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Monthly Review ATLANTA, GEORGIA, APRIL 30, 1953 J n % 'is I s s u e : Im p o rte rs F in d A t F in a n c ia l D is tric t A s s is ta n c e B anks First Q uarter of 1953 in Review SixtdDiSlridStatistics: Condition o f 27 Member Banks in Leading C ities Debits to Individual Demand Deposit Accounts Department Store Sales and Inventories Instalment Cash Loans Retail Furniture Store Operations W holesale Sales and Inventories S ix t h V iS t r id In d e x e s : Construction Contracts Cotton Consumption Department Store Sales and Stocks Electric Power Production Furniture Store Sales Gasoline Tax Collections Manufacturing Employment Petroleum Production Turnover of Demand Deposits S fc fe r d ^ s e iv tB a n lig fr ftfa n ta at District Banks Imports moving through Sixth District ports have regu larly fallen short of the dollar volume of exports, in con formity with the nation’s traditional export balance of trade. As a consequence, the volume of import financing carried on by banks has naturally been less than that of exports. The year 1952 was no exception. In 1952, merchandise imports flowing through Sixth District ports amounted to nearly 930 million dollars, or approximately 40 percent of the total dollar value of for eign trade. District banks with established foreign depart ments have helped finance this foreign trade, with roughly the same distribution between imports and exports. Last year, about a dozen banks located in the seaport cities of New Orleans, Mobile, Miami, and Savannah, and in one inland city, Atlanta, financed an estimated 200 million dollars of foreign trade; of this amount about 40 percent, or 80 million dollars, was for imports. These banks thus financed only around a twelfth of the total value of imports flowing through District seaports in 1952. This is readily understandable since a sizable pro portion of the importing is done by large national concerns who do their own financing or else deal with banks in other parts of the country. And indeed, some of the financing by District banks is reflected in imports through ports outside of the Sixth District. Many District banks, furthermore, do not have foreign departments but simply act as agents of other banks located in New York City and elsewhere. The statistics cited herein on the volume of financing were obtained in a survey recently undertaken by this Bank covering practically all the Sixth District banks hav ing foreign departments. The survey, in addition, revealed the chief types of borrowers as well as importing practices and procedures from the banking viewpoint. Previous studies for the nation conclude that most of the import financing handled by banks is for large busi nesses that deal mostly in staple commodities. The most recent survey shows that Sixth District banks generally conform to this pattern. Around 80 percent of the total dollar value of credits extended for imports in 1952 by the banks supplying data was to large businesses, particularly to wholesalers whose annual sales averaged over 400,000 dollars. If the number of letters of credit issued were used rather than the dollar value, however, the proportion would be somewhat lower. The survey indicates that wholesalers alone accounted for almost 90 cents out of each dollar of credit extended for imports. The balance was divided about evenly between manufacturers and retailers. The survey also shows that the bulk of credit extended for imports by District banks are for staple commodities, of which coffee is by far the most important. Approxi mately half of the estimated 80 million dollars of import credits wa| used to bring coffee chiefly from Brazil and C^ldmBua.fo the? United States. Bananas and lumber, par ticularly mahogany, account for a substantial proportion of the remainder. Credits for industrial products and manu factured consumer goods are negligible in relation to the total import financing, although at a few banks they as sume considerable importance. The Financing Mechanism at W ork By the very nature of foreign trade, an importer is con fronted with a relatively greater problem of financing than are firms dealing exclusively in goods made at home. The importer ordinarily must carry a large stock of merchan dise on hand in relation to current sales because his orders for foreign merchandise cannot be filled as quickly as those for domestic products. This is true not only because of the distances involved but also because merchandise from abroad is sometimes delayed in transit. The importer, moreover, finds it more difficult to buy merchandise on open account, as is commonly done in domestic trans actions. During, and immediately following, World War II, the foreign seller almost always insisted that the importer obtain a bank guarantee of payment in the form of a letter of credit. Today, however, as conditions have become more normal and prewar contacts have been reestablished there is an increasing tendency and willingness on the part of shippers abroad to sell on the basis of documentary drafts drawn directly on the buyer, and in some instances, to sell on open account. A letter of credit is simply a written statement by a bank authorizing the foreign exporter to draw drafts on the bank. It does not constitute a loan; rather it creates a contingent liability