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■

FEDER/yC RESERVE BANK AlF^RICHMOND

September 1
955

FIRST HALF-YEAR CHANGES IN LOANS
MEMBER BANKS
U N IT ED S T A T E S □

AND F IF T H D ISTRICT ■

p

^

i f

Increase

1953

1954

Decrease

T\istrict member banks increased outstanding
I S l o a n s more rapidly in the first six months of
1955 than in any first half-year since 1947. This
development reflects the expanding economic
activity of the banks’ varied customers, from indi­
vidual consumers to giant corporations. District
banking trends and some of their implications are
explored in the article on page 3.




Also In This Issue ■

-

-

Fifth District Trend C h arts___________ Page

2

Rapid Amortization—
A Controversial Is s u e ________________ Page

5

The Broiler Industry __________________ Page

7

Business Conditions and P rosp ects_____ Page

9

Fifth District Statiscal D a ta ____________ Page

11

Federal Reserve Bank of Richmond

F ifth

D ist r ic t

T r en d s
COTTON CONSUMPTION

DEPARTMENT STORE SALES
140

150

150

100

v

w

l/N

u

120

A

125

>

tv /

n

V v

125

r

100

140

120
v T

V “V,

■A ^
vA

100

100

y

80
75

75

80

11

60

(Sea sonally Adju sted)

.
1947

1948

1949

1950

1951

1952

1953

1954

.. .........

(19 47-1949* 0 0)

0

0

1947

1955

1948

1949

1950

1951

1952

1953

1954

1955

With revised seasonal factors, cotton consumption in July declined
1% from June but was 4 % ahead of July 1954. In the first seven
months of the year cotton consumption in the District was 7%
higher than a year ago.

Department store sales in the Fifth District established an all
time seasonally adjusted high level in July (seasonal factors re­
vised). They were 10% higher than in June, 13% ahead of July
1954, and for the first seven months of the year were up 8% .

CONSTRUCTION CONTRACT AWARDS
400

60

(Set sonotty Adjurated)

(19 *7 -1949 »1 DO)

BITUMINOUS COAL PRODUCTION
400

150

150

120

120

300

( V ^ A >

90
200

90

60

60

100
30

30
(Average Daily)

0
1948

1949

1950

1952

1953

(1947-1949-100)

0

1954

1947

The general trend of contract awards for residential construction
in the Fifth District has been downward since February, but owing
to a sharp increase in awards for apartments and hotels, the July
residential awards rose 15% after seasonal correction from June, to
a level 23% ahead of a year ago. In the first seven months of the
year residential awards were up 46% from last year.

VALUE OF G I HOME LOANS
.
Thousands of Dollars

1948

1949

1950

1951

1952

1953

1954

1955

After receding moderately in June from May, average daily
bituminous coal production in the Fifth District in July rose 10%
over the June level, back approximately to the level established in
May. July output was 39% ahead of July last year, and the first
seven months of the year showed a gain of 27% .

RETAIL FURNITURE STORES NET SALES
Thousands of Dollars

150

150

1

125

100

A V vArA I JV%V A J
fA
J
LH
ay
vv fyr

125

I0Q

v v

75

75
( Seasonally Adjusted )
(1947-1949* 100)

1947

•Prior to Septem 1953,’approved’ loons, thereafter 'ck
ber

The value of GI home loans closed during June in the Fifth Dis­
trict was 9% higher than in May, 77% higher than in June 1954,
and the first half year 103% above last year. Closed loans were made
on higher valued properties this year than last year, since the num­
ber of loans closed in the first half rose only 84% from that period
in 1954.




1948

1949

1950

1951

1952

1953

1954

1955

Retail furniture stores of the Fifth District established a new
high level in sales during July on a seasonally adjusted basis.
July
sales were 14% higher than in June, 21% higher than in July 1954,
and the first seven months of the year were up 13% .

i

2

V

September 1
955

$ S v£ W L
i

Fifth District Banking The First Half Record
demand undoubtedly takes the spotlight in the
current panorama of banking developments. From
the point of view of the banker, changes in loan demand
mean changes in earnings. From the point of view
of the public, changes in loan demand reflect changes in
economic activity. The reactions of lenders to changes
in the over-all demand for funds reflect the ease or
tightness which fosters or restrains the business antici­
pations which caused the change in demand. Changes
in lending volume, therefore, provide an important piece
in today’s economic jigsaw.
The demand for bank credit has a special significance
in 1955 since the economic tempo has been accelerating
from August 1954 onward. Complete recovery from
1953-54’s moderate recession was apparent by the end
of the first quarter of 1955. Loan demand, normally
slack at this time of year, remained strong. And since
April, new records have been set by all the principal
economic indicators: Industrial production by June had
reached 139% of its 1947-49 average— two points above
the highest level ever before achieved. Total output
of the economy (G N P ) reached an annual rate of $385
billion in the second quarter of 1955— the highest on
record. Meanwhile member bank loans, nationally,
reached a record smashing level of $65.3 billion by the
end of June.

L

oan

District Loan Demand High in First Half

Commercial and Industrial Loans
Run a Close Second
Loans to commercial and industrial firms through
June of this year exceeded repayments made by such
firms by $47 m illion; in the 1954 period, repayments
exceeded new loans by $41 million. The total out­
standing increased by 5.2% this year. In the first
half of last year, the amount outstanding declined by
5.0% . According to weekly reports of sixteen of the
District’s banks, wholesale and retail merchants, sales
finance companies, and construction firms were the prin­
cipal borrowers of new money in the first six months of
1955. These classes of firms did little new borrowing
in the 1954 period, most of them actually reducing their
bank loans. Manufacturing and mining firms moderately
increased their new borrowing this year in contrast to
fairly heavy loan repayments in the first half of 1954.
Borrowings Against Real Estate Continue
to Show Strength
Bank loans secured by real estate, in contrast to both
consumer and commercial and industrial loans, moved
upward with moderate strength in both 1954 and 1955.
Loans secured by business properties showed the largest
dollar and percentage increases this year, whereas those
secured by residential properties made the largest dol­
lar gains in the first half of 1954. The increase in
loans on residential properties this year, however, al-

Member banks in the Fifth District, in response to
customer needs, increased their total loans by $203 mil­
lion— by 7.6% — over the first six months of 1955.
In the same period last year these loans rose by only
$20 million— or less than 1% . The cover chart shows
the percentage increases in total loans at member banks
in the Fifth District and in the United States as a whole
from 1950 through 1955. Actually, 1955’s loan in­
crease, both nationally and in the District, is the largest
percentage rise in any first six months since 1947.

