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1965

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LOUISIANA EXPANDS ROLE
IN ECONOMIC PERFORMANCE

SIXTH DISTRICT
STATISTICS

DISTRICT BUSINESS
CONDITIONS

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3, 2, 1— Blast Off!

Atlanta, Georgia
April

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Buck Rogers has been around for a long time, but few people took him
seriously until recently. After being confronted by a series of events
ranging from “Sputnik I” to “Molly Brown,” however, very few could
harbor any doubt that we are no on the threshold of the space age.
Although by no means common, pace flight is a proven fact, and its
terminology pervades many phasi of our life. It’s even said that our
children learn to “count down” b re they “count up.”
e Sixth Federal Reserve District
The six-state area comprisi
iana, Mississippi, and Tennessee)
(Alabama, Florida, Georgia,
has not been left out of the s ace effort. Vital roles are played by
several installations in this area, nd the impact of the space industry on
First, however, a little background
the region itself has been consid
about the space program in general. I
N A S A : I ts A i m s a n d O b j e c t i v e s
Space flight officially went into “orbil” with the appearance of “Sputnik
I” on October 4, 1957. Although the United States had been conducting
experimental work on space flight for some time, the Russian achieve­
ment gave a substantial boost to our efforts. On October 1, 1958, the
National Aeronautics and Spafe Administration (NASA) was set up to
coordinate and advance our exploration of outer space. The long-range
objectives of NASA, as described in section 102 of the National
Aeronautics and Space Act of 1958, were as follows:
(1) The expansion of human knowledge of phenomena in the atmos­
phere and space;
(2) The improvement of tjie usefulness, performance, speed, safety,
and efficiency of aeronautical tnd spac| vehicles;
(3) The development and joperation of vehicles capable of carrying
instruments, equipment, supplies, and living organisms through space;
(4) The establishment of l|)ng-rang| studies of the potential benefits
to be gained from, the opportunities for, and the problems involved in
the utilization of aeronautical and sj|ace activities for peaceful and
scientific purposes;
j
(5) The preservation of the role of the United States as a leader in
aeronautical and space sciencf and technology and in the application
thereof to the conduct of peaceful activities within and outside the at­
mosphere.
y f • " ; Wjf V
To accomplish these peaceful, ajms of space exploration, a number of
laboratories, research centers, and government employees who had
been working on the military aspects of rocketry were transferred to
NASA. Beginning with about 9,000 employees and a relatively small
budget of about $145 million, NASA had more than tripled employment
by fiscal year 1964, and expenditures had climbed to $4,171 million, or
about 4 percent of total Federal expenditures. Much of the increase re­
sulted from President Kennedy’s declaration in 1961 that space explora­
tion was a major instrument of national policy. Currently, there are signs

of a leveling off in the space program in the next few years,
with employment and expenditure increases expected to
be smaller than those occurring in most years since 1961.

NASA Spending
F isc a l Y e ars 1959-66

B
illions of D
ollars

B
illions of D
ollars

country, but the ultimate responsibility for the necessary
“boost” rests with the Marshall Center.
The Center itself occupies approximately 1,600 acres
of land amid the sprawling, rustic expanse of Redstone
Arsenal, and its facilities are currently valued at over $250
million. Additional employees have augmented the
original contingent to bring present civil service employ­
ment to slightly over 7,000, a level that is expected
to hold through mid-1966. The buildup of NASA facilities
in this area is shown by the construction spending figures
of Table 1. Construction spending at Huntsville reached

Table I: NASA Construction Spending
F isc a l Y e a r 1961-66
(T h o u san d s of Dollars)

1961

(e) Estimated.
Source: U. S. Bureau of the Budget.
Sin c e 1962, NASA sp en d in g h as risen rapidly but show s sig n s
of levelin g off in the next few years.

Huntsville
Michoud
Mississippi
Test Area
Cape Kennedy

1962

1963

1964

1965 (e)

1,454
—

12,085
1,259

22,823
10,033

45,383
19,291

32,395
17,867

24,237
4,700

__

734
47,500

11,637
63,300

45,866
143,200

114,938
237,497

58,030
200,000

—

1966 (e)

(e) Estimated.
Source: National Aeronautics and Space Administration.

The focus of attention for NASA has been on manned
space flight. So far, three projects have been outlined. The
first, Project Mercury, has already been completed. Its
objective was to place a man in orbit and return him
safely. Our ability to do this was demonstrated four times
in 1962-63 by the successful flights of astronauts Glenn,
Carpenter, Schirra, and Cooper.
Attention has now turned to Project Gemini, which is
designed to further extend man’s control over space.
Gemini flights will be for durations of up to two weeks,
during which time a pair of astronauts will develop orbital
rendezvous techniques, as well as perform operations out­
side their space craft. Ten manned flights are planned,
with the first one already completed by astronauts Gris­
som and Young.
By far the most complex of NASA’s manned space pro­
grams is Project Apollo, which has an ultimate goal of
landing Americans on the moon. An Apollo flight will
place a command module containing three men into orbit
about the moon. Once in lunar orbit, an excursion module
will be detached and used by two of the astronauts to
explore the moon’s surface. They will then rejoin the
command module and return to earth.

its peak in fiscal year 1964 and is slated to taper off in
the future, according to NASA estimates.
In many instances, Marshall has found it advantageous
to own certain installations and have the work there car­
ried out by private contractors under NASA supervision.
Thus, in addition to its administrative offices, Marshall
also has facilities at Huntsville for the development, manu­
facture, and ground testing of launch vehicles that are
manned by contract personnel. There were over 9,000
such direct contract workers in Huntsville in 1964.
Table 2 shows the growth of total employment—that is,