which is recorded on the bank’s books as such. The bank expects to collect from the importer as soon as it pays the draft, and therefore, in reality, it does not use its own funds. Banks engaged in financing import trade through the medium of letters of credit generally are not concerned with the actual contract to buy. They will, however, want to know that the price paid for the merchandise is close to, but certainly not more than, the prevailing market price; that the quantity bought is within the ability of the im porter to handle; and that the quality is such that it can be disposed of currently in the domestic market. The mechanics of financing imports may be explained briefly. In financing coffee, for example, a foreign exporter in Brazil, during the contract negotiation stage, requests the American importer to obtain a letter of credit from his bank. In this way, the bank guarantees payment to the exporter by substituting its credit for that of the importer, which is not as well known abroad. If the importer’s financial position, reputation, and ex perience are satisfactory, the bank will issue a letter of credit for the importation of the coffee. When the exporter is notified of this action, he makes the shipment and pre pares a draft and the necessary documents. These docu ments represent title to the merchandise. The exporter then • 2 • presents the draft and documents to his bank in Brazil either for discounting or for collection. If all papers are in order, his bank accepts the draft, which, according to tra dition in the Brazilian coffee trade, has a maturity of 90 days. The papers are then sent to the American bank is suing the letter of credit. On these acceptance drafts, it is customary for the importer to pay the bank two days be fore the draft expires. The bank subsequently remits to the foreign bank. To enable the importer to obtain the coffee before pay ing the draft, the American bank may take a trust receipt. This receipt releases physical control over the merchandise although the coffee is still pledged to the bank. The im porter, therefore, can sell the coffee and obtain the funds to pay the bank when the draft matures. Frequently the letter of credit provides for payment against a sight draft. In this case, the American bank pays on receipt of the draft, and immediately collects from the importer. On both a sight and acceptance draft, if the im porter does not have funds to liquidate the debt at maturity, he may refinance the transaction under terms determined by supply and demand conditions in the domestic market. This constitutes a direct loan to the importer. At Sixth District banks having foreign departments, as well as at banks engaged in foreign trade throughout the nation, a sizable proportion of import transactions are under letters of credit. The reason for the popularity of let ters of credit is simple enough. Exporters receive practi cally complete security on the transaction because of the substitution of bank credit for personal credit. As a result, the importer may obtain more favorable prices from the foreign seller because the risk of nonpayment for all prac tical purposes is eliminated. The letter of credit is used particularly when the seller has not fully ascertained the credit capacity of the buyer and in areas where market terms of sale are not well established. Letters of credit, of course, are not the only means of financing imports. Occasionally, when the foreign seller has complete confidence in the buyer’s integrity and in his abil ity to pay, imports may be financed under open accounts (similar to charge accounts at department stores). In this case, the exporter, who bears the complete risk of nonpay ment, ships the merchandise to the importer and simply bills the latter’s account. Then, at more or less definite intervals, the buyer pays for either all or part of the pur chase. At the other extreme, an exporter may request cash in advance of the shipment. The seller receives complete protection under such an arrangement since all the risk pertaining to the merchandise is borne by the buyer; as in domestic trade, however, this method is rarely used. Credit Qualifications of the Importer Bankers find it necessary to maintain essentially the same sound conservative banking standards in financing foreign trade as they require for purely domestic transactions. Even though a bank does not part with its funds when it issues a letter of credit, it nevertheless assumes a liability which must be paid regardless of whether or not the importer reimburses the bank. The familiar three “C’s”— character, capacity, and cap ital or general financial position— constitute the standards employed by banks in determining whether to accept or reject an application for credit. In the Sixth District, as well as throughout the nation, bankers have apparently tended to place their reliance chiefly upon the last “C,” the finan cial resources of the importer. Reputation and experience are also important considerations. How much weight the banker assigns to each of these criteria depends upon the case in question and, of course, upon the individual banker’s general outlook. When granting letters of credit, banks usually do not request importers to put up collateral if they have a satis factory credit standing. In borderline cases, the banks may require