E A R N IN G S A N D E X P E N S E S
Fifth District Member Banks
(Dollars in thousands)

Consumer Credit Leads
Consumer borrowing, sparked by optimism and ris­
ing levels of personal income, not to mention the sales
pressures generated in a very competitive economy, led
the rapid rise in District bank loans. New borrowing
by individuals for the purchase of consumer goods or
for repayment of debts incurred in such purchases ex­
ceeded repayments on previously contracted debt by
$53 million; thus, the amount of such borrowing out­
standing rose by 11.8% over the six months’ period.
Last year, total consumer credit at District member
banks declined by 0.4% .
Instalment credit for the purchase of automobiles was
by far the largest contributor to the consumer credit
increase, both in dollar amount and in percentage rise.
This type of credit outstanding rose by $41 million, or



20.6% . In sharp contrast, automobile credit declined
by 2.2% in the first six months of 1954.
Loans for repair and modernization of homes was
the only class of consumer credit to decline over the
first half of 1955. Repayments on such credit exceeded
new loans extended by $400,000 and the total outstand­
ing at the member banks declined by 0.7% .

Earnings
Interest and dividends on U . S.
_ _
_
Government obligations _
Interest and discounts on loans _
All other earnings .
Total
earnings
from
current
operations ______ _____ ______
Expenses
Total current operating expenses

First Half
1955

First Half
1954

%
Change

26,296
69,630
24,382

25,122
60,277
22,023

+ 4.7
+ 15.5
+ 10.7

120,308

107,422

+ 12.0

65,549

+ 11.9

46,971

41,874

+ 12.2

4,327

11,920

6,711

6,105

Profits before income taxes
Taxes on net income ____________

44,587
20,827

47,689
22,837

— 6.5
— 8.8

Net profits ----------------------- ----------Cash dividends declared __________

23,760
8,631

24,852
7,655

— 4.4
+ 12.7

Net profits after dividends ____

i 3y

73,337

Net current e a rn in g s....................
Recoveries, transfers from re­
serves, and profits ______ _ .
Losses, charge-offs, and trans­
fers to valuation reserves --------

15,129

17,197

— 12.0

— 63.7
+

9.9

Federal Reserve Bank of Richmond

though smaller in amount than the increase in loans on
business properties, was still above 1954’s increase in
residential loans.

E A R N IN G ASSETS
Fifth District Member Banks
(Dollars in millions)
June 30
1955p

The Strong Loan Demand Is Reflected in Earnings

Loans and investments _
Loans and discounts:
Commercial and indus­
trial loans __ _ _ __
Loans to farmers
Loans to brokers and
dealers in securities
Other loans for pur­
chasing or carrying
securities __________
Real estate loans:
On farm land . . ..
On residential prop­
erty ______________
On other properties
Other loans to indi­
viduals :
Retail automobile in­
stalment paper __
Other retail instal­
ment paper ______
Repair and modern­
ization instalment
loans _____________
Instalment cash loans
Single-payment loans _
Loans to banks
All other loans ............
Loans— gross _
_
Reserves __ __________
Loans— net ___________
U. S. Government securi­
ties ____ ..
Treasury bills _______
Treasury certificates of
indebtedness ..............
Treasury notes __ ____
U. S. nonmarketable
bonds __________ . Other U. S. Bonds—
5 years or less ____
Other U. S. Bonds—over 5 years ________
Other securities1 ..............

The accompanying tables depict the earnings ex­
perience of District member banks for the first six
months’ operations. They also show in detail the
changes in earning assets and other balance sheet items
over the period. It is immediately clear from the figures
that the strong demand for bank loans by the District’s
businessmen, farmers, and consumers was principally
responsible for the 12% increase in gross income. Mem­
ber bank loans provided them with $9.4 million more
in income in the first half of 1955 than in the same
period of 1954— a 15.5% increase in income from this
source. Currently, 58% of member bank gross income
is com ing from loans and discounts and 22% is derived
from Government securities.
In spite of the larger gross income in 1955, net
profits after taxes were 4.4% less than for the first six
months of 1954. The principal difference is found in
profits from the sale of securities. In 1954, such profits,
together with recoveries and transfers from reserves,
contributed almost $12 million to the banks. In 1955,
this source of funds brought only $4 million. Thus,
although operating expenses increased by less than gross
income and tax payments were 8.8% under the 1954
period, net profits after taxes fell below last year’s by
a modest $1 million.

p Preliminary, r Revised

June 30
1954r

5,808.3

5,367.5

961.3
92.9
34.8

% Change
First Half First Half
1955
1954
—

0.1

— 1.2

786.1
113.3

+
+

5.2
15.4

— 5.0
+ 2 8 .8

20.9

+

16.8

—21.1

91.0

88.8

—

9.2

+

1.8

58.1

53.4

+

6.8

+

5.5

501.1
196.8

442.1
166.9

+
+

3.3
14.4

+
+

3.0
4.7

237.6

181.6

+

20.6

— 2.2

80.1

73.2

+

5.4

— 7.1

53.2
134.8
329.6
13.8
92.0
2,877.0
34.0
2,842.9

50.5
113.0
295.2
7.2
67.0
2,459.1
29.0
2,430.1

— 0.7
+
7.1
+
7.4
+ 193.6
+ 24.7
+
7.6
+
3.0
+
7.6

+ 2.6
+ 6.4
+ 5.1
+ 22.0
+ 3.7
+ 0.8
+ 4.7
+ 0.8

2,461.5
100.0

2,472.5
160.0

— 7.7
— 44.1

— 4.0
— 36.4

32.1
610.8

228.7
464.8

— 79.6
+ 11.3

—44.1
— 4.0

139.5

140.3

—

+

409.3

565.6

— 18.5

1,169.7
503.9

913.2
464.8

+
—

3.8

2.9
0.1

0.1

—24.4
+ 68.9
+ 4.2

1 Includes U. S. guaranteed obligations.

ASSETS A N D L IA B IL IT IE S
Fifth District Member Banks by States
June 30, 1955p
(Dollars in millions)
Md.

ASSETS
Loans and investments — .............. — Loans and discounts (including over­
drafts ) --------------------------------------------U . S. Government obligations ------ Other securities ......................... ...... _
Reserves, cash, and bank balances —
Reserve with Federal Reserve Bank —
Cash in vault
Balances with banks .... ----- -------- -------Cash items in process of collection .—
Other assets ............... - - - ------------- ----Total Assets ................... ..............
LIABILITIES
Demand deposits ..............................................
Individuals, partnerships, and cor­
porations
............................................
U . S. Government —
- - _ — .........
States and political subdivisions _
Banks ---------------------------------------------------Certified and officers’ checks, e t c .------Time deposits — ------------- -------------- - Individuals, partnerships, and cor­
porations
. --------------------U. S. Government and postal savings
States and political subdivisions -----Banks __________________________________
Total deposits ------ -------------------------- ------Other liabilities ---------- _
--------Total Liabilities
— — ~ -Total Capital Accounts --------------------Total Liabilities and Capital Ac­
counts ---------------------------------------------Demand deposits adjusted ----------------------Number of banks --------------------- --------------p Preliminary.

r Revised.




D. C.

Va.

W . Va.

N . C.

S.

c.

