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THIRTY-THIRD ANNUAL REPORT
Fe d e r a l R e s e r v e B a n k




of

A tlanta
1947

T h ir t y -T h ir d A
of

nnual

THE

Fe d e r a l R e se r v e Ba n k
for

R eport

of

A

tlanta

THE

YEAR ENDED DECEMBER 31, 1947

SIXTH FEDERAL RESERVE DISTRICT




LETTER OF TRANSMITTAL
January 31, 1948

To the Stockholders of the
Federal Reserve BanJ^ of Atlanta
I
am pleased to submit the Thirty-Third Annual Report of
the Federal Reserve Bank of Atlanta. It is hoped that you will find
the report both interesting and informative.




W. S. McLARIN, JR.
President

TABLE OF CONTENTS
PAGE

Introduction.......................................................................

5

..........................................

6

A gricu ltu re..................................................................

6

Business Background in 1947

T r a d e ........................................................................... 11
In d u stry .......................................................................14
B a n k in g .......................................................................15
Federal Reserve Bank Operations...................................... 20
New M em b ers............................................................. 20
Bank and Public Relations . * . ................................. 20
Fiscal Agency and Securities Departm ent................... 21
Consumer Credit C o n t r o l...........................................22
Custody Departm ent.................................................... 24
Currency and Coin Department...................................... 27
Check Collection Department...................................... 28
Discount Department.................................................... 28
Treasury Bills— Option A cco u n t................................. 29
13 [b] Loan O perations................................................29
Research Department.................................................... 29
Directors and Officers......................................................... 31'36
Volume Repents and Financial Statements........................ 39-47




[ 3]

INTRODUCTION
I _ / i k e a l l o t h e r business institutions in the country, the Federal
Reserve Bank of Atlanta operated during 1947 in an atmosphere
of economic tension and rapidly changing business prospects. The
prevailing uncertainty grew, of course, out of the wave of inflation
that gripped the country throughout the year and with especial
force in the latter half. In addition to the inflationary pressures that
had been provided by the war'financing methods, the cashing of
armed forces leave bonds in September, and the ending of consumer-credit control in November aggravated the situation.
Only toward the dose of the year were any important steps, other
than the purely voluntary actions of businesses and banks, taken to
reduce the pressure that was being exerted upon prices. The Board
of Governors of the Federal Reserve System by a change of policy
agreed to the unpegging of short-term-interest rates and stated that
it would support Government bond prices at or near par instead of
at a higher level. Toward the year’s end, therefore, money became
a little tighter than it had been and banks began to exercise more
caution in the making of loans. What further steps will be taken
by the System or by other agencies of the Government will depend,
of course, upon how the situation develops in 1948, and on how far
Congress is willing to go toward giving administrative agencies and
the monetary authorities additional powers to cope with the problem.
Inflationary prosperity has, of course, been characteristic of the
whole country. All regions, however, have not shared in the general
prosperity to the same degree. The Sixth Federal Reserve District
has been one of those which, although prosperous, has benefited less
than some of the others.
For this reason the stockholders of this bank may find it interest'
ing to review the major trends in agriculture, trade, industry, and
banking during 1947. Since the progress of the inflationary upswing
necessarily affected the operations of this bank, the stockholders may
be equally interested in a fairly detailed account of the activity in
the various departments.




t5]

BUSINESS BACKGROUND IN 1947
AGRICULTURE
In a year characterized by almost full employment, a high output
of goods, and high income payments to individuals, farmers contin'
ued to have unprecedented prosperity. Since dollars were added to
the economy at a much faster rate than physical goods were, prices
kept on rising. The general price rise again gave farmers an oppor
tunity to take advantage of the well'known tendency for agricultural
prices to rise more rapidly than others.
Farmers responded to this opportunity by producing a large vol­
ume of products. Despite a disappointing corn crop, their all-crop
production was only slightly below that of the preceding year. When
it became apparent that the 1947 com crop would be about a fourth
less than the 1946 crop, livestock moved to market in record numy
bers. The combination of a short com crop and favorable prices for
food and feed grains resulted in a volume of farm marketings esti'
mated at 3 percent greater than that of 1946.
Farmers were well rewarded for their efforts to meet the increased
demands for their products. Prices for farm products exceeded those
of the preceding year about 19 percent. About 30 billion dollars
were received from farm marketings, a 22 percent increase over the
1946 receipts. Higher prices accounted for about three fifths of the
total gain in cash receipts. Gross income, which includes also the
value of products used for home consumption and the rental value
of dwellings, is estimated at 34.6 billion dollars. After deducting
expenses of 16.6 billion, farmers had a net income of about 18 billion
dollars, about a fifth larger than their 1946 net income.
From a national viewpoint die farm picture was marred only by
a tendency toward excessive soil depletion. Although no q u a n tita tive data are available, ^here is evidence that farmers, in order to take
full advantage of die favorable prices, were using their land more
intensively than was consistent with sound conservation practice.
Aggregate figures relating to the nation's agriculture, of course,
portray the farm situation only in the most general terms. In an
industry composed of almost six million operators producing a wide
variety of commodities, there are naturally a great many in situations
considerably different from the average. Likewise, various regions




[6]

differ markedly in their degree of conformance to national patterns.
Sixth District farmers shared in the general farm prosperity but
to a more limited extent than did the farmers for the whole nation.
Their cash receipts from marketings increased from about 2.1 billion
dollars in 1946 to about 2.5 billion. Although this represents an
increase of about 19 percent, net income increased relatively little.
In contrast to all the nation's farmers, they obtained most of their
gross-income gain from greater production instead of from higher
prices. This difference largely accounts for the less favorable net"
income position of District farmers compared to all the nation's
farmers. It also has significance for the immediate future of the District’s agriculture.
Farm production costs rose sharply during the year. Producers
of meat animals and grains, however, were more than able to offset
their rising costs with the higher prices they received for their prod'
ucts. In addition they sold 1946'crop com and liquidated their live'
stock herds, both of which were produced at much lower cost levels.
On the other hand, District farmers, who obtain most of their in'
come from cash crops other than grains, could not offset their higher
costs with higher prices. Actually prices for some important District
crops were lower than they were in 1946.
The failure of District farm prices to rise as rapidly as national
farm prices may well become more serious in the year ahead than it
was in the year just past. Any further rise in the general price level
is virtually certain to be accompanied by increases in farm-produc'
tion costs. Probably farmers who depend on the sale of meat animals
or grain for most of their income will be able to offset any increases
in costs by higher prices. On the other hand, farmers who receive
most of their income from cotton, tobacco, or fruit may find that
their costs will increase more rapidly than die prices of their prod'
ucts. The latter group partially overcame this disadvantage in 1947
by higher output, but further increases in District farm output are
likely to be modest. Although livestock offers one of the best op'
portunities for high profits next year, increases in production cannot
be attained immediately. Even now there are indications that the
District livestock population is approaching the limit imposed by
the current feed production. Despite widespread efforts to increase
feed production, the District is still a feed-deficit area even with the




m

present livestock numbers. Increased output of important cash crops
such as cotton, peanuts, fruits, and truck crops, however, appears
to be feasible.
Although general price rises are usually associated with farm
prosperity, the current price rise may have assumed such propor'
tions that any further increases would be detrimental to District
farmers. In this connection two characteristics of District farming
should be noted. Some of its most important crops are not essential
food crops, and most of its crops depend partly upon the export
market.
The rise in living costs, and particularly food costs, which caused
such an outcry last year, placed nonessential food items in a poor
competitive position for the consumers' food dollar. District fanners
derive about a fifth of their income from fruit and truck crops. Many
of these crops become semiluxuries when they compete with such
commodities as meat, bread grains, milk, and sugar. Despite the
citrus industry's efforts to remove its products from the semiluxury
class, the wide variations jn fresh'citrus-fruit consumption per capita
at various income levels suggest that citrus growers may be fairly
typical of those producers who are not benefiting from rising prices.
Florida farmers’ cash receipts from marketings were actually lower
in 1947 than they were in 1946. This decrease was largely attribut'
able to lower dtrus-fruit prices.
Rapidly rising prices may also adversely affect farmers for whom
export markets comprise a large share of the total market. In 1947
it was the District tobacco growers who felt these effects most keen­
ly. Because of high labor and material costs the tobacco crop in
1947 was probably the most expensive one ever produced. In the
past the United Kingdom has been the most important export market
for District tobacco. Partly as a result of rising prices the British
Loan was used up more rapidly than was planned, and in their program to conserve dollars the British withdrew entirely from the
flue-cured market in October.
Because of relatively large tobacco stocks and a very uncertain
foreign demand, marketing quotas for both burley and fluecured
tobacco have been reduced for 1948. If prices remain near support
levels and costs continue to increase, the net income from tobacco
is likely to be lower than it was in 1947.