D is tr ic t I n s t a l l a t i o n s P l a y a V i t a l R o le
In carrying out its missions, NASA has concentrated cer­
tain key functions at various centers throughout the coun­
try. Two of these space flight centers are located in District
states and have provided considerable stimulus to the
area’s economy.
The George C. Marshall Space Flight Center was
established at Redstone Arsenal near Huntsville, Alabama,
on July 1, 1960, when a contingent of about 4,600 per­
sons active in pioneer rocketry work were transferred
from the Army Ballistic Missile Agency to NASA. The
primary function of the Marshall Space Flight Center is
to design, develop, and provide the basic launch vehicles
used to overcome the earth’s gravitational pull. This work
is spread among many contractors located throughout the

both civil service and direct contract employment— at
Huntsville and other NASA installations in the region.
Another NASA owned, privately operated installation
is the Michoud (pronounced Miss'-you) plant in New
Orleans. This plant began operations in 1961 and is used
for the assembly of the giant Saturn boosters— the ones
that will launch the lunar exploration capsules. These
boosters will develop up to 7.5 million pounds of thrust,
about the equivalent of one million cars, each with 160
horsepower.
The Michoud operation is housed in one of the country’s
largest manufacturing buildings— almost 43 acres under
one roof. A nearby computer facility in Slidell, Louisiana,
is a supporting part of the operation. The entire Michoud
complex is presently staffed by over 10,000 workers em­




Table II: Employment at NASA Facilities*
F isc a l Y e a rs 1961-66

1961

Marshall Space Flight Center—
■
Huntsville
7,429
Michoud Operation
—
Mississippi Test
Operation
—
Kennedy Space
Flight Center
1,436

1962

1963

1964

7,125
1,403

14,507
6,958

16,316
10,283

**

**

10,070

9,734

17

232

1,290

2,579

4,216

7,283

12,073

13,892

__
2,959

1965 (e) 1966 (e)

♦Includes both civil service and direct contract employment.
♦♦Estimates not currently available.
(e) Estimated.
Source: National Aeronautics and Space Administration.

.

2 •

ployed by four private corporations under contract to
NASA and about 300 NASA civil service employees. Be­
cause NASA took over an existing manufacturing building,
construction spending at Michoud has been less than that
at other locations, and relatively small expenditures are
slated for fiscal year 1966. The facilities and equipment at
Michoud were valued at over $600 million at the end of
1964.
Another District space installation to be directly under
Marshall’s control is presently being constructed. This is
the Mississippi Test Operation, where launch vehicles will
be test fired on the ground before being sent to their final
destination. The facility is located on the Pearl River in
Hancock County, Mississippi, a site chosen because of its
sparse population, proximity to Michoud, and its accessi­
bility by water to and from other major installations, which
permits the large rockets to be transported by barge.
When completed, the test stands and support facilities
will occupy an area of about five square miles. This facility
will represent about a $256-million investment and should
provide employment for approximately 2,500 contract
workers, as well as a few civil service people. All of the
construction work should be finished by 1967, and some
testing is slated to begin early in 1966.
The Kennedy Space Flight Center near Cocoa Beach,
Florida, is probably the most spectacular of NASA’s opera­
tions and is the place where the work of the other centers
culminates. Here the various components are assembled,
checked and rechecked, and, finally, launched into space.
NASA so far has used launch facilities of the Depart­
ment of Defense at Cape Kennedy. However, because of
the size requirements for future projects, NASA is creating
a new launch area of its own on nearby Merritt Island.
Included among the facilities under construction is a ver­
tical assembly building reputed to be the most spacious in
the world. It is to be 52 stories high and will be one and
one-half times larger than the Pentagon.
Construction spending at the Cape has been higher than
at other facilities in the area, as can be seen from Table 1,
and should continue to be high until the completion of
the Merritt Island complex. The first unmanned launch
from these facilities is tentatively scheduled for 1967.
Total NASA employment at the Cape in fiscal year 1964
was 7,283, of which 2,359 were civil service employees
and 4,924 were contract workers. Further employment
growth is expected in the next two years, primarily in
contract jobs.
I m p a c t o n t h e D is tr ic t
The construction and operation of these facilities have an
obvious impact on the District, as is indicated by employ­
ment and construction expenditure figures. In fiscal year
1964, for instance, NASA employment at Huntsville ac­
counted for about 2 percent of total nonfarm employment
in Alabama, while the Michoud operation in New Orleans
was directly responsible for over one percent of Louisiana’s
total nonfarm jobs. However, the impact by no means stops
here. Although NASA maintains extensive facilities for
carrying out its space objectives, more than 90 percent
of its budget is spent with nonprofit organizations, such as
universities and research institutes, and with private
businesses.



District states received a sizable share of these prime
contract awards, as can be seen in Table 3. In fiscal year

Table III: NASA Procurement Spending
F isc a l Y e a rs 1981-64
(T hou san d s of Dollars)

1961

Alabama
Florida
Georgia
Louisiana
Mississippi
Tennessee
District
U. S.

1962

37,130
5,063
2,921
79

81,264
50,925
3,352
18,534
93
2,163
156,331
939,143

—

949
46,142
380,176

1964

1963

97,068
92,393
6,025
185,263
86
2,301
383,136
2,181,405

146,400
141,568
6,416
286,257
609
2,490
583,740
3,490,238

Source: National Aeronautics and Space Administration.

