View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

RESERVE BANK/OFIRICHMONu

a

n

a

a

November 1954

MANUFACTURING EMPLOYMENT
DURABLE GOODS INDUSTRIES
FIFTH DISTRICT

Also In This Is s u e
7~\urable goods industries of the Fifth District
have

maintained

the

approximate

growth

shown in the nation, but as the article beginning
on page 3 describes, growth in the electrical equip­
ment industries of the Fifth District has been
greater than in the nation.




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

Fifth District Trend C h a rts____________ Page 2
Constitutional Limitations on
State D e b t ____________________________ Page 5
Fifth District N ew s B r i e f s ______________ Page 6
Side Effects of Treasury Operations—
Important to B a n k s___________________Page 7
Business Conditions and P r o sp ec ts ______Page 9
Fifth District Statistical D a t a __________ Page 11

Federal Reserve Bank of Richmond

F if t h

D is t r ic t

TOTAL CONSTRUCTION CONTRACT AWARDS

T rends
BUILDING PERMITS
(V A LU E)

Owing largely to contraseasonal increases in residential construc­
tion awards and to a filip in public works and utilities awards, the
total rose 13% from August to a level 34% ahead of a year ago;
the nine months’ cumulation is up 8 % . Contrasts are in evidence
in changes relative to a year ago and during the nine months, with
the residential and commercial sectors as the main offsets to losses
in some sectors of the industry.

Adjusted building permits in September were maintained at the
August level, which was 10% higher than August 1953. The ac­
cumulated figure for nine months, however, was 15% smaller than
a year ago. This is in contrast to the trend in building contract
awards, and the difference probably indicates the trend of activity
to surburban areas.

RETAIL FURNITURE STORES NET SALES

COTTON CONSUMPTION

Sales of furniture stores (adjusted) in the late Spring and Sum­
mer had given indication of improving from their low levels early
in the year. September sales, however, declined 11% from August,
after seasonal correction, to the lowest level of the year, but Septem­
ber last year was also the lowest figure for 1953. Credit sales in
September and in the nine months relative to the same periods last
year have held up much better than cash sales. Inventories have
fallen more than sales.

GASOLINE

After rising to the best level of the year in August, cotton con­
sumption in September declined 4 % after seasonal correction, was
4 % smaller than in September 1953, and the first nine months were
7 % below 1953. The August-September drop was probably more of
a statistical quirk than a renewal of a downward trend. Indications
are that business will be moderately good in the last quarter of the
year.

CONSUMPTION

NEW BUSINESS INCORPORATIONS

Despite the business downturn of 1954, formations of new busi­
ness have continued to improve as compared with 1953. In August
the number of corporations formed was 4 % larger than in July and
15% ahead of August 1953; in the first eight months of the year the
gain was 3 % .

The strong upward trend in the consumption of gasoline in the
Fifth District was halted in 1954 and the seasonally adjusted figures
this year show a flat trend. July, the latest figure available, shows
a reduction of 1 % from a year ago and the first seven months of
the year are even with a year ago. Estimated August figures show
a slight improvement over July.




4 2

y

November 1
954

The Durable Goods Industries
capita income in these United States is usually
highest in areas where manufacture of durable goods
is concentrated. W ages and salaries in these areas and
in these industries usually are higher than in areas
where nondurable goods industries are the chief sources
of employment or where industries of either type are
sparse. The following discussion focuses on the progress
of durable goods industries in the Fifth Federal Reserve
District and may throw some light on industrial expan­
sion potentialities, expansion of job opportunities, and
improvement of per capita income.

the latter period the District increase was 2 1% , the
national increase 38% .

Record of Growth

From the available historical record it is clear that
the durable goods industries in the Fifth District have
shown substantial gains though, in the main, their
growth has not equalled the national rate except in the
case of machinery industries. The District story is,
however, incomplete and since 1952 there have been
many important installations, particularly in the electri­
cal equipment field in North Carolina and Virginia.

P

er

Primary metal industries’ “ value added” in the Dis­
trict between 1939 to 1947 rose 132% ; in the nation the
increase was 166%. In the 1947-52 period “ value
added” in primary metal industries in three states of
the District was up 60% compared with 57% nation­
ally. Much the same sort of picture is shown in metal
fabricating industries in both periods: 1939-47, Dis­
trict up 205% , national up 2 5 1 % ; 1947-52, District up
3 6% , national up 4 6% .

Latest available record for all Fifth District states is
the Census of Manufactures for 1947. In that year
the “ value added” by manufacture in durable goods
industries of this Federal Reserve District accounted
for 27.7% of the “ value added” in all manufacturing
industries. This compares with a national proportion
of 47.7% in the same year. Growth in “ value added”
in the durable goods industries, however, was substan­
tial in the Fifth District, with a recorded rise of 202%
between 1939 and 1947. Even so, it was somewhat less
than the national growth of 233% in the same period.

“ Value added” in durable goods manufacturing in­
dustries in the Fifth District did not increase as much
from 1939 to 1947 (2 0 2 % ) as in all industries (2 0 5 % )
in the same period. This was due to the necessary
restraints of the war period. In the 1947-52 period,
however, growth in “ value added” in durable goods
manufacturing (5 1 % ) has far exceeded the increase in
all industries (3 4 % ).

“ Value added” by manufacture is available from the
Survey of Manufactures on eight major industrial
groupings for the year 1952 for the states in the Fifth
District where these industries are important. In the
main, the same tendency was shown between 1947 and
between 1952 as that between 1939 and 1947: the dur­
able goods industries in the Fifth District showed a
rather substantial increase (5 1 % ) in this period, and
it was somewhat less than the national increase (6 5 % )
for the same period and industries. The machinery
industries, both electrical and other, are exceptions.
“ Value added” by manufacture in machinery indus­
tries (excluding electrical) for 1952 is available for the
state of Maryland only, but Maryland is by far the most
important machinery producer in the District. “ Value
added” in machinery industries (excluding electrical)
between 1947 and 1952 rose 107% in Maryland, a far
greater gain than the nation’s 64% in the same period.
“ Value added” in electrical machinery industries is
available for Maryland and W est Virginia. In these
states the increase from 1947 to 1952 was 145%, com­
pared with a national increase of 76% .