[81

Returns from cotton, of course, provided the key to the farmer'
income position in the Sixth District in 1947. The production of
about 4.2 million bales was almost a third larger than die small 1946
crop. Though growers received slightly lower prices in 1947 than
they did in 1946, the crop was one of the most valuable ever pro
duced. The relatively large cotton crop, which brought favorable
prices, was the most important single factor causing the gain in
District fanners' gross incomes. Since the farmers planted only
slightly more cotton than they did in the preceding year, most of die
increased output resulted from higher yields per acre. Except for
those in Tennessee, yields per acre in all the District states were
higher last year than they were the year before.
Favorable prices for the 1947 crop can be traced to developments
in the 1946*47 season. During that season mills used about 10 mil'
lion bales, a new peacetime record. Of the 3.5 million bales exported
much was of a quality in low demand at domestic mills. By the be*
ginning of the 1947-48 season a quantity equivalent to the short
1946-47 crop had been used and the carryover had been reduced to
2.5 million bales, the lowest since 1929. The 1947-48 season began,
therefore, with prospective supplies of about 14 million bales, the
lowest they had been since the 1923*24 season.
Mill consumption during the first four months of this season,
August through November, was a little more than three million
bales. Although at this rate consumption for the season would reach
nine million bales, a decline in cotton-cloth exports and an accumula­
tion of cotton-cloth inventories is expected to reduce mill consump­
tion fen part of the season. During the first three months of the sea­
*
son raw cotton exports were only about a third as great as they were
during the same period last season, because of relatively large stocks
in the importing countries and a lack of dollar exchange. Further­
more they are not expected to increase greatly during die next few
months. Some importing countries have resorted to bartering cotton
goods for raw cotton.
Although exports may fall far short of the 1946-47 figure, current-miU-consumption rates suggest that cotton growers will not be
burdened with a large carryover at the end of this season. A sizable
export market must be available, however, if cotton is to sustain
District farmers’ income in the coming year as it did last year. For




[9]

this reason, such plans as the European Recovery Program, involv­
ing the export of large quantities of farm products, are of vital
interest to this district.
To some extent, the less optimistic price situation for important
cash crops was offset by the widespread adoption of more efficient
methods and by the growth of the livestock industry. Improved in"
secticides helped to increase crop yields, and the availability of
more machinery during the year undoubtedly lowered production
costs on many farms. By developing winter-grazing programs some
of the farmers obtained greater total output from their land without
depleting soil fertility. Cattle numbers on District farms have de'
dined very little since the 1945 peak, and, because the long-run
prospects for meat producers appear promising, an expansion of the
livestock industry offers possibilities for offsetting a reduced crop
income. Also the change from animal power to mechanical power
is releasing additional crop acres that can be used for growing live'
stock feed.
Uncertainties in the price prospects for District crops were re­
flected in the farm'real-estate market. In general the District land
market was characterized by little activity and a slackening of de­
mand for farms. Although farm-land values for the nation as a
whole continued to rise during the year, values in the Southeast had
the first regional declines after the rapid rise that began during the
early part of the war. District land values fell about 2 percent from
March to July. In the four-month period ended in November they
increased slightly but did not exceed the March levels.
In the tobacco and citrus areas the income prospects had a mark­
edly depressing effect on land values. In contrast to tobacco growers,
however, citrus growers are not protected by price guarantees. It
may be significant that only in Florida were land values lower in
November than they were in July.
Sample-county reports from the Southeast indicate that fewer
purchases of new farms were made for cash during the first nine
months of 1947 than were made during the corresponding period
in 1946. It also appears that present farm-land buyers have smaller
cash reserves than those who bought a year ago. In the event of a
drastic decline in farm prices, however, such price supports as are




[101

allowed to remain may save from serious financial difficulty those
farmland buyers who have heavy fixed obligations.
When the year ended there was little question about foreign
need for those District farm products that enter into the export
market. Whether this need would result in suable foreign purchases,
however, was far less certain. Without some action by the Govern'
ment it seems virtually certain that exports of cotton, tobacco, and
citrus fruit will be smaller in 1948 than they were in 1947. The
net result is less favorable income prospects for Sixth District
farmers.
TRADE
Retailers and wholesalers are by far the most numerous borrowers
from Sixth District member banks. Consequently, their sales and
credit experience during 1947 had an important influence upon
member-bank operations. A period of rapid price rises accompanied
by inventory expansion and increased use of credit by con su m ers
has customarily been one of increases in bank loans to trade con'
cems. Last year was no exception to this generalization.
In the field of retail trade, the department, furniture, household'
appliance, and jewelry stores customarily hold about 85 percent
of the consumer'instalment'sale credit, excluding outstanding automobile sale credit. Open-credit accounts at department stores, more'
over, make up a very large proportion of charge-account credit out­
standing. Because of the important effect that operations of these
types of businesses have on retail credit and because of the direct
connection between retail credit and bank credit, the Federal Re'
serve Banks through their reporting systems have assumed responsi­
bility for following closely the developments in these lines of trade.
Particularly at these stores were Sixth District sales greatly affect'
ed by the increased availability of durable consumer goods in 1947.
A t those selling primarily durable goods, such as furniture, and
household appliances, the rates of sales increase exceeded those at the
department stores, which sell a much larger proportion of nondurable goods, such as clothing. If it had not been for increases in sales
in lie durable goods departments, dollar sales at the department
stores in 1947 would have been below those for 1946.
Since a large proportion of durable goods are customarily pur-




Cll]

chased on the instalment plan, there was an inevitable increase in
accounts. By the end of the year these accounts had
risen 30 to 60 percent at the various types of credit-granting stores.
But the increase in sales of durable goods was not the only reason
that accounts receivable outstanding increased: consumers were
making a larger proportion of their other purchases on credit. At
the department stores charge-account credit, which resulted to a
large extent from purchases of nondurable goods, was more than a
fifth larger at the end of the year than it was at the end of the preceding year. At jewelry stores, where dollar sales were below those
for 1946, accounts receivable had increased more than a third. If
it had not been for the increased use of credit at most types of re­
porting stores, consumers would have bought less in 1947 than they
did the year before.
Slower collections have accounted for some of the increase in
credit. Charge accounts, which were outstanding for a little less
than 60 days at department stores in the District at the end of 1946,
were outstanding on an average of 70 days in 1947. Department'
store instalment contracts ran for an average of about six and onehalf months in 1947 compared with five months last year, furniture
stores' instalment contracts for seven months instead of six, and
instalment contracts at household appliance stores for more than
seven instead of less than seven. Of course, as consumer credit
expanded the need for working capital increased.
In addition the merchants needed working capital to finance the
unexpected growth in their inventories that became necessary dur­
ing the latter part of the year. A t department stores, for example,
sales during the first quarter were less than those in the last part
of 1946 even when allowances were made for the customary seasonal
influences. They rose somewhat in the second quarter, but in the
third they fell to a level below that of the corresponding months
in 1946. In the last two months of 1947, however, the dollar value
of goods sold set new records. Sales experience during the first
months of the year and the general expectation of a decline in prices
were also reflected in the stores' inventory policies. Efforts were
made to reduce heavy stocks of goods of less than standard quality
that had been accumulated during the preceding year. Forward
commitments were reduced to a minimum. Inventories fell, until by
instalment




[ 12]

July stocks were at a lower level, after an adjustment for seasonal
influences, than they had been for almost a year.
Not only the increased demands of customers but rising prices
caused merchants to revise their previous estimates. As a result of
these two things during the last quarter of the year, they added to
their inventories at a rapid rate, bringing diem considerably above
the levels for the corresponding months of 1946.
These trends in retail trade are reflected not only in bank loans
made directly to retailers but in those made directly to consumers.
At Sixth District commercial banks combined consumer paper pur'
chases and direct loans for the purchase of goods were almost twice
as great by the close of the year as they were at the end of die
previous year. More than half the total consisted of direct loans
made to consumers to buy automobiles.
The consumers, however, were spending a larger portion of their
incomes for goods and services sold outside those stores from which
sales and credit data are currendy collected. Price increases had
directed more of their spending to food stores. Services, such as
housing, cost them more, and a large part of their incomes was going to pay for new homes. Also they spent more for cars; the in'
creased automobile loans made by banks reflect this increase. Whole'
sale merchants in the District selling such goods as lumber and
building materials, industrial supplies, hardware, and electrical
goods reported the greatest increases in sales. Grocery wholesalers
also reported substantial increases. On the other hand, wholesalers
of dry goods reported declines in sales and wholesalers of drugs
and sundries and tobacco increased their sales only moderately during die year.
Although as a group District retailers made greater dollar sales
in 1947 than they did in 1946, they lagged behind those in many
other areas in their rates of increase. The District gain in depart'
ment'Store sales was exceeded by the rates of increase in many of
the other Federal Reserve districts, particularly in the Midwestern
districts, where incomes had been expanded by greatly increased
food prices and in areas with heavy concentrations of durable-goods
manufactures. In its gains since the prewar period, however, this
district still leads many of die others.




