the large
amounts of capital invested in new plant and equipment during the postwar
period but also from the tendency to make investments in those industries
requiring large amounts of capital per worker, yielding high value of product,
and paying higher wages.

products manufacturing, where productivity and wages are low.
If income from manufacturing was to be raised in the South, there­
fore, capital investment in manufacturing had to provide not only
more jobs but also better jobs in terms of productivity.
Wartime Investment: Most of the industrial growth induced by
capital investment in the Sixth District has taken place in the last
fifteen years. It came in two major waves. The outbreak of World
W ar II provided impetus for the first wave. Along with the invest­
ment of some 1.8 billion dollars in war manufacturing plants, manu­
facturing employment increased by 312,000 workers in the District




[19]

states. Invaluable as much of this investment was in providing the
sinews of war, it did not provide a great deal of permanent capital.
After the war, most of the shipyards, aircraft factories, and muni"
tions plants, which accounted for the lion’s share of the investment,
closed down. Only a few establishments, in such industries as light
metals and synthetic rubber and several others, remained as perma'
nent additions to capital.
Postwar Investment: The second wave of capital investment and
industrial growth came after World W ar II. In 1947, manufac"
turers’ expenditures for new plants and equipment amounted to 400
million dollars. This figure grew from year to year until by 1953
it amounted to 700 million dollars. There is no doubt that expends
tures have continued to grow since then. An estimate based on
announcements of new plants or expansions indicates that over a
billion dollars was spent for such facilities in 1955.
In the immediate postwar period, expenditures for new plants and
equipment generally followed the pattern that would be expected
in view of the existing character of District industry. Much of them,
therefore, provided more of the same kind of jobs, rather than better
jobs in terms of productivity. In 1947, for example, almost 40
percent of the expenditures for new plants and equipment went into
traditional industries—textiles and apparel, lumber, furniture and
wood products, and food processing—industries with low capital
investment per worker.
Capital expenditure today is of quite a different sort. Since
it is concentrated in growth industries with high capital requirements
per worker, such as chemicals and pulp and paper, it is providing
more productive jobs as well as adding to employment. In the years
1952 through 1955, for example, only a little more than 10 percent
of total capital expenditures for plant expansion went into tradi'
tional low'capital industries.
M o re C a p it a l in A g r ic u l t u r e

In shifting to a more productive agriculture, farmers too have
had to increase their capital investment. The value of District
farmers’ total assets rose from 4.2 billion dollars in 1940 to 14.3
billion dollars in 1954— a 240'percent gain. Their equity in their




[ 20]

ASSETS OF FARMERS
Sixth District States, 194054
Billions of Dollars

'40

‘45

'5 0

'54

The 240-percent growth between 1940 and 1954 in the value of farm assets
reflects in part the changed character of present-day farming. Productivity
has been increased by the use of more working capital and investment capital.
Non-real-estate physical assets, for example, increased from 29 percent of
farm assets in 1940 to 38 percent in 1954.

farm business increased from 3.3 billion dollars to 12.7 billion dollars
in the same period.
Farms in the District have also become larger and now have
higher values and require more working capital than before. Land
and labor, assisted by animal power, are no longer the major factors
in agricultural production. As recently as 1940, non-real-estate
physical assets represented only 29 percent of the total value of
farm assets; in 1954 they represented 38 percent.
An illustration of this growth in non-real-estate assets is the
greater use of mechanical equipment. In 1930, tractors on farms
in District states numbered only 33,201. Today there are more than
400,000. Farmers' investments in motor vehicles and machinery
increased about twelvefold between 1940 and 1954. Mammoth
combines, hay balers, field choppers, cotton pickers, and cane har-




[21]

MULES A N D TRA C TO RS ON FARM S
Sixth District States, 192055
Thousands

Thousonds

Investment in mechanical equipment is an important factor leading to greater
productivity. Investment in motor vehicles and machinery had increased twelve­
fold since 1940. Tractors, now numbering over 400,000, have largely replaced
the mule.

vesters, all practically unheard of a few years ago, are now common.
Increased productivity went hand in hand with the more intensive
use of mechanical power and machinery. Other fixed capital invest'
ment has been made in well-engineered farm structures and storage
areas. Farmers have also used more working capital for seed and fer­
tilizer. As a result, labor is more productive and incomes are corre­
spondingly greater both for farm operators and farm laborers.
S o u r c e s o f C a p it a l

Because no legal barriers exist to the free flow of goods and finan­
cial resources between regions within the United States, it is not
surprising that a major part of the industrial expansion in the South
has been financed by the nation’s large corporations out of retained
earnings and depreciation reserves. Since the modern American
corporation is characterized not only by widespread operations and
marketing but also by widespread ownership, it is impossible to




[22]

LONG-TERM PERSONAL SAV IN G S

Per-Copito Savings os Percent of U. S. Averoge

Ala.

Fla.

6a.

La.

Miss.

Tenn.

