View original document

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

IN THIS ISSUE:
• The U.S. Balance of
Payments: Policies
and Results
• The Mobile Story of
Consumer Instalment
Lending
R

E

V

I

E

W

• District Business
Conditions

FEDERAL



RESERVE

BANK

OF A T L A N T A
A p ril 1 9 6 7

T h e U. S . B a la n c e o f P a y m e n t s :
P o lic ie s a n d R e s u l t s
In 1966, the U.S. balance of payments, calculated
on the liquidity basis, registered another substan­
tial deficit. On the official settlements basis, tem­
porary large inflows of foreign liquid funds led to
a small surplus for the first time in nine years.
The existence of two official measures of pay­
ments balance reflects disagreement among econo­
mists as to what type of measure most meaning­
fully summarizes the varied and complex forces
that determine our international payments posi­
tion. But neither these measures nor others some­
times used adequately describe all the important
aspects of balance of payments performance in a
given year, although over a longer period they
offer a general idea of trends and progress. Thus,
despite their differences, both measures indicate
that our balance of payments improved consider­
ably in 1966 over the years prior to 1965. Let us
now see what factors were most responsible.
Payments’ Performance
In recent years, U. S. private capital outflows
(e.g., investment by U. S. residents in foreign
stocks and bonds, U. S. corporate investments in
overseas branches and subsidiaries, and loans of
American banks to foreigners) have gained con­

46


siderable attention as a large adverse element in
our payments balance. The vast amount of sav­
ings generated in this country, which underlies
our position as a world financial center, and the
consequent low cost of obtaining capital here
have contributed to expanding capital outflows.
In addition, the significant growth of the European
Common Market, combined with the erection of
common tariff barriers to nonmember nations, ha s
encouraged many U. S. corporations to build new
plants or buy existing firms in countries that be­
long to the market. Many restrictions on interna­
tional capital movements and heavy reliance on
credit restraint to check inflation in most indus­
trial countries have also helped maintain the
higher interest rates that have attracted U. S.
capital.
Owing to a persistent payments deficit and the
artificial stimulus to U. S. capital outflows result­
ing from trade barriers and other nations’ restric­
tions on capital movements, our government has
felt justified in constraining these flows until our
payments balance can achieve equilibrium. These
constraints are applied through the Interest
Equalization Tax (TET) and the Voluntary Co­
operation Program (VCP). The IET has inM O N TH LY

R E V IE W

Definitions: Liquidity Balance
Official Settlements Balance
The liq u id ity and official settlem ents methods of
c a lcu la tin g international payments balance rep­
resent two essentially d iffe re n t view points as to
what types of payments most adequately sum­
marize overall movements in the balance of pay­
ments, and, therefore, c o n stitu te the best mea­
sure of surplus or d e ficit. The liq u id ity balance,
the more com m only used, includes changes
in official reserve assets and in both foreign o f­
fic ia l and private holdings of short-term U. S.
lia b ilitie s . A ll other changes are counted as reg­
ular flows. The official settlem ents balance also
includes changes in reserve assets and in foreign
official holdings of short-term U. S. lia b ilitie s ,
but counts changes in foreign private holdings
of U. S. lia b ilitie s as regular cap ital flows. In
addition, the official settlem ents balance in­
cludes as part of the balance changes in certain
no n liq u id U. S. lia b ilitie s to foreign official
agencies.

creased the cost of foreign borrowing in the
United States without raising domestic interest
rates. Under the VCP, the Department of Com­
merce has supplied guidelines for business to
reduce their flows of capital abroad and the Fed­
eral Reserve has given guidelines for banks and
other financial institutions.
Yet outward flows of capital also yield con­
siderable long-run benefits to our balance of pay­
ments. For instance, by helping to develop foreign
markets, they create new investment and con­
sumer demand for our exports as well as yield
interest, royalties, and dividends which flow back
to the United States. In the interest of world eco­
nomic growth and efficiency, substantial amounts
of capital should flow from wealthy countries like
the United States to less developed countries. For
such reasons, our government has only tried to
moderate capital outflows, not eliminate them.
Reductions in the amount of foreign securities
purchased by American residents and in U. S.
bank loans to foreigners illustrate the success of
balance of payments measures. The net outflow
of capital from purchases of foreign securities, the
equivalent of foreign borrowing in the U. S., has
fallen off considerably since the Interest Equali­
zation Tax took effect in 1963. These purchases
dropped even further last year, despite the flota­
tion of $150 million in Canadian securities de­
ferred from 1965 by special agreement.
In 1966, the net repatriation of bank funds ex­
ceeded the previous year’s results, as banks re­
duced the amount of their loans abroad under the
Digitized for9 FRASER
A P R IL 1 67


U. S. Balance of Payments
B noD r
illios f o s
lla
B noD r
illios f o s
lla

16
90

16
91

16
92

16
93

16
94

16
95

16
96

Voluntary Program and in response to tight do­
mestic credit conditions. Prior to the program’s
initiation in 1965, bank loans had constituted a
large net outflow of capital.
The net outflow of funds into the overseas
operations of U. S. corporations also contracted
slightly from the all-time high reached in 1965.
However, the overall improvement was greater,
because U. S. companies, prodded by the Volun­
tary Program since 1965, financed part of their
overseas investments by stepping up their bor­
rowings of funds abroad. In sum, 1966 represents
a modest reduction in private capital flows abroad
over 1965, which recorded a considerable im­
provement over previous years.
Massive flows of foreign capital into the U. S.
also contributed to better results in our balance
of payments. These inflows, attracted by high
interest rates and tight monetary and credit conLong-Term Interest Rates
Selected Countries
Prul
enn
Aca
net

Prul
enn
Aca
net

47

ditions in the U. S., constituted one of the notable
developments of 1966. The huge increase in pri­
vate short-term capital inflows, reflected in a
large rise in the amount of liquid liabilities to
private foreigners, consisted largely of borrow­
ings of U. S. banks from their foreign branches.
The inflow of these private liquid funds primarily
accounted for the surplus on the official settle­
ments basis.
The large negative figure in 1966 for the other
short-term capital account, liquid liabilities to
foreign official agencies, reflects a shift of these
funds into longer-term investments, consisting of
time certificates of deposit and certain U. S. Gov­
ernment agency securities, which had become at­
tractive because of high interest rates and low
risk. The shift shows up as the sharp increase
over previous years in the inflow of nonliquid
foreign capital, i.e., nonliquid liabilities to for­
eigners.
Besides the improvement on net U. S. private
capital flows, net U. S. Government capital out­
flows also fell off in 1966. Although government
claims on foreigners rose, they were more than
offset by a greater gain in advance debt prepay­
ments and other debt payments to the government.
In contrast to the favorable changes in capital
flows in 1966, however, our trade surplus shrank
rapidly, as in 1965. Since our trade surplus has
provided the one consistently bright spot in our
balance of payments, this deterioration last year
was rather discouraging. The worsened trade bal­
ance stemmed primarily from a sharp rise in mer­
chandise imports. Stimulated by the added de­
mands of the Vietnam War superimposed upon
a strong domestic investment boom, merchandise
imports shot up from a 12-percent annual rate of
growth of the early sixties to 20 percent for 1966.
This rapid rise overwhelmed a 10-percent ex­
pansion of merchandise exports.
In addition to the shrinking trade balance,
other goods and services also slumped. Net in­
come from investments, royalties, and services
increased by about $200 million, as net payments
on travel and transportation advanced slightly.
The main change, however, resulted from a jump
in military expenditures overseas of about $800
million, also stemming from the war in Vietnam.
The overall balance on goods and services con­
tracted about $1.7 billion from the previous year.