[13]

IHDUSTRr
People who had predicted a recession during 1947 had expected that
in manufacturing it would principally affect the nondurable-goods
industries. Because the manufacturing income of the District comes
primarily from them, the recession in die form it was expected to
take would have had a heavier impact on the economy of the Dis­
trict than it would have had on that of die nation generally. And
even though there was no recession the physical volume of indus­
trial production increased little above the level it had reached in
the latter part of 1946, with most of that increase occurring in durable-goods manufacturing.
During the war period manufacturing facilities had not been set
up as extensively in this district as in many other areas. Nor were
those that were established of a kind that could be readily con­
verted to peacetime uses. By 1947 the process of converting to
peacetime use those plants that could be easily utilized to meet post'
war markets had been largely completed. The net result was an
addition to total manufacturing employment in the District, but
the addition was comparatively small. Largely the District's em­
ployment was still provided by its principal prewar manufacturing
plants. A great deal of manufacturing expansion, it is true, was
taking place outside the war plants, but in many cases these new
plants would not come into production for a year or more.
In the meantime, partly in response to lessened consumer demands
for apparel and the limitation of inventory expansion by retailers,
declines occurred in textile-manufacturing activity. By June the
District's cotton consumption was lower than it had been at any
other time in die postwar period and as low as it had been, on an
average, in 1940. Manufacturers of lumber in the District, second
only to textile manufacturers and food processors as a source of
manufacturing wages and salaries, reduced their operations in the
middle of the year. Employment of workers by the chemical industry,
the fourth most important source, also declined.
Later in the year there were gains in employment in all of these
industries except die chemical industry. Moreover, important in'
creases occurred, in such others as the paper'and-allied-products in­
dustry and the iron-and-sted industry. Although these latter in­
dustries are of great importance to the Sixth District’s economy,




C14]

they did not loom sufficiently large in the employment total for
their gains to offset the declines or appreciably augment the relatively moderate increases in other lines of manufacturing. As a
consequence, the average monthly manufacturing employment, al'
though greater than that in 1946, had not increased at as high a
rate for the District as it had for the nation.
District manufacturing income also fared less well from price
changes in 1947 than national manufacturing income did. To be
sure, average wholesale prices for four of the District’s seven most
important manufactured products had increased at greater percent'
age rates since V'J Day than had those for all manufactured prod'
ucts combined. But between June 1946, when the lifting of price
controls began, and the end of 1947 the rate of increase was greater
than that for manufactured products generally in only one of die
seven groups.
Thus on the whole Sixth District industry had a generally higher
level of activity in 1947 than it had had in 1946, but because of its
economic structure it was unable to take complete advantage of the
nation-wide boom in durable goods and to reap to a full extent the
advantages that might have been realized from rapidly rising prices.
It also salvaged somewhat less from the war-created manufacturing
facilities than had industry in other regions. At the same time, it
was expanding its manufacturing facilities, which could come into
complete production only in 1948 and later.

BANKING
The high level of agricultural and business activity that character'
ized the American economy during 1947 had two opposite effects
on the assets of Sixth District member banks. Greater Federal tax
revenues, reflecting the record-breaking personal and business in­
come of 1947, made it possible for the Government to retire a
substantial portion of the securities held by member banks. Along
with banks in the other districts, Sixth District banks consequently
reduced their holdings of Government securities. At the same time,
the high level of business activity together with rising prices, par­
ticularly during the latter half of the year, also increased the de­
mands of consumers and businessmen for funds. The resulting bor­




[15]

rowing from banks raised member-bank loans to a record-breaking
level.
From time to time during the first half of 1947, cash redemptions
of certificates and bills were made, resulting in calls on the war-loan
accounts held by the Treasury in member banks. By the end of
June the Treasury had reduced its war-loan accounts from about
96 million dollars at the first of the year to 26 million. The removal
of the exemption of these accounts from reserve requirements, there*
fore, did little to increase required reserves.
This process, however, did have an effect upon other member*
bank assets. Holdings of Government securities were reduced to
about the level prevailing at the end of 1944. Member banks re*
duced their reserves almost 50 million dollars and their balances
with correspondent banks about twice that amount. At the same
time they experienced withdrawals by nonmember banks which
were also meeting Treasury calls.
Total loans, after reaching a record high at the end of 1946, re*
mained at a comparatively stable level during the first half of 1947.
As far as that part of the year was concerned, therefore, Sixth
District member*bank operations added little to total purchasing
power. During the period a substantial decline in total deposits
took place, caused principally by the reduction in the deposits of
correspondent banks but also by a slight decline in business and per*
sonal deposits below the level at the first of the year.
After the spectacular increase in prices that took place in the
latter part of 1946 many persons felt that 1947 would see a level­
ing off in prices, possibly a decline, and there were some who even
foresaw the possibility of a general recession. Neither of these
prospects provided businesses with much incentive to increase their
borrowings in order to increase their inventories. In fact the re*
tailers and wholesalers in the District, whose borrowings consti­
tuted a very important segment of bank loans, were attempting to
decrease rather than increase inventories and to cut down on for*
ward commitments.
Later, of course, those businesses which had curtailed their for*
ward commitments found that they were unable to take advantage
of the opportunities presented by rising prices. In addition, the
higher prices they had to pay for goods and the greater use of credit




£16]

by their customers increased the need for working capital beyond
the resources of some individual businesses, thus causing them to
borrow more from the banks.
After June the member'bank loans expanded each month so much
that by die end of 1947 the total additional amount far exceeded
the decline in the banks’ Government security holdings. At the end
of the year the percentage rate of increase was one that had been
exceeded or equaled in only seven of the past 31 years, and four
of those seven were war years.
These two periods— die first half of the year with its relative
stability and the latter half with its rapid rise in loans— resulted in
an average of total assets for 1947 that was somewhat lower than
the 1946 average. The banks, however, had a greater proportion
of their assets invested than they had had during the preceding
year. Moreover, a greater part of their assets were invested in forms
that would bring a greater rate of return—loans and longer-term,
higher-yield securities. In addition, the banks made a greater por'
tion of their loans at slightly higher rates of interest.
Member'bank reserves fell during the first half of the year partly
as a result of Treasury withdrawals that were made from war-loan
accounts in order to retire Federal-Reserve'held Government securi'
ties. But, as a result of declining deposits, required reserves also fell.
During the latter half of the year Sixth District member banks
shared in the general expansion of reserves throughout the United
States. As a consequence, despite the increase in reserve require'
ments resulting from expanded deposits, excess reserves at the end
of 1947 for the banks as a group were approximately what they
had been at the end of 1946.
The period between the end of World War II and the end of
1947 is only two months longer than that between the dose of
World War I and the end of 1920. Fra: many reasons, it is inevi'
table that comparisons would be made between the two periods.
Conditions since the end of World War II have in many respects
differed from those after the earlier war. Sixth District bankers
at die end of 1920 found that their deposits were a fifth less than
they had been at the end of 1919, despite an expansion during the
war and die first postwar year at a percentage rate greater than that
for the nation. The rate of decline in deposits was almost three