Much of the capital investment that has made the South more productive
came from greater personal savings accumulated during the period of rising
incomes. The increase of 409 percent in long-term personal savings from 1939
to 1954 in District states exceeds the increase of 272 percent in the nation.

identify the ultimate source of this type of investment money.
This, however, does not tell the whole story. Small business,
Southern corporations, and agriculture, for example, have made
substantial capital investments out of capital accumulations within
the region. This has been possible because with greater incomes
Southerners have been able to save more and, in addition, there has
been a strengthening of the region’s financial institutions.
Savings Accumulation: Persons with low incomes generally find
it necessary to spend practically all the money they receive for food,




[23]

clothing, and shelter, and they have little left to save. It is not
surprising, therefore, in a region where personal incomes are low,
that the average level of savings is low, and that difficulties arise in
providing investment funds needed to raise income. Such has been
one of the many difficult problems faced by the South.
In 1940, when per-capita income in the Sixth District states was
$338, or 57 percent of the United States average, per-capita long-term
savings in the form of time deposits at commercial banks, savings and
loan association shares, life insurance equities, holdings of savings
bonds, and postal savings deposits amounted to only $167, or 37
percent of the national figure. A s a result of income growth in the
Sixth District states, however, per-capita long-term savings averaged
$711 in 1954 and amounted to about 52 percent of the national aver­
age. The financial institutions to which these savings were entrusted,
therefore, have been able to supply an ever larger share of the
investment funds needed by an expanding and increasingly pro­
ductive economy.
Stronger Banking Resources: The best way to see how much
stronger the financial resources of the area have become is to consider
the growth in the resources of District member banks. Total assets
of member banks constitute about 70 percent of the approximately
12 billion dollars in banking assets held by all District banks. A t
the end of 1914, the year the Federal Reserve System was instituted,
total assets of all member banks in the Sixth Federal Reserve District
amounted to about 3.6 percent of the assets of all member banks
in the nation. The impact of the depression on the South in the
1930’s reduced this proportion even further. In the war and post­
war years, however, expansion of banking resources has gone hand
in hand with the growth in income, and by 1955 District member
bank resources constituted more than 5 percent of the national total.
The relatively greater rate of growth in the District’s financial
resources in recent years is also strikingly illustrated by the changing
position of the Federal Reserve Bank of Atlanta among the other
Federal Reserve Banks in terms of total resources. In 1914, the
Federal Reserve Bank of Atlanta, with assets of 7.4 million dollars,
was the smallest of the Federal Reserve Banks. By the end of 1955,




[24]

BANK DEPOSITS
All Banks, Sixth District States, Midyear—Selected Years
Percent o f

1900

U. S.

1909

1920

1930

1940

1950

1955

There is no better way to see the greater strength of the District's financial
resources than to look at bank deposits in the twentieth century. Total deposits
in the Sixth District states in 1900 amounted to but 2 percent of the United
States total. Having grown to 12.5 billion dollars by mid-1955, they made up
6 percent of the national total.

with total resources in excess of 2.5 billion dollars, its assets exceeded
those of four other Federal Reserve Banks.
Commercial banks in this District can now provide practically
every kind of banking service. In addition to services customarily
offered by all commercial banks, some have well-developed foreign
departments; others specialise in trust operations; several have large
security departments; and some do special industrial financing.
The average commercial banker in the Sixth District today is
conducting quite a different type of business than he was earlier
in the century. At the end of 1938, member banks were making
13 percent of their total loans to farmers or on farm land. Loans
to commercial and industrial concerns amounted to only 40 percent
of their total loans of 560 million dollars. In 1955, member banks




[ 25]

were making loans of over 3 billion dollars— 45 percent of them
to commercial and industrial concerns and less than 5 percent to
farmers or on farm land. It must be remembered, however, that a
considerable part of the business loans of banks in rural areas flows
back into agriculture via feed dealers, implement dealers, and the like.
Without this indirect support and the direct credit made available by
the District banks for working capital purposes, the area’s economic
growth would have been seriously handicapped.
Despite the greater importance of nonagricultural lending, the
banks in the area continue to be the most important source of
agricultural credit. Commercial banks provide about 60 percent of
the production credit used by District farmers. Recently, too, banks
have been making loans to help shift production from cotton and
other cash crops to enterprises requiring larger capital investment.
Strengthened ?{onban\ing Financial Resources: The growth in the
area’s banking structure to the point where it is able to provide a
great deal of the region’s financing has been accompanied by a similar
growth in other financial institutions. Both insurance companies and
savings and loan associations have become important sources of
funds for investment. In 1954, each of these groups in the region
had assets in the neighborhood of 2 billion dollars.
Southern investment dealers are also now able to participate to
an increasing extent in the underwriting of state and local govern'
ment securities in the area they serve. In 1954, for example, under'
writers in District states were able to underwrite, without outside
assistance, 139 million dollars worth of municipal securities, which
was 19 percent of the total amount underwritten and about 60
percent of the total number of issues. They were also the leading
underwriters of 294 million dollars of security issues, in the under'
writing of which non'Southern firms participated. They also partici'
pated in syndicates headed by non'Southern firms that underwrote
89 million dollars worth of District state municipals. Issues in which
Southern firms had no participation thus amounted to only 27 per'
cent of the total.
A MORE EFFICIENT LABOR FORCE
Distinguishing between cause and effect is often difficult in making
economic analyses and especially so in analyzing the economic de'




[26]

FARM OPERATOR FAMILY LEVEL OF LIVING
Percent

Sixth District States and United States, 1930, 1945, 1954
U. S. Average 1945 = 100

iso ------- ---- — ---------------------------------------------------- -----------------

Ala.

Fla.

6a.

La.

Miss.

Tenn.

(J. S.