Per capita income in the Fifth District has increased
much more rapidly since 1939 than the national total,
and the types of durable goods industries moving into
this area appear to be motivated strongly by market
potentials. This in itself tends to improve the per capita
income level which, in turn, should improve markets
and attract additional industry.
Current Developments
What has happened to the District’s durable goods
industries in the period of moderate recession, late 1953
and during 1954? Only records available on a region­
al basis are those of the various states on employment
by industrial classification. In the Fifth District the
record is fairly complete, though not all inclusive, back
to 1949 (some states do not report all the industries’
employment figures separately).
The employment records show that durable goods
industries in the Fifth District came out of the 1949
recession in August of that year and rose without major
interruption until March of 1953. Between July 1949,
the low point in durable goods employment, and March
1953, the high point thus far, there was a gain of
106,000 workers or 28% . Since March 1953, employ­
ment in durable goods industries in the Fifth District
had declined (to July 1954) by a total of 10% . This
compares with a drop of 16% from peak month of 1948

Lumber and products industries (excluding furni­
ture) in the Fifth District have approximately paralleled
the national growth in “ value added” for these indus­
tries both from 1939 to 1947 and from 1947 to 1952.
“ Value added” in Fifth District furniture and fixtures
industries actually outpaced the nation between 1939
and 1947, but fell considerably behind between 1947
and 1952. In the former period the District gain of
256% compared with one of 230% in the nation. In



3 y

Federal Reserve Bank of Richmond

to the low month of 1949 for four states. Thus, the
1954 recession has been more moderate than that which
occurred from 1948 to 1949. August 1954 showed a
gain over July of 4,200 workers or approximately 1% ,
with the August 1954 level somewhat higher than that
of June 1954. In 1949 when the durable goods indus­
try moved out of recession the August employment level
failed to increase from July as much as July had fallen
from June. It is premature to anticipate that the
August performance heralds the beginning of a revival
in the employment level of these industries though this
may prove to be the case.

February and March of 1950 when the total had drop­
ped to 13,700. From that point up to the high level
of June and July 1952, employment increased 85% to
a total of 25,300. Since July 1952 navy yard employ­
ment has slumped 20% to a July 1954 total of 20,300.
Stone, clay, and glass industries employed 47,600
workers in the District at their low point in July 1949.
They established their peak employment in April and
again in September of 1951 at 55,500 workers. The
average employment level in 1952 was lower than the
average of 1951, and 1953 was in turn lower than 1952.
A declining level of employment continued down
through July 1954 but August recovered slightly over
June.

The manner in which the durable goods industries of
the District have fared in the current recession is of
considerable interest. Unfortunately, available figures
do not permit a comparison with the 1949 performance
since comparable data are unavailable for 1948. The
industries are covered in order of their importance in
“ value added” in the last census.
Primary metals employment reached a low point of
58,400 in August 1949, rose to 67,800 in August 1951,
declined to 42,200 during the steel strike in 1952, and
rose thereafter to a high point of 69,300 in July 1953.
From that date to April 1954 employment declined to
61,600 or 1 1 % ; since April 1954 there has been an in­
crease of 2,200 or nearly 4 % .
The low point in employment in lumber and timber in­
dustries in 1949 was in July when 101,700 were em­
ployed. The level increased fairly steadily until March
1951 when 126,600 were employed. There has been a
more or less continuous decline in employment since
that date to a low figure established at 99,100 in April
1954 or a drop of approximately 21% from the March
1951 peak. The highest employment level of 1953 was
in January when 110,700 were employed. The drop
from January 1953 to April 1954 was a little over 10%.
August 1954 employment was 2% over April.
Transportation equipment industries are confined
largely to Virginia and Maryland and consist mainly of
employment in shipbuilding establishments and aircraft
factories. T w o automobile assembly plants constitute the
bulk of remaining employment. The figures do not
include shipbuilding at the United States Navy Yards
at Norfolk, Virginia and Charleston, South Carolina
which will be covered separately.

Furniture and fixtures employed 42,800 workers at
the low point in 1949. Employment in the industry
rose between that date and March 1951 by 14,400 or
34% . It then declined for about a year to 51,000 in
March and April of 1952 and then rose to a peak of
58,400 in March 1953, a level attained again in August
and September of the same year. The decline from the
1953 high point of 58,400 to 51,500 in July 1954 was
12%, about the same as the 1951-52 decline. August
employment in these industries rose nearly 7% from
July to the best level since March 1954.
Fabricated metal products employment levels which
exclude the District of Columbia and South Carolina
were at their low point of 29,600 in May 1949. There
was a rise to 38,900 in June 1951, some decline until
July 1952 (during the steel strike) and a new rise in
1953, when a peak of 39,400 was reached in February,
March, and again in August. The increase from the low
point in 1949 to the high point in 1953 was 9,800 or
33% . Since August 1953, employment in these indus­
tries has dropped to a low of 35,500 (July 1954) or
10% below the 39,400 peak. August employment rose
6% from July to the best level recorded during 1954.
Machinery industries (excluding electrical) are of
relatively small importance though, as previously noted,
their growth has been more rapid than national experi­
ence. In 1949 this group (four states of the District)
employed 20,700 at their low point in November. The
level increased persistently to February 1952, declined
moderately to October of the same year, and rose to a
high point of 33,000 in March 1953. The increase from
the low point in 1949 to the high point in 1953 was 12,300 or 59% . Since March 1953 there has been a de­
clining trend, and there was no change of trend evident
up to August 1954 when the decline from the high point
amounted to 13%.

Employment in the transportation equipment indus­
tries (excluding navy yards) was at its low point during
the recession year 1949 in December at 35,200 workers.
Between that date and its peak level established in sev­
eral different months (first in June 1952 and again in
April, June, July, and September 1953) employment
vaulted to 71,000. Since September 1953 there has been
a continuous decline through August 1954, the total
amounting to 12,700 or 18%.

Electrical machinery employment figures, represented
only by the state of Maryland, fail to measure the actual
growth that has occurred. In Maryland total employ­
ment by this group at the low point in 1949 was 4,600;
the level moved up steadily until March of 1954 for an
increase of 9,100 or 198%. From March through A u ­
gust of 1954 there was a loss of 1,000 workers or 7 % .

