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Volume XXXIV

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Atlanta, Georgia, April 30, 1949

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have made rapid strides in exploring the poten­ Africa, and Central America, on the other hand, were intro­
tialities of grasses and legumes, but farm programs that duced successfully and proved fairly adaptable. The most
fully exploit the usefulness of these crops are still in theirimportant of these new grasses are Bermuda, carpet, Dallis,
infancy. In two earlier articles in the Review , the income pos­ and Johnson grass; and today they provide the bulk of pas­
sibilities of pastures and grazing crops were compared with turage and grass hay in the region. Most legumes grown by
the income derived from some of the more prevalent land District farmers are also foreign in origin. Alfalfa, indi­
uses. It was shown in those articles how grasses and legumes genous to Southwestern Asia, was brought to the North
offer ever new opportunities for farmers to increase the effi­ American continent by Cortez. Lespedezas were imported
ciency of their livestock operations and make more effective from the Orient; vetches and lupines from Central Europe;
use of their capital and labor. The story of pastures and graz­ and clovers from England, the Netherlands, and Italy. Plant
ing crops, however, is more than that of the income from the breeders have worked with these imported legumes to produce
milk, meat, and eggs that can be produced from them. Other varieties more suitable to the climate of the various regions
contributions that pastures and grazing crops can make to a of the United States. Farmers, too, have played an important
balanced farm program may be almost as important in the role in this development by their selection of improved plants.
long run as the immediate money incomes which they yield. Common lespedeza, for example, was first reported by a
Farming systems in which grasses and legumes are utilized Georgia farmer in 1846 and manganese bur clover was first
also tend to check erosion, produce needed organic matter, reported by an Alabama farmer only a few years ago. The
and help reduce livestock losses from parasites and diseases. amount of work that has been done in the breeding and select­
When included in rotations, grasses and legumes provide a ing of legumes is small compared with that done in connec­
basis for a permanently productive farm organization.
tion with grain crops. Experimental results, however, already
The grass family, one of the largest families of plants, is show that a greater feeding value per acre can be obtained
by far the most important source of food and feed. In this from legumes than from grain; and there is reason to expect
family are the more familiar grains such as corn, oats, wheat, that research will reveal even greater advantages to be de­
and sorghum. Although they have not always been of their rived from this important plant family.
present economic importance, these grain crops are vitally
Not only do grasses and legumes show greater promise as
important for the sustenance of people and of most livestock. forage crops but they also complement each other in many
Enterprising farmers have, for many years, carefully selected important respects. Grasses, for example, require nitrogen
better seed in an effort to improve the grain-producing char­ for thrifty growth, whereas legumes draw nitrogen from the
acteristics of the major grasses. The highly productive va­ air and fix it in the soil where it becomes available to grasses.
rieties of corn being grown today bear little resemblance to Most of the high yielding grasses grown in the District, more­
the maize corn of the North American Indians, mainly be­ over, are summer grasses, but the majority of legumes are
cause of the efforts of farmers and plant breeders who have grown in winter. This seasonal complementarism permits the
sought to improve its grain-yielding ability. Hybrid varieties, year-round utilization of land, labor, and capital.
If livestock are to make efficient gains in weight, their
which have increased the yield of corn in many sections of the
United States about 20 percent over the open pollinated va­ rations must maintain a reasonable balance between carbo­
rieties, are merely a part of this development. Intensive grass hydrate and protein feeds. Here again grasses and legumes
breeding for forage production, however, has taken place in complement each other, the grasses tending to run high in
this country largely within the last 15 years and the tremen­ carbohydrates and low in proteins, and the legumes to be
dous progress made in so short a time promises even greater high in proteins and low in carbohydrates. Kudzu hay, a
legume, for example, averages 12 percent digestible protein
progress in the future.
In colonial times the area that is now the states of the whereas Johnson grass hay yields only about 3 percent.
Sixth District was covered with trees, mostly pines. When Shelled peanuts, another legume, average 27 percent digesti­
the timber was cleared, the grass that usually came up was ble protein while corn, a grass, averages only 7 percent. Con­
practically worthless broom sedge. Efforts of early settlers to versely, corn yields 68 percent carbohydrates while peanuts
adapt European grasses to conditions in the Southeast were average only 12 percent. Rotations incorporating grass and
for the most part unsuccessful. Tropical grasses from Asia, legume forage crops are the basis of year-round feed produc­
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tion in systems that also conserve water and soil fertility.
Such systems are being adopted by an increasing number
of District farmers.