1961, the District accounted for 12 percent of NASA
prime contracts; and, by fiscal year 1964, the region’s share
had increased to almost 17 percent. The majority of these
awards in fiscal year 1961 were made in Alabama, as
Marshall began to acquire launch vehicles. Contract
awards in Alabama have increased in each successive year.
As Project Mercury picked up speed in fiscal year 1962,
the pace of awards in Florida also increased and has con­
tinued to accelerate. The opening of the Michoud plant
accounts for the huge increase in awards in Louisiana
beginning in fiscal year 1964.
The awarding of a prime contract to a firm within a
given state does not necessarily mean that the money will
actually be spent there, however. The initial firm may sub­
contract a part of the work, and the subcontractor, in turn,
may seek other sources to supply a part of his needs. As
a result, it is possible for a substantial part of the initial
award to go to firms in other areas.
Some idea of the magnitude of subcontract shifting
within the District is given by net first and second stage
subcontracts originating with NASA’s twelve largest prime
contractors. This net is the difference between subcon­
tracts placed in a state by firms located outside that state
minus subcontracts let outside the state by firms located in
the state. For instance, Table 4 shows that in fiscal year
1964 prime contractors in Alabama and Louisiana sublet
more contracts outside the state than came into these
states. However, the District states experienced a net in­
crease in subcontracting because substantial inflows of sub-

Table IV: Space Subcontracts Flow out of and into
District States*
F isc a l Y e a r 1964
(T h o u san d s of Dollars)

Outgoing

Alabama
Florida
Georgia
Louisiana
Mississippi
Tennessee
District

Incoming

6,750
2,640
153
45,244
----------54,787

4,370
48,088
530
13,336
387
796
67,507

N e t Gain
or Loss**

2,380
45,448
377
-31,908
387
796
12,720

-

*First- and second-stage subcontracts of NASA’s twelve largest prime
contractors.
**( —) Indicates that contractors in a state sublet more contracts outside
the state than came in from outside the state.
Source: National Aeronautics and Space Administration.

contracts to Florida and smaller inflows in the remaining
states more than offset the outflows.
•3 •

S e c o n d a r y E ffe c ts
The impact does not even stop here, however. New in­
dustry brings new jobs, which create additional income,
which stimulates spending, which, in turn, produces addi­
tional jobs, income, spending, and so on. In some in­
stances, almost all the recent growth of an area can be
traced directly to space-related activity. Such is the case
with the Cape Kennedy area, where the total population
in Brevard County, Florida, in 1940 was only 16,142. By
1963, the population had expanded to 150,800, most of
it supported, directly or indirectly, by the space program
efforts of either NASA or the Department of Defense.
Moreover, the growth has not been restricted to Brevard
County alone but has spread into the adjoining counties
as well.
Much the same can be said for Madison County,
Alabama, where the combined spending of the Marshall
Space Flight Center and the Redstone Arsenal has been
instrumental in changing the economic structure of the
local economy. One substantial difference between the
growth in the two areas should be noted, however. Growth
in the Alabama area has been concentrated primarily
around the core city of Huntsville and has transformed
that once small city into the fastest growing metropolitan
area in Alabama. On the other hand, growth in the Cape
Kennedy area has not been concentrated around a single
core but has been spread among a number of towns, and
thus no large central city has developed.

In other instances it is more difficult to assess the im­
pact of space spending on the local economy because a
broad population, industrial, and trade base already
existed. The effects of the Michoud plant on the New
Orleans economy is a case in point. The direct effect in
1964 was an additional 10,300 workers with a payroll of
over $70 million. But what of the secondary effects? Using
a U. S. Chamber of Commerce formula, the New Orleans
Chamber of Commerce estimates that new jobs at Michoud
brought an increase in employment in other industries of
about 6,500 and an increase in retail sales of over $33
million per year.
NASA has also made available a number of grants for
pre-doctoral study of space science and technology at
major universities within the District. In September of
1965, for instance, NASA will make grants of over $5.7
million to support 323 scholarships at fourteen District
universities.
Rapid growth is not an unmixed blessing, however. Ad­
ditional services, such as fire and police protection, must
be extended to the additional employees and their fam­
ilies; more funds must be allocated to take care of the
traffic congestion caused by additional automobiles; and
more classrooms and teachers must be provided for the
additional school children. These and other problems,
however, must be faced by all expanding communities.
Most areas are happy to have the opportunity to cope
with them.
__ ^
N. D. O B a n n o n

Louisiana Expands Role in Economic Performance
At the beginning of 1964, our review of economic condi­
tions in Louisiana showed further expansion of major indi­
cators from their 1960-61 recession levels. We wondered
if the expansion would continue and, if so, whether in­
creased construction and manufacturing activity would
again spark the advance. These questions may be par­
tially answered now; for, during the past year, Louisiana
has “gone on with the show” or, in economic terms, the
expansion has continued.
C e n te r S ta g e
Personal income in Louisiana advanced 5.7 percent to
$6.4 billion in 1964, according to estimates made at this
Bank. Although brisk, the increase was no greater than
that for the nation. In fact, personal income in Louisiana
has grown at about the same rate as its national counter­
part since the beginning of the current economic expansion
in February 1961.
Increases in personal income in 1964 were again sparked
by advances in construction and manufacturing, along with
a sizable boost from state and local government spending.
In addition, higher income from rent, sales, services, and
entrepreneurial ventures contributed substantially to per­
sonal income growth. Income from agriculture declined
considerably, however.