Employment in South Atlantic navy yards (N orfolk
and Charleston) was at its post-W orld W ar II low in



i 4 y

November 1
954

Constitutional Limitations on State Debt
O o m e of the numerous records set by the postwar
O economy have failed to elicit heart-felt cheers.
Take the rise of state indebtedness, for example; finance
officers in many states have been more than a little
concerned by the record rate at which their states have
been borrowing long-term funds. T o a considerable
extent, of course, this was unavoidable. Aside from
financing veterans’ bonuses in a number of states, bor­
rowing had to be resorted to for urgently needed capital
projects— schools, highways, and hospitals. The back­
log of needs accumulated during the war increased
afterward much faster than it could be worked off— and
would probably have done so even though labor and
material restrictions had not prevailed.

with a growth of 178% for all states, W est Virginia
had an increase of 282% , Virginia 383% , Maryland
592% , and North Carolina 689% . Only South Caro­
lina with a relatively meager growth of 89% was under
the national figure.
Despite these hefty increases, it is not generally
argued that the debt in any of the Fifth District states
has reached a level immediately dangerous or detrimen­
tal to credit rating. This is not to suggest, however,
that their debts can continue to increase at such a pace
without causing trouble. In any event, these develop­
ments lead logically to an inquiry as to whether the
states of this District have unusually lax checks or
restrictions on the borrowing authority.

In most major respects, the postwar record of state
financing has been just the reverse of what it was during
W orld W ar II. Then, restrictions on capital projects
and curtailed services in an expanding war economy
resulted in declining state expenditures, increasing
revenues, unusual surpluses, and debt retirement.
Despite the prosperity-inducing-and-induced income
levels of the postwar period, state expenditures have
outrun revenues, war-time surpluses have been drawn
down, and debts have mounted higher than ever before.
Whereas every state in the nation lowered its debt in
fiscal 1945, two-thirds of the states saw their indebted­
ness expand still further in fiscal 1953.

Control by Voters
W est Virginia is unique among the District states in
requiring a constitutional amendment before state debt
may be incurred. Specific exceptions are customary
provisions permitting the legislature to contract debt to
meet casual deficits, for refunding, to suppress insur­
rection, to repel invasion, and to defend the state. A s
has been true of most of the other 19 states requiring
constitutional amendment for borrowing, W est Virginia
has experienced no particular difficulty in securing the
approval of the voters for bond issues. For example,
a series of “ Good Road Amendments” has been ob­
tained authorizing a total of $135 million in bonds since
1920, and an amendment was approved in 1950 author­
izing a $90 million bond issue to pay bonuses to vet­
erans. A n unusual constitutional stipulation requires
that the “ payment of any liability other than that for the
ordinary expenses of the State, shall be equally dis­
tributed over a period of at least 20 years.”
A s in W est Virginia, the constitutions of Virginia
and North Carolina place control over borrowing in the
hands of the voters, but require that control to be
exercised by means of a referendum rather than a con­
stitutional amendment. In Virginia the legislature can
create debt only for casual deficits and the other four
usual exceptions noted in W est Virginia. A unique
provision designed to put teeth into Virginia’s consti­
tutional debt limitations, limits the aggregate debt that
may be created by voters to 1% of the assessed value of
taxable real estate. Other constitutional provisions
require the creation and maintenance of a sinking fund
for every loan made, a statement of the specific purpose
of the debt, and the approval of each debt by a majority
of all the votes cast for or against it.

Perhaps the most significant aspect of the increase
in state debt to record levels is the prospect for much
more of the same. Completion of many a capital pro­
ject seems to be accompanied by a Hydra-like multipli­
ca tio n -tw o new ones where formerly there was but
one. Just recently it was announced by the President’s
advisory committee on a national highway program that
$5 billion should be added to the $6 billion now spent
by Federal, state, and local governments on highways
in order to “ overtake the accumulating obsolescence of
our present system and to meet the needs of population
growth.” In 1953 aggregate state expenditures for
education amounted to $2.7 billion, the largest outlay
by far on any single state function— over three times
the amount spent on highways, for example. And yet,
it is obvious that expenditures by both states and
municipalities for educational purposes will have to be
stepped up, since present facilities are clearly inadequate
for present needs and new and higher peaks in school
enrollment are still ahead.
District Debt Rises Rapidly

Prior to 1936 the borrowing power in North Caro­
lina rested with the General Assembly and was limited
only by the requirement that debt not exceed 7 j^ % of
assessed values. In 1936 an amendment was approved
that shifted the main power of debt creation to the

Postwar increases in state debts have been particularly
large among the states of the Fifth Federal Reserve
District. In fact, only one of the five states had a per­
centage increase in net long-term debt from 1947 to 1953
that was less than the gain for all 48 states. Compared



(Continued on page 12)

{ 5

y

Federal Reserve Bank of Richmond

Fifth District News Briefs
Modernization of existing plant facilities to make pos­
sible improved quality and reduced costs have been
illustrated in capital outlays of manufacturing industries
in the Fifth District over the past month. Expansion
and modernization programs are in progress in a variety
of industries and passing of the Machine Depreciation
A ct by Congress should further stimulate this trend.

The American Gas and Electric Company has
announced plans for the construction of a 225,000 kilowatt steam-electric generating plant
unit, to cost approximately $26,400,000 at Glen
Lyn, Virginia. The new unit will more than
double the generating capacity of the Glen Lyn
plant of Appalachian Electric Power Company,
an operating company in the American Gas and
Electric system.

The W est Virginia Pulp and Paper Com­
pany has announced plans to install a new
Fourdrinier kraft paper-making machine and
other equipment at its Charleston, South Caro­
lina mill. The new machine will permit in­
creased output of linerboard, principal material
used in making corrugated boxes, and kraft
paper and paperboard. Cost of the equipment
and new buildings in which it will be housed
is expected to be between $10 and $15 million.
New facilities are expected to be put into opera­
tion sometime in 1957.

The Rheem Manufacturing Company, Baltimore,
Maryland, has completed a 17,500 sq. ft. addition to
existing facilities. A portion of the new addition is
being used for office space and for a modern cafeteria.
The remainder of the space is used for part of an
assembly line to produce the company’s domestic water
heater tanks. The plant manufactures approximately
10% of the nation’s water heaters.
Recent completion of an ultra-modern weave
room addition marked the high point in a longrange modernization program under way at the
Clinton Cotton Mills, Clinton, South Carolina.
The mill started operations in the late 1890’s
with 5,000 spindles, 200 looms. Today it uses
81,616 spindles and 1,828 looms to produce high
quality print cloths, broadcloths, twills, etc.
The growth of the Clinton Cotton Mills has
closely paralleled that of the Lydia Cotton
Mills, a sister mill also located in Clinton,
South Carolina.

' A $1,500,000 machinery modernization and plant ex­
pansion program is planned for the Harriet Cotton
Mills, Inc., and Henderson Cotton Mills, Inc., Hender­
son, North Carolina. The program includes additional
new machinery as well as improvements of existing
machinery.
Production has been increased by more than
25% at the Champion Brick Company, Balti­
more, Maryland, manufacturer of building brick
and certain special ceramic items used in con­
struction, through improvements to its new
tunnel kiln.