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splitting the drops into smaller particles, leaves of growing
vegetation greatly reduce its destructive power. Not only do
the leaves break the fall, but they also retain considerable
quantities of water on their surfaces. Several tests have re­
Erosion Controls
Soil erosion has long been a serious problem for most Dis­ vealed that as much as a half inch of rain may be retained
trict farmers. The problem arises out of a number of cir­ upon the leaves and stems of a good stand of clover.
Since the amount of soil that water holds is proportional
cumstances, the more important of which are the kind of
to the velocity of water, a fibrous mat of grass or legume sod
crops grown, the rolling terrain, and the heavy downpours of
rain in the summer. Cotton, tobacco, peanuts, and corn, the that materially checks runoff speed thereby reduces the
area’s main crops, require clean cultivation and are therefore water’s soil-carrying capacity. Moreover, the extensive root
planted in rows so that they may be kept free of weeds and systems of grasses and legumes loosen the soil so that a
grasses. Clean cultivation, however, leaves soil exposed to the greater amount of water can be absorbed than would be the
full force of rain, and furrows left by plows become channels case with a tightly packed soil.
Bermuda grass with its fine blades and extensive root sys­
for water to move in. Under these conditions erosion easily
sets in and makes rapid headway, especially on sloping fields. tem has many characteristics which make it an excellent crop
Farmers have tried in many ways to cope with erosion. for erosion control. At Guthrie, Oklahoma, an experiment
amount
Only a few generations ago when the supply of land seemed was conducted to compare the planted of soil loss from plots
planted to cotton
on
to be endless the problem of erosion was evaded by running terrain having an with plotsslope. At to Bermuda grass the
8-percent
the conclusion of
away from it. Cotton, corn, and other crops were shifted from six-year study, the land planted to cotton was found to have
“worn-out” fields to “new ground” ; eroded farms were aban­ lost an average of 24 tons of soil per acre per year, while
doned; and farmers made a new start elsewhere. Those farm­ that planted to Bermuda grass had lost only 64 pounds. At
ers who chose to deal directly with the problem sought, for Statesville, North Carolina, a similar study showed soil losses
the most part, to control runoff, or surplus water, without from cotton plots to be 31 tons per acre, compared with 620
changing the crop to which the land was planted. The most pounds per acre from plots planted to grass.
prevalent device for doing this was a terrace that tended to
Kudzu and Lespedeza sericea are two legumes that are
level the planting surface and thereby reduce runoff. In parts also widely used to check erosion. At Watkinsville, Georgia,
of the District some of these old bench-type terraces may still the Soil Conservation Experiment Station reported that land
be seen, but the fact that they are found mainly in abandoned with an 11-percent slope lost 26 tons of soil per acre per
fields is proof that they were inadequate for their purpose.
year when planted to cotton during the four years 1943-46;
With a high percentage of District farm lands classified but that planted to sericea lost only .47 tons, and that planted
as “rolling,” it is obvious that erosion cannot be checked by to kudzu .20 tons. The average amount of runoff water from
shifting all sloping lands from the production of row crops the cotton plot was 12.5 inches, from sericea 4.4 inches, and
to other uses. A broad-based, or Nichol’s type, terrace was de­ from kudzu only 2.7 inches.
veloped to enable farmers to continue to produce cotton, corn,
Similar experiments in many parts of the District on practi­
and other clean cultivated crops on rolling land. Water which cally all soil types point to the same conclusion. Grass will
is not absorbed in the wide shallow channel is diverted by hold both soil and water. Where moisture and fertility are re­
means of such terraces into outlets of grass or forest cover. tained, livestock, people, communities, and banks are held too.
Throughout the District, however, many thousands of acres
Soil Builders
of farm land are too steep or have become too eroded for
water to be controlled effectively except by shifting the use Efficiency in farming is most often attained by increasing
to which the land is put. Shifts have been accomplished in the yields of whatever crops are grown, thereby lowering the
many places by planting cultivated crops in strips separated unit cost of production. On many farms of the District, how­
by grasses or legumes. On steeper slopes, however, it has been ever, soils have been so depleted of the very elements neces­
necessary to abandon cultivated crops in favor of a complete sary to produce high yields that they must now be replaced
sod of cover crops. The planting of a field to grasses and by means of commercial fertilizers. District farmers have
legumes to check erosion, however, does not mean that the long considered the use of commercial fertilizers as a neces­
field is withdrawn from productive use, for it has been widely sary step in the economical production of most crops.
The heavy use of commercial fertilizers in District states
demonstrated that even on eroded fields it is possible to
obtain, over a period of time, a higher income from grasses will continue but an increase in the acreage of legumes for
turning is also probable. The continuous cropping of corn,
and legumes than from many row crops.
Legumes and grasses are similar in the manner in which cotton, peanuts, and other cash crops has not only resulted
they break the force of rain and retard its runoff, although in heavy soil and mineral losses through erosion but the
grasses are generally more effective than legumes. Some organic content of the land has been steadily depleted. In
legumes, however, such as kudzu, may be more efficient in many sections, therefore, it will be necessary to check erosion
conserving water than some grasses. On land that is planted and rebuild the soil’s productivity if maximum returns are to
to grass, or to a cover of legumes, a thin layer of material be realized from the land. Grasses and legumes serve both
or mulch is formed underneath that helps prevent soil from these purposes quite well.
washing. This layer of leaves, stems, or other organic matter
When soil is placed under cultivation, its content of humus
not only absorbs water and thereby reduces its flow, but also or organic matter is reduced by the removal of crops and
removes suspended particles of soil that retard absorption. by erosion. A loss of organic matter, besides resulting in
Muddy water tends to choke the pores of the soil. Moreover, lower crop yields, also results in a compaction of the soil
by absorbing much of the force of falling rain, and by which hampers the circulation of air and water and hinders




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tillage. In addition to being a source of nitrogen, organic
matter in the soil increases the availability of the minerals
already present and thus performs another service.
Organic matter is a rather broad term but in this con­
nection it refers in the main to decayed plant material.
Virgin soils are usually rich in organic content and for that
reason produce high yields of crops. The rate of loss of
organic matter, however, is rapid and if high yields are to
continue this material must be regularly replaced.
A soil-building program is primarily a replacement pro­
gram. Organic matter performs its functions in plant nutri­
tion only through decomposition. The purpose in planting
and turning under soil-building crops, therefore, is to provide
a steady supply of organic matter that is undergoing the
process of decomposition for the benefit of growing crops.
Maintenance of organic matter in the soil of states in this dis­
trict is difficult because of high annual temperatures that
speed the rate of decomposition. This rate more than doubles
for every rise in temperature of 18°F. As the temperature
rises, therefore, an accumulation of organic matter from resi­
duals becomes increasingly difficult. District farmers, how­
ever, are somewhat compensated for this by the long growing
season that permits the growing of two crops a year on the
same land, one of which may be turned under in order to
provide a fairly high level of organic matter.
Most farmers know the value of turning under such legumes
as vetch, peas, and crotalaria, and have done so to increase
the yields of the following crops. Of course, the increases
have varied widely, but the combined results of experiments
with legumes conducted in nine southern states show that
increases in yields following legumes have ranged, in general,
from 6 to 60 percent. In a few instances, depending on what
legume was turned under and what crop followed, yields
have doubled or trebled.
C o m m ercial F e rtilize r C o n su m p tio n *
1942

1 9 3 5 - 3 9 Average
Tons
G e o r g i a ................
7 2 5 ,2 8 7
F l o r i d a ..................
5 1 2 ,8 6 2
T e n n e s s e e ...........
1 2 2 ,7 4 4
A la b a m a ................ 5 2 2 ,0 6 2
M is s i s s i p p i___
2 8 4 ,5 9 2
L o u i s i a n a .............
1 3 5 ,1 9 7
D is tr ic t S t a t e s . . 2 ,3 0 2 ,7 4 4
U n ite d S t a t e s . . 7 ,2 7 0 ,8 0 2

Percent
of
National
1 0 .0
7 .1
1 .7
7 .2
3 .9
1 .9
3 1 .7

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

1946

Percent
of
National
9 .8
6 .8
2 .0
6 .6
4 .3
2 .0
3 1 .4

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

Percent
of
National
7 .8
7 .3
2 .3
6 .2
3 .3
1 .8
2 8 .6

Percent
Increase
in 1 9 4 6
Over
1 935-39
5 6 .6
1 0 6 .9
1 6 9 .9
7 2 .1
6 6 .9
9 1 .0
8 0 .6
9 9 .8

‘ E x c lu d in g G o v e rn m e n t d ir e c t d is tr ib u tio n .

These increased yields are attributable primarily to the
additional nitrogen that legumes draw from the air and fix
in nodules in their roots. Since legumes themselves require
nitrogen for growth, that made available by turning them
under is not all gain. Of the total amount of nitrogen in a
legume, about one-third is supplied from the soil and twothirds is obtained from the air; therefore, the maximum
amount of nitrogen that can be added to the soil by turning
under a legume crop is about 130 pounds per acre, or the
equivalent of 800 pounds of nitrate of soda.
Although an increase in nitrogen is the chief gain from
turning under legumes, there are others that are also im­
portant. An improved mechanical condition of the soil, in
addition to making the soil easier to cultivate, may also
result in increased yields. Subsequent crops will then develop
good root structures and thus absorb water and nutrients
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The turning under of legumes also has a tendency to im­
prove the efficiency with which commercial fertilizers are
absorbed by plants. Capillary action is speeded up and there
is a faster exchange of moisture and plant nutrients between
soil particles. Moreover, the turning under of a crop of le­
gumes loosens the soil and supplies an abundance of air,
which must be present in the soil for nutrients to be readily
absorbed and assimilated by plants.
Crop Rotations