Per capita income in Louisiana advanced $70 to an
average of $1,846 in 1964, according to estimates of this
Bank. This growth was somewhat less than that for the
nation and, as a result, Louisiana’s per capita income
dropped further behind the national average, which in­
creased to $2,568 last year.
Total employment in Louisiana has moved upward.
Nonagricultural employment increased nearly 4 percent
over the twelve months ending in January to a seasonally
adjusted level of about 851,000. This increase, somewhat
more rapid than in other recent years, more than offset
the continued decline in agricultural employment. Con­
currently, insured unemployment in the Pelican State re­
ceded and, in the fourth quarter, dropped below 3 percent,
the lowest seasonally adjusted rate since 1957.
C o n s tr u c tio n T a k e s th e L e a d
In 1963, the F. W. Dodge survey of construction contracts
revealed an unprecedented $280-million rise in contract
awards in Louisiana. This increase brought the total for
1963 to a record level of $939 million. The construction
boom has continued, with contracts increasing further in
1964 to $996 million. In the first two months of 1965,
however, construction contract awards declined somewhat
on a seasonally adjusted basis. Last year’s increase in
.

4

.

Economic Indicators
Lo u isian a

— 135

— 110

110 —
Nonfarm Employment

110

90 —

— 90

120

— 100

100
-V*-

Manufacturing Employment

80 —

80

125

250

— 250

Construction Contract Awards
150 —

— 150

50 —

50

P ercen t

7 — S e a s . A d j.

— 7

— 3

1 l l l l t 11 H i l l I I I II i l l l l l l I » I I I 1111 111 I I I II i l l I I I i l l l i n I 1

1961

1962




1963

1964

1965

contract awards reflects greater residential construction
than a year earlier. Residential awards accounted for over
40 percent of the 1964 total, while the remaining 60 per­
cent represented awards for the construction of manu­
facturing plants, office buildings, highways, drainage and
sanitation facilities, and other projects. Nonresidential
awards dropped off slightly following the record increase
in 1963.
Planned industrial investment in new plants and addi­
tions to existing facilities rose in 1964. This indicator
reached its highest level since the record in 1956, accord­
ing to the Louisiana State Department of Commerce and
Industry. Most of this expansion was in the chemical and
petroleum industry, although sizable investments were an­
nounced by electric power companies and manufacturers
of paper and metal products.
Construction employment has soared since the begin­
ning of 1964, surpassing the previous record at about
mid-year. The latest data available show seasonally ad­
justed construction employment at 66,200 in January,
about thirteen thousand workers or nearly 24 percent more
than in the same month a year earlier.
Most of the increased construction activity has taken
place in the New Orleans area, although sizable projects
have been noted in other areas as well. Since contract
awards generally precede construction projects and actual
work often runs for several years, the large awards in
1963 and 1964 may have a considerable economic im­
pact this year.
M a n u f a c t u r i n g C o s ta r s
Manufacturing employment in the Pelican State surpassed
154,000 in January 1965, on a seasonally adjusted basis.
This measure expanded by about 6,400 workers or more
than 4 percent over the year-earlier level, thus repeating its
performance in other recent years. The current growth
confirms the markedly brighter economic picture for
manufacturing that began with an upturn in manufactur­
ing employment early in 1962.
The rise in manufacturing employment partially
stemmed from a large gain early in 1964 in the trans­
portation equipment industry, particularly in shipbuilding
and ship repair. Later in 1964, employment gains of busi­
nesses producing food and kindred products provided a
further substantial boost. Smaller increases were noted in
industries manufacturing stone, clay, and glass products,
machinery, fabricated metals, apparel, and chemical prod­
ucts. Increased employment, coupled with higher wages,
resulted in a sizable rise in manufacturing payrolls over
the year ending in January 1965. However, this growth was
somewhat less rapid than it had been during each of the
preceding two years.
Nonmanufacturing employment, excluding agriculture,
increased by about 29,000 workers or almost 4 per­
cent over the year ending in January 1965, a slightly faster
rate of expansion than that of the preceding year. Most of
this increase may be attributed to accelerated employment
in the construction industry. The retail trade industry,
state and local governments, and crude petroleum and
natural gas producers experienced smaller gains.
•5 •

A g r ic u ltu r e S u ffe r s
Agricultural employment dropped substantially in 1964,
with declines in both the number of family workers and
hired workers. Farm cash receipts also fell off consider­
ably. The largest decline occurred in receipts from the
cotton crop, which was affected by adverse weather con­
ditions, including October’s hurricane Hilda. The same
hurricane also damaged the sugarcane crop, which fell
from its record level in 1963 and was substantially below
expectations for 1964. A decline in cash receipts for live­
stock resulted mainly from lower cattle prices.
N e x t A ct
Recent announcements of planned investment and the
carry-over effects of contracts already awarded but not
yet completed should give further impetus to economic
expansion in Louisiana. Material and manpower require­
ments should remain high as long-term commercial and
industrial construction projects continue. Upon comple­
tion of new or expanded facilities, construction employ­
ment would no longer benefit from the current stimulus.
Actual operations, however, should provide the state with
an important new source of employment and income.
R obert R. Wyand II

Debits to Demand Deposit Accounts
In su re d C o m m e rcia l B an k s in the S ix th D istrict
(In Thousands of Dollars)