Progress in rural living has been one of the factors improving the efficiency
of the labor force, for the rural areas have been the source of a great part
of the expanding industrial labor force.

velopment of a region. Are the better living conditions achieved in
the South, for example, the result of income growth, or has income
grown at least in part because the population is better housed, clothed,
fed and better trained and therefore more productive? No precise
answer can be given to such a question. These things have all come
about together. Nevertheless, the people of the South are now
much better equipped to use their natural resources and capital in'
vestment than they were at the beginning of the century.
B e t t e r F a r m L iv in g

The rural areas of the District are the seed'bed of a large part
of the labor force, for much of the District’s population spent its
youth and formative years there. It follows that the great improve'
ment in farm living conditions during the last twenty'five years has
been of importance in providing the South with a more efficient
labor force. In 1930, the indexes of family living for farm
operators, prepared by the United States Department of Agricul'
ture, indicated that the level of farm living in District states was
only about one'third as high as in the country as a whole. Conditions
improved slowly up to 1945, but between 1945 and 1954 progress




[27]

EXPENDITURES BY STA TE GOVERNM ENTS
FOR HEALTH A N D HOSPITALS
Sixth District States and United States, 1937 and 1954
o

2

Dollars Per Copito
4

6

8

io

Alabama
Florida
Georgia
Louisiana
Mississippi
Tennessee
Sixth District States
United States
Improved health conditions that have helped raise the efficiency of the labor
force reflect the greater attention given to health in the budgets of the state
governments. Total expenditures of 1.4 billion dollars for health purposes by
the six states in 1954 were more than five times as great as in 1937.

was rapid. In 1954, the District index was nearly three'fourths the
national index.
Better H ea lth

Recent decades have brought a marked improvement in the
health of the people of the South, and many of the diseases that
were formerly endemic to the South are now on their way out.
Improvement in health conditions has, of course, been characteristic
of the nation during the last three or four decades. Since the South,
however, had much further to go in improving conditions than had
many other parts of the country, its record of achievement is all
the more impressive. Not the least of the reasons for its improved




[28]

health conditions has been the increased attention given by state
and local governments to public health and hospitals. In 1937, state
and local governments were spending a total of 16.2 million dollars
a year for public health and hospitals, or $1.11 per capita. In 1954,
the figure stood at 124 million dollars, or $6.73 per capita. This increase of 506 percent was much greater than could be explained by
the higher price level.
B e t t e r H o u se d , C l o t h e d , a n d F ed

The South today is also better housed, clothed, and fed than ever
before. In the Sixth District states alone, over one billion dollars
was spent on private nonfarm residential building in 1954, and even
more was spent in 1955. The year 1955 was only one of a long
succession of years in which the record for residential construction
for the preceding year was broken. In 1920, less than a third of the
nonfarm dwelling units were owner-occupied, but by 1950 over
PERSONS PER PASSENGER CA R
Sixth District States and United States, 1930-54

Rapidly expanding incomes have made the South one of the country's most
rapidly expanding markets for consumer goods. Basically, this means that
Southerners now live better, and because they live better they are more
efficient workers. For example, the rate of increase in the number of
passenger cars between 1930 and 1955 was about twice as great in the
District as in the United States. In 1955, there were 3.7 persons per car in
the District states; in the United States, 3.2.




[29]

half of the occupants owned the homes in which they lived. Whereas
in 1 9 4 0 only 4 8 percent of the residential units had electric lights,
by 1 9 5 0 this convenience was enjoyed by 8 4 percent.
With higher incomes, Southerners can now buy goods and serv'
ices and housing that are classed as necessities as well as many
luxuries and amenities that, although not essential to health and
vigor, contribute to more satisfactory living. The South, therefore, in
recent years has developed into one of the nation’s most rapidly ex'
panding markets. The purchase of automobiles is typical. Passenger
car registrations increased 302 percent in the Sixth District states
between 1932 and 1955, compared with a gain of 145 percent in the
nation. Whereas in 1932 there were 10.9 persons per passenger car,
in 1955 there were 3.7 persons per car in the six states.
PUBLIC ELEM ENTARY A N D SECONDARY SCHOOL
ENROLLM ENT
Sixth District States and United States
Percent of Population 5-17 Yeofs of Age Attending Public Schools

------------ —
1001

—

1900

------------------------------------------------------------------------------------------

1910

1920

1930

1940

1950

1952

Tremendous strides have been made in the educational level in the South,
which has been basic to a more efficient labor force. A larger proportion of
children of school age is now enrolled in the public elementary and secondary
schools in the Sixth District states, for example, than in the United States.




[ 30]

PUBLIC ELEM ENTARY A N D SECONDARY SCHOOLS
Sixth District States as Percent of U. S. Average
Average Days
Attendance

Per-Capita Expenditures
for Education (Dol lars)

P u p ils Enrolled
Per Teacher

Three measures of the quality of public elementary and secondary education
in the District show striking gains relative to the United States. In the District
states the length of the school term, measured by average daily attendance,
is now about equal to the national average, and the differentials between percapita expenditures and teacher load are rapidly narrowing.
B et t e r E ducated

“The striking rise of the educational level in the South during the
past several decades has made it possible for an industrialist establish'
ing a plant below the Mason-Dixon line to anticipate that his
employees will be basically literate. . . . Employers are able to set
rather high educational requirements and expect them to be met."
So wrote Eli Ginzberg and D. W . Bray in their book The Unedu'
cated in 1953. It is remarkable that such a statement can be made
today, since education is almost entirely a state and local response
bility and progress has therefore had to be made almost entirely
without outside help.
A comparison of conditions at the beginning of the century with
those at present shows vividly how much has been accomplished.
In 1900, only two'thirds of the children of school age in the area
were attending public schools and then only for an average of 67
days a year. Per-capita expenditures for public education in the Dis­
trict states were only a little over one-fourth as great as in the nation.