C17]

times as great as that for the nation's member banks as a group.
This decline continued into the middle of 1922, when deposits were
a third lower than their previous peak, though the national low
point for member banks throughout the nation had been reached
by the end of 1921.
Instead of increasing in 1946, the first of the current postwar
years, as they had in 1919 Sixth District total deposits dedined at
about the n a tio n a l rate. This decline, however, resulted from the
use of excess Treasury balances to retire bank-held Government
securities. Deposits of individuals and businesses continued to increase. In the second postwar year, instead of declining as they had
in 1920, total deposits at District member banks rose, reflecting
further increases in privately held deposits, and at the end of the
year they were slightly higher than they had been at the end of 1946.
Of course, the failure of a postwar recession to appear after
World War II is one of the chief reasons for the nonrecurrence
of a run-off in deposits. The different ways in which these deposits
were created in the second period, however, is perhaps equally
important. Private-credit expansion through bank loans was the
primary cause of deposit expansion during World War 1 and its
first succeeding year. To a large extent many of the loans were
speculative, especially those made to carry cotton, which had been
rapidly rising in price. The fall in the cotton price from more than
40 cents to about a fourth of that amount within a few months'
time reduced one of the most important sources of District income
and left the banks vulnerable to a drain of their deposits to other
areas.
During the recent war, cm the other hand, deposit expansion
was primarily the result of Government borrowing from the banks,
as evidenced by their expanded security holdings. Since the end of
the war, however, die further growth in privately hdd deposits has
resulted largely from expansion of commerdal-bank loans. More­
over, the District was no longer so dependent upon cotton as the
chief source of income, and comparatively few purdy speculative
loans have been made. In addition there is evidence that the District
may retain many of its wartime economic gains, some of which
were initiated before the war.
Neverthdess, there is still a resemblance between conditions in




[18]

the latter half of 1947 and those in the boom period following
World War I. Bank lending was the chief factor increasing de*
posits as it had been in 1919, and there has been a similar period
of very rapidly rising prices. Despite the resemblance, if caution is
exercised by business generally and by bankers in limiting private'
credit expansion and if the measures followed by die regulatory
authorities are effective, a repetition of the conditions faced by Sixth
District bankers after the first world war may be prevented.




[19]

FEDERAL RESERVE BANK OPERATIONS
A Federal Reserve Bank is primarily a service institution with a
three-fold obligation to be of service—to the United States Govern.ment, whose creature it is; to its stockholders, the member banks;
and to the farmers, the industrialists, and the general public in its
district, those whose economic welfare it was set up to serve. Be'
cause it is owned by the commercial banks that constitute die mem'
bership of the System, however, a particularly dose bond of interest
exists between it and them. It is always gratifying, therefore, to
find the number of member banks increasing, thus enlarging the
Federal Reserve Bank’s field of service.
HEW MEMBERS
There was a net increase of eight members in the Sixth District
during the year. Three of these were National banks, and five
were State banks.
Three new National banks were organized in die District, a
State member bank was converted to National-bank status, and a
nonmember State bank was similarly converted. Partly offsetting
these gains, however, one National bank was absorbed by another
and two others were consolidated.
Six State banks were admitted to membership. Three of them
were new organizations, opening as members.
At the dose of the year the District had 276 National'bank mem'
bers and 64 State members, a total of 340.
BANK AND PUBLIC RELATIONS
The interest of the Bank in the welfare of the whole banking com'
munity and die problems of the business community is by no means
p e r fu n c to r y . By means of visits and attendance at meetings every
effort is made to maintain the dosest possible personal touch w ith
banks and business groups.
The officers and staff members of the Bank and its branches were
more active in this respect in 1947 than they had ever been. A total
of 1,414 visits was made to member and nonmember banks in the
District. Every member bank was called on at least once, and all
but a few of the nonmember State banks were visited. In addition,
many private banks and savings banks were called on.




[20]

Officers of the Bank and its branches attended 33 group meetings,
six state bank conventions, the American Bankers Association Con'
vention, the Southern Country Bankers Conference, the Southern
Regional Savings Conference, and 36 other meetings and confer­
ences. Forty-two speeches were made by officers and members of die
staff to a great variety of audiences. In the future the Bank hopes to
extend its bank- and public-relations activities as much as possible.
FISCAL AGENCY AND SECURITIES DEPARTMENT
One of the most important services that a Federal Reserve Bank
renders to the Government is in its capacity as the Treasury's fiscal
agent. During the war this function was extraordinarily important
because of the enormous scale of Federal financial operations.
The close of the war, however, did not end die importance of this
department. Even during 1947 the Fiscal Agency and Securities
Department experienced considerable activity. So many persons
own Government securities that the department constantly receives
requests fen: assistance in security transactions. It has saved the pub*
lie some expense in attorney fees, particularly in cases in v o lv in g
deceased bond owners.
During the year this bank and its branches, as fiscal agent for die
Treasury Department, serviced 1,459 bond-issuing agents and 1,244
paying agents. They issued 194,113 Series E bonds totaling $9,421,620, and the agents in the District issued 1,763,349 pieces amount­
ing to $199,948,605. Savings bonds of Series A to E redeemed b y
all sources amounted to 6,298,034 pieces, with a redemption value
of $360,536,777.
One of the most active functions of this department is the safe­
keeping of savings bonds for die public. A t the end of the year
280,744 pieces amounting to $28,933,510 were held in safekeeping.
On June 1, 1947, certain of the Fiscal Agency functions per­
formed by the Birmingham and Nashville brandies were transferred
to the head office for reasons of economy. The branches, however,
were left in a position in which they were still able to perform
almost all kinds of fiscal functions. These transfers, therefore, did
not in any way affect adversely the banks, the public, or the Treas­
ury’s program of selling more bonds. In fact they were so economical
and so successful that at the end of the year similar operations at




[21]

the Jacksonville branch also were transferred to the head office. As
a result of these moves considerable savings in operating costs will
accrue to the Treasury Department.
During the year the Treasury authorized the head office and die
New Orleans branch to receive from Army finance officers, for
processing, the registration stubs from armed forces leave bonds
issued to veterans of World War II. The number received totaled
633,973.
On September 1, 1947, die veterans holding leave bonds were
permitted to redeem them at any commercial bank authorized as a
paying agent under Treasury regulations. The total number handled
for the year amounted to 601,452, with a redemption value of
$126,972,261.15.
CONSUMER CREDIT CONTROL
During the war the control of consumer credit was an important
aspect of the Government's stabilization program. The administra'
tion of this control was placed in the hands of the Federal Reserve
System and was carried out by the Federal Reserve Banks under the
terms of the Board of Governors’ Regulation W . With the termi­
nation of consumer'credit controls after November 1, 1947, as
required in section 2 of Public Law 386, Eightieth Congress, die
Federal Reserve Banks had completed six and a quarter years in
die administration of die device.
On die whole, the Federal Reserve Bank of Adanta received excel'
lent co-operation from the many registrants located in the Sixth
Federal Reserve District. Only on very rare occasions did disdpli'
nary action have to be taken against any registrants who knowingly
and willfully disregarded the regulation after being warned by the
Bank's investigative personnel.
Before December 1,1946, the whole field of consumer credit was
under control, but the Board of Governors made a material revision
of its Regulation W , to be effective on that date, removing from
control open charge accounts and concentrating the selective'control
effort on instalment credit. A t the same time the schedule of listed
articles was gready reduced. Twelve articles, however, were retained
in view of demands for them, which still gready exceeded the supply.
Maturities of die instalment credits were all set at a mayimuni of




[22]

15 months, and items with a sales value of less than $50 each were
eliminated from control, but the maximum amount of an instalment
credit subject to control was increased from $1,500 to $2,000.
The amended reg u la tion remained in effect until November 1,
1947. For months before that time, however, its administration had
become more and more difficult because of the many statements
appearing in the press that controls would be promptly eliminated
by Congress.
During the year personal calls were made on approximately 20
percent of the registrants in the District. As far as was practicable,
a representative number in each of the various classifications were
investigated in most communities. Although approximately 18 per'
cent of those investigated were found to be overlooking one or more
phases of Regulation W , less than a dozen registrants in the entire
District were violating the regulation in such a way as to require
special attention.
The Congress gave further attention to the consumer-credit situation during December. On the 12th a joint resolution was referred
to the Senate Committee on Banking and Currency to provide for
the regulation of consumer credit over a limited period. This reso'
lution, which was passed by the Senate prior to its adjournment but
was not considered by the House of Representatives, provided that
the Board of Governors was authorized, up to and including March
15, 1949, to exercise consumer-credit controls in accordance with,
and to carry out the purposes of, Executive Order numbered 8843
(August 9, 1941) so far as it related to insalment credit.
In discussing this resolution in its report to the Senate, the Com'
mittee said:
“Voluntary efforts to prevent loose instalment practices from
intensifying the present inflationary pressures have already
shown themselves likely to be ineffective due to the forces of
competition. In the few weeks since the end of Regulation
W many have tried ‘to hold the line,' but instalment credit
terms have already become too easy for the present boom
times.
“The economic effect of adding borrowed dollars to current
income, together with the unprecedented volume of savings
in the hands of the public generally, in view of the present