Announcement has been made that Burlington Mills
Corporation will erect a hosiery plant in Macon County,
North Carolina. The plant will involve an ultimate
investment of some $3 million and is expected to be
completed and in operation by next Spring.

The Nestle Company, Inc., is considering a site
near Suffolk, Virginia for a new instant coffee and tea
plant, and has placed an option on a 70-acre tract near
that city. The plant will produce Nestle’s instant
coffee, Nescafe, as well as instant tea. Need for in­
creased production has taxed facilities of the four exist­
ing plants to the limit, and the erection of a fifth plant
is considered necessary to meet demand for the com­
pany’s products.

Hinde & Dauche Paper Company, Sandusky,
Ohio will construct a 160,000 sq. ft. corrugated
box factory in Gastonia, North Carolina. The
new plant will employ 100 to 125 persons and
is expected to be in operation by June 1955.
Precision manufacture of cotton textiles has been
achieved by Mayfair Mills, Arcadia, South Carolina with
completion of its modernization program designed to
meet consumer demand for quality fabric in the new
cotton finishes. The project required installation of
350 carloads of new machinery at a cost of $6 million.

The Kearfott Company of Little Falls, New
Jersey, will build a new electronics plant near
Black Mountain, North Carolina. The plant
will employ approximately 275 persons, with an
annual payroll in excess of $600,000. This new
development illustrates the fact that since 1947
more than $42 million has been invested by the
electrical and electronics industry in more than
40 new plants and expansions in North Carolina.



A t the Lynchburg Foundry Company, Lynch­
burg, Virginia, a new $1,250,000 addition has
been constructed for the manufacture of shellmold castings. Limited production began in
September, with full production scheduled for
November 1.

< 6 y

f/ o

n

M

A

November 1954

/

Side Effects of Treasury Operations—Important to Banks
to fluctuations in the Treasury’s working balance and
pursuing its fiscal and debt management activities,
its transactions in the monetary metals.
the Federal Government through its fiscal arm, the
Treasury, naturally and perennially exerts a potent in­
Treasury Cash Balances
fluence on the general level and direction of economic
In handling the Government’s financial operations
activity. This is not surprising when it is noted that
today— as for some time past— approximately 1/7 th of
the Treasury uses the twelve Federal Reserve Banks
the national output of goods and services is purchased
as fiscal agents, and all Government receipts and ex­
by the Federal Government, more than 1/5 th of the
penditures arising from both regular budget operations
income goes to the Government in form of taxes, and
and debt transactions ultimately pass through one of
an amount equal to 2/5ths of total public and private
these banks. From the standpoint of the commercial
debt is owed by the Federal Government.
banking system, the flow of funds into and out of the
Due both to the sources
Treasury’s accounts at the
from which the Govern­
Reserve Banks is an unset­
ment acquires its vast funds
tling if not potentially dis­
INFLUENCE OF TREASURY OPERATIONS
and the uses to which those
rupting factor. A build-up
ON CHANGES IN BANK RESERVES
funds are put, a heavy im­
of the Treasury’s balance at
pact on the nation’s econ­
the Federal Reserve causes
omy is inevitably exerted.
a decline in member bank
Through all three of its
reserves and disbursements
maj or financial operations
from these accounts add to
— t a x i n g , spending, and
member bank reserves. So
debt management-—the G ov­
long as the flow of funds
ernment either directly or
into the Treasury’s Reserve
indirectly exerts an influ­
Bank accounts r o u g h l y
ence on the level of invest­
coincides with the outflow
ment, on the volume of em­
there is no unsettling effect
ployment, on the types and
on the banking system.
magnitude of commodities
Treasury receipts and ex­
and services produced, and
penditures, however, do not
hence on the distribution of
coincide. Even though they
income itself.
might balance out over the

/

n

I

i

In the financial arena, the
__ __ __ _
-J I 1 1
_J____ 1
____1
____1
T reasury must formulate
J
F M A M J J
A S O
1953
and activate policies which,
by their very nature, are
able to affect materially the
volume of money in circulation. There must be Treas­
ury decisions on whether funds are to be held as cash in
Treasury vaults or as deposits in Federal Reserve Banks
or commercial banks; on buying and selling gold and
silver; and decisions in regard to new borrowing or
redeeming and refunding existing debt. All of these
exercise an influence on the volume of money and par­
ticularly those “ high-powered” dollars, the reserves of
member banks. The Federal Reserve System, in carry­
ing out its assigned task of influencing the volume of
credit— both on the cost side as well as the availability
side— must constantly take into account the potential
effects of Treasury operations on bank reserves and,
of course, the banking system must do so as well.

1

N

D

i

___I 1 I 1
1 _

J

F

M

A

M J
1954

J

A

S

On the expenditure side, many factors operate to
make disbursements uneven throughout the year. For
instance, payments rise steeply when interest and debt
fall due, and payment for most goods purchased by the
Government is required when delivery is made.

The accompanying chart shows the monthly changes
in total member bank reserves during the period since
January 1953 and the share of this change attributable



period of a year, wide
variations occur from quar­
ter to quarter, from month
to month, and even from
day to day. Some taxes
such as withheld income taxes, old-age insurance taxes,
railroad retirement taxes, and most excises are paid
fairly evenly over the year. Corporation taxes and
nonwithheld individual income taxes, which form a
large share of total tax receipts, are, however, paid on
a quarterly basis. Furthermore, the Mills Plan now
concentrates payment of corporation income taxes al­
most entirely in the first half of the calendar year.
Treasury borrowing operations also cause heavy con­
centrations of receipts. Because the Treasury elects to
go into the market infrequently for new money, bor­
rowing usually takes place well in advance of the time
the funds will actually be spent.