48


The large inflow of private short-term funds
in 1966, although it did not reduce the deficit as
defined on the liquidity basis, had the salutary
effect of moderating the loss of official reserve
assets;. The outflow of gold, the largest and most
carefully watched of these assets, fell to about
one-third of the preceding year’s rate and signifi­
cantly below the 1960-65 average. In addition,
our holdings of convertible foreign currencies,
consisting in large part of sterling, rose consider­
ably through increased activity in central bank
currency swaps, especially in connection with the
midyear crisis of the British pound. However, in­
creased drawings from the International Mone­
tary Fund almost exactly offset the gain in re­
serve assets from larger holdings of convertible
currencies. A significant portion of these drawings
were technical drawings which the United States
made so that other nations could meet certain
obligations to the IMF.
Related Policies
Accompanying policies and forces which directly
affected specific components of the balance of
payments in 1966 were other developments cf
significant direct influence. These developments,
relating to the stabilization of currency exchange
rates and gold movements, affected confidence in
the dollar, so necessary for our own economic
stability and that of the world monetary system.
In 1966, the Federal Reserve took an eventful
step in foreign exchange stabilization by expand­
ing its currency swap network with other central
banks from $2.8 to $4.5 billion. These arrange­
ments provide an important source of short-term
credit to any member of the network whose cur­
rency may suffer as a result of large temporary
outflows of funds for reasons such as speculation
or transient seasonal disturbances. Thus, the in­
crease in this swap network has provided par­
ticipating members with an extra margin of pro­
tection against sharp temporary movements in
their balance of payments.
These swap arrangements proved very effective
in allowing the Federal Reserve and other cen­
tral banks to provide much-needed aid to the
Bank of England, struggling to maintain the ex­
change value of the pound last July. This tempo­
rary assistance provided the English Government
with time to enact a program that would result
M O N TH LY

R E V IE W

U. S. Balance of Payments
(M illions of D ollars)
+ R e c e ip ts by U. S. R e s id e n ts
— P a y m e n ts by U. S. R e s id e n ts
B a la n c e on G oods a n d S e rv ic e s
N et M e rc h a n d is e E x p o rts
N et E xports of O th e r G oods a n d S e rv ic e s
U. S. In v e s tm e n ts A broad
D irect In v e s tm e n t A broad
N et P u rc h a s e of Fo reig n S e c u ritie s
U. S. B an k L o an s to F o reig n e rs
O th e r U. S. C la im s on F o reig n e rs
Foreign In v e s tm e n t in th e U. S.
N onliq u id L iab ilitie s to F o reig n e rs
L iquid L ia b ilitie s to P riv a te F o re ig n e rs
L iquid L iab ilitie s to
Foreign Official A g e n cie s
U. S. G o v e rn m e n t A sse ts
C la im s on F o re ig n e rs
R e p a y m e n ts fro m F o reig n e rs
U. S. Official R ese rv e A ssets*
Gold
C o n v ertib le C u rre n c ie s
IMF G old T ra n c h P o sitio n

1960

1961

1962

1963

1964

1965

1966

4,046
4,757
-7 1 1

5,621
5,444
177

5,130
4,417
713

5,897
5,079
818

8,490
6,676
1,814

6,957
4,788
2,169

5,296
3,700
1,596

- 3 ,8 8 5
-1 ,6 7 4
-6 6 3
- 1 ,1 5 0
-3 9 8

- 4 ,1 8 0
-1 ,5 9 9
-7 6 2
- 1 ,2 6 1
-5 5 8

- 3 ,4 2 5
-1 ,6 5 4
-9 6 9
-4 5 1
-3 5 1

- 4 ,4 5 6
- 1 ,9 7 6
-1 ,1 0 4
- 1 ,5 3 5
159

- 6 ,5 2 3
- 2 ,4 1 6
-6 7 7
- 2 ,4 6 4
-9 6 6

- 3 ,6 9 0
- 3 ,3 7 1
-7 5 8
94
345

- 3 ,9 1 1
- 3 ,3 6 3
-4 2 6
261
-3 8 3

2 ,104
366
289

2,471
707
1,083

1,691
1,021
213

2,981
689
619

3,312
685
1,554

309
176
150

3,024
2,168
2,430

1,449

681

457

1,673

1,073

-1 7

-1 ,5 7 4

- 1 ,1 0 5
- 1 ,7 4 1
636

-9 2 6
- 2 ,2 0 0
1,274

-1 ,0 9 4
-2 ,3 7 4
1,280

-1 ,6 6 4
- 2 ,6 3 4
970

- 1 ,6 7 4
- 2 ,3 7 7
703

- 1 ,5 7 5
- 2 ,4 7 7
902

- 1 ,4 8 1
- 2 ,7 0 8
1,227

2,143
1,702
441

606
857
-1 1 6
-1 3 5

1,533
890
17
626

378
461
-1 1 3
30

171
125
-2 2 0
266

1,222
1,665
-3 4 9
-9 4

568
571
-5 4 0
537

O th e r T ra n s a c tio n s

- 3 ,3 0 3

- 3 ,5 9 2

- 3 ,8 3 5

-3 ,1 3 6

- 3 ,7 7 6

- 3 ,2 2 3

- 3 ,4 9 6

B a la n c e on L iq u id ity B asis

- 3 ,8 8 1

- 2 ,3 7 0

- 2 ,2 0 3

- 2 ,6 7 0

- 2 ,7 9 8

- 1 ,3 5 5

- 1 ,4 2 4

B a la n c e on Official S e ttle m e n ts B asis

- 3 ,4 0 2

- 1 ,3 4 7

- 2 ,7 0 6

- 2 ,0 4 4

- 1 ,5 4 6

- 1 ,3 0 2

271

* (+ lo ss of a s s e ts ; — g ain of a s s e ts )
S o u rce : S u rv ey of C u rre n t B u sin e s s, J u n e 1966 a n d M arch 19 6 7 .

in more permanent improvement in its payments
balance. The benefits of this action also re­
dounded to the United States, for a collapse of
the pound, the only other currency which shares
with the dollar the role of a key currency, would
drastically affect the position of the dollar.
In an effort to preserve our gold stock, the
Treasury engaged in a number of “technical”
drawings on the International Monetary Fund.
As the Fund’s holdings of dollars exceeded 75
percent of the U. S. quota, it could no longer ac­
cept payments in dollars from other countries
under existing rules. Consequently, the United
States made drawings of other convertible cur­
rencies from the IMF and sold them for dollars
to several countries with IMF payment needs.
Otherwise, these countries would have demanded
gold for their dollar holdings to make payments.
Policy Effects
The conjunct of official policies certainly had an
especially favorable effect on private capital