Crop rotations will lessen the depletion of soil resources
caused by growing the same crops on the same fields year
after year. Such rotations, however, if they are to be estab­
lished by farmers, must be at least as profitable as present
land uses, even in the short run. The small farmer in par­
ticular cannot forego income from his fields for even a season
or two by following a practice that would prove profitable
only in the long run. New and improved varieties of grasses
and legumes and new management practices, however, permit
farmers to use crop rotations that yield returns comparable
with those obtained from traditional cash crops. A rather
wide choice of both summer and winter varieties of grasses
and legumes is available to farmers so that these crops can
be fitted into almost any rotation plan.
A rotation of crops, though, presupposes some plan of
achieving specific objectives. Among the more important
goals of rotation are the maintenance of organic matter in
the soil, the checking of erosion, and the prevention of
depletion of nutrients in a particular soil layer by alternating
deep- and shallow-rooted crops. Where these goals are ac­
complished optimum employment of land, labor, and capital
resources will be attained, crop yields will be increased, and
the farm program will be diversified.
Although the number of possible combinations of crops
in a rotation is very great, the combinations that are de­
sirable in a specific situation depend upon the length of
rotation desired, the nature of the principal cash crops, the
topography and size of farm, and the availability of equip­
ment. A good rotation utilizes those crops that are best
adapted to the particular farm and that can be fitted into a
well-integrated and efficient business enterprise.
The role of legumes in crop rotations is well illustrated
by the results of a few rotations that have been checked by
experiment stations for their ability to accomplish these
goals. At Watkinsville, Georgia, the Soil Conservation Experi­
ment Station compared a simple two-year rotation of cotton,
vetch, com, and crotalaria with the continuous growing of
cotton. The land on which this experiment was conducted was
almost level with an average slope of only 3 percent. Al­
though erosion was no particular problem on this tract, the
land that was kept continuously in cotton lost 5.35 tons of
soil per year, whereas that in the rotation lost only 3.45 tons.
Soil loss was thus reduced 35 percent by means of rotation.
Two legumes, one a winter legume and one a summer, were
included in the rotation and it was estimated by experiment
station workers that these legumes, when turned under, to­
gether with the residue of cotton and corn stalks, would offset
organic matter lost through the removal of crops. Where cot­
ton was grown continuously the yield was 686 pounds of seed
cotton per acre. In the rotation, however, the yield was 821
pounds, or 20 percent more.
In comparision with the cotton check plot, this rotation

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when tested on land with an average slope of 7 percent
showed a reduction in soil loss of 54 percent, a decline in
runoff of 9 percent, but a gain in cotton yields of only 8 per­
cent. Soil loss was materially reduced but the other compari­
sons suggest that a different rotation was needed on land of
that degree of slope. A three-year rotation of cotton, oats, and
Kobe lespedeza, together with voluntary lespedeza, proved
much more effective. Compared with the check plot kept in
cotton, this rotation reduced soil loss 88 percent and water 50
percent. Yield of seed cotton increased from 643 pounds to
963 pounds per acre. The average yield of oats was 50.5
bushels and that of the Kobe lespedeza 200 pounds of seed
per acre. Both the latter crops were also grazed.
Farmers who balance their cropping systems by means of
grasses and legumes used in rotations are building up the
productive capacity of their farm and are thus making a good
hedge against future price deflation. Such farmers will be
better able to meet whatever adjustments lie ahead than will
those who have depleted their resources by adhering to sys­
tems which, in many cases, have proven ruinous in the past.
Reducing Livestock Losses

An important but often overlooked role played by pastures
and grazing crops is the reduction of economic losses in
livestock by cutting the mortality rate, by inhibiting parasite
infestations, and by improving the thriftiness of the animals.
Though difficult to evaluate from this standpoint, these crops
can—by preventing a waste of time, feed, and animal life—
contribute greatly to farm income.
Hog losses on farms in the District states, for example,
are very high. In 1943 when only three out of every five pigs
that were born reached marketable age, the death loss
amounted to almost three million head. The number of hogs
on farms in the District states on January 1 was 9.7 percent
of the nation’s total, but during that year 20 percent of the
nation’s death loss occurred in those states. It is true, losses
that year were unusually heavy throughout the nation, but
even in 1944 and 1945 hog death rates in District states were
53 and 21 percent higher than for the United States. As great
as the money loss from death may be, the loss caused by a
lack of thriftiness in parasite-infested and nutritionally defi­
cient hogs that reach the market may be equally large.
Grasses and legumes by themselves, of course, will not
eliminate death losses, parasites, and lack of thriftiness. They
are, however, an important part of any management program
designed to reduce losses from these causes. In 1939 the
money loss from hog parasites in Georgia was estimated at
4 million dollars. If the same rate prevailed in the other
states of the District, the loss in that year amounted to more
than 17 million dollars for the District as a whole. At current
prices the loss would be much greater. Proof that parasites
can be controlled comes from the records of the Zoological
Station, U. S. Department of Agriculture at Moultrie, Georgia.
Studies made at that station reveal that 85 to 90 percent of

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the livers and kidneys in the general run of hogs are con­
demned as unfit for human consumption, but that 85 to 90
percent are approved for edible uses when the hogs have been
raised under sanitary conditions.
N u m b e r of H o g s a n d D e ath L o sse s o n F a rm s
_____________________ ( I n T h o u s a n d s ) _____________________
1943

1945

1944

No.
Jan . 1

Deaths

Ratio

No.
Jan . 1

Deaths

Ratio

No.
Jan . 1

Deaths

Ratio

F l o r i d a ..................
T e n n e s s e e ...........
A la b a m a ................
M is s is s ip p i___
L o u i s i a n a .............
D is tric t S t a t e s . .
U n ite d S t a t e s . .

1 ,6 8 9
608
1 ,6 4 6
1 ,2 1 9
1 ,1 7 0
807
7 ,1 3 9
7 3 ,7 3 6

505
280
395
292
219
240
2 ,9 3 1
1 4 ,6 4 2

3 0 .0
4 6 .2
2 4 .0
2 4 .0
1 8 .7
2 9 .8
4 1 .1
1 9 .9

1 ,8 7 5
669
1 ,7 7 8
1 ,5 6 0
1 ,3 6 9
1 ,0 2 5
8 ,2 7 6
8 3 ,8 5 2

510
23
235
232
19 0
265
1 ,6 6 2
1 1 ,0 0 3

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

1 ,5 7 5
609
1 ,3 1 6
1 ,2 6 4
1 ,0 5 4
86 1
6 ,6 7 9
5 9 ,7 5 9

317
205
210
190
18 2
240
1 ,3 4 4
9 ,9 7 7

2 0 .1
3 3 .6
1 6 .0
1 5 .0
1 7 .3
2 7 .8
2 0 .2
1 6 .7

P e rc e n t of
U . S . T o ta l
in D is tr ic t.............