Fifth District
June 30, 1955 June 30,195-(

1,090.8

993.5

1,747.3

619.8

931.4

425.5

5,808.3

5,367.5

481.7
506.9
102.2
320.0
165.7
28.3
53.4
72.6
21.2
1,432.0

477.5
445.8
70.2
294.5
166.2
21.6
44.1
62.7
23.2
1,311.3

913.5
677.6
156.1
475.8
193.0
46.6
114.7
121.4
34.1
2,257.1

249.5
323.3
47.0
176.7
70.9
20.6
61.5
23.7
9.9
806.5

527.4
319.2
84.8
321.4
108.0
22.7
72.2
118.5
17.5
1,270.3

193.4
190.3
41.8
133.4
41.8
15.7
46.1
29.8
6.9
565.8

2,842.9
2,463.2
502.2
1,721.9
745.7
155.5
392.0
428.7
112.8
7,643.0

2,430.1
2,474.2
463.1
1,720.3
775.1
151.2
413.5
380.5
103.2
7,191.0

1,010.0

947.8

1,338.2

527.9

934.4

448.6

5,206.9

4,942.8

747.2
51.9
121.7
81.7
7.5
309.7

827.6
32.6
.1
63.4
24.1
269.2

1,019.8
47.8
96.1
148.4
26.0
724.7

402.7
16.3
61.8
36.5
10.5
200.0

656.4
36.4
80.6
133.1
27.9
215.5

342.5
17.9
62.0
14.1
12.1
74.5

3,996.1
203.0
422.4
477.3
108.1
1,793.7

3,757.4
209.5
411.9
473.8
90.1
1,664.1

293.4
8.2
8.1

___

232.7
18.7

197.6
1.9
.2
.3
727.9
5.1
3.6
736.6
69.9

157.3
6.6
50.0
1.6
1,149.9
3.5
20.9
1,174.3
96.0

68.4
5.2
.6
.3
523.1
4.3
527.4
38.5

1,596.6
60.4
115.8
20.8
7,000.5
14.3
64.1
7,079.0
564.1

1,480.1
58.6
105.0
20.4
6,606.9
4.6
55.4
6,666.9
524.1

806.5
451.4
99

1,270.3
646.4
54

565.8
386.8
35

7,643.0
4,097.9
477

7,191.0
3,879.0
480

1,319.7
.6
8.1
1,328.4
103.6

10.4
1,227.4
83.9

647.3
19.8
57.0
.7
2,062.9
5.1
16.9
2,084.9
172.2

1,432.0
803.8
70

1,311.3
789.1
13

2,257.1
1,020.4
206

17.8
1,217.0

Note: May not add to totals because of rounding.

i 4 y

/ fo n tffy ffaxauL____________________________________________________________September 1955

Rapid Amortization— Controversial Issue
A
important this time inasmuch as direct Federal invest­
ment dominated the facilities expansion plan of W orld
W ar II and accounted for three-fourths of the total
expansion of manufacturing plant. In view of the
existence of many Government-owned facilities built
during W orld W ar II and considering the relatively
limited nature of the Korean W ar, emphasis was put
this time on persuading private industry to assume the
task of expanding productive facilities. Whereas rapid
amortization in W orld W ar II involved certification of
$7.3 billion of private investment, certificates for over
$31 billion have been granted to (kite /through July
1955) under the program adopted i ^ t n ^ i a r e a n W ar.

“ 19 Killed, 38 Held U p ” was the headline used by
one of the nation’s leading business newspapers to re­
port the curtailment by the Office of Defense Moblization of the rapid amortization program for stimulating
private investment in defense-related production facili­
ties. This lurid lead referred to O D M ’s recent action
in ending rapid tax write-offs in 19 industries and sus­
pending them in 38 others.
O D M ’s decision was designed to permit review of
national industrial moblization capacity. After specific
review of each of the 38 suspended “ defense production
expansion goals,” O D M will open or close them per­
manently depending on individual disclosures. The 19
expansion goals closed had already been reviewed, and
the results of the study indicated sufficient facilities or
capacity to meet defense needs in these categories.
In view of strong industry criticism of this move and
to allay fears that the entire rapid amortization program
would be abolished, O D M
announced that the Govern­
ment had every intention of
continuing the inducements
for industrial expansion but
that the program wrould be
on a much smaller scale. It
was stated that certificates of
necessity permitting rapid
amortization would continue
to be granted to expand facil­
ities directly connected wit
defense and atomic enen
k
that the survey would
programs. It was a ^ ^ n d icl
industries eligible
find at least 20^derense-suppoi
for this form
c aid.

Maryland Expansion Leads^

A s shown in the first tj
on the following pa!ge,
private industry in
^fland received the largest
ecessity granted in the Fifth
amount of certifica
District. The diversity of the
Maryland economy is re­
flected in hte range of indus­
tries receiving some of the
largest certificates for rapid
amortization: ordnance, elec­
tric power, iron and steel,
m a r i n e terminal facilities,
petroleum refining, and glass.
Grants to p u b l i c utilities
were particularly important
in the other states of the Dis­
trict, although chemical com­
panies in W est Virginia and Virginia accounted for
some of the largest awards in those states.
The second table shows that public utilities have ac­
counted for over 40% of the total amount of certificates
awarded to Fifth District industry for projects costing
$1 million or more. The relative unimportance of
heavy industries in the Fifth District is reflected in the
comparatively small amount of certificates awarded to
manufacturing companies. In the aggregate, certifi­
cates received by Fifth District industry ranged from
only 1.7% of the United States total in 1954 to 7.4%
in the first seven months of this year. This last fairly
large share came chiefly from unusually heavy awards
to railroads; and much of it is credited to this District
although the projects may be partly or completely out­
side the District.

ExpandineJprivate Investment
W hen the Korean W ar broke out, 'tlie r^ w a s the
immediaMproblem of expanding as rapidly as possible
the nati< m's facilities for military production. In order
to persnaxie private industry to undertake as much of
this expansion as possible it was deemed necessary to
offer protection against the risks associated with in­
vestment in capacity that might not be required after
the, emergency period.
le answer was found, as in W orld W ars I and II,
vM . form of tax saving to industry. Specifically, the
lerice adopted for the purpose of stimulating private
lm^estment in defense-production plant during the
Korean W ar was rapid amortization of the cost of such
facilities— permitting industry to write off a certain
percentage (the average has been 6 0 % ) of the cost in
a much shorter period than permitted by the regular
provision for depreciation for tax purposes.
The program was broadly similar to that in operation
during W orld W ar II— a program in one sense, more



cth District

Tax Reduction
Industry is understandably eager for the privilege of
accelerated amortization because it permits recovery of
the investment in defense-production facilities during
the early years of the life of the assets. The tax deduc­
tion for capital consumption is concentrated in the first
five years instead of being spread over the useful life
< 5 1*
1

Federal Reserve Bank of Richmond

of the plant and equipment. The total allowance for
depreciation is, of course, not increased and the total
tax reduction for the “ using up” of fixed assets is there­
fore no greater than it would be if the cost were
amortized over the life of the asset. After the five-year

from the accelerated amortization will have been re­
ceived when tax rates were at their highest.
A Useful “ Gimmick”
Although the “ crash” defense program initiated in
connection with the Korean W ar has been substantially
completed, private industry opposes abolishment of the
accelerated amortization program. It feels that the
program has proved its right to become a permanent
fixture in the economy. It points out the record-break­
ing increase in plant and equipment outlays since 1951
and holds that continued growth of our “ guns and but­
ter” economy will require the aid afforded by rapid tax
amortization.