1

7

y

Federal Reserve Bank of Richmond

In order to lessen the effect of this uneven flow of
receipts and expenditures on the reserves of commercial
banks, the Treasury maintains what are known as T ax
and Loan Accounts in some 11,000 commercial banks
qualifying as Special Depositaries. A large portion of
total tax collections and proceeds of most borrowing
operations (other than weekly issues of Treasury bills)
are allowed to build up in these Treasury accounts. The
initial effect of taxing or borrowing from the nonbank
public is simply a transfer of deposits in commercial
banks from individuals and businesses to the Treasury.
N o immediate drain on bank reserves occurs.
Funds are transferred from the commercial banks to
the Reserve Banks only in immediate anticipation of
being spent, and the reduction in member bank reserve
balances is, therefore, short-lived. W hen the Treasury
spends these funds and they are deposited with com­
mercial banks, reserve balances are replenished.
N ot all Treasury receipts eligible for T ax and Loan
credit actually flow through the depositary mechanism,
but an impressive proportion does. In calendar 1953,
for instance, about 60% of all receipts from eligible
withheld excise taxes and savings bond sales, and near­
ly all eligible receipts from nonwithheld income taxes,
savings note sales, and new money borrowings were
credited to T a x and Loan Accounts. T ax and Loan A c ­
counts permit banks to maintain a higher volume of
investments, but since these accounts are withdrawable
on very short notice, the funds involved can be invested
only in short-term low-yield assets.
In regulating the flow of funds into its accounts at
the Reserve Banks, the Treasury occasionally, during
periods of heavy tax collections, suspends T ax and Loan
calls and borrows directly from the Federal Reserve
System on short-term Special Certificates of Indebted­
ness. A s these funds are spent, banks gain reserves and
the subsequent tax payments, which are sent directly to
the Federal Reserve, are roughly offset in advance.

for issuing gold certificates to the Federal Reserve in
exchange for a deposit balance. The immediate result
of the gold transaction, in any event, is a net increase
in reserves of the banking system.
The effect of the gold inflow can be offset by any
action that decreases bank reserves in an equal amount.
For instance, should the Treasury elect to rebuild its
balance at “ the Fed” by drawing on its T ax and Loan
Accounts or by selling securities to the public, the effect
of the gold purchase would be neutralized.
Debt Operations
Treasury debt operations react on bank reserves
chiefly as a result of their flow into and out of Treasury
accounts at the Reserve Banks. Their impact depends
largely on how new securities are paid for— whether
credited to T ax and Loan Accounts or paid directly to
the Treasury’s account at the Federal Reserve Banks.
Treasury borrowing is, of course, followed by the
spending of the borrowed funds which may offset the
effects produced by the borrowing operations. Like­
wise where taxes are collected and used to retire debt,
the two may net out. There is, however, frequently
a time lag between the acquisition of funds and their
disbursal, and in this interval pressures on bank re­
serves can develop. Since the effects of Treasury ex­
penditures have already been examined it remains to
consider the effects of debt operations as such.
Sales of securities to nonbank investors or to com­
mercial banks cause an immediate reduction in bank
reserves if payment is made directly to the Treasury’s
account at the Reserve Banks. Payment for the securi­
ties is made by check against an account at a commercial
bank and when this check is cleared, the commercial
bank’s reserve account at the Federal Reserve is charged
and the Treasury’s account is increased. If, however,
payment to the Treasury is allowed in the form of a
credit to its T ax and Loan Accounts, bank reserves are
not reduced until the Treasury transfers its funds from
these accounts to its Federal Reserve account.
W hen the Treasury retires debt held by nonbank in­
vestors or commercial banks, the effects on reserves are
simply the reverse of those described above. Payment
to the holders of the debt is in the form of a Treasury
check drawn against its Federal Reserve account. W hen
such checks are cleared, bank reserves are increased.
The Treasury operations described above are of such
magnitude that their effects on commercial banks, which
constitute the financial heart of the economy, could
cause serious repercussions if not properly anticipated
and checked. T o minimize these effects, the ebb and
flow of funds through the Treasury’s account at the
Federal Reserve Banks is carefully watched and un­
usually large drains are delayed until the return flow
from Treasury expenditures can partially offset the
pressures generated. The Treasury T a x and Loan
Accounts provide a convenient reservoir into which such
pressures can be temporarily released.

Management of Gold and Silver Stocks
Commercial bank reserves are also affected by Treas­
ury actions involving the flow of gold and silver into
and out of the banking system. The Treasury may pur­
chase gold from foreign countries which wish to acquire
dollars or it may buy domestically mined or reclaimed
gold. In general, Treasury policy with regard to gold
transactions is passive— it buys all gold offered by both
foreign and domestic sellers and authorizes sales to for­
eign governments or central banks when they wish to
convert dollars into gold.
W hen the Treasury purchases gold it makes payment
by check on its account at a Federal Reserve Bank. The
seller deposits this check in a commercial bank and when
the check has been cleared the result is a decrease in
the Treasury’s account at the Federal Reserve and an
increase in the commercial bank’s reserve balance.
T o rebuild its balances at the Federal Reserve, the
Treasury may use the newly acquired gold as a basis



- 8 >
{

f& flM
/

jfan & U *
fy

November 1954

Business Conditions and Prospects
the over-all economy of the Fifth District Septem­
ber was not quite as good a month as August. On
the plus side the construction industry built up a faster
pace and moderate further improvement was witnessed
in many lines of manufacturing activity.
Department stores and furniture stores failed to hold
at their August seasonally adjusted level while regis­
trations of new passenger cars and trucks continued to
decline. Bituminous coal output was nearly maintained
at its average daily level in August but was substan­
tially under a year ago. Farm prices improved mod­
erately in the important agricultural states of the Dis­
trict, but the farm income outlook for this half of thd
year is somewhat poorer than last year.
All types of deposits of member banks at the end of
September showed gains over a month earlier and both
loans and investments expanded in the period. Insured
unemployment in the District continued to recede
through October 9 with that week 13% under a month
earlier and 42% under the peak week of 1954. Insured
unemployment, however, was still sharply higher than
a year ago and totaled 121,900 in early October.

/

n

Construction
The building boom moved into still higher territory
in September with a gain over August in seasonally
adjusted contract awards of all types of 13% to a level
34% ahead of a year ago. In the first nine months of
the year, contract awards for all types of building were
8 % higher than a year ago. In the District the changes
in the several types of construction between August and
September, adjusted, are interesting for their contrasts.
Awards for apartments and hotels show a gain of 217% ,
public works and utilities a gain of 56% , and residen­
tial a gain of 22% . Commercial construction was down
23% and factory construction awards down 4 4% . Rela­
tive to a year ago, September residential construction
contract awards were up 80% with one- and two-family
houses up 79% and apartments and hotels up 107%.
Although the September level of apartment and hotel
awards was well above a year ago and the previous
month, it is low by past historical comparison. On the
other hand, the one- and two-family house awards are
not only high in relation to last year and the month
previous, but have only been exceeded twice in the
history of the series. In the nonresidential sector,
awards in September were 23% higher than a year ago,
due largely to a gain of 164% in “ other” types of non­
residential types of construction and to a gain of 4%
in educational awards which more than offset a decline
of 30% in factory awards and 4 % in commercial awards.
In the first nine months of this year, a gain of 34%
in residential contract awards more than offset a decline
of 3% in nonresidential buildings and a decline of 12%
in public works and utilities to raise total construction