[31]

During the early years of the twentieth century, improvement was
slow. By 1930, however, the proportion of children of school age
attending schools in the District states was as large as that in the
United States, and classes were being cut in size. But beginning with
1930, strenuous efforts were taken to improve public education, and
a decade later Southern educational practices were, in some respects,
equal to those prevailing throughout the nation. The latest available
data, those for 1952, show not only as great a proportion of children
of school age in the South attending school as in the nation but also
that the average days attendance was only 2.2 percent less than in the
nation; per-capita expenditures, only 22 percent less; and the teacher
load, only 9 percent greater.
The increased efficiency of the working force resulting from better
elementary and secondary education will not be realized completely
for many years. Nevertheless, the improvement in the educational
level is already striking. In 1920, the illiteracy rate of the South was
twice that of the nation. By 1940, however, 72 percent of the persons
twenty-five years of age or over had completed at least the fifth grade.
By 1950, only one-fifth lacked at least a fifth grade education, and 41
percent had gone to high school. It will not be too long, provided the
present rate of progress continues, before the educational level of this
section will be equal to that of other parts of the country.
The South has also done much to improve its higher education.
In 1930, only a little over half as many young men and women in
the District states, in proportion to the number in their age group,
were attending college as in the United States as a whole. But in
1950, the proportion of college students in the District states was
almost 70 percent as great as that for the country. Along with
this increased attendance has come improvement in facilities and
a higher set of standards.
In the South, as in the nation, there is, of course, still much to be
done to improve elementary, secondary, and higher education and to
provide the technical, scientific, and vocational training needed for
further economic progress. But in view of the difficulties and handi­
caps that have been overcome in the past, there is no reason to doubt
the ability of our region to advance still further in this field.




[32]

A HEW ECONOMIC FRONTIER
This review of the region’s economic development is largely a record
of change. The people of the Sixth District are now doing different
things, in different ways, with different tools and equipment. If the
past record is any guide, it tells us that in the future further changes
may be expected to accompany continued economic growth.
The American economy, we are told, is capable of impressive
expansion in real income. If any one of various current projections
is borne out, per-capita income even within ten years could be substantially greater than it is now. Thus, if the South merely keeps
pace with the expected economic growth of the nation, Southerners
can expect to receive, on an average, higher incomes in the future.
The basic problem of Southern income, however, is to lift per-capita
income to the national level. This study has shown the progress that
has been made toward reaching the goal. Considering the expected
growth in national income, therefore, many more structural and
operational changes in the region’s economy will be needed if we
are to further improve our position relative to the nation.
Can these structural and operational changes be made at the same
rate as heretofore? There are difficulties, of course, in doing so. For
one thing, the unused labor reserve on farms and in rural areas is
smaller than it was. Moreover, now that education is shared by
practically everyone, increased efficiency of the labor force from this
cause may be less striking in the future than in the past, although the
quality if not the quantity of education may be improved. We must
remember, too, that natural resources tend to diminish rather than to
multiply. Despite these considerations, however, the South may still
be considered a new frontier. Having only recently been awakened
from nearly a half century of apathy following the Civil War, it has
made remarkable progress. But there is still a long road ahead.
No one knows, of course, what changes the future will bring.
Without a doubt, scientific discovery and technological innovation
will play an increasingly important role everywhere. In that kind of
setting, the South may turn the skills developed through its industrial
experience of the past twenty-five years and its investment in
education into even more productive work. And more productive
work, in the future as in the past, will continue to yield higher
incomes and a better living for all.




[33]




REVIEW OF BANKING
DEVELOPMENTS
The expansion in economic activity in the Sixth Federal Reserve
District, reviewed in the foregoing section, continued during 1955
and was reflected in an enlargement of the Bank’s financial operations
and in the volume of its service functions. Several phases of a building
program, inaugurated to take care of the heavier work load at the
Bank and its Branches, were continued or completed during the year.
Additions to membership and to the number of banks on the Par
List further widened the scope of the Bank’s operations.
CHANGES IN THE BANK'S FIN A N CIA L STA TU S
Total assets of the Federal Reserve Bank of Atlanta amounted to
$2,686 million at the end of 1955, representing a gain of $56 million
for the year. Primarily responsible for the overall gain in assets were
increases of $14 million in discounts and advances and $65 million in
uncollected cash items. Partly offsetting these increases in principal
assets were declines of $16 million in gold certificate reserves, $9 mil'
lion in System Account participations, and $6 million in other cash.
Total liabilities of the Federal Reserve Bank of Atlanta increased
by $54 million. This over'all increase reflected a rise of $59 million in
deferred availability cash items and a rise of $11 million in Federal
Reserve notes of this Bank in actual circulation. Against these in'
creases in liabilities was a decline of $ 15 million in total deposit liabili­
ties, of which member bank reserve accounts represent the major part.
At the end of 1955, the reserve ratio of the Federal Reserve Bank
of Atlanta was 40.8 percent, against 41.4 percent at the end of 1954.
The minimum legal reserve ratio is 25 percent.
Capital Accounts amounted to $51,712,412 at the end of 1955, a
gain of $2,866,439 for the year. Responsible for $1,489,250 of the
increase was the enlargement of the capital paid'in account pursuant
to statutory requirements governing capital stock subscriptions of




[35]