thQ importer to carry a deposit balance with them either for part of or the full amount of the letter of credit, depending upon their evaluation of the strength of the im porter’s overall position. Generally, banks are not inclined to look with much favor upon the merchandise involved in a transaction as collateral. The primary function of banks engaged in import financ ing is one dealing with documents, not of handling mer chandise. Consequently, the merchandise is not given much consideration in determining whether or not to extend credits to the potential importer. The type of merchandise imported, however, takes on significance in borderline cases. Banks prefer to issue letters of credit for staple com modities, such as raw materials or foodstuffs, for which organized markets exist so that if the importer cannot com plete his obligation, the shipment can be readily sold to someone else in the same line of business. They are less prone to finance industrial or consumer goods for which the market is limited or highly seasonal in nature. The late arrival of merchandise purchased for sale at Easter, for example, might well result in a loss to the importer and, if he should be unable to make good his commitments, a possible loss to the bank. Organization of Foreign Departments The survey shows that the number of personnel in foreign departments of District banks varies considerably, ranging from three to around 20. In most instances, a vice presi dent is in charge of the department. A foreign department requires highly trained personnel to oversee the multitude of complexities that arise from day to day. The foreign departments of District banks offer a wide variety of services to foreign traders, the services varying, of course, with the size of the department. In addition to financing export and import trade, all banks have facilities enabling individuals living in the United States to send funds abroad to relatives, for example, or vice versa. Banks are also a reservoir of selected information re garding foreign trade, such as the availability of goods and the economies to be realized from buying either at home or abroad. The banks are acquainted with foreign exchange conditions and usually have, or can readily obtain, credit and related information on the foreign seller or buyer. Financing of foreign trade, however, is not usually one of the more profitable operations of a bank. The survey of District banks shows that as a rule the foreign department is less profitable than other departments. In part, this stems from operations at less than optimum capacity and in part from the low rates customarily charged on import financ • 3 • ing. A commission charge of 1/8 of one percent of the amount stipulated in the letter of credit is made on drafts drawn from sight up to 30 days. For each succeeding 30 days, an additional 1/8 percent is charged. Thus, the com mission amounts to 1Vi percent a year. This rate has pre vailed for many years both in the District and in the nation. Today, however, there is a movement afoot in certain parts of the nation— but not yet in the District— to raise the rates. Adequacy of Financial Facilities Over the past few years, much has been written and ut tered about how the United States might increase imports. One of the complaints raised by some individuals is that import financing facilities are inadequate. This, it is claimed, acts as a drag on imports. It is the intention in this brief review merely to state the problem as it appears to exist rather than to pass judgment on the adequacy or inadequacy of financing facilities for import trade. The survey indicates that importers with ex cellent financial resources can, of course, obtain letters of credit from banks without difficulty. These importers are frequently dealers in raw materials and foodstuffs— com modities which are often imported in large quantities in volving a sizable investment. A small importer, on the other hand, may not be able to obtain bank assistance because of a combination of cir cumstances involving among other things the amount of capital, the types of commodities handled, and the trading risk entailed. Because the funds at his disposal are not very large, it is usually not feasible for the small importer to deal in staples. It is far more profitable for him to han dle small manufactured industrial commodities and special ties and other consumer goods. The market for such items, however, is more restricted than for staples and may exist only at certain times during the year. Bankers state that they are unwilling to undertake such propositions in which the possibility of loss is great without adequate protection from the importer. Bankers also consider the importation of consumer goods for which organized markets do not exist a highly risky business because the merchandise shipped by the foreign exporter may not meet the specifications set forth in the contract and also because the importer may refuse to accept the merchandise if market conditions or other factors are unfavorable at the time the goods arrive. Bankers state they are not in a position to assume the trad ing risk of the importer because the small income earned on credits extended does not warrant the assumption of nonbanking risks. Absolute standards for ascertaining sound propositions are as nonexistent in