A P R I L 19 67


flows. Not only did the outflow of U. S. capital
to other countries fall to a lower level than in
1965, but inflows of foreign capital into this
country accelerated considerably above the level
of recent years. However, these capital flows
possess several facets, each of which merits dis­
tinct consideration.
Restrictive monetary policy and historically
high interest rates helped achieve the outstanding
upswing in foreign capital inflows. The shifts by
international agencies and foreign official institu­
tions from liquid claims on this country to long­
term CD’s and U.S. agency issues statistically re­
duced the liquidity deficit, but the near-liquid
nature of these claims implies that these funds
could easily return abroad. The huge inflow of pri­
vate short-term capital, consisting mainly of Euro­
dollars, reduced the flow of dollars to foreign offi­
cial institutions. When held by such institutions,
dollar liabilities represent potential claims upon
our gold stock. Nevertheless, the reverse flows of
some of these funds since the end of last year,
49

when stringent credit conditions began to ease,
indicates the temporary nature of their benefit to
the balance of payments.
The further moderation in the outflow of pri­
vate U. S. capital in 1966 can be attributed to
the Interest Equalization Tax and the Voluntary
Cooperation Program in concert with restrictive
monetary policy. These two programs also had
important side effects in stimulating the develop­
ment of larger and more efficient European capi­
tal markets. Not only did the rapid growth of
these capital markets reduce some of the foreign
demands on our capital markets, but it permitted
a very rapid increase in borrowings abroad of
U. S. corporations. These borrowings allowed
U. S. companies to continue their foreign invest­
ments with less pressure on our payments bal­
ance.
Although capital flows were favorable in 1966,
the accelerated war in Vietnam exacted its price
on the balance of payments in the form of a de­
terioration on current account. The rapid rise in
military expenditures abroad reflected the direct
costs of the war effort. Furthermore, the demands
of Vietnam added to a nearly full utilization of
resources, created inflationary pressures resulting
in an indirect cost of a very high level of imports.
Thus, monetary policy, partly counteracting these
inflationary pressures, also aided our balance of
payments by indirectly curbing an even larger
rise in imports.
In sum, monetary policy played an important
role in 1966 by preventing greater inflationary
strains that would have worsened our trade bal­
ance even more. At the same time policy encour­
aged the very favorable inflows of capital that
tended to offset temporarily the unfavorable
movements that did occur. In the light of the
buildup in Vietnam, monetary policy, together
with the Interest Equalization Tax and the Vol­
untary Cooperation Program, can modestly be
said to have made some reasonable accomplish­
ments in holding the balance of payments liquid­
ity deficit to the reduced level achieved in 1965
and in cutting back the gold flow from that year’s
level. However, the passing to monetary ease and
the nonrepetitive nature of certain debt payments
to the U. S. Government indicate that the favor­
able capital flows of last year may not remain a
permanent feature in our balance of payments.

50


Future Prospects
On current account, the cooling of the domestic
economy has already led to a slackened pace of
imports, while exports have continued to climb.
Unless a rapid resurgence of the domestic econ­
omy occurs, imports should continue at a more
subdued rate for the remainder of the year. How­
ever, slower economic growth in some of our
major trading partners and a relatively more
rapid rise in domestic retail and wholesale prices
in 1966 create a mixed outlook for exports.
Nevertheless, slack economic conditions abroad
and the increasing availability of funds in the
European capital market suggest that U. S. cor­
porations’ demands for funds in this country for
overseas investment may ease somewhat. In addi­
tion, a tightened Voluntary Cooperation Program
and proposed legislation to increase the rate of
the Interest Equalization Tax are designed to off­
set potential incentives for increased capital flows.
Such incentives could arise from increasing in­
ternational interest rate differentials unfavorable
to the United States.
For the longer run, our government is engag­
ing in some newer efforts that should yield future
benefits. Among these are attempts to spur our
merchandise exports through expanding the role
of the Export-Import Bank and through further
steps to insure that our AID-financed exports are
not substituted for regular commercial exports.
A special task force has also been set up to stud}/
how we can best stimulate foreign travel in the
United States to narrow our so-called “touristgap.” On capital account, passage of the Foreign
Investors Tax Act and attempts to publicize its
advantages have been designed to step up the
inflow of foreign capital to this country.
Thus, with the exception of tied aid, these
newer policies emphasize efforts to spur the fa­
vorable elements in our balance of payments in
contrast with the Interest Equalization Tax and
Voluntary Cooperation Program which are essen­
tially temporary programs to curb the adverse
elements in our payments balance until equilib­
rium can be achieved. However, the ultimate suc­
cess of these policies can only be realized if basic
conditions of steady economic growth, rising pro­
ductivity, and stable prices can be maintained.
J ohn

E.

L e im o n e

M O N T H L Y R E V IE W

The
M o b ile

S t o r y

of
C o n s u m e r In s ta lm e n t
L e n d in g
L ... .

“Let us all be happy and live within our means,
even if we have to borrow the money to do it,”
was Artemus Ward’s philosophy, and it might
just as well be ours today. Buying a home, for ex­
ample, almost always requires the purchaser to go
into debt. In recent years, more and more con­
sumers have borrowed to purchase automobiles
and household appliances, make house repairs,
take vacations, and for many other personal ex­
penses. Consequently, the volume of consumer in­
stalment indebtedness has expanded sharply.
Perhaps more significant, however, is that over
the last 20 years American consumers have in­
creased their indebtedness at a faster rate than
their disposable income. Does this mean that
more and more submarginal borrowers have
been coaxed into the market by a lowering of
lending standards? Has the quality of the na­
tion’s outstanding consumer loans deteriorated?
Alternatively, could this rising volume of per­
sonal debt merely indicate that today’s borrowers
are more creditworthy?
Aggregate information such as the volume and
level of personal debt and the ratio of consumer
debt to disposable income does not reveal basic
changes in attitudes and trends in consumer
borrowing. Hence, the first step in answering
questions concerning the quality of credit is to
find out more about individual borrowers. For
example, what age groups are most likely to use
instalment credit, and for what purposes? Do
persons with above-average incomes also borrow
for instalment purchases? And what about the
distribution of borrowers by occupation?

A P R I L 1 9 67


... j

In order to answer such questions and to throw
additional light on the characteristics of indi­
vidual borrowers, we have made a special study
of instalment customers at Mobile, Alabama,
banks. In connection with a longer-run project1
specific information related to individual bor­
rower characteristics has been collected from
these banks.
Mobile Borrowers
Almost everyone that lives in Mobile and is old
enough to work is a prospective candidate for a
bank loan. Not everyone wants a loan nor does
everyone who applies for a loan get it. Even if
the bank has an ample availability of funds, the
loan is granted on the basis of its probability of
repayment. We can get some idea of the import­
ance assigned to such characteristics as age, in­
come, occupation, etc., by looking at the collective
consumer lending experience of Mobile banks
since mid-1965. If a bank’s instalment loan cus­
tomers can be identified from the distribution of
certain characteristics of the population, then
significant shifts over time in the profile of an
area’s economy would have important conse­
quences for the demand for consumer credit. A
comparison of Mobile borrowers and residents
should reveal what segments of the population
banks serve.
Our study of the characteristics of bank bor­
rowers and Mobile residents revealed that about
inquiry into Consumer Instalment Lending, a sup­
plementary study containing tables and articles,
is available upon request to the Research Depart­
ment of this bank.
51

T he a g e s of c u s to m e r s re c e iv in g c o n s u m e r lo a n s a t M obile
b a n k s c lo se ly p a ra lle l th o s e of all re s id e n ts in th e a re a ,
Percent
0

10
!

(

"

J...........

20
|

30
|

AGE
All Residents
19 or Less
J

Borrowers

30-39
|

|
1

1

50-59

1

1

60 and Over

........

1

I I

.

................ 1 ...............

1

.......

. . . b u t w h ile b a n k s s e rv e c u s to m e r s in all in c o m e b ra c k e ts ,
th e y d e fin ite ly fa v o r b o rro w e rs w ith h ig h e r in c o m e s,
Percent
0

10

20

30

40

50

i-------1------r

FAMILY INCOME

All Residents

$1,999 or Less

$2,000 - 5,999

$6,000 - 9,999

$10,000 • 14,999

$15,000 and Over

. . . w h ic h p ro b a b ly e x p la in s th e h e a v ie r c o n c e n tr a tio n
b o rro w e rs in th e p ro fe s sio n a l-m a n a g e ria l g ro u p .