9 .7

2 0 .0

9 .9

1 5 .1

1 1 .2

1 3 ,5

One of the most important conditions for the production
of parasite-free hogs is to produce them on clean ground
planted in grazing crops or some crop that can be hogged-off.
Many, if not most, parasites affecting hog production require
filthy, wet, or shady places to complete their life cycles. In
fields of grasses or legumes the direct action of sunlight,
together with the absence of filth, makes the completion of
the life cycle of most parasites virtually impossible. The
probability of infestation of grazing animals is thus reduced.
Hogs free of parasites gain weight more efficiently than
those that are infested. Midwestern farm records show that
parasite-free pigs tend to weight about 25 pounds more
at the age of four months than do pigs that have become
parasitized. An unhealthy condition of livestock is a serious
drain on the financial resources of a farmer since it involves
not only a waste of feed in the effort to promote growth, but
also requires considerable cash outlays for medication.
More deadly than parasitic infestations and more difficult
to prevent or control, are bacterial diseases. The ravages of
this class of diseases, which annually take a heavy toll of
hogs, can, however, be reduced by the use of clean pastures
and fields of green grazing crops. Exposure to sunlight over
a suitable period of time has an adverse effect on the viability
of bacterial organisms and on their ability to invade suscep­
tible animals. Hogs that are on pasture or grazing crops,
therefore, have much less chance of becoming infected than
those that are closely confined in a pen or a hog lot. Not only
are the chances of infection reduced, but the resistance of
hogs is increased considerably by the high vitamin and
mineral content of green grazing crops.
Dairy and beef cattle are also susceptible to many diseases
that may result in lower production, abortion, or death. For
the most part, however, these diseases cannot be controlled
by grazing programs as effectively as can diseases affecting
hogs. Nevertheless, the resistance of cattle to disease can
be greatly strengthened by providing them with abundant
grazing crops, including both grasses and legumes, which
protect livestock in much the same way that they protect fields
from erosion, by preventing the damage before it occurs.

R e ta il C r e d it S u r v e y

Saving Labor

The Retail Credit Survey for 1948 is a detailed
analysis of the changes in sales and accounts receiv­
able of the nine lines of business surveyed, tabulated
by states, major cities, and areas. Copies are available
upon request to the Research Department of this bank.

Beef and dairy cattle do their own harvesting of grasses and
legumes and thereby free a part of the farmer’s labor for
other employment. Stockmen often refer to their cattle as
their mowing machines, bailers, wagons, and silos. Where
year-round grazing is provided, there is certainly need for




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fewer implements and facilities than where crops must be
harvested, stored, and barn fed. Until recent years farm labor
has been abundant and cheap on most District farms but this
picture is changing. Many farmers are finding it necessary to
economize in the use of labor. If the labor saved by a grazing
program is productively used in doing other things on
the farm, or by working in nonfarm employment, then
such a program can be made to raise the farmer’s labor
income appreciably.
One advantage that District farmers have over those in
more northerly latitudes is the potential year-round grazing
season. To really capitalize on this advantage, however,
farmers must find productive use for the time saved. This
could be accomplished by increasing the size of the whole
farming operation or by adding other enterprises to the farm
program. Grasses and legumes can save labor, but the farmer
must use the saved labor productively if the saving is to be
translated into income. A grazing program should not be
looked upon as a device to escape work but rather as one
permitting the farmer to work at more things and hence to
work more productively. One of the bright spots in the future
of the District’s agriculture is, therefore, the contribution
that grasses and legumes can make toward a more permanent,
efficient, and profitable farm operation.

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S ix t h D is tr ic t S ta tistic s
C O N D IT IO N O F 2 8 M EM BER BANKS IN L E A D IN G C IT IE S
(I n T h o u s a n d s of D o lla r s )
A p ril 2 0
1 9 49

Ite m

L o a n s a n d in v e s tm e n ts —
T o ta l..............................................
2 ,2 7 6 ,6 1 9
L o a n s— N e t....................................
8 2 0 ,4 9 1
L o a n s— G r o s s ...............................
8 3 1 ,4 7 6
C o m m e rc ia l, in d u s tr ia l,
a n d a g r i c u lt u r a l l o a n s .
5 1 8 ,3 8 5
L o a n s to b r o k e r s a n d
d e a le r s in s e c u r i t i e s . .
7 ,1 4 2
O th e r lo a n s fo r p u r ­
c h a sin g a n d c a rry in g
s e c u r i t i e s ...............................
4 2 ,9 0 5
R e a l e s ta te l o a n s ..................
6 7 ,8 6 3
L o a n s to b a n k s .......................
4 ,5 7 0
O th e r l o a n s ...............................
1 9 0 ,6 1 1
In v e s tm e n ts — t o t a l ..................
1 ,4 5 6 ,1 2 8
B ills, c e rtif ic a te s a n d
3 6 6 ,5 2 5
U . S . B o n d s ...............................
9 0 1 ,0 2 8
O th e r s e c u r i t i e s ..................
1 8 8 ,5 7 5
R e s e r v e w ith F . R. B a n k . . .
4 8 6 ,3 5 3
C a s h in v a u l t ...............................
4 1 ,5 3 4
B a la n c e s w ith d o m e s tic
1 8 6 ,6 2 7
D e m a n d d e p o s it s a d j u s t e d
1 ,7 6 6 ,5 2 6
T im e d e p o s i t s ...............................
5 3 5 ,0 2 1
U. S. G o v 't d e p o s i t s .............
4 1 ,3 5 5
D e p o s its of d o m e s tic b a n k s
4 6 6 ,5 6 3
B o r r o w in g s ....................................
1 ,5 0 0

P ercen t C h a n g e
A p r .2 0 , 1949/fro m

M a rc h 2 3
19 49

A p ril 21
1948

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

2 ,2 9 0 ,8 3 0
8 2 8 ,0 2 6

—
—
—

2
3
2

—
—

5 3 4 ,7 9 1

5 1 6 ,0 1 4

—

8 ,1 0 8

6 ,0 1 6

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

M a r. 2 3 A p r. 21
19 49
1948
1
1

3

+

o

— 12

+

19

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

—
+
—
—
—

7
1
2
0
1

— 26
— 9
— 13
+ 14
— 0

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

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

—
+
+
—
—

7
1
1
6
2

—
+
+
+
+

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

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

+ 16
— 1
4- 1
— 26
— 2
— 140

3
o
2
8
o

— 2
+
1
— 2
+ 10
— 1
— 70

J o h n L. L il e s
D EB ITS T O IN D IV ID U A L BANK A C C O U N T S
___________ ( I n T h o u s a n d s o l D o lla r s )___________

B a n k

A n n o u n c e m e n ts

During the month of April, four nonmember Ala bama banks began remitting at par, three of which
were added to the Par List as of April 1. One of
these banks was the Watkins Banking Company,
Faunsdale, Alabama. This bank has capital stock
amounting to $25,000; surplus and undivided profits,
$39,000; and deposits averaging about $300,000.
Siddons Stollenwerck is President and Cashier, Dr.
T. C. Cameron is Vice President, and E. R. Stollen­
werck is Assistant Cashier.
The second of these three banks was the Canebrake
Loan and Trust Company, Uniontown, Alabama. The
capital structure of this bank amounts to $25,000; its
surplus and undivided profits amount to $23,000; and
its deposits to $421,000. The bank’s officers are Val.
Taylor, President; and W. M. Buck, Vice President
and Cashier.
The third bank coming on the Par List on April 1
was Planters and Merchants Bank, also of Uniontown,
Alabama. This bank’s capital structure consists of
$40,000 capital stock, and surplus and undivided
profits of more than $50,000. Its deposits are in excess
of $1,011,000. The bank’s officers are Milton G.
Walker, President; V. W. Coleman, Vice President
and Cashier; and M. I. Tolman, Assistant Cashier.
On April 4 the Citizens Bank, Geneva, Alabama,
was added to the Par List. This bank has capital
amounting to $100,000; surplus and undivided profits,
$237,000; and deposits of $4,965,000. The bank’s offi­
cers are Jim Johnson, Jr., President; Joel E. Johnson,
Vice President; 0 . E. Hightower, Cashier; and Moody
Williford, Assistant Cashier.