Feb.
1965

Percent Change
Year-to-date
2 Months
Feb. 1965 from
1965
Jan.
Feb.
from
1965
1964
1964

Jan.
1965

Feb.
1964

1,181,269
58,920
165,095
447,479
234,970
77,567

984,016
48,447
134,929
330,720
212,091
65,025

—8
— 11
— 11
— 16
—0
—5

+ 10
+8
+9
+ 14
+10
+ 14

+8
+ 8
+6
+ 10
+ 13
+5

552,346
1,468,071
1,844,595
447,372
184.173
1,160,418
402,900
83,464
3,549,732
172,427
193,655
197,608
221,741
433,783
100,322
115,111
2,007,155
476,949
523,141
372,731
1,076,188

444,516
1,189,982
1,585,213
397,905
148,684
924,063
347,684
62,505
2,844,184
147,858
152,221
163,249
189,766
313,066
79,454
92,641
1,587,614
408,952
381,890
318,373
1,014,670

— 14
— 11
—7
—8
— 10
— 16
—2
—9
—9
— 17
— 13
+ 2
— 14
— 11
— 14
— 16
— 12
—6
— 21
— 10
—3

+6
+ 10
+8
+4
+ 11
+5
+ 14
+ 21
+ 14
—3
+11
+24
+ 0
+ 24
+9
+4
+ 12
+ 10
+8
+6
+3

—0
+ 6
+5
—1
+ 11
+ 5
+9
+ 16
+ 11
+ 2
+ 10
+ 15
+ 0
+ 18
+ 8
—1
+9
+ 5
+7
+3
+2

48,096
44,247
31,183
31,938
47,281
166,371
67,916

53,994
49,294
34,203
42 025
54,639
176,858
78,158

45,319
41,304
30,938
26,056
44,982
149,982
62,975

— 11
— 10
—9
— 24
— 13
—6
— 13

+6
+7
+ 1
+23
+5
+ 11
+8

+6
+7
+ 1
+ 20
+ 1
+ 11
—3

60,934
66,471

73,480
69,765

61,051
58,647

— 17
—5

—0
+ 13

—0
+ 10

30,184
101,250
47,289
14,228
243,938
88,462
93,064
537,521
57,599
51,757
34,346
79,976
] 0,618
56,475
24,171
17,640
17,493
56,370
40,250
9,993
96,994
4,563
26,894
28,811
7,396
15,420
72,987
40,240
27,497
55,074
28,146

29,464
111,616
49,890
16,473
293,069
98,632
86,811
628 679
66,170
58,718
41,182
90,566
13,050
66,168
27,827
19,734
27,247
59,402
44,349
10,542
109,482
6,719
29,488
36,873
8,939
27,328
70,058
44,861
31,668
55,393
32,360

24,769
87,881
43,170
15,863
228,537
82,043
81,731
506,617
54,677
45,269
32,580
66,593
10,947
53,922
22,012
17,328
20,076
53,168
33,664
7,947
86,817
4,091
25,220
26,850
6,739
16,740
68,360
40,164
28,812
51,055
30,063

+2
—9
—5
— 14
— 17
— 10
+7
— 14
— 13
— 12
— 17
— 12
— 19
— 15
— 13
— 11
— 36
—5
—9
—5
— 11
— 32
—9
— 22
— 17
— 44
+4
— 10
— 13
—1
— 13

+ 22
+ 15
+ 10
— 10
+7
+8
+ 14
+6
+ 5
+ 14
+ 5
+ 20
—3
+ 5
+ 10
+2
— 13
+&
+ 20
+ 26
+ 12
+12
+7
+7
+ 10
—8
+7
+0
—5
+ 8

+15
+6
+4
—9
+4
—2
+ 6
+7
+ 3
+ 10
+3
+ 23
+ 11
+ 5
+ 10
+ 5
—5
+ 1
+ 14
+7
+8
+ 17
+7
+3
+2
+ 2
+2
+3
—6
+1
—2

38,863
29,914
19,207
50,053
52,924
100,761

40,453
32,823
27,118
60,012
62,781
113,088

34,702
26,727
17,341
48,363
51,454
92,616

—4
—9
—-29
— 17
— 16
— 11

+ 12
+ 12
+ 11
+3
+3
+9

+ 12
+10
+ 13
+4
+5
+7

SIXTH DISTRICT, Total 22,133,587

24,556,156

20,245,303

— 10

+9

+6

3,136,164
8 001,445
5.933,131
3 351,459
1,051 980
3,081.977

2,626,879
6,683,998
4,707,281
2,621,490
921,186
2 684,469

—9
— 10
— 10
— 11
—6
— 10

+8
+8
+ 13
+ 13
+7
+3

STANDARD METROPOLITAN
STATISTICAL AREASt*
Birmingham . . .
1,084.861
Gadsden . . . .
52,214
Huntsville
. . .
146,653
377,479
Mobile
. . . .
Montgomery . . .
234,023
73,920
Tuscaloosa . . .
Ft. LauderdaleHollywood
. .
472,683
1,308,607
Jacksonville . . .
1,714,178
Miami
. . . .
413 196
Orlando . . . .
Pensacola
. . .
164,955
973,184
Tampa-St. Petersburg
396,362
W. Palm Beach . .
Albany
. . . .
75,895
Atlanta . . . .
3,231,930
143,036
Augusta . . . .
169,021
Cclumbus
. . .
201,199
Macon.........................
190,587
Savannah . . . .
Baton Rouge
. .
386,658
86,395
Lafayette
. . .
96,576
Lake Charles
. .
1,775,632
New Orleans . . .
Jackson . . . .
449,198
4 1.389
Chattanooga . . .
Knoxville . . . .
336,923
1,040,825
Nashville . . . .
OTHER CENTERS