OCPT N
CUAI
O

....

adMaeia
n a gr l
n

1

1

1

|

1
j

ARs ets
ll eidn
Broes
orw
r

R e,
ed
tir
Ue p ydo
nm e, r
lo
NtinLbrFre ___1
o ao oc
1

1

1

Characteristics Vary With Loan Type
Some differences in borrower and loan charac­
teristics were noted between those borrowing to
2
These com parisons m a y be distorted som ewhat since
the data on M o b ile ’s income distribution are based
on 1960 inform ation, while the loan figures are for
1965-66. A n y changes that have occurred over this,
period, however, w ould probably have resulted in a
shift toward a heavier concentration in the upper
income groups, w hich would not m aterially affect,
the results presented.

Ca m, Frm,
rfts e oe e
n n
Sric Wes
ev e okr,
r
adLbrr
n aoes
........................... IllH iihll
H


52


of

half of the age 18 or over population is under 40,
with nearly one-fourth of the total concentrated
in the 30-39 age bracket. At the banks nearly
one-fourth of the borrowers are also from 30-3!?
and slightly over half of the customers are less
than 40. In general, these banks seemed to prefer
lending to borrowers in the productive work years
from 20 to 60. Loans to persons under 20 and
over 60 are proportionally less than the number of
residents in these age groupings.
In 1960, nine out of ten families in Mobile had
annual household incomes of $10,000 or less.
Similarly, over 85 percent of the borrowers at
Mobile banks also had household incomes of less
than $10,000 annually. But while close to onehalf of all families had incomes between $2,000
and $6,000, only about two-fifths of the borrowers
were in this range. Conversely, nearly 38 percent
of the borrowers and 24 percent of the residents
had incomes ranging between $6,000 to $10,000
annually. About 15 percent of Mobile’s families
had incomes of $2,000 or less, but borrowers re­
porting incomes this low held only 3.5 percent
of the total number of consumer loans at banks.1
1
Family income is one of the important gauges
banks use in evaluating loans, and the chances of
receiving a loan, other things constant, improves
with the borrower’s income. And, of course, in­
come depends largely upon one’s occupation.
Approximately one-third of Mobile’s workers
are craftsmen, foremen, service workers, and
laborers. Next in importance in terms of numbers
employed are clerical and sales people, followed
closely by the professional and managerial group.
Close to one-fifth of the population is retired,
not in the labor force, or unemployed. Mobile;
banks granted most loans to the professional managerial group who received nearly twice as
many loans as would be expected if the banks
allocated their loans on the basis of area job
distribution alone. Others actively employed re­
ceived about their proportionate share of loans,
while those not commonly considered in the labor
market received only a small share.

1
M O N T H L Y R E V IE W

purchase automobiles and those obtaining funds
for other purposes. Individuals negotiating loans
to purchase automobiles tended to be younger,
with about one-third in the 20-29 age bracket.
Over 55 percent of all auto loans were granted to
those under 40.
The largest proportion of auto loans were made
to borrowers who had lived in the community
and worked at the same firm less than five years.
Because the population has become increasingly
mobile in general, perhaps age and future job
prospects or previous recommendations are used
more often in judging loan applicants than years
of residence or employment.
Mobile residents that financed auto purchases
recorded average loans of $1,750, with monthly
payments of nearly $70 extending over a twoyear period. The amount of auto loans was fairly
evenly distributed among all size categories,
about 50 percent below $1,500 and 50 percent
above that amount. Nearly three-fourths of all
borrowers had monthly payments ranging be­
tween $30 and $89. Only one-fifth of the loans
were for less than one year; the remaining loans
were divided equally between 13-24 and 25-36
months each. Only a fraction of one percent of
the loans exceeded 36 months.
Mobile banks appear to be following the char­
acteristic trend of most banks to make more new
car loans than used ones. Borrowers, however,
have held their monthly payments below $90 by
extending the repayment period.
Consumer loans for other purposes averaged
over $1,000 less per loan than auto loans. Threefifths of these loans were less than $500, and 80
percent were for $1,000 or less. Similarly, three
out of five loans were to be repaid in 12 months
or less. Monthly payments for about one-half of
the “nonauto” loans averaged less than $30.

The average “nonauto” borrower was slightly
older, had worked for his present employer
longer, but had fairly low household income. This
group was comprised of relatively fewer young
persons and more borrowers 60 years old and over.
They seemed to be longer-term residents and em­
ployees. One-half had annual household incomes
of less than $6,000.
Hence, the “nonauto” borrower, although in
a lower income bracket than the auto borrower,
appears to be more mature and perhaps a better
credit risk, as measured by job tenure and years
residing in the area. Furthermore, his charac­
teristics seem to match more closely those of all
Mobile residents.
Banks Meet Needs
Based on the tentative conclusions of the Mobile
study, banks’ instalment lending activity appears
to be serving most segments of the population.
However, it is doubtful if an economic profile of
the area itself could be used to accurately de­
scribe the structure of a bank’s instalment loan
market. While the characteristics of Mobile’s
population and banks’ instalment loan borrowers
are similar, certain income, occupation, age
groups, and variation among borrowers limit the
scope of comparison.
Individuals who borrow from banks may not
be typical of instalment borrowers at all lending
institutions. Nevertheless, banks are the most im­
portant instalment lenders, accounting for more
than two-fifths of the nation’s outstanding con­
sumer credit. Consequently, the characteristics
of those consumers who use bank instalment
credit provide a clue to lending in an important
part of the market.
R obert E. S w e e n e y and J oe W. M c L eary

B a n k A n n o u n c e m e n ts
The M ercantile Bank and Trust Company, Gretna,
Louisiana, a newly organized nonmember bank,
opened on March 18 and began to rem it at par fo r
checks drawn on it when received from the Federal
Reserve Bank. Officers are Francis J. Henry, presi­
dent and chairm an of the board; John A. Churella,
vice president; and Harold C. Boutte, vice president
and cashier. Capital is $450,000; surplus and other
cap ital funds, $300,000.
On March 24, the First N ational Bank of Brooksville , Brooksville, Florida, a new member bank,
opened and began to rem it at par. W. E. Patterson

A P R I L 19 FRASER
Digitized for67


is president; Ellwood Johnson, vice president; and
Harold R. Hjort, cashier. C apital is $200,000; sur­
plus and other capital funds, $200,000.
Another new member bank, the Capital City
Second N ational Bank of Tallahassee, Tallahassee,
Florida, opened on March 27 and began to rem it
at par. Officers are Godfrey Sm ith, chairm an and
president; John Y. Humphress, executive vice
president; and Rodney L. Scarboro, cashier. Capi­
tal is $280,000; surplus and other cap ital funds,
$224,000.

53

S i x t h D is t r ic t S t a t is t ic s
Seasonally Adjusted
(All data are indexes, 1957-59 = 100, unless indicated otherwise.)
La te st M o n th
(1 9 6 7 )
S IX T H

One
M o n th
Ago

Two
M on th s
Ago

O ne
Year
Ago

D IS T R IC T

IN C O M E A N D S P E N D IN G
P e r s o n a l In c o m e , (M il. $ A n n . R a te )
M a n u f a c t u r in g P a y r o l l s ...................
F a rm C a s h R e c e i p t s .......................
C r o p s ..........................................
L i v e s t o c k ......................................
In s t a lm e n t C re d it a t B a n k s , * ( M il. $)
R e p a y m e n t s ...............................
P R O D U C T IO N A N D

5 4 ,3 3 4 r
193

5 0 ,3 2 7

Jan.
Feb.
Jan .
Jan .
Jan .