£23]

limits of productive capacity, can only be to intensify and
prolong the period of inflated prices. Excessive instalment
credit would make no more goods available. It would only
help to hold prices high in ate market place.
“Only harm could result from inducing millions of American
families to go heavily into debt on too easy terms for goods
at the present high level of prices. The excessive credit built
up in that way would not only increase present inflationary
pressures; it would have to be liquidated later out of current
income should a downswing occur, thus necessarily diverting that income from the channels of consumer expenditures
in the ensuing period."
What action the new Congress may take with reference to this
instrument of selective credit control is not known. The statistics
on consumer instalment credit show that total instalment credit out­
standing amounted to approximately 2,365 million dollars at the
end of 1945 and to 5,454 million at the end of October 1947, the
latest date for which figures are available. For die year ending
October 1947, this increase in instalment credit came to within
four million dollars of being an even billion.
CUSrOUr DEPARTMENT
A second service performed by a Federal Reserve Bank for Govern­
ment agencies is that of custodian for die Reconstruction Finance
Corporation. Many varied functions were performed by the Bank
and its branches in that capacity.
The most voluminous transactions involved the purchase for the
RFC of first-mortgage veterans’ home loans guaranteed by the Vet­
erans Administration. These mortgages were purchased from ap­
proved lending institutions only, at par and accrued interest, pro­
vided the loans conformed to certain general requirements. This
action was taken by the RFC because many private financial insti­
tutions believed that they needed a dependable market where they
could sell the loans if necessary. The RFC did not itself make any
loans direct to veterans for the purchase of homes. Later the author­
ity of the RFC to purchase the loans from lending institutions was
rescinded.
The Blanket Participation Agreement program, which the Cor­
poration inaugurated in March 1945, expired January 22, 1947. All




[24]

loans authorized by banks under this program prior to the expiration
date were covered by existing agreements. Because of the large vol­
ume of requests for assistance in making long-term credit available
to small business concerns, the RFC revised and simplified the pro*
cedure for processing applications from banks under its regular
Deferred Participation Agreement program, inaugurated in 1934.
There was considerable activity during the year in both the BPA
and regular DPA programs.
During the year the Reconstruction Finance Corporation an'
nounced that the maintenance of certain accounting records which
were maintained in its Washington office would be decentralized
to the various loan agencies. The decentralization program provides
for changes in procedure that will result in the loan agencies' assum'
ing also some of the functions that have been performed by the Fed'
eral Reserve Banks.
In addition to servicing certain RFC loans, however, the Federal
Reserve Banks will continue to perform the following functions in
connection with all loans: hold in safekeeping notes, collateral, and
other valuable documents; function schedules of collections transmit'
ting remittances received by the RFC for credit to the Treasurer
of the United States; issue Treasury checks for the account of the
RFC upon receipt of schedules of disbursement executed by author'
ized representatives.
The Federal Reserve Bank also acts as fiscal agent and custodian
for the Commodity Credit Corporation. In this capacity the head
office in Atlanta deals primarily with three field offices of the Cor'
poration: the Cotton Branch at New Orleans, the Atlanta Area
Fiscal Office, and the GFA Peanut Association at Camilla, Georgia.
Beginning with the 1946 Cotton Loan Program, the Birmingham
branch office of the Commodity Credit Corporation was transferred
to the head office in Atlanta.
Because of the wide spread between the market value of cotton,
and the loan rate the Cotton Loan Program of 1946, maturing July
31, 1947, got off to a slow start. The drastic drop in the market
price from approximately 39 cents a pound to around 28 or 29
cents, however, resulted in a steady flow of offerings by producers
in the latter part of December and the first three months of 1947.
Apparently eligible producers held little cotton, and the loan was




C25]

less, therefore, than it had been in any year subsequent to the inauguration of the 1941 program.
The redemption of almost the entire loan was spread over the
first seven months of the year in so orderly a manna: that there was
no need for overtime as there has usually been in the three peak
months. In August the remaining cotton was pooled and forwarded
to the Corporation's regional office at New Orleans, and for the
first time since the inception of the program the Atlanta Custodian
held no notes, bales, or certificates of interest for the account of the
Corporation.
In mid-July, after almost all the cotton held in this bank's custody
had been liquidated, the market price reached a high of 39.35 cents,
which was a half cent above the peak reached in August 1946. The
loan rate for the 1947 program was set by the Commodity Credit
Corporation at 27.94 cents. By October, when the price of cotton
again receded to around 33 cents, this extreme spread between the
loan rate and the market price had, however, been greatly narrowed.
Producers immediately began putting their cotton into the loan.
At times when requests are received in large volume the manpower resources of the Custody Department are taxed to their
utmost in handling them promptly. It can be readily understood
that sharp rises or drops in the market will cause such a situation.
The Bank makes every effort to forward producers' notes for collec­
tion the day they are received, knowing that delays at a time of
widely fluctuating prices can cause considerable dollar loss.
Disbursements were made for the account of the Atlanta Area
Fiscal Office in accordance with instructions received from that
office as set forth on schedules of disbursement. The payment was
made through the usual banking channels on drafts presented to
this bank by other banks.
The disbursements, made on authority of schedules of disbursement, were principally in connection with purchases, loans, and
subsidy payments on flour, wheat, naval stores, and peanuts. Pay­
ments of drafts represented subsidy payments to producers and co­
operative associations on sweet potatoes and Irish potatoes. Pay­
ments on schedules of disbursement, submitted by the Area Fiscal
Office, were of uniform volume throughout the year. Payments of
drafts, however, were very active for the first half of the year,




C26}

tapering off the next three months to almost no activity during the
final quarter.
Collection items are received from the Atlanta Area Fiscal Office.
They are then cleared and credited to the Treasurer of the United
States for account of the Commodity Credit Corporation.
Disbursements are made and receipts are accepted, cleared, and
reported for the account of the GFA Peanut Association, which is
an agency of the Commodity Credit Corporation. The Reserve
Bank is not required to check any documents in connection with
disbursements. The authorization for disbursement must be received
from a commercial bank that has been designated as a fiscal agent
for the Corporation or the Atlanta Area Fiscal Office.
The New Orleans branch also acts as fiscal agent for the Com'
modity Credit Corporation. The greater part of its activities in 1947
were directed toward the distribution of producer's settlement checks
covering equities of producer's collateral for the cotton-loan program
that was begun in 1941 and continued through 1945. More than
1.3 million checks were, issued to producers, under authority of
schedules furnished by the regional office at New Orleans and
were mailed to producers daily.
CURRENCY AND COIN DEPARTMENT
The maintenance of Federal Reserve note circulation and the sup­
plying of member banks' currency and coin requirements are two of
the most important and expensive functions of the Reserve Bank.
For the prewar year of 1940, when this bank's circulation averaged
200 million dollars, the cost of these services was $175,000; for the
year 1946, when net circulation averaged 1.45 billion dollars, it was
$612,000 and was even higher in 1947.
This bank and its. branches received and counted 249,823,000
pieces of currency and 241,216,000 coins in 1947. The correspond'
ing figures for 1946 were 244,773,000 and 213,518,000.
The amount of currency and coin payments to member and non'
member banks in 1947 was $1,096,931,000, and receipts from these
banks were $1,356,995,000. For 1946 the corresponding figures
were $1,070,057,000 and $1,241,540,000.
In each of the two years approximately a third of the total dollar
amount of this bank’s currency and coin receipts from member and




[27]

nonmember banks was in the form of Federal Reserve notes issue*
by other Federal Reserve Banks. Since, under the law, these note
are not available for payment by this bank, they were returned t
the bank of issue or forwarded to Washington for redemption. I
substantial amount of such notes is received by our Jacksonville
branch, which serves the residents of Florida and the large numbe
of tourists from all parts of the country who visit there.
Because of its proximity to Cuba, Porto Rico, and the Cana
Zone, this bank makes shipments of currency and coin to banks ii
those places at the request of commercial banks in the United State
or at the request of the United States Treasurer.
CHECK COLLECTION DEPARTMENT
The Bank considers its check-collection service to member banks oni
of its most important functions because of the numerous benefit
that accrue to those banks making use of it.
During 1947 the Bank and its branches cleared 82,814,000 check
that were used by businesses and individuals to carry on their day
to-day business transactions, against only 48,730,000 in 1941. Ii
addition to the city and country checks, 27,881,000 Govemmen
checks were handled by the department.
DISCOUHT DEPARTMENT
One of the primary functions of a Federal Reserve Bank, undo: tb
act creating the System, is to accommodate the commercial banks o
its district with loans and advances that are secured by appropriate
collateral. The Federal Reserve Bank is therefore a reservoir o
credit in times of need for banks holding acceptable paper.
The head office and the New Orleans branch in 1947 made 32"
advances and discounted 20 customers' notes, accommodating 3!
member banks to the extent of $610,067,296.30. Of that amount
$603,566,500 was secured by Government obligations, $6,200,001
by bills receivable, and $291,145 by collateral not eligible for put
chase or discount; $9,651.30 represented customers' notes redis
counted. The high point of member'bank borrowings was reachei
on November 29,1947, when $27,820,000 was outstanding. At th
end of the year two member banks were indebted to this bank in ;
total amount of $80,000, against two at the end of 1946 in a tota