Bank Announcements
On M arch 1, the F i d e l i t y B a n k a n d T r u s t C o m p a n y ,
Slidell, Louisiana, a n ew ly o rgan ized n on m em ber bank,
o pen ed fo r business and began to rem it at par fo r checks
draw n on it when received fro m the F ederal R eserve Bank.
Officers are W illiam R . Boles, C hairm an o f the Board;
C. A . V on H oene, P resident; and W illie E. A nnison, Jr.,
E xecu tive V ice P residen t and Cashier. C apital is $ 3 1 2 ,5 0 0,
and surplus and u n divid ed profits, $1 8 7,5 00 .
The F i r s t M a r i o n B a n k , Ocala, F lorida, a n ew ly or­
gan ized n on m em ber bank, o p en ed fo r business on M arch
4 and began to rem it at par. Officers are F red M alever,
C hairm an o f the Board; L . K . E dw ards. Jr., P resident;
Jam es L. N iblack, E x ecu tive V ice P resident; and Bob J.
A lldredge, Cashier. C apital is $ 3 5 0 ,0 0 0 , and surplus and
u n divided profits, $150 ,0 0 0 .




Anniston . . . .
Dothan
. . . .
S e lm a .........................
Bartow . . . .
Bradenton . . .
Brevard County . .
Daytona Beach . .
Ft. MyersN. Ft. Myers . .
Gainesville . . .
Key West
(Monroe County)***
Lakeland . . . .
St. Augustine . .
St. Petersburg . .
Sarasota . . . .
Tallahassee . . .
Tampa
. . . .
Winter Haven . .
Athens
. . . .
Brunswick
. . .
Dalton
. . . .
Elberton . . . .
Gainesville . . .
Griffin
. . . .
LaGrange . . . .
Newnan . . . .
R o m e .........................
Valdosta . . . .
Abbeville . . . .
Alexandria . . .
Bunkie
. . . .
Hammond
. . .
New Iberia . . .
Plaquemine . . .
Thibodaux . . .
Biloxi-Gulfport . .
Hattiesburg . . .
L a u re l.........................
Meridian . . . .
Natchez . . . .
PascagoulaMoss Point . .
Vicksburg
. . .
Yazoo City . . .
Bristol
. . . .
Johnson City
. .
Kingsport
. . .

Alabamaf
.
Floridaf . . .
Georgiaf . . .
Louisianat**
Mississippif**
Tennesseef**

.

.
.
.

.
.
.

.
.
.

2,845,259
7,226,318
5,342,187
2,969,509
987,232
2,763,082

♦Year-ago data have revised for all states and
Tuscaloosa, Miami, Albany, Lafayette, and Lake
♦♦Includes only banks in the Sixth District portion
enlarged to include Monroe County.
fP artially

+5
+4
+ 12
+9
+4
+ 1
for all SMSA's except Birmingham,
Charles.
of the state. ***Key West coverage
estimated.

. 6 •

Sixth D istrict Statistics
Seasonally Adjusted
(All data are indexes, 1957-59 =

Latest Month

One
Month
Ago

Two
Months
Ago

100, unless indicated otherwise.)

One
Year
Ago

One
Month
Ago

Two
Months
Ago

8,665
155
133
139

8,536r
157r
99
146

8,307r
157
109
139

8,095
144
140
133

Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.

120
117
122
128
64
2.0
40.9

120
116
122
129
79
2.1
41.6r

120
116
121
130
73
2.2
41.9

116
112
118
114
71
2.8
40.7

Feb.
Feb.
Feb.

200
162
169

197
161
172

194
156
157

172
144
149

Jan.
Feb.
Jan.
Feb.

6,911
139
139
132

6,764r
136r
108
131

6,549r
135
123
125

Feb.
Feb.
Feb.
Feb.
Feb.
Insured Unemployment, (Percent of Cov. Emp.) Feb.
Feb.
Avg. Weekly Hrs. in Mfg., (Hrs.) . . . .

109
106
110
106
75
3.2
43.0

107r
105r
108
104r
78
3.0
42.4r

107
104
108
102
80
2.9
42.2

104
101
105
87
84
3.7
42.1

Feb.
Feb.
Feb.

178
134
134

175
139
143

174
136
132

155
124
125

Jan.
Feb.
Jan.
Feb.

3,540
162
171
101

3,414r
161r
100
102

3,436r
161
139
92

3,172
151
118
102

Feb.
Feb.
Feb.
Feb.
Feb.
Insured Unemployment, (Percentof Cov. Emp.) Feb.
Avg. Weekly Hrs. in Mfg., (Hrs.) . . . .
Feb.

120
127
118
121
72
3.2
41.2

120
125r
118
125
69
3.2
41.4

120
125
117
121
74
3.2
41.4

117
121
116
112
81
4.4
40.8

Feb.
Feb.
Feb.

213
167
163

209
166
163

210
162
154

190
150
152

Jan.
Jan.
Jan.
Feb.

7,456
153
117
124

7,256r
149
126
129

7,156r
150
121
120

Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Jan.