import trade as in domestic trade. Consequently a banker’s general attitude as to what consti tutes a good risk will play a significant part in determining whether or not credit will be extended in a given case. Thus, because some bankers are more conservative than others, as is true with people generally, an application for a letter of credit may be rejected by one bank and accept ed by another. It is the contention of small importers, par ticularly those located in cities having banks with foreign departments, that many bankers are overly cautious. On the other hand, bankers themselves generally believe they are financing all the credit-worthy business that comes to them. The survey of District banks revealed that rejec tions of formal applications for letters of credit have been negligible in the postwar period, averaging around one per cent. The proportion of rejections, however, may well be higher since a prospective importer may be dissuaded at an early stage from even formally applying for assistance. District bankers do not feel it is their function to provide venture capital in order to help small importers to gel: start ed or to keep them in business, such as is fairly common among the European merchant bankers. The latter pay more attention to the strength of the importer’s character and to the collateral put up in the form of the goods im ported than do American bankers. One study made some time ago by the National Council of American Importers at the request of the Economic Cooperation Administration concluded that American im porters have no particular problem. The Council, which is composed of established importers, believes that existing facilities for financing import transactions either by letter of credit or on a straight draft basis are entirely adequate. Export Credit Insurance of Foreign Countries Small but sound operating or potential importers may be handicapped or deterred from entering foreign trade be cause of their inability to obtain credit. One source of as sistance is the foreign seller who may extend credit to the importer; this is a method of financing common in domes tic trade. The exporter, however, will want to screen his prospective customers very carefully unless he can obtain protection in other ways. Many European countries, as well as Canada, Mexico, and perhaps other nations, have either private or governmental export credit insurance pro grams offering such protection. The British, in 1919, initiated their Export Credits Guarantee Department. A British exporter desiring to par ticipate in the program and pay the required premiums may submit as much of his foreign credits as he likes for inclusion under the guarantee system. If the Department accepts a proposed credit and if a loss is subsequently in curred because the importer defaults on the payment, the British exporter may receive up to 90 percent of the amount of credit extended to the importer, depending on the particular guarantee contract. Protection, of course, is not extended indiscriminately, but requirements may be somewhat more lenient than those established by banks in the United States issuing letters of credit. The E C G D has guaranteed credits with maturities up to six months after arrival of the merchandise in the im porter’s country. Thus, the importer can sell the merchan dise and obtain funds to liquidate his debt within the al lotted time. Such contracts to sell are made generally on open account and obviate the need on the part of the im porter to obtain a letter of credit from his bank. Foundation for Future Service Sixth District banks, thus, perform a vital financial service which facilitates the movement of imports into the nation. Although the number of banks with established foreign departments is quite small, it is growing, having increased • 4 • by nearly a half during the past decade. This handful of banks apparently has satisfactorily met the major part of the demand for import assistance. Larger importers espec ially have benefited from this service; the problem, how ever, lies with small importers who at times cannot obtain credit accommodations. Nevertheless, some banks appear to be more receptive and aggressive than others in solicit ing business from large as well as small importers. The availability of credit facilities for small importers could serve to increase total imports. Many times these importers will handle small orders for new types of mer chandise, which larger importers would not ordinarily undertake. Although these new orders would represent only a fraction of total imports, they are desirable because any increase in foreign trade helps to raise our level of living as well as to make more dollars available to foreign countries for purchases of American commodities. Any significant increase in demand for goods tradition ally imported in large quantities in all probability can be satisfied by large import houses which have no difficulty in receiving bank assistance. In turn, these importers dis tribute the merchandise to domestic wholesalers and re tailers. This procedure of indirect importing is favored by many dealers of foreign merchandise, including large de partment stores which, for one reason or another, do not wish to buy directly from abroad. Far more important as an obstacle to the nation’s im port trade than financing