FEDERAL RESERVE BANK OF ATLANTA

STATEMENT OF CONDITION
Dec. 31,1955

ASSETS

Dec. 31,1954

Gold Certificates........................................ $ 889,110,558 $ 904,578,184
53,930,638
53,717,150
Redemption Fund for Federal Reserve Notes
Total Gold Certificate Reserves . . . $ 942,827,708 $ 958,508,822
42,242,500
48,161,350
Federal Reserve Notes of Other Banks . .
27,113,269
33,004,501
Other C ash ...................................................
5,733,333
19,743,000
Discounts and A d v a n c e s.........................
U. S. Government Securities:
1,267,589,000
1,259,018,000
System Account...................................
$1,278,761,000 $1,273,322,333
Total Loans and Securities . . . .
376,498,830
311,507,770
Uncollected Cash Ite m s..............................
3,878,912
4,044,569
Bank Premises ( n e t ) ...................................
7,610,643
9,002,541
Other A s s e t s ..............................................

Total A s s e t s .............................

$2,686,409,267 $2,630,075,481

LIABILITIES
Federal Reserve Notes in Actual Circulation
Deposits:
Member Bank Reserve Accounts . .
U. S. Treasurer—General Account
F o r e i g n ..............................................
Other D ep o sits...................................
Total D e p o s i t s .........................
Deferred Availability Cash Items . . . .
Other L iab ilities.........................................

Total Liabilities........................

$1,398,443,220

$1,387,727,900

851,419,928
39,760,304
16,598,000
5,765,118
$ 913,543,350
322,119,011
591,274

866,804,122
38,350,452
20,726,000
3,612,582
$ 929,493,156
263,480,472
527,980

$2,634,696,855 $2,581,229,508

CA PITA L ACCO UN TS
Capital Paid I n .........................................
Surplus (Section 7 ) ....................................
Surplus (Section 1 3 b ) ...............................
Reserves for Contingencies.........................

$

13,692,400
30,841,102
762,426
6,416,484

$

12,203,150
29,480,094
762,426
6,400,303

Total Capital A c c o u n ts ................... $ 51,712,412 $ 48,845,973
Total Liabilities and Capital Accounts $2,686,409,267 $2,630,075,481




[36]

member banks. As their capital accounts increase, member banks are
required to subscribe to additional stock in the Federal Reserve Bank
equivalent to 6 percent of the increase and must pay one-half the
subscription in cash to the Federal Reserve Bank.
Payments on capital stock issues for 1955 for this purpose
amounted to $1,400,750. An additional $105,000 was paid in by
banks admitted to membership during the year. There was a charge
against the capital stock account of $16,500 because of the withdrawal of one bank from membership.
Total current earnings for 1955 amounted to $21,503,460, or
approximately $900,000 less than the $22,437,993 for 1954. These
earnings were derived from interest on United States Government
securities held by the System Account, amounting to $20,474,183,
earnings on discounts and advances of $ 1,015,249, and other earnings
amounting to $14,028. For 1955 as compared with 1954, earnings
from System Account holdings dropped $1,671,419 and earnings
from discounts and advances rose by $738,605.
Current expenses for the year amounted to $7,087,330, which
was $133,970 less than the 1954 amount. Notable decreases in ex­
penses were in Original Cost and Cost of Redemption of Federal
Reserve Currency, including shipping charges. All told, these reduc­
tions in expenses amounted to $341,650 for 1955 and were made
possible primarily through a change in statutory authority which
permitted any Federal Reserve Bank to pay out fit notes of another
Federal Reserve Bank.
Net earnings before payment to the United States Treasury
amounted to $14,394,746 for 1955, or $771,207 less than 1954
earnings. Of these earnings, there was paid to the Treasury the sum of
$12,249,151, representing an interest charge on outstanding Federal
Reserve notes not collateraled by gold certificates. Dividends paid to
member banks on their stockholdings amounted to $784,588, which,
in reflection of the larger amount of capital stock paid in, was $76,648
larger than for 1954. The remaining net earnings, in the amount of
$1,361,007, were transferred to regular surplus (Section 7).
VOLUME OF OPERATIONS
With m in o r exceptions, the volume of service functions performed
by the Bank during the year was larger than it was for 1954. In




[37]

EARNINGS A N D EXPENSES
1955

Total Current Earnings.....................................$21,503,460
Net Expenses..................................................
7,087,330
Current Net Earnings................................ $14,416,130

1954

$22,437,993
7,221,300
$15,216,693

Additions to Current Net Earnings:
Profit on Sales of U. S. Government Securities
(net)
..............................................
— $
26,876
A llO ther.................................................. $_______ 122 _______ 85
Total A dditions................................ $
122
$
26,961
Deductions from Current Net Earnings:
Loss on Sales of U. S. Government Securities
(net) .............................................. $
39
—
Reserves for Contingencies....................... 16,181$
27,001
All O ther...................................................
5,286
50,700
Total D ed u ctio n s............................$
21,506
$
77,701
Net D eductions..............................................
21,384
50,740
Net Earnings Before Payment to
U. S. T reasu ry ................................ $14,394,746 $15,165,953
Paid U. S. Treasury (Interest on Federal
Reserve N o tes)..........................................$12,249,151
$13,012,038
Dividends P a i d ..............................................
784,588
707,940
Transferred to Surplus (Section 7 ) ...................
1,361,007
1,445,975
response to the money market situation and the expanding business
at member banks, loan and discount activity was sharply higher.
There was a gain of 143 percent in the number and 200 percent in
the amount of discounts and advances made during the year.
Combined currency and coin handled during the year was the
largest on record in both number of pieces and dollar volume. The
number of pieces and dollar volume of coin received and counted
increased substantially— 12 percent in number and 17 percent in
volume. On the other hand, the number of pieces and dollar volume
of currency sorted and counted were about the same in 1955 as in
1954. These percentage gains are especially significant inasmuch as
the year 1954 marked the earlier all-time high in such volume.
Check collection activities in both number of items and dollar
amounts were also higher than for 1954. In number of items handled,