5 4 ,7 8 2
196
131
116
148

5 4 ,3 3 2 r
196r

. Feb.
. Feb.

261
258

256r
253

286
249

273

. Feb.
. Feb.
. Feb.

136
13 7
168

136
137
170r
132r
154
116
108r
116
129
107r
179

134
136
166
131

129
13 0
15 9

.
.
.
.
.

12 0
108
152

138
134
1 45

1 81
14 4
1 43
14 0

222

.
Lbr., W o o d P rod ., F u r n . & Fix. . .
Paper
...................................... .
P r im a r y M e t a l s ....................... .
T e x t ile s
..................................
T r a n s p o r t a t io n E q u ip m e n t
. . .
N o n m a n u f a c t u r i n g ....................... .
C o n s t r u c t i o n .......................... .
F a rm E m p l o y m e n t ........................... .
U n e m p lo y m e n t R a te
( P e r c e n t o f W o r k F o rc e )
. . . .
.
In s u r e d U n e m p lo y m e n t
(P e r c e n t o f C o v. E m p . ) ...............
A v g . W e e k ly H rs. in M fg., (H rs.) . . .
C o n s t r u c t io n C o n t r a c t s * ............... .
R e s i d e n t i a l ..................................
A ll O t h e r ...................................... .
E le c t ric P o w e r P r o d u c t i o n * * . . . .
.
C o t to n C o n s u m p t i o n * * ................... .
Pe tro l. P ro d , in C o a s t a l La. a n d M i s s . * *

Feb.
Feb.
Feb.

1 31
155
1 15
1 06
116
129
106
176
1 35
132

Feb.

70

13 5
135
71

J an.

3 .4

3.5

3.5

2 .1

2 .1

Feb.
Feb.

4 0 .9
142

4 1 .4
156
150
160
145

1.9
4 1.3
146
116
171

Feb.
Feb.
Feb.
Feb.

121
Feb.
J an.
Feb.

159
146
117

Feb.

2 20

12 0
217

1 51
113
106
1 15
128
106
179
134
13 2
74r

146
117
214

1 23
14 2
113
105

112
113
1 03
166
12 9
132
71r
3.3

2 .2
4 2 .0
141
145
137
136
115

200

M em ber B ank Loans*
A ll B a n k s ...................................... . M a r.
L e a d in g C i t i e s ...........................
M e m b e r B a n k D e p o sits *
A ll B a n k s ...................................... . M a r.
L e a d i n g C i t i e s ..........................
B a n k D e b i t s * / * * ..............................

247

245

244

229

223

222

222

2 11

185
1 67
190

1 83
167
186

1 83
167
178

173
1 55
178

ALABAM A
S P E N D IN G

P e r s o n a l In c o m e , ( M il. $ A n n . R a te ) . J an.
M a n u f a c t u r in g P a y r o l l s ................... . Feb.
F a r m C a s h R e c e i p t s .......................

7 ,2 6 5
179
140

7 ,2 7 1 r
1 77

112

7 ,1 8 7 r
174
116

6 ,7 6 3
169
154

EM PLOYM ENT

N o n fa r m E m p l o y m e n t ...................
M a n u f a c t u r i n g ..............................
N o n m a n u f a c t u r i n g .......................
C o n s t r u c t i o n ..........................
F a r m E m p l o y m e n t ..........................
U n e m p lo y m e n t R a te
(P e r c e n t o f W o r k Fo rc e )
. . . .
A v g . W e e k ly H r s. in M fg ., (H rs.) . .
F IN A N C E A N D

. F eb.

. Feb.

126
124
80

. Feb.
. Feb.
. Feb.

125
124
126
126
73

4. 5
4 1 .2

4. 0

234
184
186

125
124

124
123
125
129
67 r

12 0
12 0
121
126
75r
4. 0

4 1.5

4. 3
4 1 .4

4 2.3

231
1 81
1 91

229
180
179

218
1 73
176

B A N K IN G

M e m b e r B a n k L o a n s .......................

. M a r.
. Feb.

F L O R ID A
IN C O M E A N D S P E N D IN G
P e r s o n a l In c o m e , ( M il. $ A n n . R a te ) . J an.
M a n u f a c t u r in g P a y r o l l s ...................
F a rm C a s h R e c e i p t s .......................

One
Year
Ago

. Feb.
. Feb.
. Feb.

145

145

144

111

110

96

112
10 0

. Jan .
. . Feb.

2.7
4 1 .5

2 .5
4 2 .4

2.3
4 2 .7

2.7
4 2.6

. M a r.
. M a r.
. Feb.

256
189
184

252
184
1 81

250
187

228

P e r s o n a l In c o m e , (M il. $ A n n . R a te ) . Jan .
M a n u f a c t u r in g P a y r o l l s ................... . Feb.
F a rm C a s h R e c e i p t s ....................... . Ja n .

1 0 ,6 4 6
197
1 41

N o n m a n u f a c t u r i n g .......................
C o n s t r u c t i o n ...........................
F a rm E m p l o y m e n t ...........................
U n e m p lo y m e n t R a te
( P e rc e n t of W o r k F o rc e )
. . . .
A v g . W e e k ly H rs. in M fg., (H rs.) .

95 r

139r
109
94r

F IN A N C E A N D B A N K IN G
M e m b e r B a n k L o a n s .......................
M e m b e r B a n k D e p o s i t s ...................
B a n k D e b i t s * * ..................................

169

173
175

IN C O M E A N D S P E N D IN G

P R O D U C T IO N A N D

1 0 ,6 2 0 r
1 97
134

1 0 ,3 4 9 r
196
114

9 ,8 3 5
183
153

133
130
134
130
63 r

129
127
130

EM PLOYM ENT

N o n fa r m E m p l o y m e n t ...................
M a n u f a c t u r i n g ..............................
N o n m a n u f a c t u r i n g .......................
C o n s t r u c t i o n ...........................

Feb.
F eb.
Feb.
Feb.

134
130
136
129

134
13 1
1 37
132

F a rm E m p l o y m e n t ........................... . Feb.
U n e m p lo y m e n t R a te
( P e rc e n t o f W o r k Fo rc e )
. . . .
. Feb.
A v g . W e e k ly H rs. in M fg., (H rs.) . . . Feb.

59

66

3.2
4 0 .8

3.0
4 1 .2

3.2
4 1 .0

3.1
4 1 .4

.
.
.
.

258
204
207

257

253

. M a r.
. Feb.

204
196

20 2

25 1
188
193

P e r s o n a l In c o m e , (M il. $ A n n . R a te) . Jan.
M a n u f a c t u r i n g P a y r o l l s ................... . Feb.
F a rm C a s h R e c e i p t s ....................... . J an.

8 ,2 9 7
176
133

8 ,1 5 4 r
173

8 ,0 4 6 r
167

132

164

127

128

12 1

12 1

129
153
64

129
159
61

125
117
127
1 51
69r

4.2
4 2 .5

4 .0
4 2.3

4.5
4 0 .7

4.6
4 3.5

2 20

221

222

158

156
168

158
158

205
150
152

4 ,0 0 4 r

3 ,8 9 2 r

212
10 2

215
132

139
149
134
148
63r

145
58r

F IN A N C E A N D B A N K IN G
M e m b e r B a n k L o a n s .......................
M e m b e r B a n k D e p o s i t s ...................
B a n k D e b i t s * * ..................................