[283

amount of $550,000. As in 1946, no advances were made to non'
member banks.
On December 31, 1947, the Bank was participating to the extent
of $2,074,600 in Foreign Loans on Gold made by the Federal Reserve
Bank of New York, against $5,187,000 on December 31, 1946.
TREASURY BILLS — OPTION ACCOUNT
An important service rendered to commercial banks by the Federal
Reserve Bank during and immediately after the war was the pur'
chase of United States Treasury bills from the banks, with the sell'
ing banks retaining the option to repurchase them at the price for
which they were sold. In this way commercial banks were enabled
to participate in the financing of the war with a minimum of risk
and inconvenience to themselves.
During the year the head office and the New Orleans branch
made 210 purchases of Treasury bills, totaling $372,969,000. Repur'
chases of bills by the original selling banks totaled $306,904,000.
On October 3 the Treasury bills repurchase-option account was
closed. In 1946 the number of purchases was 315, the amount pur'
chased was $492,890,000; the bills repurchased in 1946 totaled
$315,418,000, and the amount held by this bank under option at the
year’s end was $22,754,000.
13 [b ] LOAN OPERATIONS
In 1947 the Bank executed commitments in favor of two commer'
dal banks for the purpose of acquiring deferred participations
amounting to not more than $427,000 in loans totaling $1,550,000.
It also made five industrial advances in a total of $4,200,000, repre­
sented by participations with one member bank in a large commodity-secured loan.
RESEARCH DEPARTMENT
Another service function of this bank is performed by the Research
Department. It gathers a wide variety of financial and business
statistics and makes economic studies and analyses in the fields of
agriculture, industry, trade, and finance.
In part the statistical data gathered by this department are origi­
nated by the department's own reporting system and in part drawn




[29}

from outside authoritative sources. The information thus gathere
is supplied to the Board of Governors, to the Department of Con
merce, to the Treasury Department, and to the business concert
and banks that cooperate 'with the Bank by regularly returning th
schedules and forms requested of them.
The Research Department issues the Monthly Review, a period
cal that presents for public information not only a great many bus
ness statistics but articles covering extensive research in the ecc
nomic problems of the District. This publication now has a mailin
list of almost 6,000 names and goes to practically every state in th
Union and 22 foreign countries.
Almost every large business today recognises the importance c
maintaining a research staff to provide answers to economic que;
dons as well as current information on business conditions. It i
hoped that the stockholders will consider the research facilities o
this bank as their own and make use of them whenever they ne©
such services. The department maintains a well-stocked researd
library that is at the disposal of all member banks.




[30]

DIRECTORS AND OFFICERS
For the Year 1948
DIRECTORS

C lass A

c ,,,

R. C. W i l l i a m s ............................................................................
President, The First National Bank of Atlanta,
Atlanta, Georgia

1

1948

W . D. C o o k .................................................................................

2

1949

3

1950

1

19J0

2

1948

3

1949

Chairman of the Board, First National Bank in
Meridian, Meridian, Mississippi

G eorge J. W h i t e ......................................................................
President, The First National Bank of Mount Dora,
Mount Dora* Florida

C la ss B
A . B. Fr e e m a n ............................................................................
Chairman of the Board, Louisiana Coca-Cola
Bottling Co., Ltd., New Orleans, Louisiana

J. A. M c C r a r y ............................................................................
Vice President and Treasurer, J. B. McCrary Co., Inc.,
Decatur, Georgia

D onald C o m e r ............................................................................
Chairman of the Board, Avondale Mills,
Birmingham, Alabama

C la ss C
F rank H . N e e ly , C ha irm an .......................................................................1950
President, Rich's, Inc., Atlanta, Georgia

J. F. P ortejr, Deputy C h a irm a n ..................................................................1948
President, Tennessee Burley Tobacco Growers
Association, and Farmer, Columbia, Tennessee

R u fu s C. H a r r i s ............................................................................................ 1949
President, The Tulane University of Louisiana,
New Orleans, Louisiana




[31}

OFFICERS
W . S. M cLarin , Jr .,

President

L. M . C lark
First Vice President

J. R. M cC ravey, Jr .

V. K. Bow m an
Vice President

F. H. M artin
Assistant Vice President

J. E. D enmark
Vice President

I. H. M artin

S.

Assistant Vice President

Assistant Vice President
E. C. R ainey
Assistant Vice President

P. SCHUESSLER
Vice President

H arold T. Patterson

J. H. Bowden

Assistant Vice President

Counsel
W . E. Pike

C. R. C amp

General Auditor

Assistant Vice President

E. L. R auber
Director of Research

Member of Federal Advisory Council
President, J. T. Brown
Capital National Bank in Jackson
Jackson, Mississippi

Industrial Advisory Committee
Jo h n E. Sanford , Chairman
Vice President
Armour 6? Company
Atlanta, Georgia

L uther R andall
President
Randall Brothers, Inc.
Atlanta, Georgia

G eorge W inship
President
Fulton Supply Company
Atlanta, Georgia




I. C . M ilner
President
Gate City Cotton Mills
Atlanta, Georgia

W . W . Fr ench
Chairman of the Board
Moore'Handley Hardware
Company, Inc.
Birmingham, Alabama

[32]

N ew O rleans Bran ch

DIRECTORS

Term
Expires

Joh n J. S h a ffe r , Jr., Chairman................................................................. 1948
Planter, Ellendale, Louisiana

E. O. Ba t s o n ................................................................................................. 1949
President, Batson-McGehee 6? Company, Inc.
Millard, Mississippi

R G. C H A L K L E Y ............................................................................................ 1950
President, Sweet Lake Land and Oil Company, Inc.
Lake Charles, Louisiana

T . G. N i c h o l s o n ............................................................................................ 1948
President, The First National Bank of Jefferson
Parish at Gretna, Gretna, Louisiana

John L e g ie r ....................................................................................................... 1949
President, National American Bank of New Orleans,
New Orleans, Louisiana

W . S. Johnson

............................................................................................ 1949

Executive Vice President, The First National
Bank of McComb City, McComb, Mississippi

T. J. Ed d i n s ...................................................... !

...........................................1950

President, Bank of Slidell, Slidell, Louisiana

OFFICERS
E. P. Paris

W. H. S e w e ll

Vice President and Manager
M . L. S h a w

Cashier
F. C . V asterling

Assistant Cashier

Assistant Manager




L. Y . C h a p m a n

Assistant Cashier

[33]

B ir m i n g h a m B r a n c h

DIRECTORS

Term

Expires

T h ad H o lt, Chairman............................................................................... 1949
Preaident'Treasurer, Voice of Alabama, Inc.
(Radio Station W A P I), Birmingham, Alabama
W

H ow ard S m i t h ................................................................................ 1948
President, McQueen'Smith Farms, Prattville, Alabama

illiam

J. R oy Fa u c b t t ..................................................................................................1950
Faucett Brothers, North port, Alabama

M. B. S p r a g i n s ....................................................................................................... 1948
President, The First National Bank of Huntsville,
Huntsville, Alabama

R. L. A dams......................................................................................... 1949
President, Bank of York, York, Alabama

Jambs G. H a

l l .................................................................................................. 1949
Executive Vice President, The First National Bank
of Birmingham, Birmingham, Alabama

W . C. B o

w m a n .................................................................................................. 1950
President, The First National Bank o f Montgomery,
Montgomery, Alabama

OFFICERS
P. L. T. B eavers

H. J U rq u h a rt
.

Vice President and Manager

H. C. F ra zer
Assistant Manager




Cashier

L. W. S ta rr
Assistant Cashier

C34]

Ja c k s o n v i l l e B r a n c h

DIRECTORS

Term

Expires
C h a r le s S. L ee, Chairman...................................................................1948
Planter, Oviedo, Florida
M a rsh all F. H o w e l l ....................................................................................... 1950
Secretary'Treasurer, Bond'Howell Lumber Company
Jacksonville, Florida