{9 y

contract awards for this period 8 % ahead of last year.
Building permits in 33 cities of this District have
acted somewhat differently from construction contract
awards. Although the territory covered is not identical,
the differences in trend probably mean that building
activity is more intense outside of corporate city limits
than inside them.
Trade
Always a key factor in the business outlook is the
prospective consumer demand for goods and services.
On this score, the outlook in September was not too
encouraging. Sales in department stores dropped 4 %
after seasonal correction from August to a level 2%
below a year ago, with the first nine months showing a
drop of 3% from the like period of 1953. The trend
of adjusted department store sales figures has been just
about level during most of the year and the September
figure did not fall below the year’s range. Declines were
witnessed in these adjusted sales in all states of the
District except North Carolina between August and
September. Sales in South Carolina were down 10%,
in the District of Columbia 6 % , Maryland 4 % , V ir­
ginia 3 % , and W est Virginia 2 % . Relative to a year
ago, however, Maryland and the District of Columbia
gained 1% ; other states showed losses ranging from 1%
in North Carolina to 8 % in W est Virginia.
Sales of District furniture stores, seasonally adjusted,
dropped 11% from August to September and were 2%
smaller than in September last year. Nine months’ sales
were down 7% .
Sales of household appliance stores (without seasonal
correction), although down 7% in September from
August, were a snappy 12% ahead of a year ago.
New passenger automobile registrations in August
were 7% under July and 8% under a year ago for all
states of the Fifth District and the District of Columbia.
Three states and the District of Columbia for Septem­
ber showed new passenger car registrations down 1%
from August and 12% under a year ago; but from
August to September, gains were shown in North Caro­
lina ( 5 % ) , W est Virginia ( 5 % ) , and the District of
Columbia ( 6 % ) . These were more than offset by a
reduction of 8% in Virginia. Relative to a year ago,
September registrations in North Carolina were down
20% , W est Virginia down 17% , Virginia down 7 % ,
and the District of Columbia up 13%.
Bituminous Coal
Average daily bituminous coal production for the Dis­
trict was 1% lower in September than in August and
18% under September 1953. For the first nine months,
average daily production was down 16% from last year.
Recent trends in weekly figures, however, give evidence
of a seasonal expansion, the first indication of improve­
ment in this industry thus far this year.

Federal Reserve Bank of Richmond

Manufacturing
A ll states of the Fifth District available for August
show man-hours in manufacturing industries up 4.5%
from July and down 7% from August 1953. Normally
August shows a seasonal rise over July, but the inter­
esting part of the July-August performance this year
was that both durable and nondurable goods rose by ap­
proximately the same amount from July. Relative to A u ­
gust a year ago, man-hours in August 1954 were down
8.5% in durable goods and 7.1% in nondurable goods.
North Carolina, only state available for September,
showed man-hours up 2.3% in all manufacturing in­
dustries from August and 1.6% under September a year
ago. From August to September, durable goods in­
dustries showed man-hours down 0.3% and in non­
durable goods industries up 2.9% . Relative to a year
ago, durable goods were down 2.4% and nondurable
goods down 1.5% . These North Carolina figures in­
dicate that the recovery which started in August carried
through into September with the major emphasis on
the nondurable goods.
The cigarette business in August showed considerable
improvement over July when seasonally adjusted output
rose 6 % to a level 1% ahead of August 1953. In the
first eight months, cigarette output in the District was
down 4 % from the same period last year. Man-hours
in the cigarette industry in North Carolina during Sep­
tember were 0.2% below August but 5.6% ahead of a
year ago.
Cotton consumption in the Fifth District during Sep­
tember was not sustained at the August adjusted level
and dropped 4 % during the month to a level 4 % below
September 1953. Despite the September setback, the
adjusted figures give fairly clear indication of a mod­
erate improvement in the level this Fall; indications are
that October will show further improvement in the con­
sumption level. The North Carolina September manhour figures for textile products showed a rise of 1.2%
from August with no gain in yarn and thread mills, a
gain of 1.7% in broad-woven fabric mills, and a gain of
1.2% in knitting mills.




Further sizeable seasonal gains were witnessed in the
man-hours of North Carolina’s chemical industry, but
man-hours in that state’s apparel industries receded
further in September to a level 12% under a year ago.
Banking
Total deposits of Fifth District member banks rose
$238 million or 3.6% between August 25 and Septem­
ber 29, 1954. Time deposits increased $56 million,
deposits of banks rose $53 million, and other demand
deposits rose $129 million. Total loans and invest­
ments in this period increased $158 million— loans were
up $107 million, Government securities $40 million, and
other securities $11 million. Member bank use of R e­
serve Bank credit dropped $6 million between August
25 and September 29 and their total borrowings were
down $11 million. Seasonally adjusted debits to de­
positors’ demand accounts in reporting banks dropped
3% from August to September but September was 1%
higher than a year ago. In the first nine months of the
year, debits were at the same level as a year ago. Turn­
over of demand deposits in September was at the annual
rate of 20.2 times compared with 19.2 in August and
20.1 in September 1953.
In the weekly reporting banks, business loans appear
to have achieved a belated but more than seasonal ex­
pansion. Real estate loans have shown a sharp trend
up since mid-year. Other loans, largely consumer
loans, have trended slowly upward and are currently
near their all-time high levels. The rise in loans to
manufacturing and mining concerns of a small group of
banks has been quite sharp and is within striking dis­
tance of the all-time peak last Spring. Trade loans are
at a new high level, but loans to commodity dealers have
not shown a normal seasonal rise; and loans to sales
finance companies have been trending downward since
early September. Loans to public utilities are at a
new high level and trending moderately upward. Con­
struction loans have been moving upward, but have not
yet attained the peak reached last year. Loans to other
types of business since the end of August have moved
up quite sharply.

fia n ccci

November 1
954

F if t h

D is t r ic t

STATISTICAL- DATA

F IF T H D IS T R IC T IN D E X E S

B U IL D IN G P E R M IT F IG U R E S

Seasonally Adjusted: 1947-1949 = 100
Chg.—
Latest Mo.