. M a r.

193

L O U IS IA N A

1 5 ,6 8 2
234
116

1 5 ,6 8 6 r
236
126

1 5 ,8 8 2 r
232
175

1 4 ,3 8 4
209
119

P R O D U C T IO N A N D

F IN A N C E A N D

EM PLOYM ENT

N o n f a r m E m p l o y m e n t ...................
M a n u f a c t u r i n g ..............................


54


14 7
155

146
154

145
154

I4 0 r
144r

7 ,5 5 7
162
144

EM PLOYM ENT

N o n f a r m E m p l o y m e n t ................... . Feb.
M a n u f a c t u r i n g ..............................
N o n m a n u f a c t u r i n g ....................... . F eb.
C o n s t r u c t i o n ........................... . F eb.
F a r m E m p l o y m e n t ........................... . Feb.
U n e m p lo y m e n t R a te
(P e rc e n t o f W o r k F o rc e )
. . . .
. Feb.
A v g . W e e k ly H rs. in M fg ., (H rs.) . . . Feb.

119

112
12 1
138
62r

B A N K IN G

M e m b e r B a n k L o a n s * ...................
M e m b e r B a n k D e p o s i t s * ...............
B a n k D e b i t s * / * * ..............................

. F eb.

1 61

P e r s o n a l In c o m e , (M il. $ A n n . R a te ) . J a n .
M a n u f a c t u r in g P a y r o l l s ................... . Feb.
F a rm C a s h R e c e i p t s ....................... . J a n .

4 ,1 3 4

M IS S IS S IP P I
IN C O M E A N D S P E N D IN G

P R O D U C T IO N

AND

212
140

3 ,8 3 3
197
170

EM PLOYM ENT

N o n f a r m E m p l o y m e n t ...................
M a n u f a c t u r i n g ...............................
N o n m a n u f a c t u r i n g .......................
C o n s t r u c t i o n ...........................
F a r m E m p l o y m e n t ...........................
U n e m p lo y m e n t R a te
(P e rc e n t of W o r k F o rc e )
. . . .
A vg . W e e k ly H rs. in M fg ., (H rs.) . .
F IN A N C E A N D

P R O D U C T IO N A N D

Tw o
M onths
Ago

IN C O M E A N D S P E N D IN G

F IN A N C E A N D B A N K IN G

P R O D U C T IO N A N D

One
M on th
Ago

EM PLOYM ENT

N o n f a r m E m p l o y m e n t ....................
M a n u fa c tu rin g
..........................
A p p a re l
..................................

IN C O M E A N D

La te st M o n th
(1 9 6 7 )

139
. Feb.

148
135
144

. Feb.

62

13 9
149
135
1 51
60

. Feb.
. Feb.

4.1
4 0 .7

4.3
4 1.1

294
224
209

130
143
125
141
64r

4.6
4 1 .6

4.0
41.6

298

296

268

222

2 20

2 10

194

192

186

B A N K IN G

M e m b e r B a n k L o a n s * ...................
M e m b e r B a n k D e p o s i t s * ...............
B a n k D e b i t s * / * * ...............................

M O N T H L Y R E V IE W

La te st M o n th
(1 9 6 7 )

One
M o n th
Ago

Two
M onths
Ago

O ne
Year
Ago

T EN N ESSEE
IN C O M E A N D S P E N D IN G
J an.
. Feb.

8 ,7 5 8
1 93

12 0

F a rm C a s h R e c e i p t s .......................

8 ,5 9 7 r
19 3 r

110

8 ,9 7 8 r
190
12 5 r

7 ,9 5 5
177
129r

L a t e st M o n t h
(1 9 6 7 )

One
M o n th
Ago

Two
M on th s
Ago

O ne
Year
Ago

Feb.

13 4
172
70

134
177
75

132
170
90

127
164
81

Jan.
Feb.

3.2
3 9.8

3.5
4 0 .6 r

3.4
4 0.8

3.2
4 1 .4

240
173
208

238
173
193

238
173
189

225
168

Feb.

N o n m a n u f a c t u r i n g ................... . .
C o n s t r u c t i o n .......................
F a rm E m p l o y m e n t ....................... . .
U n e m p lo y m e n t R a te
(P e rc e n t of W o r k Fo rc e )
. . . . .
A vg . W e e k ly H rs. in M fg., (H rs.) . . .

Feb.

F IN A N C E A N D B A N K IN G
P R O D U C T IO N A N D

EM PLOYM ENT

N o n fa r m E m p l o y m e n t ...................
M a n u f a c t u r i n g ..............................

. Feb.
Feb.

138
1 47

139r
148r

136

130
137

14 5

* F o r S ix t h D is t r ic t a re a o n ly . O th e r t o t a ls fo r e n t ire s i x sta te s.

* * D a i l y a v e ra g e b a s is,

M e m b e r B a n k L o a n s * ...............
M e m b e r B a n k D e p o sits *
. . . .
B a n k D e b i t s * / * * ..........................

185

r-R e v ise d .

S o u r c e s : P e r s o n a l in c o m e e s tim a t e d b y t h is B a n k ; n o n fa rm , m fg. a n d n o n m f g . e m p., m fg. p a y r o lls a n d h o u rs, a n d u n e m p ., U. S . D ept, of L a b o r a n d c o o p e r a t in g sta te
a g e n c ie s ; c o t to n c o n s u m p t io n , U. S. B u r e a u of C e n s u s ; c o n s t r u c t io n c o n t ra c ts , F. W . D o d g e C orp.; petrol, prod., U. S. B u r e a u of M in e s ; in d u s t r ia l u s e o f elec. pow er,
Fed. P o w e r C o m m .; fa r m c a s h re c e ip ts a n d fa rm em p., U .S .D .A . O th e r i n d e x e s b a s e d o n d a ta c o lle c te d b y t h is B a n k . A ll in d e x e s c a lc u la t e d b y t h is B a n k .

D e b its t o D e m a n d D e p o s it A c c o u n t s
Insured Commercial Banks in the Sixth District
(In T h o u s a n d s o f D o lla rs)

P e rc e n t C h a n g e

Feb.
1967
ST A N D A R D

Jan.
1967

P e rc e n t C h a n g e

Y e a r-to -D a te
2 m on th s
Feb. 1 9 6 7 fro m 1 9 6 7

Ye a r-to -D a te
2 m on th s
F eb. 1 9 6 7 fro m 1 9 6 7
Feb. fro m
J an.
Feb.
1966
1967
1966 1966

Feb.
1966

Jan.
1967

1 ,3 1 8 ,1 7 6
5 4 ,0 9 0
1 5 9 ,4 3 5
4 1 8 ,8 1 9
2 7 2 ,0 7 7
8 8 ,0 7 7

1,6 2 1 ,5 4 9
62 ,5 6 5
1 9 2 ,2 7 0
5 1 9 ,1 6 7
3 0 6 ,5 5 8
9 9 ,7 6 7

l,2 2 2 ,5 8 4 r - 1 9
5 5 ,3 0 1 r - 1 4
1 6 0 ,6 4 2 r - 1 7
4 0 5 ,1 4 3 r - 1 9
2 8 5 ,3 5 0 r - 1 1
7 8 ,7 5 0
-1 2

5 9 8 ,6 9 0
1 ,4 0 4 ,2 5 9

7 7 2 ,7 3 0
1,52 4,861
2 ,3 7 6 ,1 5 3 r
6 2 3 ,3 5 8
1 9 4 ,2 8 7
1 3 7 ,9 2 9
l, 4 8 6 ,3 3 6 r

5 6 5 ,5 6 5 r - 2 3
l,3 3 0 , 7 3 8 r
-8
1 ,9 2 1 ,4 7 9
-1 3
4 9 1 ,5 5 0 r - 2 2
1 5 6 ,9 2 4 r
-6
1 1 4 ,5 3 0
+ 1
1 ,1 1 2 ,1 4 0 r - 1 9
4 0 3 ,7 3 3 r - 1 4

Ft. L a u d e r d a le H o lly w o o d
. . . .
J a c k s o n v ille
. . . .
M i a m i .......................
O r l a n d o ...................
P e n s a c o l a ...............