J. S. F a i r c h i l d ................................................................ ..... .................................. 1948
Executive Vice President, The First National Bank
of Winter Garden, Winter Garden, Florida
M a x L o s n e r ......................................................................................................... 1949
President, The First National Bai?k of Homestead,
Homestead, Florida

H. S. M o o d y ............................................................................................................... 1949
Executive Vice President, Manatee River Bank &
Trust Company, Bradenton, Florida

J. W . S h a n d s ..................................................................................................1950
President, The Atlantic National Bank of Jacksonville,
Jacksonville, Florida

OFFICERS
T. A. Lanford
Vice President and Manager

T. C. C lark
Cashier

J. W y ly

C. M ason

Snyder

Assistant Cashier




Ford

Assistant Cashier

[3*3

N a s h v il l e B r a n c h

DIRECTORS
Expira

W . B ra tte n Evans, Chairm an.....................................................................194!
President, Tennessee Enamel Manufacturing Company,
Nashville, Tennessee

H C. M e a c h a m ........................................................................................... 194*
Farmer, Franklin, Tennessee

C. E. B R E H M ........................................................................................................19?<
Acting President, University of Tennessee,
Knoxville, Tennessee

Edward P otter, Jr ...........................................................................................194?
President, Commerce Union Bank,
Nashville, Tennessee

W . G. Bi r d w e l l .................................................................................................. 194S
Cashier, Citizens Bank & Trust Company,
Carthage, Tennessee
........................................................................................................ 194S
President, The First National Bank in Bristol,
Bristol, Tennessee

L. R. Driver

W . H . H i t c h c o c k ............................................................................1950
President, First and Peoples National Bank,
Gallatin, Tennessee

OFFICERS
B. Fort , Jr .
Vice President and Manager

Jo e l




E. R. H arrison
Cashier

E. M oody, Jr .
Assistant Cashier

R obert

£36}

VOLUME REPORTS
AN D
FINANCIAL STATEMENTS




CURRENCY AND COIN OPERATIONS OF THE
FEDERAL RESERVE BANK OF ATLANTA AND BRANCHES
N um ber

of

P ieces R eceived

and

C ounted

for

Currency
1947

Month

Coin

(In *
ThousandsJ
1946
1947

1946

. 249,823

244,773

241,216

213,518

1947

1946,

.

.

and

Pa y m e n t s
by

to

Ba n k s

for

and

M onth

Receipts
fin Thousands)
Month

M onth

21,562
19,872
18,032
15,301
20,130
19,849
19,099
17,487
15,080
16,256
15,626
15,224

TOTAL . . . .

Ba n k s

by

24,178
19,559
20,745
19,442
21,231
19,330
19,749
19,723
19,302
19,901
17,099
20,957

. .
. .
. .
. .
. .
. .
. .
. .
. .
. .
. .
. .

from

1946,

22,827
21,020
23,569
21,660
21,849
17,366
18,499
19,227
18,535
20,138
19,756
20,327

.
.
.
.
.
.
.
.
.
.
.
.

R eceipts

and

22,263
21,384
21,913
24,393
22,119
18,651
19,395
17,062
20,111
20,749
18,936
22,820

January . . . . .
February....................
M a r c h ....................
A p ril................... .....
M a y ................... .....
J u n e................... .
J u ly ....................... .
August . . . . .
September . . . .
October . . . . .
November . . .
.
December . . .
.
.

1947

Payments
(In Thousands)
1946
1947

1947

January . .
February .
March . .
April
. .
May . . . .
June . . . .
July . . . .
August . .
September .
October . .
November .
December .

.
.
.
.

TOTAL

.

.

1946

$147,426
108,996
120,046
112,428
105,231
97,854
104,293
93,629
105,975
114,836
102,256
144,025

$124,372
100,710
111,332
108,062
94,328
83,799
90,778
95,816
95,359
108,093
102,019
126,872

$ 66,012
83,180
81,638
79,715
91,526
78,514
82,312
102,902
121,104
104,844
80,943
124,241

$ 72,590
77,763
84,403
86,351
88,471
77,246
86,387
94,205
86,304
114,647
93,623
108,067

. $1,356,995

$1,241,540

$1,096,931

$1,070,057

. .
. .
. .
. .
. .
. .
. .
. . .
. . .
. . .
. . .
. . .
.




[39]

N u m b er

of

P ieces R eceived

C ou nted

and

1947

for

1946,

and

O ffice

by

Currency
Coin
____________ (In Thousands)____________
Office__________________________ 1947

1946________ 1947

1946

Atlanta
............................
New O rleans........................
Birmingham
........................
Jacksonville............................
N a sh v ille............................

76,210
56,988
29,704
55,188
31,733

74,364
55,081
34,225
50,176
30,927

46,461
104,636
28,364
36,314
25,441

30,876
93,389
33,837
31,503
23,913

T O T A L S ............................

249,823

244,773

241,216

213,518

R eceipts

from

Ba n k s

and

Pa y m e n t s

B a n k s FOR

to

Receipts
Office

1947

Payments
(In Thousands)

1946

1947

Atlanta . . .
New Orleans .
Birmingham . .
Jacksonville . .
Nashville
. .

. ..................$376,996
,
. . .
289,788
, ..................152,856
.
. ..................
401,433
. ..................
135,922

TOTALS

, ..................$1,356,995 $1,241,540
.

.

.

1947 AND 1946,

O ffice

by

$373,602
279,065
121,537
337,740
129,596

1946

$264,418 $261,428
294,852
288,158
156,118
131,380
249,503
253,770
135,321
132,040
$1,096,931 $1,070,057

NUMBER OF CHECKS HANDLED FOR 1947 AND 1946
(In ThousandsJ
Clearings

Country Checks

_____________ 1947

1946

1947

Atlanta . .
Birmingham
Jacksonville
Nashville .
New Orleans

6,391
2,458
2,255
3,739
2,654

13,565
12,866
18,105
9,481
10,394

TO TAL

6,317
2,697
2,100
3,003
3,954

19-46

Treasury

1947 1946

Card Checks

1947

1946

12,029 2,023 3,062 16,447 15,080
11,533
579 958 2,334 2,522
16,911 1,001 1,678 3,553 2,967
8,665
564 964 1,629 1,829
10,542 1,069 1,974 3,917 4,391

_____ Total

1947 1946
38,352
18,476
24,759
14,677
19,334

36,56
17,47
23,81
15,19
19,561

18,071 17,497 64,411 59,680 5,236 8,636 27,880 26,789 115,598 112,602




[40]

VOLUME REPORT OF THE HEAD OFFICE DISCOUNT
DEPARTMENT FOR THE YEAR ENDING DECEMBER 31, 1947
T^umber of Units
Handled
Loans, Rediscounts, and Acceptances:
Bills Discounted:
Applications . . . . . . .
Direct Notes Discounted . . .
Rediscounts.............................

Amount of Units
Handled

292
291
20

$603*251,796.30
603,242,145.00
9,651.30

T O T A L S .................................

311

$603,251,796.30

Industrial Advances:
Advances M a d e........................

5

4,200,000.00

Commitments to Make Industrial
Advances.............................
Bills Purchased in Open Market for
Own A ccount:.............................

2

427,000.00

0

0

Purchases and Sales of U. S. Treasury
Bills — Option Account . . . .

319




[41]

517,473 000.00

UNITED STATES SAVINGS BONDS, SERIES E, ISSUED
IN THE SIXTH FEDERAL RESERVE DISTRICT IN 1947 AND 1946
Office
Issued by

>(umber of Pieces
1946
1947

Maturity Value
1946
1947

31,769
77,183
21,096
3,609
60,456
194,113
727,558
109,026
346,853
120,806
459*106

49,547
85,861
26,878
7,168
86,864
256,318
777,795
456,279
540,386
466,023
814,713

. . . 1,763,349
GRAND TOTAL 1,957,462

3,055,196

$199,948,605

$242,579,465

3,311,514

$209,370,225

$254,035,830

Head Office
Birmingham
Jacksonville
Nashville .
New Orleans
S ubto ta l

. .
. .
. .
. . .
. .
.

.
.
.
.

.

.

Atlanta Zone . .
Birmingham Zone
Jacksonville Zone .
Nashville Zone .
New Orleans Zone

.

S u b tota l




.
.
.

