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> M i A ls o in • 1965 t h is is s u e : LOUISIANA EXPANDS ROLE IN ECONOMIC PERFORMANCE SIXTH DISTRICT STATISTICS DISTRICT BUSINESS CONDITIONS re s e rv e IBanltgf jr f t f a t it a u R e v i e w 3, 2, 1— Blast Off! Atlanta, Georgia April l N A S A ' s I m p a c t o n t h e 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