P la c e

N o . of
B anks
R e p o r t­
in g

M a r.
1949

F eb.
1949

M a r.
1948

P e rc e n t C h a n g e
M a r. 1 9 4 9 fro m
F eb.
19 4 9

M a r.
1948

ALABAM A
A n n is to n .............
B ir m in g h a m .. .
D o th a n ...............
G a d s d e n .............
M o b ile ..................
M o n tg o m e r y .. .

3
6
2
3
4
3

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

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

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

+
9
+ 14
+
6
+ 16
+ 20
+ 10

—
—
+
+
—
-

FLO R ID A
J a c k s o n v i l l e .. .
G r e a te r M iam i*
M ia m i.....................
O r la n d o ................
P e n s a c o l a ..........
S t. P e t e r s b u r g .
T a m p a ....................

4
13
7
3
3
3
6

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

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

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

+ 15
+ 16
+ 13
+ 22
+ 14
+ 16
+ 20

+
1
+
1
— 3
4- 10
— 8
+ 9
+■ 7

G E O R G IA
A lb a n y ..................
A tla n ta ..................
A u g u s t a ...............
B r u n s w ic k ..........
C o lu m b u s ..........
E l b e r to n ...............
G a i n e s v i l l e * .. .
G riffin * ..................
M a c o n ....................
N e w n a n ................
R o m e * .................. ..
S a v a n n a h ............
V a ld o s ta .............

3
4
3
2
4
2
3
2
3
2
3
4
2

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

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

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

+
+
+
+
+
+
+
+
+
+
4+
+

L O U ISIA N A
A le x a n d r ia * . . .
B a to n R o u g e . . .
L ake C h a rle s ..
N ew O r le a n s ..

3
3
3
8

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

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

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

+ 14
+ 34
+ 14
+ 38

ta

M IS S IS S IP P I
H a t t i e s b u r g ___
J a c k s o n ................
M e r id ia n .............
V ic k s b u r g ..........

2
4
3
2

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

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

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

rf
+
+■
,+

14
24
21
20

—
—

T E N N ESSEE
C h a t t a n o o g a ..
K n o x v ille .............
N a s h v ill e .............

3
4
6

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

1 2 4 ,9 7 9
9 6 ,7 6 4
2 4 9 ,9 7 4

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

+ 18
+ 12
+ 20

+.

7

SIXTH D IST R IC T
3 2 C i t i e s ...............

115

4 ,4 5 5 ,5 5 2

3 ,7 1 1 ,8 9 9

4 ,1 3 1 ,2 7 0

.+ 2 0

+

8

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

l+ 2 2

+

2

U N ITED STATES
333 C itie s . . . . . .

*Not included in Sixth District total

’

13
14
28
13
15
14
13
8

S
o

12
23
1

1
2
5
7
6
5

4- 5
+
9
— 2
— 10
— 7

± i

—•
—
—
—
+

7
1
8
2
1

+
8
+ 45

t

s

7
1

1 ?