C E R T IF IC A T E S OF N E C E SSIT Y G R AN TED
(projects of $1 million and over)*
1951
Md. ______
D. C. ____
Va. ______
W . Va.
N. C.
S. C. _____
Total, $1
million &
over
Total, all
projects
% of U. S.

1952

1953

1954

7 mos.
1955

$ 44.1
9.0
102.1
44.8
13.9
10.7

$121.6

$ 74.8

$ 58.7

$ 15.0

58.3
145.8
45.5
42.6

90.4
23.2
28.5
22.7

12.1
1.1

6.9
5.2
17.8
1.1

$ 314.2
9.0
269.9
218.9
106.8
77.0

$224.5

$413.9

$239.5

$ 71.9

$ 46.0

$ 995.9

Total

The typical point of view of industry was recently
advanced by a spokesman for the railroad industry in
an appearance before a House Government Operations
subcommittee. W hile calling the rapid amortization
provision a “ gimmick,” Dr. C. R. Cherington of the
Harvard Graduate School of Business nonetheless stated
that “ repeal of the accelerated amortization provision
would constitute a serious setback to the railroad indus­
try and the defense economy as a whole.”

$384.2
$683.3
$345.6
$112.5
$103.1
$1,628.6
7.4%
5.3%
7.2%
4.6«
1.7%
4.1%

♦Excludes railroad cars and other mobile transportation equipment.
Source: DPA and ODM releases.

period, the company no longer may take a tax deduc­
tion for continued wear and tear of the certified portion
of the particular asset.
Acceleration of the recovery of an investment in
emergency facilities favors the business firm in provid­
ing it with funds in a much earlier and shorter period
of time than would be the case under normal deprecia­
tion. The advantage in receiving funds in the present
and near future as compared to receiving them at a
more distant time does not need to be labored. It
should be clear also that accelerated amortization lessens
the risk of not recovering the full amount of the in­
vestment.

“An Artificial Stimulus of a Dangerous Type”
The other side of the story was presented to the same
subcommittee by the Secretary of the Treasury. Adm it­
ting that rapid amortization was of “ real assistance in
expediting preparation for the war,” Mr. Humphrey
went on to argue that it is “ an artificial stimulus of a

C E R T IF IC A T E S OF N E C E S S IT Y G R A N T E D —
F IF T H D IS T R IC T
(projects of $1 million and over ; 000,000 omitted)*

Some such provision for tax reduction during the
early years of emergency projects appears necessary to
persuade, or better, to enable industry to invest in
special-purpose facilities whose income-producing abili­
ty might disappear completely or be severely curtailed
at the conclusion of the emergency period. If, as is
generally the case, the company owning such facilities
has other income-producing operations, it could con­
tinue to recover the cost of its defense-related facilities
after they ceased to produce income by deducting
normal depreciation charges from the income realized
from other operations. Obviously this involves greater
risk than recovery under rapid amortization, and it
loses, of course, the advantage of an early receipt of
funds from the accelerated tax deductions.

1951.

$193.2
75.0

$127.1
37.8

3.2
7.6
21.1
2.2

102.2
12.5
10.3
5.3

28.1
23.1
14.3
1.2

5.6
4.5
1.5

7 mos.
1955

3.0

2.3

Primary Metal Prodducts _______________
Storage Facilities ___
Electronic Equipment
Glass Products ______
Paper and Paper Prod-

1.7

1954

Total

$17.8

$412.7
201.4

1.1
27.1

136.7
74.3
45.6
42.4

$32.3
2.0
4.1
33.6

35.7
21.3
13.1

Fabricated Metal Prod4.0
3.9
3.2

3.9
3.2
Lumber

and

Wood
1.6

Total

_________________

$224.5

$413.9

1.6
$239.5

$71.9

$46.0

$995.9

♦Excludes railroad cars and other mobile transportation equipment.
Source: Defense Production Administration and Office of Defense
Mobilization releases.
Note: 1950 data for District states not available.

Another advantage to the firm certified for rapid
amortization is that it is able to finance more of its
capital outlays from internal funds than would other­
wise be the case. Finally, there is the possible ad­
vantage that profits taxes will be lowered or abolished
(as was the excess profits tax) after the emergency
period and that, therefore, the tax deductions arising



$ 74.5
56.3

____

1953

30.1
16.8
8.7

Public Utilities

1952

dangerous type. Its indefinite continuance involves the
very real danger that interests receiving the benefits of
it come to rely upon it to the detriment of others who
(Continued on page 12)

i

6

V

September 1955

Growth and Prospects in . . .

The Broiler Industry
From 1945 to 1949 broiler output continued to in­
broiler production has come to be big
crease though somewhat less rapidly. The national rate
business in the Fifth Federal Reserve District. Last
of gain was only slightly larger than in this five-state
year when national production of broilers passed the
area, and so the District’s share of the country’s broiler
billion mark, one broiler out of every five was raised
output averaged some 26% .
by Fifth District farmers. From a relatively unim­
portant agricultural enterprise two decades ago, it now
During the next five years, 1950-54, District poultry
occupies a significant spot in the District’s economy.
farmers increased their production to an average 184.5
Though there are fewer than 20,000 specialized poul­
million and 1954’s total climbed to 215.5 million.
try farms in this five-state area (1950 Census of A gri­
Though the uptrend in broiler numbers continued, the
culture) and some of these are turkey and egg special­
national rate of production was tuned to a more ac­
ists, slightly more than one-fifth of all farmers sell
celerated pace. R esu lt: the District’s poultry enter­
chickens. Am ong the nation’s 100 leading counties in
prise lost ground to other Southern states, and its share
the number and value of
of total commercial broiler
chickens sold, 18 are located
production dropped to 20%
in the commercial broiler
by 1954 and averaged 21%
BROILER PRODUCTION
areas of the District, and 16
for the five -year period.
PER CENT OF UNITED STATES TOTAL
of these 18 counties rank
Maryland, ranked second in
within the top 50 in the
the nation for the ten years,
country in the actual num­
1940-49, fell to third place
ber of chickens sold.
in 1950 and in 1954 was
sixth. Virginia, second or
Because of the rapid ex­
third from 1934 through
pansion of broiler produc­
1943, was in the number
tion since 1950— both in the
five spot in 1954. Georgia
District and elsewhere in
took over first place in 1951
the nation— the Census data
and has remained in that
may overlook some current­
Fifth District Maryland
Virginia
West Virginia
North Carolina South Carolina
position, replacing Delaware
ly intensive producing areas.
Source: U S. Deportm of Agriculture.
.
ent
which was number one from
Even so, the importance of
1934 through 1950. Arkan­
this enterprise is empha­
sas has been the second largest broiler-producing state
sized by the location (wholly or partly) of three of the
since 1952, and Texas became the third largest in 1954.
country’s 13 principal commercial broiler areas in this
There have been significant changes in each state’ s
District.
share of total United States production. Maryland in­
Broiler Industry Grows
creased its percentage of the national total from 6% in
The Delmarva broiler industry got its start about
1935-39 to 12% by 1940-44 and declined to 7% in
1923 when knowledge of the nutritional value of
1950-54. Virginia’s proportion dropped from about
vitamin-enriched feed was moving into practical use.
9% in the pre-W orld W ar II period to 6% in the most
The United States Department of Agriculture, how­
recent five years. W est Virginia climbed slowly up­
ever, did not publish production records until 1934.
ward through 1945-49— from 0.7% to 2.6%-— and has
And so it is with 1934 that our story begins. In
since slipped to 2.3% . Slow growth has characterized
that year Fifth District farmers raised 5.2 million broil­
North Carolina’s share of national production— from
ers, 15% of the country’s total production of 34 mil­
3.5% in 1935-39 to 4.9% for the past ten years. South
lion birds. During the next five years, 1935-39, Dis­
Carolina’s output declined relatively during the forties
trict output averaged close to 14.5 million, almost treble
and rose to 1.5% in 1950-54.
the 1934 figure and one-fifth the national average pro­
Greatest shifts during the past five years have oc­
duction of 70.4 million.
curred in Maryland and North Carolina. From 1950
to 1954 Maryland’s production rose 7 % , while her share
The war years brought a comparative shortage of
of District output slipped from 37% to 27% . North
other meats; so, with efforts turned toward all-out pro­
Carolina at the same time more than doubled production
duction of food, spectacular gains continued to be made
and increased her share from 19% to 27% . These pro­
in the broiler industry. W hile national broiler produc­
ducing shifts have put Maryland, Virginia, and North
tion more than tripled, District output during 1940-44
Carolina on a near-equal footing as far as numbers are
more than quadrupled, averaging some 60.8 million or
concerned.
27% of the national total.
o m m e r c ia l