[38]

VOLUME OF OPERATIONS IN PRINCIPAL DEPARTMENTS OF
THE FEDERAL RESERVE BANK OF ATLANTA
(INCLUDING BRANCHES) DURING 1955 AND 1954
Item

1955

Percent
Change
______ dumber of Pieces Handled from 1954

Discounts and a d v a n c e s.......................
No. of banks accommodated by
rediscounts and advances
Industrial l o a n s ..................................
Currency sorted and counted
Coin received and counted . . . .
Check collection:
City c h e c k s ..................................
Country c h e c k s ............................
Gov’t checks payable:
By U. S. Treasurer
Through own office
Through other F. R. offices
Postal money orders
. . . .
Noncash collection:
City co lle c tio n s............................
Country co llectio n s.......................
Issues, redemptions, and exchanges by Fiscal
U. S. Savings Bonds . . . .
Treasury I s s u e s .............................
Other U. S. Gov’t agencies
Coupons paid:
U. S. Gov’t direct obligations
All o t h e r ........................................
Transfers of f u n d s ............................

1954

1,317

543

+ 143

70

+ 27

325,936,000
603,297,000

55
12
325,999,000
538,951,000

+
+

0
12

28,971,000
117,072,000

28,160,000
107,783,000

+
+

3
9

5,385,000
25,265,000
20,703,000
33,210,000

5,127,000
23,712,000
19,552,000
32,003,000

+
+
+
+

5
7
6
4

288,568
187,995
Agency:
9,314,130
225,218
1,244

268,906
180,038

+
+

7
4

8,829,443
266,940
1,098

+

5
16
13

420,551
4,023
147,168

416,667
3,186
132,864

_

ltem

+

+
1
+ 26
+ 11

_____ Amounts Handled (Dollars)
5,201,337,000
1,735,988,000 + 200
Discounts and advances . . . .
—
549,000
Industrial l o a n s ............................
1,986,615,000 + 0
1,992,889,000
Currency sorted and counted
52,504,000
45,015,000 + 17
Coin received and counted
Check collection:
38,088,012,000
34,025,633,000 + 12
City c h e c k s ............................
27,185,257,000 + 17
31,881,279,000
Country c h e c k s .......................
Gov’t checks payable:
2,998,930,000 + 6
3,189,482,000
By U. S. Treasurer
2,989,344,000
3,117,384,000 — 4
Through own office
1,997,597,000 + 13
2,256,999,000
Through other F. R. offices
574,882,000 +
603,674,000
5
Postal money orders
Noncash collection:
164,076,000
153,396,000 +
7
City c o lle c tio n s.......................
68,147,000
73,793,000 — 8
Country collections . . . .
Issues, redemptions, and exchanges by Fiscal Agency:
991,824,436 — 10
892,154,049
U. S. Savings Bonds
7,631,154,474 — 2
7,503,501,021
Treasury I s s u e s .......................
13,944,020
118,574,840 — 88
Other U. S. Gov’t agencies
Coupons paid:
40,782,000 + 35
54,989,000
U. S. Gov’t direct obligations
382,000
156,000 + 145
All o t h e r ..................................
37,765,455,000 +
41,306,158,000
9
Transfers of f u n d s .......................




[39]

city checks increased 3 percent, country checks 9 percent, Govern'
ment checks 5 to 7 percent, and postal money orders 4 percent. The
dollar volume of checks handled showed even greater increases. Dollarwise, city and country checks rose by 12 percent and 17 percent,
respectively. Dollar volume of Government checks payable by the
United States Treasurer increased 6 percent and Government checks
payable through other Federal Reserve offices increased 13 percent,
but Government checks payable through our own offices declined 4
percent. Postal money order dollar volume increased 5 percent. As in
the case of currency and coin, the year 1954 had marked the previous
all'time high in number and dollar volume of checks handled.
Because of certain changes in procedures and a reduction in Treasury operations, the work performed by the Bank as fiscal agent of the
Treasury was somewhat lighter in 195 5 than in 1954. Lessened activity was notable in issues, redemptions, and exchanges. Both in number of items and dollar volume, however, coupons paid and transfers
of funds showed increases.
BUILDING PROGRAM
For some years now, the Bank has had underway a building program designed to relieve crowded working conditions at the main
office and certain of the Branches.
Pursuant to this program, the Jacksonville Branch has been pro*
vided with new quarters at 515 Julia Street. In Atlanta, the main
building and the annex (formerly the Silvey Building) have been
connected in order to provide off-street intercommunication between
the two buildings and to improve the security arrangements of the
Bank. Certain decks of the connecting structure are currently being
used for parking purposes.
Plans are being made for a new building and structural changes at
the Birmingham Branch and for a new building at the Nashville
Branch.
CHANGES IN MEMBERSHIP IN TH E SIXTH D ISTRICT
Membership of banks in the Federal Reserve System in the Sixth
Federal Reserve District has shown a consistent though moderate
gain in recent years. At the close of 1945, there were only 325 mem­
ber banks in the District, of which 268 were national banks and 57