M o n t h ly

38

D is tr ic t

R e v ie w

o f

t h e

B u s in e s s

F e d e r a l

R e s e r v e

B a n k

o f

A t l a n t a

f o r

A p r i l

1 9 4 9

C o n d itio n s

credit, a large part of which was for the purchase of auto­
retail merchants have turned to banks and mobiles and appliances.
The 44-percent yearly increase in instalment sales at house­
sales finance institutions for help in carrying their in­
hold appliance stores, and the 43-percent increase in the
stalment paper, which has increased because of expanded
credit buying. This is shown in the Retail Credit Survey for instalment sales of automobile dealers were chiefly respon­
1948 recently completed by the Bank. In practically every sible for the increase in paper held by banks and sales
line of retail business that makes instalment sales, a greater finance companies. All but 5 percent of the automobile deal­
number of firms sold some of their instalment paper, and such ers reporting in the survey sold instalment paper in 1948,
sales constituted a larger proportion of their total instalment and all but 11 percent of the household appliance dealers.
Consequently, although estimated instalment sales of these
sales than they have for many years.
two lines of business amounted to about 45 percent of total
Before the war, many merchants, especially those in the
automobile and appliance businesses, helped finance their instalment sales in the District, the paper they held at the end
operations by selling their instalment contracts. During the of the year was less than 20 percent of the total amount held
war and immediate postwar period, however, this practice by all retail merchants. Furniture stores, although they ac­
was at a minimum. Reduced sales of automobiles and appli­ counted for about one-third of all retail instalments sales,
ances made it less necessary to sell paper; and greater cash for the most part carried their own paper.
FINANCING BY BANKS. District commercial banks, the most
sales and larger down payments swelled the merchants’ bank
accounts at the same time that their inventories and receiv­ important purchasers of instalment paper, owned about 130
million dollars worth of retail instalment paper at the end of
ables were being reduced.
1948, about half of which was purchased paper. The other
CREDIT BUYING EXPANDED. Even though consumers have
been able to buy many goods for cash, including durables, half was the result of direct loans made to consumers for
since the end of the war, they have turned more and more buying automobiles, appliances, and other merchandise. The
to the use of credit, particularly in the past two years. Almost 38-million-dollar growth in retail instalment credits ac­
900 merchants participated in the 1948 retail credit survey counted for a substantial proportion of the rising total loans
and their instalment sales were 22 percent greater in 1948 outstanding of commercial banks during the year.
A change in the sales trend of goods customarily financed
than in 1947. Their open credit sales increased 14 percent.
by instalment contracts first became noticeable last October.
C h a n g e s in S a le s a n d A c c o u n ts R e c e iv a b le a t Sixth D istrict S to re s
Until then, monthly sales had exceeded those for correspond­
ing months of the preceding year for many months. After
A c c ts . R e c e iv a b le
S a le s
Percent Change,
that, both cash and instalment sales at the appliance and
K in d o!
End of Year,
Percent Change 1947-1948
1947-1948
furniture stores declined. A moderation in the rate of increase
B u s in e s s
Instal­
Instal­
Charge
in automobile sales appeared later. These declines con­
ment
ment
Total
Cash
Account
Charge
tinued into 1949 with furniture store sales for March down
+ 59
D e p a r tm e n t....................................... + 6 — 1
+ 39
+ 16
+ 11
20 percent; and those of household appliance stores down
0 — 13 + 10 +
M e n 's C lo t h in g .............................
+ 14
+ li
— 5
+ 37
+ 10
W o m e n 's A p p a r e l ....................... + 5
+
1
+ §
32 percent. Motor vehicle dealers in Atlanta and Birming­
— 8
F u t n i t u r e ............................................ —> 2 — 14
+ 21
+
1
+ 11
+ 73
— 8
+ 71
+ 13
H a r d w a r e . .................................... + 7
+ 17
ham, according to Department of Commerce reports, sold
+ 44
+ 64
— 18
+ 10
+ 6
H o u s e h o ld A p p lia n c e ............. + 16
only 13 and 3 percent more, respectively, in the first two
+ 22
+ 15
+ 13
J e w e l r y ................................................. — 2 —* 8
+ 7I
+ 27
19
+ 19
+ 13
+ 19
A u to m o b ile D e a l e r s ............... +
+ II
months of this year than in that period last year. Their 1948
+ 93
+ 66
— 4
+ 13
+
1
A u to . T ire a n d A c c e s s o r y .. + 9
+ 22
+ 42
+ 16
+ 14
W e ig h te d A v e r a g e .................. + 10
+ 3
sales exceeded 1947 sales 16 and 20 percent, respectively.
CREDIT DECLINED. In January and February, for the first
Changes in sales and accounts receivable at the stores time since 1945, the changed sales trends were reflected in
included in the survey are shown in the table. Although month-to-month declines in the volume of instalment credit
the types of stores included account for only a little over extended. Outstandings at the District banks are still sub­
one-third of total retail sales, they make practically all the stantially greater than a year ago, but the February volume
retail instalment sales and the greater part of open credit of new credits exceeded that of last year only 2 percent, and
sales.
throughout the country the volume was down 4 percent.
CASH BUYING DECLINED. Cash purchases from each line of
Quite obviously, the number of automobiles and appli­
business except automobile dealers and women’s apparel ances, and—to a lesser extent—the amount of furniture, that
stores were smaller in 1948 than in 1947, and some of the consumers buy during the coming months will largely govern
cash purchases from automobile dealers probably were made the amount of both direct instalment loans and paper pur­
from funds that consumers borrowed directly from commer­ chased by the banks. Unless there is a change in sales activi­
cial banks or sales finance companies. Because of the increase ties, immediate prospects are for a leveling off and subse­
in credit buying and the decrease in cash purchases, con­ quent decline in the amount of retail paper held by banks
sumers owed Sixth District merchants 16 percent more on and other financial institutions as existing contracts are paid
charge accounts at the end of 1948 than they did at the end off.
of 1947 and 42 percent more on instalment accounts. In the
Over a long period, however, it is possible that instalment
last quarter of last year, they owed retailers approximately financing might grow even though sales do not increase, pro­
175 million dollars on instalment accounts alone. They owed vided instalment sales resume their prewar importance to
financial institutions almost 400 million dollars on instalment total sales.
c. T . t .
Instalm ent Credit Financing Expands

o re a n d m o re ,

M




M o n t h ly

R e v ie w

o f

t h e

F e d e r a l

R e s e r v e

B a n k

o f

A t l a n ta

f o r

A p r i l

Farm W age Rates

S ix t h D is tr ic t I n d e x e s

Recent declines in farm prices emphasize the necessity for
reducing costs if a marked decline in net farm income is to
be avoided. Farm costs, or the prices of the things used in
production, change more slowly than farm prices. Since the
end of the war, the lag in farm costs has placed farmers in a
favorable competitive position, but during a period of declin­
ing farm prices, a lag in farm costs tends to accentuate de­
creases in farm income. In 1948, the cost of feed was the only
important item of farm expense that showed any marked
decline.
Farm wage rates, like the prices of most items that consti­
tute production expense, have been rising steadily during the
postwar years. They usually rise during the first quarter
when farm employment is increasing. This year, however,
from January 1 to April 1, the sharpest decline in wage
rates since 1937 was reported by the Bureau of Agricultural
Economics. The wage-rate index unadjusted for seasonal vari­
ation fell from 420 percent of the 1910-14 average on Janu­
ary 1 to 408 percent on April 1. During the same period the
seasonally adjusted index fell from 438 to 416, or 5 percent.
On April 1, for the first time in a decade, the index was lower
than on the corresponding date a year earlier.
FARM WAGE RATES — SIXTH DISTRICT STATES
January I, April I, July I, and October I

DLAS
OL R
R T P R DY |
AE E A
.(W H U B A D O R O )
IT O T O R R O M
__________ '
-FLORIDA-

39

1 9 4 9

DEPA RTM EN T ST O R E SA LES*
A d ju s te d * *

P la c e

F eb.
1949

M a rc h
1948

M a rc h
1949

F eb.
1949

M a rc h
1948

353
369
406
358
296
361
362
343
258.
341
322
383
351
465

357
365
385
351
305
34 1
351
330
283
354
331
354
343
474

368
398
417
376
355
352
432
327
328
374
374
454
368
499

339
363
393
341
274
338
349
324
241
396
289
366
326
451

314
343
347
302
257
293
309
297
226
417
285
31 1
302
422

387
428
433
387
357
346
436
333
320
434
362
455
352
507

D IS T R IC T ..................
B a to n R o u g e . . .
B ir m in g h a m ___
C h a t t a n o o g a .. .
J a c k s o n ..................
J a c k s o n v ille ___
K n o x v ille .............
M ia m i.....................
M o n tg o m e r y .. .
N a s h v ill e .............
N ew O r le a n s . . .
T a m p a .....................

D EPARTM ENT S T O R E S T O C K S
A d ju s te d * *

Feb.
1949

M a rc h
1948

M a rc h
1949

Feb.
1949

M a rc h
1948

365
446
304
40 1
507
329

369
431
317
397
505
322

370
481
303
336
538
330

365
455
313
424
527
348

343
410
305
388
495
323

370
490
311
356
559
349

D IS T R IC T ...........
A tla n ta .............
B ir m in g h a m .
M o n tg o m e r y .
N a s h v ill e ___
N e w O r le a n s

G A S O L IN E TAX C O L L E C T IO N S **

D LAS
OL R

A d ju s te d *
P la c e

P la c e

-J, I I

.1 I I .
.
J

AJ
1946

J _ L - 1-

T O T A L ................
A l a b a m a .. .
G e o r g i a ___
M is s is s ip p i.
T en n essee.