C




*{ 7

y

Federal Reserve Bank of Richmond

Expansion of the broiler industry has, as noted above,
continued, with the following factors responsible:

8. Better quality birds at prices fully competitive
with red meats have increased consumer demand.

ket size, these birds consumed 969,633 tons of feed. A t
an average of $5.30 per hundred, total business for feed
providers exceeded $100 million.
Allowing for a 5% mortality rate, Fifth District poultrymen last year started an estimated 226,814,736 broil­
er chicks. A t 15 cents per chick, this brought hatchery­
men an income of $34,022,210. Hatcheries in turn re­
quired some 19 million dozen hatching eggs. A t 75
cents per dozen, this brought $14,250,000 in gross in­
come to hatching egg specialists.
Assuming fuel costs last year were 2 cents per bird,
fuel companies received $4,309,480 from broiler grow ­
ers.
These examples of businesses benefiting from the
broiler industry obviously do not include processors,
trucking firms, medical supply houses, financers and
other middlemen; but do point up the broadened stake
business and community leadership has in farm output
and income.

Prosperity for Farmers and Community

What of the Future?

Growth of the broiler industry has had many farreaching effects on the District economy. A s a starting
point, let’s look at the income that has been generated.
In 1934, the District’s farmers received a paltry $3,115.000 from broilers. By 1954, when broiler prices
were lowest since 1942, income had shot up to $147,515.000 (the average, 1950-54, was $144,875,000).
W hat this increased income has meant to individual
farmers and their communities requires a visit to a
broiler-producing area. On view are new homes, new
automobiles, and television aerials dotting the landscape,
to say nothing of wr
ashing machines, electric stoves,
refrigerators, radios, and water pumps— all evidences
of a higher living standard, in part broiler-produced.
This expanded farm prosperity has also meant pros­
perity for the local communities. The Under Secretary
of Agriculture, in an address before the Georgia Poul­
try Festival in May 1953, suggested that every dollar
a farmer receives increases local business five times.
If this be true, the Fifth District’s $145 million average
annual broiler income creates $725 million in business.
H ow 1954’s 215 million broilers contributed to in­
creased business activity in producing areas can be
envisaged by a few illustrations and cost assumptions.
First there’s a big total investment in housing and
equipment. It varies considerably depending upon the
type of building and equipment used, but if cost of
capacity averages $1 per bird, with 5,000 broilers to
the chicken house, this would mean a $5,000 investment
per house. Each District poultry farmer probably av­
erages 3 y2 broods per year. Thus, 1954’s output re­
quired an investment of $61,564,000 in houses and
equipment at current price levels. The greater portion
of the investment in housing naturally was made prior
to 1954.
Assuming 9 pounds of feed to bring a broiler to mar­

It is quite likely that expansion in the District’s
broiler enterprise will continue even though the rapid
rate of the past is slowed. W h y this probability?
First, scientific and technological improvements
should continue to bring more efficient production and
marketing.
Second, consumer demand is almost certain to in­
crease. Fried chicken, formerly a Spring and Summer
delicacy or a “ Sunday-only-entree,” now is available at
an enticingly competitive price the year ’round to a
growingly carnivorous American public. Housewives
recognize its convenience and continue to increase their
purchases of broiler meat— in 1940, civilian per capita
consumption of ready-to-cook broiler meat was 1.9
pounds; last year it was 14 pounds. A s the population
increases from a current 165 million to at least 185 mil­
lion by 1965, the base is provided for a steady expansion
of the broiler industry. A modest assumption is that
population growth plus a moderate per capita consump­
tion increase will require an additional 590 million
broilers per annum by 1965. If Fifth District farmers
maintain their current share of national production,
this wrould jump the area’s output by some 118 million
birds, or 55% above 1954 levels.
Third, the built-in features of broiler-financing meth­
ods usually discourage reductions in output.

1. Broilers have proved an excellent source of sup­
plemental farm income.
2. Family labor can frequently handle the enter­
prise.
3. Broiler prices have been generally favorable and
this has attracted more producers.
4. Financing by feed dealers, hatcherymen, and
others has encouraged farmers with relatively little capi­
tal to get into the business.
5.

Initial investments are relatively small.

6. Increased efficiency and improved breeding, nu­
trition, and disease control have cut production costs.
7. Better processing, improved merchandising, and
promotion have expanded the market.