[40]

state banks. With each succeeding year, however, there have been
a few additions, and at the close of 1955, there were 381 member
banks— 312 national banks and 69 state banks.
During 1955, the changes in membership reflected the admission
of nine newly organized banks, one conversion from state member
bank to a national bank, and the withdrawal from membership of two
banks. Of the new banks admitted as members, five were in Florida,
one each in Louisiana and Mississippi, and two in Tennessee. The
five Florida banks were the Wilton Manors National Bank, Central
National Bank of Jacksonville, The Florida National Bank at Arlington, the City National Bank of Clearwater, and the Bank of Crest'
view. The Louisiana bank was the National Bank of Commerce in
Jefferson Parish, and the Mississippi bank was the First National
Bank of Biloxi. The two Tennessee banks were the National Bank
of Murfreesboro and the First National Bank of Clinton. The Ameri­
can Bank, Fort Lauderdale, Florida, was converted from a state
member bank to the American National Bank of Fort Lauderdale.
Of the two withdrawals, one was the First National Bank of Newnan, Newnan, Georgia, which converted to a state bank under the
name of Citizens and Southern Newnan Bank, and the other was
that of the Louisiana Bank and Trust Company which merged with
the National Bank of Commerce in New Orleans.
ADDITIONS TO PAR LIST
At the end of 1955, there were 1,266 banks in the Sixth Federal
Reserve District. Of this number, 680 were on the Federal Reserve
Par List, meaning that they remit at par for checks sent to them by
the Federal Reserve Bank. During the year, the number of banks on
the Par List increased by a net amount of 25; there was no net change
in the number of nonpar banks. Of the par banks, 312 were national
banks, 69 were state-chartered member banks, and 299 were non­
member banks.
Among the three states which lie entirely within the Sixth District,
Alabama had 144 banks on the Par List out of 239 commercial banks;
Florida had 181 out of 228; and Georgia had 121 out of 406. In the
Sixth District portions of the three states which lie partly in the
District, Louisiana had 42 par banks out of 101; Mississippi 25 out
of 93; and Tennessee 167 out of 199.




[41]

FEDERAL RESERVE BANK OF A T LA N T A
DIRECTORS
C la s s A

_ i I
Elected by Member Banks Vf
R o land

L.

A dams

. .

/T c m \

Expires J
(Group) ; Dec. il'

.............................................................3

1956

....................................................................... 1

1957

President, Bank of Y orr
York, Alabama
/
W . C . Bo

w m a n

Chairman, Board of Directors
The First National Bank of Montgomery
Montgomery, Alabama
W

C . C a r t e r ........................................................................2
Chairman, Board of Directors, and President
Gulf National Bank of Gulfport
Gulfport, Mississippi

il l ia m

C la s s B

1958

.

Elected by Member
A. B.

Fr

e e m a n

......................... ^ 7.

. 7 "l

1956

Chairman, Board of Directors
Louisiana Coca'Cola Bottling Co., Ltd.
New Orleans, Louisiana
P o lla r d T

urm an

....................................................................... 2

1957

President, J. M. Tull Metal & Supply Company, Inc.
Atlanta, Georgia
D o nald

Co

m e r

........................................................................................... 3

1958

Chairman, Board of Directors
Avondale Mills, Birmingham, Alabama

C lass C
Appointed by the Board of Governors of the Federal Reserve System

f

W a l t e r M . M i t c h e l l , Chairman
................................................ 1958
Vice President and Director, Draper Corporation
Atlanta, Georgia
H a r l l e e B r a n c h , J r .,

Deputy C h airm an ...................................................... 1956

President, Georgia Power Company
Atlanta, Georgia

H. G.

C h a l k l e y , J r .....................................................................................1957

President, Sweet Lake Land and Oil Company, Inc.
Lake Charles, Louisiana




[42]

OFFICERS
M alco lm B r y a n ,
L e w is M . C l a r k

President
D ow d ell B ro w n , J r.

First Vice President

Assistant Vice President
F . H . M a r t in

V . K . B ow man

Vice President

Assistant Vice President
I. H. M a r t in
Assistant Vice President

J. E. D en m a rk

Vice President

J.

J o h n L . L il e s , J r .

E . M cC o rvey

Assistant Vice President

Vice President and Cashier

R . E . M il l in g

H a r o ld T . P a t t e r s o n

Vice President and General
Counsel

Assistant Vice President
C h a rles T . T

aylo r

Assistant Vice President

L . B . R a ist y

Vice President

Fred

E. L. R auber

Vice President and Director
of Research

I. B r e c k
Assistant Cashier

R. D eW

it t

A

dam s

General Auditor
B r o w n R a w l in g s , J r .

S. P. Sc h u e ssl e r

Vice President

Assistant General Auditor
G eo . W . S h e f f e r , J r .

Chief Examiner

Member Federal Advisory Council
C o m e r J . K im b a l l

Chairman, Board of Directors
The First National Bank of Miami
Miami, Florida

Industrial Advisory Committee
S h a n n o n M . G am ble

I. C . M i l n e r

Executive Vice President
Standard'Coosa-Thatcher Company
Chattanooga, Tennessee

President, Gate City Mills Company
East Point, Georgia
L u t h e r H . R andall
G

President, Randall Brothers, Inc.
Atlanta, Georgia




eo r g e

W

in s h ip

President, Fulton Supply Company
Atlanta, Georgia

[43]

BIRMINGHAM BRANCH
DIRECTORS
Appointed by the Board of Governors of the Federal Reserve System
Term

Expires
Dec. 31
e i l , S r ., C h a irm a n ............................................................. 1956
President, Weil Brothers*Cotton, Inc.
Montgomery, Alabama

A d o lph W

E d w in

C.