2 ,0 6 3 ,3 1 5
4 8 4 ,2 2 1
1 8 2 ,7 6 4

T a lla h a s s e e
. . . .
T a m p a -S t . P e t e r s b u r g
W. P a lm B e a c h . . .

1 3 8 ,8 1 5
1,2 0 0 ,7 1 0
4 1 5 ,8 3 9

A lb a n y
...................
A t la n ta
...................
A u g u s t a ...................
C o l u m b u s ...............
M a c o n .......................
...............
Savannah

7 7 ,5 5 0
3 ,9 2 8 ,4 6 4
2 5 7 ,7 9 4
1 9 0 ,1 5 3
2 1 1 ,1 0 7
2 3 5 ,0 2 2

B aton R o u ge . . . .
L a fa y e t te
...............
L a k e C h a r le s . . . .
N e w O r le a n s . . . .
Jackson

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

C h attan oo ga
. . . .
K n o x v ille
...............
N a s h v ille
...............

4 9 4 ,9 6 2

1 1 1 ,0 0 2
13 1 ,7 8 0
2,0 3 5 ,3 7 6
5 8 9 ,3 5 5
5 0 9 ,5 8 1
4 1 1 ,4 1 0
1 ,4 4 4 ,2 6 0

4 8 2 ,1 6 5

4 7 6 ,3 1 9 r
3 7 2 ,4 5 7 r
l,2 3 4 , 2 0 1 r

+6
+6
+6

+ 12

+6
+6
+7

-1

+ 10
+7
+ 10

+6

+ 16

+14

+21
+8

+20
+8
+4

+2

-1 1

+7
+ 13

+9
+ 15
+ 13

4 4 2 ,0 5 2 r - 1 2
-1 7
1 0 2 ,0 7 2
1 0 9 ,0 8 4
-1 9
2 ,0 3 5 ,0 1 9 r - 2 1

6 3 4 ,9 8 5
4 7 0 ,3 8 2
1 ,4 8 2 ,4 4 6

+3
-5

-6

5 6 2 ,5 0 5 r
13 4 ,4 8 8
1 6 6 ,4 7 0
2 ,5 9 1 ,8 3 6

4 9 6 ,6 4 7 r

+ 13
-5
+4

+3

8 2 ,1 8 8
3 ,6 7 1 ,5 3 1 r
2 2 8 ,4 1 9 r
1 7 1 ,7 7 4 r
1 9 6 ,4 5 9 r
2 1 6 ,8 2 5 r

5 9 8 ,2 6 1

+8
-2
-1

-1 8

9 4 ,8 5 9
4 ,4 0 4 ,2 1 2
2 9 6 ,1 3 7
2 2 2 ,6 7 3
2 4 2 ,9 9 5
2 7 8 ,5 1 5

-1 3
-1 5
-1 3
-1 6

-1
-2 0
-1 3
-3

J an.
1967

L a k e la n d
. . . .
M o n ro e C o u n ty . .
O c a l a ...................

M E T R O P O L IT A N

S T A T IS T I C A L A R E A S t
B irm in g h a m
. . . .
G adsden
...............
H u n t s v i l l e ...............
M o b ile
...................
M on tgom e ry
. . . .
T u s c a lo o s a
. . . .

Feb.
1967
1 1 6 ,4 0 3
3 2 ,0 5 8
5 7 ,0 7 9

St. A u g u s t in e . . .
St. P e t e r s b u r g . .

17,3 7 0
2 9 1 ,3 9 1
9 2 ,6 3 1
6 1 2 ,0 6 0
5 9 ,2 2 8

1 3 8 ,4 0 3
3 9 ,9 6 9
6 1 ,9 3 4
24 ,6 3 2
3 4 4 ,5 4 9 r

Feb. fro m
1966 1966

+ 11
+7

+8

+8
+8

+ 12
+9

+ 11

+21
+0

+24
+7

+ 19
+7
+ 10
+ 17

+8

+ 12

+8
+ 12
+ 17

S a r a s o t a ...............
Tam pa
...............
W in te r H a v e n
. .

1 2 1 ,4 4 5
7 6 6 ,7 9 6
7 8 ,8 1 0

1 1 1 ,6 7 0
3 3 ,6 6 1
5 2 ,2 2 4
16,4 4 6
2 5 8 ,5 5 9
9 2 ,1 3 3
5 8 9 ,1 1 4
5 9 ,5 9 9

-1 6

+4

-2 0
-8

-5
+9

+10

-2 9
-1 5
-2 4

+6

+15

+13

+1

-2 0

+4

+8

-2 5

-1

+ 10

-1 7
-1 9
-1 3
-1 9

+ 12

+ 15
+5

+1

+9
+5

+3

6 5 ,6 6 0
2 9 ,1 5 7
2 0 ,2 8 0
2 2 ,4 6 6
6 3 ,6 5 0
4 7 ,4 1 9

8 0 ,6 4 4
4 3 ,0 1 0
8 2 ,0 1 0
14,7 07
7 5 ,0 0 4
3 8 ,8 9 2
2 3 ,7 9 6
2 6 ,8 8 5
7 3 ,0 7 3
5 7 ,4 7 3

59,7 9 3
34 ,5 3 0
7 3 ,9 5 2
1 2 ,5 1 6
6 1 ,1 2 4
2 9 ,3 5 6

A b b e v ille
. . . .
A le x a n d r ia
. . . .
B u n k ie
...............
H am m ond
. . . .
N e w Ib e ria . . . .
P la q u e m in e
. . .
T h ib o d a u x
. . . .

10,0 1 5
1 3 2 ,6 0 4
5 ,7 2 7
3 4 ,6 0 8
3 0 ,8 4 3
11,6 3 4
1 9 ,5 0 8

12,7 7 2
146 ,9 0 1
7,27 2
3 7,7 3 0
4 0 ,6 3 0
1 2 ,6 4 9
2 9 ,6 9 2

9 ,8 6 6
10 1 ,6 2 8
4 ,9 3 9
2 6 ,9 4 2
3 2 ,0 5 5

-2 2
-1 0
-2 1
-8

8 ,2 10

-8

18,6 8 7

-3 4

+30
+ 16
+28
-4
+42
+4

B ilo x i-G u lfp o rt
. .
H a t t ie s b u r g
. . .
L a u r e l ...................
M e r i d i a n ...............
N a t c h e z ...............
P a s c a g o u la —
M o s s P o in t . . .
V ic k s b u rg
. . . .
Y a z o o C it y . . . .