Fourth, many small farms have a surplus of family
labor for which there is a frequent absence of profitable
alternative labor-consuming enterprises.
If this projected expansion is to be profitable, more
efficient production and marketing are indicated, for
markets of this magnitude are enticingly competitive.
The potent question i s : W ill these efficiencies be ef­
fected? The answer rests with individual poultrymen,
feed dealers, hatcherymen, processors— and their bank­
ers.

i

8 ^

f/ m

M

/fa n 6 U

L
j

September 1955

Business Conditions and Prospects
strength was witnessed during July in
the District trade level and in construction and in
mining, but manufacturing activity in Virginia and the
Carolinas receded somewhat more than seasonally. In
the financial sector bank deposits, loans and investments
of the member banks continued to expand. A gricul­
ture remained a weak spot, although farm prices im­
proved in two states of the District during July. Con­
siderable damage was done to crops, especially tobacco,
by hurricanes Connie and Diane

electric fans of all types. Blouses, skirts, sportswear,
girls’ wear, aprons, housedresses and uniforms carried
the women’s and misses’ apparel department 3% ahead
of a year ago, and men’s and boys’ wear showed an
increase of 8 % . W hile the rank and file of departments
showed decreases from last year, the major household
appliance group, however, was up 82% , and housewares
up 59% . These were primarily responsible for the
high department store trade level in July.

u b s t a n t ia l

S

Furniture stores were also having happy days during
July. The sales increase in this District was 14% over
June (adjusted) and 21% ahead of a year ago. In the
first seven months of the year, furniture store sales
were 13% ahead of 1954. Actually, cash sales were
down 5% from a year ago but credit sales were up 15%.

Greater activity has been witnessed this year in the
capital outlays of business concerns. The State De­
velopment Board of South Carolina, for example, esti­
mates more than $81 million invested or allocated for
new industries and expansions since January 1, com­
pared with $76 million for all of 1954, $49.7 million for
1953, and $67.2 for 1952. Although new business in­
corporations slackened somewhat in June, the first half
of 1955 was 21% higher than a year ago.

All District States and the District of Columbia
showed new passenger car registrations in June 4%
above May, 17% higher than a year ago. Three Dis­
trict states and Washington, D. C. for the first seven
months were up 2 7% , figures not greatly different from
the national. July registrations for these areas were
up 35% from last year.

Increases in wage rates of about 5 cents an hour are
widespread in the textile industries. W age rates in
other industries are also rising. By March 1, 1956,
when the minimum wage of $1 goes into effect, a rather
sizeable number of price increases in such industries as
apparel, lumber, and hosiery will have to be made, since
some of these industries can hardly increase wages with­
out raising prices. Prices of most textile products have
been in a rising trend in recent months and no hesitation
has appeared in this upward movement. Increases re­
cently granted Federal Government workers are being
reflected in the Washington metropolitan area.

On the whole, the July trade level was one of sub­
stantial strength. The 7% decline in automobile sales
from June to July (with incomplete reports) was prob­
ably less than seasonal.
Manufacturing
Employment in the manufacturing industries of the
District during June rose 1% from May, was 4 % higher
than in June 1954, and was up 2% for the first six
months of the year.

In spite of the high level of spending during July,
time deposits of District member banks showed a small
increase, purchase of U. S. Savings Bonds rose 5%
during the month, and redemptions dropped 12%. Sav­
ings in 314 savings and loan associations in all District
States except W est Virginia increased $2 million in
July, compared with $46 million in June and $11 mil­
lion in July 1954. Virginia and North Carolina asso­
ciations showed larger withdrawals than new savings
during July.

New business booked by District manufacturers con­
tinued to accumulate during July, with a resulting in­
crease in backlogs. Prices of basic textiles have been
rising in a fairly broad manner and fabricated products
are expected to follow suit. Price increases thus far
have reflected increased costs and a demand sufficient
to permit higher levels.
Cotton consumption in the District during July was
down 1% from June on an adjusted basis but held 4%
ahead of July 1954. In the first seven months of the
year a gain of 7% is shown. A considerable number of
textile expansions are noted thus far this year, but at
least one sizeable plant expansion has been postponed
in anticipation of increased import competition.

Trade
Department store sales (writh revised seasonal adjust­
ment) showed a 10% increase from June to July. July
was 13% ahead of a year ago and the first seven months
were up 8 % . Accompanying the sales rise was a 2%
increase in inventories (adjusted) to a point 6% over
a year ago. Outstanding orders, though down season­
ally from June, were 12% ahead of a year ago.

Cigarette production in June held at the same ad­
justed level as in May. Significantly, it was 5% higher
than in June 1954, and the first six-month figures
showed an increase of 4% over 1954.

These stores in July reached an all-time high for the
District, thanks mainly to the heat and the humidity,
which resulted in zooming sales of air conditioners and



Man-hours in all manufacturing industries of V ir­
ginia and the Carolinas declined 0.8% from June to

A

9

y

Federal Reserve Bank of Richmond

July, compared with a decline of 0.6% in this period
last year.
Durable goods man-hours in these States
declined 2.9% in this period, which was substantially
more than the 0.3% decline last year. Non-durable
goods man-hours, however, declined 0.2% from June to
July compared with 0.9% decline last year.
Man-hours in all manufacturing industries in all
States of the District (available for June) increased
1.6% over May and 8.0% over June 1954. Durable
goods man-hours in June were up 1.4% from May and
10.5% over June 1954. Non-durable man-hours were
up 1.7% in June over May and 6.4% over June 1954.
Lumber and wood products industries of the Caro­
linas reduced man-hours 5.5% from June to July, which
compares with an increase of 0.8% in this period last
year. Furniture and fixtures industries declined 2.5%
in man-hours from June to July, compared with 1.8%
last year. The cigarette industry in Virginia and North
Carolina slipped 1.7% from June to July this year,
compared with last year’s 5.4% increase. Textile mill
products in Virginia and the Carolinas declined 1%
from June to July, compared with 1.4% last year.
Man-hours in the apparel industries increased 0.1%
from June to July, compared w'ith a decrease of 2.2%
last year.
Bituminous Coal
Bituminous coal production in July (average daily
basis) was 14% higher than in June, 39% higher than
in July 1954, and the first seven months of the year
increased 26% . Export demand for coal has been un­
usually high this year, and it may be that 30 million
tons will be exported, double the year-ago figure.
Domestic consumption has expanded less than produc­
tion, but thus far there has been little addition to stock.
A new contract has been negotiated between miners and
operators which will result in an increase of $2 a day.
Coal prices have already been raised 25 to 40 cents a
ton by one large producer.
Construction
Construction contract awards in the District (season­
ally adjusted basis) were 7% higher in July than in
June, due largely to an expansion in apartments, hotels,
and public works awards. Commercial construction
(adjusted) in July was down 38% from June; factory
construction was down 33% , and one- and two-family
houses 18%. Apartments and hotels were up 24%
and public works 37% . Relative, to a year ago, total
construction contract awards were up 2 9% , with resi­