IwJ I

J A J 0 J A J O JA
1947
1948 1949

206
197
204
182
218
174
238

M a r.
1948

M ar.
1949

165
177
18 2
164
138
140
161

191
181
214
167

1949

202
195
190
215
170
195

Measured by daily rates without room or board, the aver­
age farm wage rate in the District states was slightly lower
in April than it was in the corresponding month a year ago.
District farmers are using more hired labor, however, than
they were last April. The weakening of wage rates in the
face of an increase in the number of hired workers may be
attributable to more ample supplies of farm labor, prospects
of lower prices for farm products, and increased availability
and use of farm machinery. Although the declines in wage
rates to date have been too small to have much effect upon
farm costs, further declines may be in prospect. Farm ma­
chinery will become more plentiful and some of the major
items of machinery may become cheaper. The recent increase
in nonfarm unemployment also may cause an increase in the
number of workers seeking farm employment. Since payments
for hired labor account for nearly one-fifth of District farm­
ers’ production costs, any further declines in farm wage rates
may help farmers to maintain their net income at present
levels.
B . R. R.




S IX S T A T E S ..
A la b a m a . . .
F l o r i d a ..........
G e o r g ia
L o u i s i a n a ..
M is s i s s i p p i.
T en n essee.

Feb.
1949

132
141
132
79
113

130
139
130
81
105

158
162
160
11 0
141

153
163
191
150
12 7
126
14 2

163
187

F eb.
1949
S IX S T A T E S ..
H y d ro ­
g e n e r a te d .
F u e l­
g e n e ra te d

P la c e

ja n .
1949

te n .
1948

145
152
146
140
149
137
146

146
154
145
140
15 0
143r
145

152
159
145
147
144
154
158

Feb.
1949

193
192

210
181
21
1

Jan .
1949

Feb.
1948

383

376

350

375

357

301

393

401

414

C O N S T R U C T IO N C O N T R A C T S

reo .
1949

M a r.
1949

M a r.
1948

1949

21
0
1 57
210

M a rc h
1948

C O N S U M E R S P R IC E IN D EX
I te m

Feb.

E L E C T R IC P O W E R P R O D U C T IO N *

M a rc h
1949

M A N U FA C T U R IN G
EM PLO YM EN T***
P la c e

U n a d ju s te d

Feb.
193

M a r.
1949

SIX S T A T E S ....
A la b a m a ...........
F l o r i d a ................
G e o r g i a .............
L o u i s i a n a ..........
M i s s i s s i p p i .. .
T e n n e s s e e -----

V -

AVERAGE FOR DISTRICT STATES
EXCLUDING FLORDIA

0 J AJ 0
1944
1945

U n a d ju s te d

M a rc h
1949

P la c e

C O T T O N C O N S U M P T IO N *

| Iw vL.— ,
J
J A J

U n a d ju s te d

M a rc h
1949

D IS T R IC T .. . .
R e s id e n tia l.
O t h e r .............
A l a b a m a .. .
F l o r i d a ..........
G e o r g i a ----L o u i s i a n a ..
M is s is s ip p i.
T en n essee.

Jan.
1949

Feb.
1948

355
447
3 11
435
383
324
375
128
323

297
346
274
257
379
291
286
125
235

349
501
276
271
50 1
285
425
1 69
270

ANN U AL RATE O F TU R N O V ER O F
DEM AND D E P O S IT S

M a r.
1948

172
172
ALL IT E M S ...
173
F o o d ................
210
203
201
C lo t h in g ___
198
201
200
F u e l, e l e c .,
a n d re f r ig .
139
139
133
H o m e f u r­
192
194
n is h in g s . .
189
15 4
153
M is c ..................
147
P u r c h a s in g
p o w e r of
.5 8
d o l l a r ----.5 8
.5 8
• D a ily a v e r a g e b a s is
* * A d ju s te d fo r s e a s o n a l v a r ia tio n
* * *1939 M o n th ly a v e r a g e = 1 0 0
O th e r in d e x e s , 1 9 3 5 - 3 9 — 1 0 0

Feb.
1949

M a r.
1949
U n a d ju s te d . . .
A d ju s te d * * . . .
In d e x **...........

Feb.
1949

M a r.
1948

2 0 .4
2 0 .4
8 2 .6

1 9 .7
1 9 .5
7 9 .0

1 9 .1
1 9 .1
7 7 .6

C RU D E PETRO LEU M P R O D U C T IO N
IN C O A STA L L O U ISIA N A
AND M IS S IS S IP P I*
M a r.
1949
U n a d ju s te d . . .
A d ju s te d * * .. .
r R e v is e d

Feb.
1949

M a r.
1948

285
285

291
287

282
282

40

M o n t h ly

R e v ie w

o f

t h e

F e d e r a l

R e s e r v e

Industry and Employment

awarded in the Sixth District states,
according to F. W. Dodge Corporation statistics, increased
12 percent in value from February to March, and were 12
percent larger than in March 1948. The March total is nearly
36 percent larger than that for January. In March, as in
February, residential contracts increased more, percentage­
wise, than other awards, but the reverse is true in the com­
parison with last March. Total awards in March were larger
than a year ago in Alabama, Florida, Georgia, and Missis­
sippi, but residential contracts increased only in Alabama
and Florida.
So far in the first quarter of 1949, total awards in the Dis­
trict are one percent larger than in that part of last year. Res­
idential awards for the quarter are down 6.4 percent from a
year ago, but other contracts have increased 6.9 percent. In
Alabama, first-quarter awards for residential construction
were nearly double the small total a year ago, but decreases
are shown in the figures for the other five states. First-quarter
totals for all construction are larger than a year ago for Ala­
bama, Florida, and Georgia, but smaller for the other states.
February indexes show a reduction of 7 percent in the whole­
sale price of lumber since last summer, but the over-all
indexes of construction costs have declined only one percent.
MANUFACTURING EMPLOYMENT in the District was off onehalf of one percent from January to February, following de­
clines of about 2 percent in both December and January. The
February index was 4 percent below that for February 1948.
Slight February gains in Florida and Tennessee were a little
more than offset by decreases in the other four states.
In Alabama, manufacturing employment was 4 percent less
than it was a year ago. Employment in shipbuilding declined
43 percent; in textiles, 4 percent; in lumber and wood
products, 6 percent; and in fabricated metals products, 18
percent. The chemical and primary metals industries, how­
ever, reported increases of 9 and 4 percent, respectively.
Total manufacturing employment in Florida was slightly
higher than a year earlier. Fabricated metal products plants
(principally cans for fruits and vegetables) had 31 percent
more workers; lumber, 3 percent more; paper and chemicals,
over 6 percent more; but employment in shipbuilding was
off 36 percent and in food manufacture, 3.5 percent.
Georgia manufacturing employment was 5 percent less than
a year ago because of declines at fertilizer plants, apparel,
fabricated metal products, machinery, furniture and fixtures,
food, and textile establishments.
Manufacturing employment in Louisiana was 3.4 percent
above that in February 1948, increases being reported in most
all of the principal groups except lumber and wood products,
where there were 7.5 percent fewer workers.
For the first time in five months, Tennessee manufacturing
employment increased during February because of the gains
in apparel, furniture, and electrical machinery plants. In­
creases over February 1948 in chemicals, food, and paper
were, however, more than offset by decreases in other groups.
COAL OUTPUT in Alabama and Tennessee was reduced in
March by the work stoppage, and the weekly figures averaged
27 percent below production a year ago.
st eel MILL ACTIVITY has continued since mid-February at
about 94 percent of rated capacity. In March, a number of
District paper mills closed for varying periods, and some
have adopted
D. E. M.
 a shortened work week.