are the complex tariffs, quotas, and customs procedures. A report submitted to the Presi dent in March concluded that if steps are not taken to increase imports by reducing these trade blocks, exports will decline and consequently have serious repercussions on American industry and agriculture. The current widely publicized slogan “Trade, Not Aid” dramatizes this inter dependence of imports and exports. From their experience in foreign trade financing, these Sixth District banks have acquired a knowledge which has been and is an important stimulus to trade. As more and more bankers put this knowledge to use, a trend which is definitely apparent already, it can be expected that the contribution of District banks to the development and extension of commerce between countries will increase. B a s il A. W a p e n s k y The First Quarter of1953 in Review Credit Plays a Key Role in Continued Stability Employment, income, and spending continued high in the Sixth Federal Reserve District during the first quarter of 1953, although the rates of expansion were less than in the last three months of 1952. The quarter was also mark ed by continued expansion of business and consumer bank borrowing. Practically all economic indicators show activity to be above the level of the first quarter of 1952. Employment Growth Tapers Off Rising textile prices during the second and third quarters of 1952 gave some promise of an end to the lull in this industry, but prices turned downward in September and are now below the low level established in July 1952. Textile employment throughout the District did not expand as much in the last quarter of 1952 as total manufacturing employment did. In 1953 it has continued at a comparatively low level, after consideration is taken of seasonal influences. On the other hand, the trend of District lumber and furniture products prices has been upward since last July. Prices of Southern Pine, however, have been stable since November. Because inventories of lumber were high, the increased demand signalized by rising prices did not result in increased production. Employment, therefore, was about the same as it was in the last quarter of 1952. Seasonally adjusted employment was up in the first quarter of 1953 from the last quarter of 1952 in the ap parel, chemicals and allied products, primary metals, fab ricated metals, and paper industries. These gains may be partly explained by the completion of new production facilities. Farm Income Reflects Price Changes Lower cotton, cattle, and chicken prices contributed to a smaller farm income during the first quarter of this year. Since less cot ton remained unmarketed at the first of the year than usual, spendable income was probably lower than it ordi narily is during this period of light marketings. The decline in farm prices has been greater in the District than in the nation. In Florida, however, where marketings are usually heavy during the first quarter, favorable developments in citrus prices tended to increase income. Construction and Other Activity High Stimulated by the large amount of contracts let in the latter part of 1952, construction activity continued high throughout the first quarter of this year. Much of the new construction was for nonresidential properties. Trade and service activity also remained at levels indicative of high income. The tourist business in southern Florida, for example, has been better every month from December through March this year than it was a year earlier, according to the University of Miami’s Bureau of Business Research. This evidence is substantiated by the 8-percent increase in deposits of Florida member banks between the end of March 1952 and the corresponding date this year. Consumer Spending Continues High The growth in consumer spending throughout the District since last year continues to outstrip the rate of growth for the nation as a whole. Through March, sales at Sixth District de partment stores were 8 percent higher than in the first quarter of 1952, compared with an increase of 5 percent • 5 • for the country. Preliminary reports indicate that April sales are also above the year-ago marks. Sales in the first quarter of 1953, however, on a seasonally adjusted basis averaged 2 percent below the last quarter of 1952. Department stores added to their inventories at a greater rate than their sales increased, and in the first quarter in ventories averaged 2 percent greater than in the last quarter of 1952. The major part of the inventory expan sion was in nondurable goods items, such as apparel and household textiles. Credit Growth Continues Member banks throughout the District continued to expand their loans during the first quarter of 1953. A 40-million-dollar increase brought the total outstanding to 2.3 billion dollars at the end of March. Normally, loans to all types of borrowers decline seasonally in April. This year, however, by April 22, total loans at weekly reporting banks in leading cities were up 10 million dollars from the end of the preceding year. During the corresponding period of 1952, such loans declined 11 million dollars. SIXTH DISTRICT BUSINESS INDICATORS Manufacturing Employment Departm ent Store Sales and Stocks PERCENT 1 ,5 11 9 4 7 - 4 9 = 1 0 0 , A D J. F O R S E A S O N A L VAR. 105 1952 1953 Prices Received by Farm ers District Averag e 1935*39 =100, 320 U N AD JU STED A PERCENT CHANGE MAR. '52 - MAR. ‘53 -5 0 () +50 111i| il 11 BEEF CATTLE, icwt. CZZZ5 1 A 1 PRODUCT XJ \\D,S Ay \ vS_ SIIXTH TRICT 300 - 1 ALL ORANGES, BOX ■ ■ 1 TRUCK CROPS, INDEX E \ COTTON, LB. _____UNITED____ STATES N E MILK, CWT. ^1 yjyyl. 