1

dential up 2 3% , non-residential up 6 9% , and public
works and utilities off 17%.
Through July, total construction contract awards in
the District were up 4 7% . Residential was up 4 5% ,
non-residential 58% , and public works and utilities
33% . In the non-residential groups, factory awards
for the seven-month period vaulted 102% above last
year, commercial awards were up 68% , educational
19%, and other non-residential 68% .
The decline in residential contract awards indicated
on the chart page has not been a consequence of recent
tightening in terms of V A and F H A mortgage money
since these were not effected until the end of July. The
decline thus far represents an adjustment of new resi­
dential awards from a stratospheric level to one of mere
super-boom proportions.
Banking
Loans and investments of Fifth District member
banks rose $23 million during July and stood $464 mil­
lion above a year ago. Loans increased $5 million dur­
ing July to a level $429 million higher than last year.
Holdings of U. S. Government obligations increased
$11 million during the month and were $6 million
higher than last year. Holdings of other securities in­
creased $7 million and were $29 million above 1954.
Total deposits of member banks increased $11 million
during July and were $411 million higher than last year.
Time deposits increased $1 million during the month
and $124 million over the twelvemonth. Demand de­
posits increased $10 million during the month and were
up $287 million during the year. During July, deposits
of banks moved up $11 million, whereas other demand
deposits declined $1 million. Relative to a year ago,
deposits of banks at the end of July were down $8 mil­
lion from a year ago, while other demand deposits were
up $294 million. Borrowings of member banks de­
clined $12 million during July but were $26 million
larger than a year ago.
Bank debits reflected the expanding trade level and
generally higher spending throughout industry by rising
1% on an adjusted basis from June to July. They
were 12% over July 1954 and for the first seven months
were up 11%.
W hile the employment situation has improved sharp­
ly, most of the major labor market areas of the District
still count unemployed between 3.0 and 5.9% of the
labor force. Only one area has less than 3 % , and four
are above 6 % .

io V

September 1
955

F if t h

STATES
Maryland
Dist. of Columbia
Virginia __________
West Virginia ___
North Carolina___
South Carolina

d is t r ic t

s t a t is t ic a l

F U R N IT U R E SA L E S*
(Based on Dollar Value)
Percentage change with correspond­
ing period a year ago
July 1955
7 Mos. 1955
+

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

5

______________

+

+

______________
______________

+18
+15

+

+ 9
+ 7

D istrict_____

7

+11

+10

IN D IV ID U AL CITIES
Baltimore, M d .____________________
+ 5
+ 5
0
Washington, D. C . ________________
+11
Richmond, V a . ____________________
+ 8
+ 8
+ 19
+ 30
Charleston, W . V a . ________________
Greenville, S. C . ......... ..........................
+ 6
♦Data from furniture departments of department stores as well as
furniture stores.

W H O L E SA L E TRADE
Sales in
July 1955
compared with
July
June
1954
1955
LINES
—27
Auto supplies----------------------. + 3 8
Electrical, electronic and
+ 14
+27
appliance goods --------- —
Hardware, plumbing and
- 5
heating goods ........ ......
+ 8
Machinery equipment sup­
— 18
plies ...... ............... - + 3
Drugs, chemicals, allied
— 9
products __ _ ...............
+ 7
+ 13
Dry goods
----- - - .......... - + 1 2
Grocery, confectionery,
— 9
meats ------- -----------+ 1
NA
NA
Paper and its products .....
NA
NA
Tobacco products --------------— 16
— 2
Miscellaneous --- ---- --------— 9
District Total ----------------+ 5

Maryland
B altim ore___ $ 8,334,200
Cumberland _
81,050
431,800
Frederick ____
Hagerstown _
108,525
Salisbury
65,780

July
1954

7 Months
1955

7 Months
1954

Stocks on
July 31,1955
compared with
July 31,
June 30,
1954
1955
NA
NA
+

8

+ 14

+

4

— 1

— 12

+

— 1
NA

— 1
NA

— 4
NA
NA
+ 5
+ 1

— 2
NA
NA
— 3
+ 4

3

N A Not Available.
Source: Bureau of the Census, Department of Commerce.

$ 6,425,630
48,900
134,964
178,842
29,940

$ 62,944,422
984,341
1,974,975
1,552,785
1,312,056

$ 36,615,310
443,475
714,146
1,547,381
1,109,886

472,823
1,622,345
231,139
619,690
138,820
878,393
948,000
1,276,070
1,042,170
1,066,437
256,790
1,002,941

418,164
706,067
179,612
323,320
622,417
2,256,681
213,336
380,625
2,165,410
700,486
108,975
385,504

4,283,107
10,148,248
2,240,775
6,882,208
1,400,321
8,227,845
2,694,400
3,070,785
13,770,119
7,576,561
1,923,095
7,487,726

1,736,513
5,934,398
1,033,347
3,083,869
2,172,023
9,324,810
1,336,236
4,489,114
16,310,717
7,026,745
861,250
4,486,890

W est Virginia
Charleston
Clarksburg
Huntington __

598,860
190,824
468,711

597,085
144,073
1,682,726

4,002,275
1,254,288
4,142,779

5,000,457
1,555,948
4,706,065

North Carolina
A sheville_____
Charlotte _ ___
Durham _____
Greensboro
High Point __
Raleigh ______ .
Rocky Mount _
Salisbury _ _
Wilson . ____
Winston-Salem

216,997
2,929,035
1,036,679
948,796
495,487
2,062,153
357,485
44,397
523,300
901,798

294,910
1,482,755
549,394
913,622
407,444
1,005,129
147,353
349,938
559,800
615,031

1,874,077
18,104,593
7,994,936
6,781,743
4,707,351
13,437,501
2,246,671
843,775
2,374,575
8,213,001

2,305,514
11,526,471
3,535,840
6,754,609
3,137,573
7,874,706
1,871,453
1,284,350
1,769,200
7,476,989

223,517
636,964
572,588
443,239

797,209
540,146
351,300
195,104

1,899,294
5,057,081
4,766,600
1,579,929

1,901,462
6,057,742
4,557,060
1,724,674

5,476,327

2,991,650

49,574,727

35,719,614

District Totals . $36,704,130

+22
+10

6

July
1955

Dist. of Columbia
Washington _.

+11

_________________

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

South Carolina
Charleston ___
Columbia _____
Greenville ____
Spartanburg _

5

0

data

$28,903,542

$277,268,965

$206,985,837

Virginia
Danville _____
Hampton
Hopewell ____
Lynchburg
Newport Newsi
Norfolk ____
Petersburg___
Portsmouth _.
Richmond ____
Roanoke _____
Staunton _____
Warwick .........

F IF T H D IS T R IC T IN D E X E S
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
Sales, July ’55 vs July ’54 _
Sales, 7 Mos. ending July 31,
’55 vs 7 Mos. ending July
31, ’54 ___________________

+-

Stocks, July 31, ’55 vs ’54 _

Seasonally Adjusted: 1947-1949 = 100
Dist.
Total

9

+

6

+11

+ 11

+ 10

- 9

+

4

+

6

+

9

+

8

+• 5

+

7

+

1

+

1

+

3

1

+ 13

July
1955

Outstanding Orders
-11

+ 19

Open account receivables July
1, collected in July 1955 _

29.9

45.8

Instalment receivables July
1, collected in July 1955 _

10.8

13.8

+

42.5
13.5

38.8
16.6

+ 12
40.4
13.5

Md.
Sales, July ’55 vs July
’ 54 ___________________




D.C.

Va.

W .V a.

N.C.

S.C.