120
123
119
150
87
3.3
41.2

119
121
118
153
84
3.4r
41.2

118
121
117
144
82
3.3
41.3

115
118
113
132
91
4.4
41.0

FINANCE AND BANKING
Member Bank L o a n s * ...................................Feb
Feb.
Member Bank Deposits*.............................. Feb
Feb.
Bank D e b it s * / * * ..............................
Feb.

192
155
162

192
156
165

188
155
156

169
138
158

Latest Month

One
Year
Ago

GEORGIA

SIXTH DISTRICT
INCOME AND SPENDING
Personal Income, (M il. $, Annual Rate) . . Jan. 46,044
Manufacturing P a y r o lls ..................................... Feb.
155
Farm Cash R e c e ip t s ........................................... Jan.
140
C r o p s ....................................................................Jan.
162
L iv e s to c k ..............................................................Jan.
119
145p
Department Store S a l e s * / * * .........................Mar.
Instalment Credit at Banks, *(M il. $)
New Loans..............................................................Feb.
199
R epaym en ts........................................................Feb.
183
PRODUCTION AND EMPLOYMENT
Nonfarm Employment........................................... Feb.
M an u factu rin g ........................................... ...........Feb.
Apparel
....................................................... Feb.
C h e m ica ls........................................................Feb.
Fabricated M e t a l s ..................................... Feb.
Food
..............................................................Feb.
Lbr., Wood Prod., Furn. & Fix. . . . Feb.
P a p e r ..............................................................Feb.
Primary M e t a ls ........................................... Feb.
Textiles
........................................................Feb.
Transportation Equipment
. . . .
Feb.
Nonmanufacturing........................................... Feb.
Construction................................................. Feb.
Farm Employment................................................. Feb.
Insured Unemployment, (Percentof Cov. Emp.) Feb.
Avg. Weekly Hrs. in Mfg., (Hrs.) . . . .
Feb.
Construction C o n tra c ts*..................................... Feb.
R e s id e n t ia l....................................................... Feb.
All O t h e r ..............................................................Feb.
Industrial Use of Electric Power . . . .
Dec.
Cotton C o n su m p tio n **..................................... Feb.
Petrol. Prod, in Coastal La. and Miss.**
. Feb.
FINANCE AND BANKING
Member Bank Loans*
All B a n k s ..............................................................Feb.
Leading C i t i e s ................................................. Mar.
Member Bank Deposits*
All B a n k s ..............................................................Feb.
Leading C i t i e s ................................................. Mar.
Bank D e b i t s * / * * ................................................. Feb.

45,982r 45,039r
154
152
113
129
116
136
121
118
143
148

42,657
142
135
142
124
139

195r
173

192
164

118
118
141
112
126
108
98r
107
108
96
137
118
112
81
2.7
41.6
190
153
221
124
113
170

117
117
138
112
125
108
95
107
105
96
135
118
111
80
2.7
41.7
196
175
215
123
105
177r

114
113
135
110
117
106
94
109
100
95
122
115
103
84
3.5
41.1
165
156
172
121
102
168

193
180

191
177

188
175

168
158

152
143
156

153
141
161

150
142
150

138
131
144

PRODUCTION AND EMPLOYMENT

180
165

119
118
141
112
126
108
97
107
107
97
140
119
112
78
2.6
41.5
137
139
136
126
113
172

INCOME AND SPENDING
Jan.
Personal Income, (Mil. $, Annual Rate)
Manufacturing P a y r o lls .............................. Feb.
Feb
Jan.
Farm Cash R e c e ip t s ................................... Jan
Feb.
Department Store S a l e s * * ......................... Feb

Avg. Weekly Hrs. in Mfg., (Hrs.)
FINANCE AND BANKING

LOUISIANA
INCOME AND SPENDING
Personal Income, (Mil. $, Annual Rate)
Manufacturing P a y r o lls ....................
Farm Cash R e c e ip t s .........................
Department Store Sales*/** . . .
PRODUCTION AND EMPLOYMENT
Nonfarm Employment.........................
Manufacturing..............................
Nonmanufacturing.........................

6,330
127
150
118

FINANCE AND BANKING

Bank D e b it s * / * * ..............................

MISSISSIPPI

ALABAMA
INCOME AND SPENDING
Personal Income, (M il. $, Annual Rate) . .
Manufacturing P a y r o lls .....................................
Farm Cash R e c e ip t s ...........................................
Department Store S a l e s * * ...............................

Jan.
Feb.
Jan.
Feb.

6,140
145
141
115

6,173r
142
106
124

5,965r
139
123
118

PRODUCTION AND EMPLOYMENT
IMonfarm Employment...........................................
M anu factu rin g .................................................
Nonmanufacturing...........................................
Construction.................................................
Farm Employment.................................................
Insured Unemployment, (Percentof Cov. Emp.
Avg. Weekly Hrs. in Mfg., (Hrs.) . . . .

Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.

111
109
112
102
76
2.7
41.8

111
108
112
102
84
2.9
41.7r

110
107
111
101
74
2.8
41.4

108
103
110
101
86
3.8
41.3

FINANCE AND BANKING
Member Bank L o a n s ...........................................
Member Bank D e p o s it s .....................................
Bank D e b i t s * * .......................................................

Feb.
Feb.
Feb.

187
154
151

183
151
157

183
149
150

166
139
140

5,662
130
124
116

INCOME AND SPENDING
Personal Income, (Mil. $, Annual Rate)
Manufacturing P a y r o lls ....................
Farm Cash R e c e ip t s .........................
Department Store Sales*/**
. . .
PRODUCTION AND EMPLOYMENT

FINANCE AND BANKING

Bank D e b it s * / * * ..............................