Bo t t c h

er

................................................................................. 1957

Farmer, Cullman, Alabama
John

E.

Urq

u h a r t .................................................................................

1958

President, Woodward Iron Company
Woodward, Alabama

Appointed by the Board of Directors, Federal Reserve Bank of Atlanta
i l l G a y ......................................................................................................1956
President, The First National Bank of Scottsboro
Scottsboro, Alabama
"

John W

M alco lm

A.

Sm

it h

..................................................................................1957

First Vice President, Birmingham Trust National Bank
Birmingham, Alabama
L
R o bert

M.

Cl

e c k le r

.............................................................................1958

President, First National Bank of Childersburg
Childersburg, Alabama

E. W.

M cL e

o d

.......................................................................................1958

President, The Morgan County National Bank of Decatur
Decatur, Alabama

OFFICERS
H . C . F razer

M

Vice President and Manager
E. G. R a in e y
Assistant Vice President




e l v in

M c I l w a in

Assistant Cashier
W m . A. W a l l e r , J r .

Assistant Cashier

[44}

JACKSONVILLE BRANCH
DIRECTORS
Appointed by the Board of Governors of the Federal Reserve System

—

Term

Expires
Dec. 31
M c G r e g o r S m i t h , Chairm an..................................................................1956
Chairman, Board of Directors
Florida Power & Light Company, Miami, Florida

J.

W

ayne

R

e it z

............................................................................................................. 1957

President, University of Florida
Gainesville, Florida
H arry

M.

Sm

it h

............................................................................................................. 1958

President and Manager, Winter Garden Ornamental Nursery, Inc.
Winter Garden, Florida

Appointed by the Board of Directors, Federal Reserve Bank of Atlanta
J a m e s G . G a r n e r ............................................................................................................. 1956

President, Little River Bank and Trust Company
Miami, Florida
* ■»—
'
J am es

L.

N

ib l a c k

....................................................................................................... 1957

President, The First National Bank of Lake City
Lake City, Florida
L in t o n

E.

A

l l e n

....................................................................................................... 1958

Chairman, Board of Directors
First National Bank at Orlando
Orlando, Florid^ ■
W . E. E l l i s ................................................................................................................. 1958
Chairman, Board of Directors, and President
The Commercial Bank & Trust Company of Ocala
Ocala, Florida

OFFICERS
T. A. L a n f q r d
Vice President and Manager

J. W. S n y d e r
Cashier

T.

C.

C . C lark




M a s o n F ord

Assistant Cashier

Assistant Vice President

[45]

NASHVILLE BRANCH
DIRECTORS
Appointed by the Board of Governors of the Federal Reserve System
Term
Expires
Dec. 31
Frank

B.

W

ard,

C h a ir m a n .................................................................. 1956

Dean, College of Business Administration
University of Tennessee, Knoxville, Tennessee

A.

C arter M

y e r s

................................................................................. 1957

Treasurer, Knoxville Fertilizer Company
Knoxville, Tennessee
E r n est

J.

Mo

e n c h

................................................................................. 1958

President, Tennessee Tufting Company
Nashville, Tennessee

Appointed by the Board of Directors, Federal Reserve Bank of Atlanta
W.

E. T o

m l in so n

..................................................................................1956

President, The Hamilton National Bank of Johnson City
Johnson City, Tennessee
J.

R.

K e l l a m , J r .......................................................................................................... 1957
Executive Vice President
Commerce Union Bank, Nashville, Tennessee

S tew art C a

m pbell

..................................................................................1958

President, The Harpeth National Bank of Franklin
Franklin, Tennessee

C. L.

W

il s o n

............................................................................................1958

President, The Cleveland National Bank
Cleveland, Tennessee

OFFICERS
R. E. M oody , J r .
Vice President and Manager

L. W. S t a r r
Cashier

W. H. S e w e l l
Assistant Vice President

S tuart




H. M a g e e
Assistant Cashier

[46]

NEW ORLEANS BRANCH
DIRECTORS
Appointed by the Board of Governors of the Federal Reserve System
Term
Expires
Dec. 31
E. E. W ild , C h airm an ......................................................................................... 1956
Rice Grower, Midland, Louisiana
J o el

L.

F l e t c h e r , J r ................................................................................ 1957

President, Southwestern Louisiana Institute
Lafayette, Louisiana

G. H.

K i n g , J r ....................................................................................................................... 1958

Vice President, King Lumber Industries
Canton, Mississippi

Appointed by the Board of Directors, Federal Reserve Bank of Atlanta
L eo n

J.

M in

v ie l l e

.................................................................................1956

President, The Peoples National Bank of New Iberia
New Iberia, Louisiana
——•

D. U.

M

a d d o x ...........................................................................................1957

President, The Commercial National Bank and Trust Company of Laurel
Laurel, Mississippi
■

H. A.

Ph

a r r

........................................................................................... 1958

President, The First National Bank of Mobile
Mobile, Alabama
W

i l l ia m

J.

Fis c

h er

.................................................................................1958

President, Progressive Bank and Trust Company
New Orleans, Louisiana"

OFFICERS
L. Y. C

M . L. S haw

Vice President and Manager

R. M . J unca

R . M . S teph en so n

Assistant Cashier

Assistant Vice President




h a pm an

Cashier

[47]


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102