[42]

$ 2,054,020
2,617,150
1,093,950
241,525
3,414,975
$ 9,421,620
78,487,900
13,338,075
48,014,585
13,850,690
46,257,355

$ 2,724,190
2,867,025
1,495,050
429,450
3,940,650
$ 11,456,365
62,238,530
34,926,945
55,378,320
33,557,900
56,477,770

UNITED STATES SAVINGS BONDS, SERIES A-E, REDEEMED
IN THE SIXTH FEDERAL RESERVE DISTRICT IN 1947 AND 1946
Office
Redeemed by
Head Office
Birmingham
Jacksonville
Nashville .
New Orleans
TOTAL

Number of Pieces
1947
1946
. . . 2,520,962
. .
441,593
. . . 1,436,340
364,879
. .
. . . 1,534,260
.

.

.

6,298,034

Maturity Value
1947
1946

2,566,025
1,708,146
2,145,691
1,370,305
2,542,309

$134,219,700
23,916,692
98,981,340
18,492,710
84,926,335

$124,500,130
80,244,655
127,356,265
61,739,030
118,676,550

10,332,476

$360,536,777

$512,516,630

RESERVE POSITION OF SIXTH DISTRICT MEMBER BANKS
(As of December 31, 1947 and 1946)
Total Reserves
(Millions)
1947
1946

State
Alabama
Florida .
Georgia .
Louisiana
Mississippi
Tennessee

.
.
.
.
.
.

. $136.6
.
162.9
.
175.1
151.0
.
27.2
.
118.6
.
DISTRICT . $771.4




Percent State
Percent Total
Reserves to
Reserves to
District Reserves Required Reserves
1946
1946
1947
1947

$129.4
163.8
163.5
142.7
27.0
112.4

17.7
21.1
22.7
19.6
3.5
15.4

17.5
22.2
22.1
19.3
3.7
15.2

114.3
106.9
106.7
109.0
111.9
110.8

111.3
106.0
103.2
110.4
116.4
108.3

$738.8

100.0

100.0

109.3

107.7

[43]

MEMBER BANK GALL REPORT
ASSETS AND LIABILITIES OF MEMBER BANKS ON DECEMBER 31,
1947 COMPARED WITH DECEMBER 31, 1946
(Amounts in thousands of dollarsJ

ASSETS

December 31, 1947 December 31, 1946

..........................
Loans and investments .
Loans (including overdrafts) . . . .
U. S. Government obligations, direct and guaran
.t e e d .....................................................
Obligations of States and political subdivisions
Other bonds, notes, and debentures
Corporate stocks (including Federal Reserve
Bank S t o c k ) ........................................

$4,313,226
1,436,581

$4,277,776
1,206,906

2,479,212
308,198
80,088

2,688,681
292,585
80,538

9,147

Reserves, cash, and bank balances . . . .
Due from own foreign branches..........................
Bank premises owned and furniture and fixtures
Other real estate ow n ed ........................................
Investments and other assets indirectly representing
bank premises or other real estate .
Customers’ liability on acceptances . . . .
Other assets............................................................

1,722,517

9,066
1,634,344

47,728
1,156

44,796
1,179

1,508
4,576
14,637

2,316
4,863
14,304

$6,105,348

$5,979,578

$4,680,686
3,281,850
51,726
585,968
706,091

$4,560,358
3,169,248
106,990
512,154
721,243

55,051
1,075,431

50,723
1,091,098

5,756,117

5,651,456

305
5,422
23,827

625
6,177
22,457

TO TAL ASSETS

LIABILITIES
Demand deposits............................................................
Individuals, partnerships, and corporations .
U. S. G o v e r n m e n t..............................................
States and political subdivisions
. . . .
Banks in U. S. and foreign countries .
Certified and officers' checks, cash letters of
credit, and travelers' checks, etc. .
Time d e p o s i t s ............................................................
Total deposits..............................................
Due to own foreign b r a n c h e s .................................
Bills payable, rediscounts, and other liabilities for
borrowed m o n e y ..............................................
Acceptances outstanding..............................................
Other liabilities............................................................

TO TAL L I A B I L I T I E S ...........................$5,785,671

$5,680,715

CAPITAL ACCOUNTS
C a p i t a l ..................................................................
S u r p lu s ..................................................................
Undivided p r o f i t s ..............................................
Other capital accounts .
Total capital accounts...........................
Total liabilities and capital accounts




[44]

$ 110,202
143,030
45,434
21,011

319,677
$6,105,348

$ 106,434
132,817
40,848
18,764
298,863
$5,979,578

FINANCIAL RESULTS OF OPERATION
1946
Earnings:
Earnings from discounts and advances
$ 95,400.28
Earnings from industrial loans . . . .
Earnings from commitments to make
industrial lo a n s .................................
Earnings from U.S. Securities'System
account ................................................
7,515,277.46
Earnings from other U.S. securities . .
81,907.46
Other earnings......................................
26,133.19
Total current earnings........................
Expenses:
Total operating expenses........................

1947
$

84,408.20
2,033.39
602.06
8,195,218.61
41,743.82
25,205.44

7,718,718.39

8,349,211.52

4,475,900.23
1,833,859.68

4,521,827.30
1,469,443.23

Net operating expenses........................
Assessment for expenses of Board of
Governors...........................................
Cost of Federal Reserve currency . . .

2,642,040.55

3,052,384.07

87,185.02
323,618.16

107,131.64
384,219.11

Total current expenses........................

3,052,843.73

3,543,734.82

Current net earnings.................................

4,665,874.66

4,805,476.70

100,654.09
142,835.45

140,982.89
35,474.81

Net additions to or deductions from
current net earnings.............................

— 42,181.36

105,508.08

Net earnings................................................

$4,623,693.30

$4,910,984.78

Less reimbursable expenses...................

Additions to current net earnings . .
Deductions from current net earnings

. .
. *

Distribution of Net Earnings:
Paid U.S. Treasury (Interest on Federal
Reserve notes outstanding) . . .
Paid U.S. Treasury (Section 13b) . .
Dividends P a id .................................
Transferred to surplus (Section 7) . .
T O T A L ......................................




[45]

$ 411,467,12
4,212,226.18

$4,022,553.50
87.84
441,269.98
447,073.46

$4,623,693.30

$4,910,984.78

-----

COMPARATIVE STATEMENT OF CONDITION
ASSETS

December 31,1946 December 31,1947

Gold Certificates............................
Redemption Fund for Federal
Reserve Notes............................

$1,024,326,255.43

$1,013,769,769.91

46,253,620.00

40,529,185.56

1,070,579,875.43
20,753,099.74
5,737,000.00

1,054,298,955.47

702,577,000.00
38i,352,000.00
18,075,000.00
38,328,000.00

531,611,000.00

Total U. S. Government Securities .

1,140,332,000.00

1,181,355,000.00

Total Loans and Securities .

1,146,069,000.00

1,183,509,600.00

3,884.67
14,290,465.00
168,735,594.89
1,525,831.24
2,641,259.05

3,900.75
16,919,005.00
174,514,529.43
1,559,110.76
6,699,593.65

$2,424,599,010.02

$2,461,255,056.75

Federal Reserve Notes . . . .
$1,449,773,780.00
Deposits:
Member Bank-Reserve Account
748,100,698.48
21,854,730.54
U.S. Treasurer-General Account
Foreign.................................
18,109,411.82
Other......................................
1,813,981.92

$1,397,716,085.00

Total Gold Certificate Reserves
Other C a s h .................................
Discounts and Advances . . . .
U. S. Government Securities:
B i lls ......................................
Certificates............................
N otes......................................
Bonds ......................................

Due From Foreign Banks . . . .
Federal Reserve Notes of Other Banks
Uncollected Ite m s ...................
Bank Prem ises........................
Other A ssets.............................
TOTAL ASSETS .

23,750,361.69
2,154,600.00

396,910,000.00
86,229,000.00
166,605,000.00

LIABILITIES

Total Deposits

.

789,878,822.76

Deferred Availability Items . . .
Other Liabilities............................

156,050,600.56
365,330.55

860,468,102.03
173,035,317.51
618,819.05

TOTAL LIABILITIES

$2,396,068,533.87

$2,431,838,323.59




.

.

789,320,235.94
55,312,188.69
13,489,000.00
2,346,677.40

COMPARATIVE STATEMENT OF CONDITION (Cowt’d)

CAPITAL ACCOUNTS

December 31, 1946 December 31, 1947

Capital Paid I n ............................ $

7,108,800.00

Surplus (Section 7 ) ...................
Surplus (Section 1 3 b )...................
Other Capital Accounts . . . .

18,662,811.86
762,425.68
1,996,438.61

Total Liabilities and Capital
Accounts............................ $2,424,599,010.02
Contingent liability on bills pur'
chased for foreign correspondents




[47]

$248,771.55

$

7,513,750.00
19,109,885.32
762,425.68
2,030,672.16

$2,461,255,056.75

$100,874.24

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