9 0 ,4 4 5
4 9 ,3 9 3
3 1 ,5 4 6
5 8 ,6 1 6
3 3 ,4 9 6

1 0 0 ,5 0 3
5 7 ,1 9 9
3 4 ,1 2 6
7 0 ,9 1 5
3 9 ,6 3 2

8 5 ,8 7 0
4 8 ,3 3 0
3 0 ,3 7 0
5 6 ,5 4 6
2 9 ,9 1 4

-1 0

+5

-1 4

+2

+9
+5

-8
-1 7
-1 5

+4
+4
+ 12

+13

5 0 ,1 7 7
38 ,4 4 2
2 3 ,8 0 9

5 8 ,2 8 8
4 4 ,3 0 2
2 7 ,9 2 4

4 7 ,6 0 4
3 5 ,2 3 7
2 0 ,7 4 8

-1 4
-1 3
-1 5

+15

B r is t o l
...............
J o h n s o n C it y . . .
K in g s p o r t
. . . .

5 5 ,3 4 5
6 8 ,6 1 1
1 3 5 ,1 7 2

7 3 ,2 3 5
7 8 ,0 0 4
1 4 4 ,8 5 3

5 6 ,3 4 7
5 9 ,3 2 6
1 1 6 ,1 2 2

-2 4

-2

-1 2
-7

+ 16
+16

+ 1
+13
+15

-1 4

+7

+9

+6

+ 10
+7

A th e n s
...............
B r u n s w ic k
. . . .
D a l t o n ...................
E l b e r t o n ...............
G a in e s v ille . . . .
G r i f f i n ...................
L aG ran ge
. . . .
N ew nan
...............
R o m e ...................
V a l d o s t a ...............

6 6 ,7 0 0
3 4 ,7 2 5
7 1 ,6 6 9
1 1 ,9 4 9

2 1 ,4 0 0
2 0 ,4 4 5
5 9 ,8 1 9
4 1 ,8 8 8

-1 2
-2 5
-1 5
-1 6
-1 3
-1 7

-2 4

+1
-3
-5
+7

-1

-2
+8
+7
+ 14

+6

+2
+ 12
+6

+ 13

+ 15

+2

+7
+27

-5
+ 10

+5
+9

+21
+27

-1
+29

+2

+1
+8

+17
+ 14
+ 10

3THER C E N T E R S

+6

A n n i s t o n ...................
D otha n
...................
S e l m a .......................

54 ,5 9 0
53 ,6 1 0
4 0 ,0 7 1

6 4 ,4 9 9
6 2 ,6 8 8
4 1 ,8 9 5

5 1 ,9 3 3
4 7 ,5 4 5
3 6 ,5 9 5

-1 5
-1 4
-4

+5
+ 13
+9

+8

B a rt o w
...................
B r a d e n t o n ...............
B revard C o u n ty . . .
D aytona B e a ch . . .
Ft. M y e r s —
N . Ft. M y e r s . . .
G a i n e s v i l l e ...............

3 6 ,7 9 3
61 ,0 5 2
1 9 2 ,3 9 6
7 3,9 0 1

49,3 4 1
8 7 ,3 3 6
2 4 8 ,6 1 6
9 1 ,5 5 3

3 4 ,1 7 2
4 9 ,8 5 7

+8
+ 22

1 8 0 ,111
7 3 ,7 0 5

-2 5
-3 0
-2 3
-1 9

+7

+ 12
+25
+3

+0

+ 1

7 0 ,8 3 6
7 4 ,5 0 8

9 2 ,9 0 5
8 6 ,7 6 6

6 9 ,0 7 0
7 0 ,6 3 0

-2 4
-1 4

+3
+5

+7

+ 15

S IX T H

In c lu d e s o n ly b a n k s in th e S ix t h D is t r ic t p o rtio n of th e state.

Digitized for67
A P R I L 1 9 FRASER


+8

f P a r t ia lly e s tim a te d .

D IS T R IC T , T o ta l

Alabam a:):

. . . .

F l o r i d a ^ ...............
G e o r g i a ^ ...............
L o u is ia n a *t
M is s is s ip p i* t
T e n n e sse e *!
^ E s t im a t e d .

. . .
. . •
. . .

2 6 ,7 7 7 ,1 6 3
3 ,5 0 1 ,5 6 0
8 ,3 6 4 ,5 1 7
6 ,5 4 2 ,1 3 1
3 ,5 5 8 ,0 0 6
1,2 6 5 ,8 2 2
3 ,5 4 5 ,1 2 7

3 1 ,1 2 7 ,9 5 3 r
4 ,1 9 6 ,8 2 2
9 ,8 4 4 ,8 0 9
7 ,4 1 4 ,4 1 6
4 ,3 4 2 ,3 6 2 r
1,3 7 5 ,4 7 3
3 ,9 5 4 ,0 7 1

2 4 ,9 9 1 ,9 9 5 r

3 ,3 1 0 ,7 3 1 r - 1 7
7 ,9 3 7 ,5 2 0 r - 1 5
6 ,0 9 8 ,4 6 5 r - 1 2
3 ,3 7 2 ,4 7 8 r - 1 8
l , 1 2 8 ,6 1 2 r
-8
3 ,1 4 4 ,1 8 9 r - 1 0

+5
+7

+ 10

+6

+9

+ 12
+13

+ 11
+ 12

r-R e v ise d .

55

D is t ric t B u s in e s s C o n d it io n s

With the arrival of spring, some segments of the District’s economy find themselves dampened, while
others are starting to bud again or are continuing their growth. In February personal income advanced
further, as spending remained subdued. Housing is still weak, compared with early 1966, but signs of an
improving trend are evident. Spring field work is well underway in much of the District, whereas some
slippage occurred in manufacturing activity during February. Bank investments continued to expand
rapidly last month.
District consumers earned more in January, as
evidenced by a strong gain in personal income.
Total retail sales declined, as did loan extensions
at commercial banks for purchases of consumer
goods. In February consumers as a group were not
overly anxious to spend, as indicated by the con­
tinued decreases in consumer loan volume and
automobile sales.
Preliminary data indicate that February’s dollar
volume of District residential construction con­
tracts was considerably below January’s. Com­
bined volume for the first two months of the year
suggests that the recuperation in housing will
have to endure the normal lags associated with
reassembling housing production facilities, al­
though cost and availability of mortgage money
are now more favorable for substantial housing
recovery than in many months.
The pace of activity is increasing in the agricul­
tural sector, with seedbed preparations in full
swing in most areas and some corn acreages al­
ready planted in the southern-most producing re­
gions. The index of prices received for all farm
products declined further in February, reflecting
lower milk, hog, and egg prices. Broiler prices

56


continued to improve markedly, but lesser gains
were listed for cattle, calves, cotton, and com.
Less buoyant markets for their goods led some
District manufacturers to trim their payrolls and
shorten the workweek in February. Turning to par­
ticular sectors, one finds textile producers are not
too happy with reduced sales, while cutbacks in
auto assemblies in the Atlanta area are reducing
employment in this category. In February Dis­
trict construction employment slipped for the
first time since last August, but petroleum pro­
duction expanded because of the strong demand
from civilian and defense sources.
Investment portfolios continued to swell at Dis­
trict banks in March, as holdings of both U. S.
Government and tax-exempt state and local gov­
ernment obligations increased substantially. Lend­
ing activity was again relatively quiet except for
a moderate rise in business borrowing related to
mid-month payments of taxes and dividends. The
second reduction in the prime rate this year—
from 5% to 5 y 2 percent—occurred at several
large District banks late in the month.
NOTE: D ata on w h ic h s ta t e m e n ts a re b a se d h av e b e e n a d ­
ju s te d w h e n e v e r p o s s ib le to e lim in a te s e a s o n a l in ­
flu e n c e s.
M O N T H L Y R E V IE W