FLORIDA

TENNESSEE

INCOME AND SPENDING
Personal Income, (Mil. $, Annual Rate) . .
Manufacturing P a y r o lls .....................................
Farm Cash R e c e ip t s ...........................................
Department Store S a l e s * * ...............................

Jan. 13,332
Feb.
181
Jan.
138
Feb.
175

13,839r
181r
134
181

INCOME AND SPENDING
Personal Income, (Mil. $, Annual Rate)

PRODUCTION AND EMPLOYMENT
Nonfarm Employment...........................................
M anu factu rin g .................................................
Nonmanufacturing...........................................
Construction.................................................
Farm Employment.................................................
Insured Unemployment, (Percentof Cov. Emp.
Avg. Weekly Hrs. in Mfg., (Hrs.) . . . .

Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.

127
130
126
101
104
2.0
42.0

126
129
126r
100
108
2.1r
41.8

FINANCE AND BANKING
Member Bank L o a n s ...........................................
Member Bank D e p o s it s .....................................
Bank D e b i t s * * .......................................................

13,626r 12,364
179
169
153
137
177
169

7,034
142
146
115

PRODUCTION AND EMPLOYMENT

Feb.
Feb.
Feb.

197
152
156

197
152
162

*For Sixth District area only. Other totals for entire six states.

126
128
125
97
104
2.2
42.2
191
151
151

122
126
122
94
93
2.7
41.4
169
141
145

**D aily average basis.

Avg. Weekly Hrs. in Mfg., (Hrs.)

r Revised.

.

.

p Preliminary.

Sources: Personal income estimated by this Bank; nonfarm, mfg. and nonmfg. emp., mfg. payrolls and hours, and unemp., U. S. Dept, of Labor and cooperating state agencies; cotton
consumption, U. S. Bureau of Census; construction contracts, F. W. Dodge Corp.; petrol, prod., U. S. Bureau of Mines; industrial use of elec. power, Fed. Power Comm.; farm cash
receipts and farm emp., U.S.D.A. Other indexes based on data collected by this Bank. All indexes calculated by this Bank.




•7 •

D IS T R IC T

........ I.................
B n oD
illio s f ollars
_A R
nnual ate

...... I........

B U S IN E S S

C O N D IT IO N S

Opring finds the District’s economy well rooted and vigorous. Nonfarm
activity is providing jobs for an expanding work force, and farmers are
chalking up mild gains despite wet, cool weather. Bank loans continue to
expand, thus helping consumers and businessmen to maintain spending
at an advanced level.
^
^
^
The number of nonfarm jobs in February increased by about 25,000
over the preceding month. Nonmanufacturing categories provided most of
these jobs, with Louisiana experiencing the strongest upsurge among the Dis­
trict states as a result of the dockworker contract settlement. The District’s
transportation equipment industry also recorded a healthy increase. A shorter
workweek, however, somewhat moderated the rise in manufacturing payrolls.
Construction jobs were spotty, with gains in some states and losses in others.
The rate of insured unemployment continued to creep down, and Florida and
Georgia have now reached the 2-percent level.

Average W
eekly H
ours*
W inM .
orked fg

A wet March hindered the farm economy but did not completely stall it.
Rainfall during the month put farmers behind in their field work, although it
benefited pastures and plants in many places. In Florida, the citrus crop, which
is about a third larger than last year’s, is still being harvested. Production of
poultry products has been expanding, as hatchery output surges upward, broiler
flocks increase, and egg flocks grow larger. Higher prices for hogs, broilers, eggs,
and some vegetables have led to a rise in the average of prices received by
farmers; farm costs, as measured by prices paid for feed, chicks, and labor,
have remained almost unchanged.
\S

Cotton Consum
ption

During the first four weeks of March, banks in leading District cities
registered a gain in loans. Business, consumer, and security loans showed
continued strength; however, a sharp decline in loans to nonbank financial
institutions partly offset these gains. Investments expanded somewhat, as a
further decline in U. S. Government securities was more than offset by a con­
tinued sharp uptrend in other securities. Deposits advanced at about the usual
rate, with both demand and time deposits posting gains.
The level of consumer instalment credit outstanding at commercial
banks continued to climb in February despite a high repayment rate.
Following a sharp gain in January, department store sales appear to have
dropped back to about the fourth-quarter level. Furniture store sales, however,
were well above their 1964 average in both January and February. Personal
income rose slightly in January, and savings increased further in February.
\S \S )S

-P E R C E N T OF REQUIRED R E SE R V E S
_ B o r r o w i n g s f r o m F. R. B a n k s
\
a
Excess Reserves
4.5

~ _

1962

1963

1964

*Se a s. adj. figure; not an index.




1965

Total construction contract awards for February weakened from the
very high levels of December and January. The bulk of the decline occurred
in the public works and utilities category, reflecting the absence of contracts
for large missile and space vehicle facilities, which had boosted Florida’s con­
tract awards in early 1964. A somewhat more widespread decline occurred in
the residential building category, with all District states except Georgia and
Louisiana showing sizable losses in the first two months of 1965 from the
comparable period of 1964. Nonresidential building contracts continued their
sharp upturn, however, partially offsetting declines in other categories.
N o t e : D a t a o n w h ic h sta te m e n ts are b a s e d h a v e b e e n a d ju s t e d
se a s o n a l in flu e n c e s.

w h e n e v e r p o s s ib le

to e lim in a t e