+

+11

+10

+ 17

+11

+12

6

A 11

June
1955

New passenger car registra­
tion* ___ 1
_____________________ ___
202
Bank d e b its ___________________ 172
170
Bituminous coal production* __
97
88r
Construction con tracts________ 246
229
Business failures— number ____ 226
188
Cigarette production**________ _— .
106
Cotton spindle hours --------------- 110
121
Department store sales** _____
135
123
Manufacturing employment*----------108
Furniture store sales __________
132
116
Life insurance s a le s _____ _— . 187
204
* Not seasonally adjusted.
** Seasonal factors have been revised for the
r Revised.
Back figures available on request.

1
*

July
1954
145
153
70
191
226
96
94
119
104
109
161

% Chg.—
Latest Mo.
Prev.
Yr.
Mo.
Ago

+ 4
+ 1
+10
+ 7
+20
0
— 9
+10
+ 1
+14
— 8

+17
+12
+39
+29
0
+ 5
+17
+13
+ 4
+21
+16

period1952 to date,

Federal Reserve Bank of Richmond

Rapid Amortization— Controvercial Issue
A
(Continued from page 6)

are not so favored.” In speaking of the special nature
of the program he pointed out the danger in “ use of
the tax laws to further special programs and accomp­
lish purposes other than simply the collecting of taxes.”
H e concluded by saying that he was not arguing repeal
of the program for rapid amortization of certain
emergency facilities, but felt that “ its usefulness in the

F ifth

future will be greatest for the good of the nation as a
whole if from now on it is used only sparingly and very
rigidly and strictly confined to direct war-requirements
applications.” A s indicated at the outset of this dis­
cussion, current developments are in the direction of a
considerably curtailed application of the program for
rapid amortization of defense-related projects.

D ist r ic t B a n k in g

W E E K L Y R E P O R T IN G M E M B E R B A N K S

D E B IT S TO D E M A N D D E P O SIT A C C O U N T S *
(000 omitted)
July
1955
Dist. of Columbia
Washington ______ $1,315,904
Maryland
B altim ore_________ 1,550,938
25,968
Cumberland ______
F red erick _________
21,857
Hagerstow n______
49,630
Total 4 Cities___ 1,648,393
North Carolina
Asheville __________
67,270
Charlotte _________
380,817
Durham __________
88,710
Greensboro ________
159,393
48,394
High Point** _____
K in sto n ___________
23,480
186,089
Raleigh ___________
W ilm in g to n _______
53,339
W ils o n ____________
21,019
W in ston -Salem ___
157,107
Total 9 C ities___ 1,137,224
South Carolina
Charleston ________
83,378
Columbia _________
194,557
Greenville _________
122,911
S partanb urg_____
60,073
Total 4 Cities ___
460,919
Virginia
Charlottesville ____
37,680
D a n v ille __________
35,770
L ynchb urg________
52,501
Newport N e w s ___
54,917
Norfolk ___________
293,334
Portsmouth ______
34,693
R ichm ond_________
636,584
Roanoke __________
138,338
Total 8 C ities___ 1,283,817
West Virginia
Bluefield__________
43,205
Charleston_____ ___
166,548
Clarksburg________
36,958
H u n tin g to n ______
73,567
36,266
Parkersburg _____
Total 5 Cities ___
356,544
District Totals _____ $6,202,801

July
1954

(000 omitted)

7 Months
1955

7 Months
1954

$1,155,123

$ 9,312,203

$ 8,080,065

1,459,255
25,155
22,215
39,360
1,545,985

10,931,584
176,775
162,414
305,858
11,576,631

10,068,789
162,943
156,976
251,957
10,640,665

Total Loans
- _____ ____ $1,670,460**
Bus. & A g r i c .________________
749,071
Real Estate Loans ___ ______
329,673

62,454
330,420
106,666
123,239
41,159
21,447
219,261
51,030
20,211
143,947
1,078,675

461,789
2,807,067
571,821
1,028,150
347,149
156,995
1,473,337
366,861
139,782
1,177,076
8,182,878

425,109
2,417,668
626,723
824,136
292,248
140,236
1,323,037
324,735
126,145
1,031,550
7,239,339

79,584
171,769
114,797
64,232
430,382

580,958
1,258,373
888,270
450,591
3,178,192

516,586
1,164,831
753,084
433,158
2,867,659

Total Security Holdings ______ 1,729,078
U. S. Treasury Bills _________
57,052
27,379
U. S. Treasury Certificates __
U. S. Treasury Notes
..........
352,806
U. S. Treasury Bonds ........ 1,021,504
Other Bonds, Stocks & Secur.
270,337
Cash Items in Process of Col. _
297,096
Due from Banks _____________
175,077*
Currency and Coin
78,430
Reserve with F. R. Banks _____
506,101
Other Assets ...................................
69,667
Total Assets .................. ............ $4,525,909

32,453
35,384
49,124
48,053
247,127
31,858
603,288
116,437
1,163,724

257,142
268,283
375,501
384,729
2,010,597
251,665
4,532,187
905,433
8,985,537

218,687
238,324
341,238
327,359
1,780,115
223,598
4,075,642
807,857
8,012,820

Total Demand Deposits ________ $3,389,651
Deposits of Individuals
2,562,488
96,260
Deposits of U . S. Government
193,942
Deposits of State & Local Gov.
Deposits of Banks ___________
480,605*
Certified & Officers’ Checks ..
56,356

37,466
164,888
31,704
67,771
30,622
332,451
$5,706,340

308,429
1,178,672
251,153
509,082
226,136
2,473,472
$43,708,913

270,046
1,188,475
218,653
482,403
210,231
2,369,808
$39,210,356

Items

All Other Loans _____________

Total Time Deposits ............... —
Deposits of Individuals
Other Time Deposits .............. .

Aug. 10,
1955

613,959

755,121
682,744
72,377

Liabilities for Borrowed Money
27,800
42,414
All Other Liabilities ___________
310,923
Capital Accounts ______ _ ______
Total Liabilities ....................... $4,525,909

Change in Amount from
July 13,
Aug. 11,
1955
1954
+
+

19,873
18,301

—
+

375
2,058

+
+
+
+

30,179
13,455
9,329
2,024

— 68,177
— 159,299
+ 58,299

—
+
—
—
—
—
+
—

1
5,372
51,115
14,529
3,976
40,122
977
58,713

+ 16,931
+ 14,015
+ 10,509
— 13,472
+
2,467
— 12,459
+
6,212
+ 131,077

—
—
—
—
+
-

48,810
23,842
8,420
24,630
11,886
3,804

+ 95,782
+ 104,253
— 10,259
+ 10,205
— 15,865
+
7,448

+
+
—

325
1,249
924

+ 10,384
+ 19,650
— 9,266

— 13,150
+
1,753
+
1,169
- 58,713

+ 14,800
— 5,646
+ 15,757
+131,077

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

* Interbank and U. S. Government accounts excluded.
** Not included in District totals.




S ta tistic s

* 12
{

y

+276,051
+ 146,479
+ 48,598
+

85,135

— 138,231

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