Sept.
1954

%

Sept.
1954

Aug.
1954

New passenger car registra­
............
tion* ...........
Bank debits .............. ................
149
Bituminous coal production*
79
Construction contracts
188
Business failures— number
207
Cigarette production _ _ _ _ _
Cotton spindle hours _ . ...
_
110
Department store sales _____
115
Manufacturing employment* __ ___
Furniture store sales _______
90
Life insurance s a le s _________..... 171
* Not seasonally adjusted.
Back figures available on request.

Sept.
1953

135
153
80
167r
228
105p
115
120
106p
101
170

145
148
96
140
129
103
114
117r
112
92
166

Prev.
Mo.
— 7
— 3
— 1
+13
— 9
+ 6
— 4
— 4
+ 3
— 11
+ 1

Yr.
Ago.
— 8
+ 1
— 18
+34
+ 60
+ 1
— 4
— 2
— 6
— 2
+ 3

Maryland
_
Baltimore _ ._$ 8,086,495
Cumberland _
_
88,926
Frederick
168,500
Hagerstown ._
229,923
Salisbury
61,315

Sept.
1953

9 Months
1954

9 Months
1953

$11,366,890
46,950
80,000
107,350
74,255

$ 49,640,305
570,851
982,906
2,307,769
1,253,651

$ 67,753,480
487,240
1,990,267
1,999,302
923,147

Sales in
Stocks on
September 1954September 30, 1954
compared with compared with
Sept.
Aug.
Sept. 30,Aug. 31,
LINES
1953
1954
1953
1954
Auto supplies _______________
0
+ 9
NA
NA
Electrical go od s____________
0
+15
NA
+ 4
Hardware___________________ + 3
+ 8
NA
— 1
Industrial supplies_________ — 1
+ 7
NA
— 4
+16
—20
—13
Drugs and sundries _____ ____ + 2 2
Dry goods __________________ — 9
+ 4
— 3
0
Groceries ___________________
— 2
+ 3
— 5
+ 3
Paper and its products____
NA
NA
NA
NA
+ 7
NA
NA
Tobacco products___________ + 2
Miscellaneous_______________ — 9
+ 8
+23
0
District T o ta l------------------- + 2
+ 9
— 2
— 1
N A Not Available.
Source: Bureau of the Census, Department of Commerce.

387,638
260,308
4,733,443
62,054
1,106,670
151,600
715,340
1,992,605
896,376
320,300

174,022
340,294
391,689
348,742
1,335,595
115,500
222,940
2,117,148
1,051,441
100,480

2,429,206
1,972,699
8,171,442
2,347,448
11,339,542
1,690,686
5,496,433
25,005,598
8,980,740
1,466,150

3,024,041
3,208,878
3,554,567
1,909,169
13,372,621
1,486,550
6,207,471
15,193,191
13,301,864
1,599,177

West Virginia
Charleston ...
Clarksburg
Huntington .
W H O LESALE TRADE

Virginia
Danville
H o p e w e ll_
_
Lynchburg _
Newport News
N o r fo lk _____
Petersburg ...
Portsmouth ._
_
R ichm ond_ _
Roanoke
Staunton

993,086
68,510
1,069,853

646,105
47,075
531,671

8,208,326
1,705,892
6,235,882

10,633,518
1,980,661
4,966,960

North Carolina
Asheville____
Charlotte
_
D urham _____
Greensboro .
High Point ..._
R a le ig h ___ __
Rocky Mount
Salisbury____
W ils o n ______ _
Winston-Salem

349,542
2,113,324
537,441
1,143,179
314,705
2,155,422
159,176
94,030
291,150
909,396

815,125
1,875,881
503,224
688,351
368,492
634,650
349,155
122,605
103,200
1,325,601

2,881,221
17,223,758
4,750,033
8,616,770
3,727,915
11,553,028
2,321,294
1,547,129
2,313,950
9,457,654

2,814,357
27,174,960
5,048,368
8,141,039
4,069,499
18,419,902
3,566,635
1,708,929
1,623,931
6,831,003

South Carolina
Charleston
_
C o lu m b ia _
Greenville_ __
_
Spartanburg

121,059
725,580
816,090
68,800

762,494
484,805
342,600
93,033

2,432,265
7,465,069
6,084,300
2,150,129

4,613,102
6,756,575
4,538,142
799,295

Sales, Sept. ’54 vs Sept. ’53 — 1
Sales, 9 Mos. ending Sept. 30,
’54 vs 9 Mos. ending Sept.
30, ’5 3 ____________________ — 2
Stocks, Sept. 30, ’54 vs ’53 ..
Outstanding orders,
Sept. 30, ’54 vs ’53

+ 3

+1

— 2

— 1

+

1

— 6

+

5

— 5

0

— 9

— 1

8

31.0

45.1

42.7

Instalment receivables Sept.
1, collected in Sept. ’54 _

11.1

15.0

14.4




—

— 1

Open account receivables Sept.
1, collected in Sept. ’54 _

Sales, Sept. ’54 vs Sept.
’5 3 _____________________ + 1

1

— 4

0

Md.

— 9

+2

Dist.
Totals

+

D.C.

Va.

W .Va.

+1

—3

— 8

37.9
18.5

40.3
14.7

N.C.

S.C.

—1

—3

{ ii

4,460,953

42,865,444

60,825,019

District Totals ..$35,330,798

D E P A R T M E N T ST O R E O P E R A T IO N S
(Figures show percentage changes)
Other
Rich. Balt.
Wash. Cities

Dist. of Columbia
Washington .... 4,138,962

$32,028,316

$265,195,485

$310,522,860

F U R N IT U R E S A L E S *
(Based on Dollar Value)
Percentage change with correspond­
ing period a year ago
STATES
September 1954 9 Mos. 1954
+14
Maryland ...................................— .....— 1
0
Dist. of Columbia ............................
— 4
Virginia .......... ................... ............. .....
— 4
+ 8
— 13
West Virginia .....................................
— 16
North Carolina____________________
— 8
+ 4
South Carolina ....................................
— 8
— 2
District ..
.............................
— 5
+ 3
IN D IVIDU AL CITIES
Baltimore, Md........................................
+ 14
— 1
Washington, D. C................................
0
— 4
Richmond, V a........................................
— 6
+ 4
Charleston, W . V a................................
—23
— 13
* Data from furniture departments of department stores as w
furniture stores.

v

Federal Reserve Bank of Richmond

Constitutional Limitations on State Debt
(Continued from page 5)

between them have almost completely nullified those
provisions.”
Although the Maryland legislature may borrow with­
out limitations on the amount, there are two pertinent
constitutional provisions of importance: one limits the
maximum maturity of loans to 15 years, the shortest
required by any state; the second requires the levy of
a specific tax (in practice a state property tax) to
assure payment of interest and principal.