B a n k

o f

A t l a n t a

f o r

A

p r i l

1 9 4 9

S ix t h D is t r ic t S ta tis tic s

CONSTRUCTION CONTRACTS



IN STA LM EN T C A S H L O A N S
V o lu m e
JNO. o t
P erc e n t C h a n g e
i* e n a e r s
M a r c h 1 9 4 9 fro m
F e b ru a ry M a rc h
in o
1949
1948

L ender

F e d e r a l c r e d it u n io n s
S ta te c r e d i t u n i o n s . . .
I n d u s tr ia l b a n k i n g com -t
p a n i e s .....................
I n d u s tr ia l lo a n c o m p a n i e s ..
b m a ll lo a n c o m p a n ie s
C o m m e rc ia l b a n k s . . .

O u ts ta n d i n g s
P erc e n t C h an g e
M a r c h 1 9 4 9 fro m
F e b r u a r y M a rc h
1949
1 9 48

44
23

4- 3 7
4- 2 9

4- 17
— 1

+
4*

2

+ 30
4* 2 9

10
15
40
33

+
+
44-

+
2
— 16
4- 0
+
9

+
__
+

1
1
1

4- 8
+ 5
+ 4
4- 3 2

15
11
23
29

0

2

RETAIL FU R N IT U R E S T O R E O P E R A T IO N S
N um ber
P e rc e n t C h an g e
of
M a r c h 1 9 4 9 fro m
I te m
St^rA fl
0IW I00
R e p o r t in g F e b r u a r y 1 9 4 9
M a rc h 1948
T o ta l s a l e s .........................................................
91
— 20
4- 17
C a s h s a l e s .........................................................
80
— 28
4- 16
I n s ta lm e n t a n d o th e r c r e d i t s a l e s . .
— 19
80
4- 15
A c c o u n ts r e c e iv a b l e , e n d o f m o n th
90
— 3
4- 17
C o lle c tio n s d u rin c r m o n th
90
+ 4
+
3
- 11
I n v e n to r ie s , e n d o f m o n t h .....................
66
+
5
W H O L E SA L E SA L E S A ND IN V E N T O R IE S*
SALES
IN V E N T O R IE S
P e rc e n t C h a n g e
P erc e n t C h a n g e
N o . of
N o . of
Ite m
M a rc h 1 9 4 9 fro m
M a r. 3 1 ,1 9 4 9 , fro m
F irm s
F irm s
M a r.
R ep o rt*
Feb.
R e p o r t­ F e b . 2 8 M a r. 31
1 9 48
in g
1949
1 9 48
in g
1 9 49
__ 3
A u to m o tiv e s u p p lie s .
— 33
5
— 1
+ 8
4
E le c tric a l g r o u p
__ 14
W ir in g s u p p l i e s . . .
— 29
3
3
+ 9
4- 8
A p p lia n c e s ..........
— 4
— 18
■ 4
+
4
5
3
G e n e ra l h a rd w a re . . .
4- 1
— 7
4
10
+ 20
4- 15
I n d u s tr ia l h a r d w a r e .
4- 2 6
3
+ 12
J e w e l r y .......................
— 26
3
13
L u m b e r a n d b u il d in g
m a t e r i a l s .............
4- 4 6
— 9
3
M a c h in e r y e q u i p ­
__ , 7
m e n t a n d s u p p lie s .
— 22
3
P lu m b in g a n d h e a t ­
__ 7
in g s u p p l i e s ___
— 14
3
4
4- 18
4- 4
C o n f e c tio n e r y ___
+ 19
3
+ 4
D ru g s a n d s u n d r ie s .
6
+ 6
4- 11
D ry g o o d s ................
i3
— 20
20
— 26
• *8
4- 3
F a rm s u p p l ie s .. . .
— 30
3
+ 19
G r o c e r ie s
F u ll l i n e s ...............
38
— 3
• 4
18
— 9
4- 17
S p e c ia lty li n e s .
6
3
• 1
+ 9
4- 18
+ 5
S h o e s a n d o th e r
f o o tw e a r ................
3
—. 9
4- 8
T o b a cco p ro d u c ts
.8
4- 13
4- ‘ i
*3
4- 14
— *3
M is c e l la n e o u s ___
11
+ 15
+
1
16
— 13
4- 2
T o t a l...............................
137
14
— 7
71
42
— 7
D EPA RTM ENT S T O R E SA L ES AND
SA L ES
P e rc e n t C h a n g e
N o . of
P la c e
M a r. 1 9 4 9 fro m
S to r e s
R e p o rtF eb.
M a rc h
1943
in g
1949
ALABAMA
B ir m in g h a m ___
M o b ile .....................
M o n tg o m e r y .. .
F L O R ID A
J a c k s o n v il le ___
O r l a n d o ..................

4
5
3

4- 2 7
+ 17
4- 14

— 13
— 27
— 20

4
4
3
5

4- 2 7
4- 7
4- 1 2
4- 2 0

— 20
— 9
— 12
— 11

IN V E N T O R IE S
IN V E N T O R IE S
P erc e n t C h an g e
N o. of
M a r. 3 1 ,1 9 4 9 , fro m
S to r e s
R e p o r t­ F e b . 2 8
M a r. 31
in g
19 49
1 9 48
3

+

3

+

2

3

4- *9

+

i9

3
3

4-

5
3

__ 'o
3
G E O R G IA
A tla n ta ..................
6
— 15
5
4- 19
4* 11
A u g u s t a ................
4
— 12
4- 3 3
3
+ 33
C o lu m b u s ...........
— 18
3
4- 3 2
« _ *7
M a c o n .....................
4
— 25
4- 2 0
4
R o m e .......................
4
— 25
4- 41
S a v a n n a h .............
6
— 19
4- 2 4
4
4* *4
L O U ISIA N A
B a to n R o u g e . . .
4
—, 9
4- 2 8
4
4- 4
N ew O r le a n s ...
6
4- 21
— 7
4
4- 8
M IS S IS S IP P I
J a c k s o n ..................
— 2
4
4- 3 0
4
4- 8
M e r id i a n ................
3
4- 2 8
— 21
T E N N ESSEE
B r is to l.....................
3
— 21
4- 2 6
3
4- 9
C h a t t a n o o g a .. .
4
4- 2 0
— 24
3
4- 8
K n o x v ille .............
4
— 3
4- 2 3
N a s h v ill e .............
6
— 20
4- 3 2
5
4- 'i
O T H E R -C IT IE S * ..
22
— 10
+ 14
22
4- 6
D IS T R IC T ................
111
+ 21
— 13
76
1 +
6
* W h e n f e w e r th a n t h r e e s to r e s r e p o r t in a g iv e n c ity , th e s a le s o r
a r e g r o u p e d t o g e t h e r u n d e r “ o th e r c i t i e s ."

— 20
— 1
+

2

— 7
4* 3 4

— 12
+

’6

+
—

3
0

+

8

+
+

3
2

— '6
+ 5
— 1
s to c k s