voters, to be exercised by means of a referendum. The
legislature may, however, borrow for purposes other
than for incidental needs and for violent emergencies.
It may create new debt up to an amount not in excess
of two-thirds of the amount by which the state’s debt
was reduced in the preceding biennium. Beyond that
point, the electorate takes over.
South Carolina and Maryland are the two states in
the District in which the power to create debt is held
by the legislature. Actually, the South Carolina con­
stitution stipulates that any proposed debt must be sub­
mitted to the voters for their consideration, approval
requiring two-thirds of the votes cast. However, as
Professor Ratchford has stated in American State
Debts, “ The legislature and the courts of that state,

F if t h

Comparisons of constitutional provisions governing
state borrowing do not indicate that those of Fifth
District states are particularly lax or less restrictive
than those of most states. Apparently the principal
causes of postwar debt increases are to be found in
economic conditions, wants and desires, rather than in
constitutional provisions.

D ist r ic t B a n k in g

D E B IT S TO D E M A N D D E P O S IT A C C O U N T S*
(000
omitted)
Sept.
Sept.
9 Months
9 Months
1954
1953
1954
1953
Dist. of Columbia
$1,069,023 $10,420,152 $ 9,685,939
W ash in gto n ______ $1,183,935
Maryland
Baltimore _________ 1,363,837
1,386,608
12,812,555
12,730,039
Cumberland______
25,516
24,236
213,755
227,699
F red erick _________
22,456
23,252
201,126
209,732
Hagerstow n______
37,321
38,604
323,552
339,179
Total 4 Cities _ 1,449,130
1,472,700
13,550,988
13,506,649
North Carolina
A sheville__________
68,232
61,075
556,014
551,668
373,774
382,490
3,147,105
3,276,539
Charlotte _____ ___
D u r h a m __________
117,777
168,237
848,692
942,289
Greensboro________
124,947
114,684
1,068,448
1,067,308
High P oin t**_____
44,986
43,488
381,389
NA
Kinston ___________
60,504
58,875
227,764
235,838
Raleigh __ _________
197,351
190,439
1,697,480
1,684,455
W ilm in gton ______
50,907
51,584
422,686
424,377
Wilson ___________
68,398
72,411
223,194
224,128
W in ston -Salem ___
180,207
172,629
1,360,502
1,356,124
Total 9 Cities __ 1,242,097
1,272,424
9,551,885
9,762,726
South Carolina
Charleston ________
73,067
74,371
662,996
705,544
Columbia _________
171,126
154,088
1,484,034
1,428,979
Greenville_________
119,059
110,313
980,880
1,008,185
Sp artan b u rg _____
70,628
74,302
566,462
590,214
Total 4 Cities __
433,880
413,074
3,694,372
3,732,922
Virginia
Charlottesville ____
33,955
30,381
283,070
250,697
Danville___________
57,968
46,366
331,466
339,221
L ynchburg____ _ _ _
51,585
49,594
441,972
436,675
Newport News ___
47,251
47,605
423,332
433,575
Norfolk __________
251,712
260,238
2,282,640
2,303,469
Portsmouth ______
31,860
30,544
288,193
275,412
R ichm ond_________
734,725
692,085
5,470,012
5,527,486
Roanoke __________
117,090
123,716
1,044,342
1,091,543
Total 8 Cities
1,326,146
1,280,529
10,565,027
10,658,078
West Virginia
Bluefield __________
38,613
43,803
345,712
393,968
C h arleston________
149,882
179,359
1,493,415
1,530,869
Clarksburg ________
30,411
32,172
278,978
301,372
Huntington ______
66,656
67,463
611,758
632,598
Parkersburg______
28,558
34,584
268,689
274,916
Total 5 Cities __
314,120
357,381
2,998,552
3,133,723
District Total ______ $5,949,308
$5,865,131 $50,780,976 $50,480,037
*
Interbank and U. S. Government accounts excluded.
**
Not included in District totals.
N A Not Available.




* 12
1

S ta tistic s
50 R E P O R T IN G M E M B E R B A N K S
(000 omitted)

Oct. 13,
1954

Items

Change in amount from
Sept. 15,
Oct. 14,
1954
1953

Total Loans _______ ... ___ ___ $1,489,948**
Bus. & Agric. .. ........... ..............
657,025
290,014
Real Estate Loans
All Other Loans _____ _
_
561,115

+
+
+
+

Total
U.
U.
U.
U.

+ 54,428
— 10,370
— 13,097
+ 63,220
+ 14,845
—
170
— 10,866
— 8,623
+
7,306
+ 35,581
+
86
+ 126,310

+ 159,627
+
3,947
— 172,278
— 8,065
+301,168
+ 34,855
+ 10,084
— 15,221

+131,470

Security Holdings ____ _ 1,926,223
S. Treasury Bills ________
110,638
S. Treasury Certificates _
101,941
S. Treasury Notes ....
353,823
S. Treasury Bonds _
_
1,097,843
Other Bonds, Stocks & Sec. .. 261,978
Cash Items in Process of Col. _
357,360
194,096*
Due from B a n k s________________
86,664
Currency and Coin __ ____ _
Reserve with F. R. Banks ____
529,230
Other Assets ...... .................. ........
63,035
Total Assets _________________ 4,646,556
Total Demand D ep osits________ 3,548,049

48,398
20,617
3,661
24,174

+
+
+
+

93,458
17,355
25,676
52,271

+
4,131
— 11,472
+
4,486
+245,093

Deposits of Individuals_____ 2,551,891
Deposits of U . S. Government
176,345

+

25,575

+ 170,633
+ 34,444

+

72,727

+

72,406

Deposits of State & Local Gov.

185,694

+

5,675

+

22,128

Deposits of Banks ................... .
Certified & Officers’ Checks _

573,721*

+

27,890

+

42,197

60,398

—

397

744,554

1,563
704

+

64,545

+

55,638

+

8,907

Total Time Deposits ___________
Deposits of Individuals _____

659,044

—
—

____

85,510

—

859

Liabilities for Borrowed Money

0

—

6,700

All Other Liabilities ....................

55,913
298,040

+
+

2,236
867

Other Time Deposits

.

Capital Accounts ____________ _

Total L iabilities_____________ !$4,646,556

+ 126,310

* Net figures, reciprocal balances being eliminated.
** Less losses for bad debts.

y

—

542

— 21,000
+ 10,632
+

20,283

+245,093

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