1 1 1.1 1 .1-1 ..L-L. HOGS, CWT. 1 ,.l 1952 ALL CHICKEN, LB. 1Llu.i 1 u .u _ . . . . 1. . . . II. . ! -1 0 0 - 5 0 1953 0 + 5 0 +100 Changes in Business Loans Member Banks in Leading Cities Dec. 3 1, 1952— April 15, 1953 Loans and Deposits All M ember Banks BILLIONS OF DOLLARS 7 5 TYPE OF BORROWER 7 .0 ----------D E P O S I T S - / s / s .— 6 .5 : - vvw------------------------------- 2.5 LOANS JL - 2.0 : V^vJ—1—1—L 1 1-t~ 1 1■J 1952 1 1-1. 1-!_ 1953 MILLIONS OF DOLLARS -10 0 +10 MFG. AND MINING ' TRADE COMMODITY DEALERS iiiiiimiit ' M i i SALES FINANlSE i PUBLIC UTILI TIES 1 CONSTRUCTICIn ALL OTHER L.i.. E l m i ... , i , -20 -10 0 +10 +20 Increased business loan demands at member banks in leading cities since the first of this year came chiefly from wholesale and retail trade concerns to carry larger ac counts receivables, as well as inventories. Then too, fi nance companies have needed funds to finance the in creased purchases of durable goods, particularly automo biles. On the other hand, loans to manufacturing concerns are lower than they were at the beginning of the year. Direct consumer financing and the purchase of instalment paper raised consumer instalment credit at all District commercial banks by over 22 million dollars through March this year. Loans to farmers have been kept up because some Dis trict banks are carrying production loans over from last year and others are extending cattle loans in order to per mit further finishing. Larger cotton plantings this year have also raised the demand for production loans. Although total member bank deposits in the District were 350 million dollars greater at the end of March than on the corresponding date of 1952, they had declined seasonally by 120 million dollars since the first of the year. The drain on member bank reserves occasioned by com mercial and financial transfers to other parts of the coun try was only partially offset by the increase in reserves resulting from the return of currency from circulation and Treasury operations. Through March, the banks main tained their required reserve positions by borrowing from the Federal Reserve Bank, but in April such borrowings were reduced. Some banks also reduced their Government security holdings in order to maintain their reserve posi tions in the face of rising loans although total holdings of member banks rose. Prospects Unless national economic conditions, includ ing any reaction to international developments, change substantially, little change can be expected in the District’s economy during the next few months. Output and employ ment in lumber and textiles are likely to remain at or near first quarter levels. Continued growth in employment in other manufacturing industries can be expected as a result of recent plant expansions. A larger cotton crop and greater marketings of livestock probably will offset most of the recent decline in farm prices. Farmers’ cash receipts, there fore, will likely be about the same this year as in 1952. The biggest doubt about continuation of a high level of consumer buying in the District lies in the possible effect that present farm prices may have on consumer attitudes, particularly those of farmers. Added to this is the realiza tion that a great deal of the present buying of durable goods is based upon expansion of consumer credit and that if this expansion does not continue, it will dampen buying. Present indications, however, are that demand for bank credit by farmers, other businessmen, and consumers is likely to continue strong. Thts Bank announces a revision of the monthly commercial banks debits series. Beginning with March 1953, the revised series "Debits to Individual Demand Deposit Accounts" (p. 7) includes only debits to demand deposit accounts of individuals, partnerships, corporations, and state and political subdivisions. Debits to time deposit accounts, to U. S G ov ernment accounts, and to deposits of banks are excluded. S i x t h D i s t r Instalment Cash Loans +11 +2S +21 + 16 +22 +1 —1 +2 —0 + 11 +8 +24 +3 + 10 +7 + 16 +31 Retail Furniture Store Operations Percent Change March 1953 from Mar. 1952 Feb. 1953 + 13 Number of Stores Item________________________________________ Reporting Total sales........................................................143 Cash sales.........................................................12S Instalment and other credit s a le s ................. 12S Accounts receivable, end of month.................136 Collections during month.............................. 136 Inventories, end of month...................... . . 101 +2 —10 —0 +1 +5 +11 +4 + 30 +9 + 15 +2 W holesale Sales and Inventories* Sales Percent Change Mar. 1953 from Mar. Feb. 1952 1953 — 15 + 15 +26 +32 + 14 No of pjt;ms Report Type of ing Wholesaler Automotive supplies . . . . 4 Electrical— Wiring supplies . 7 “ Appliances . . . Hardware............................... 15 Industrial supplies................ 5 + 16 Jewelry................................... 4 Lumber and bldg. mat’ls . . 4 —5 Plumbing & heating supplies + 16 Refrigeration equipment . . 7 + 15 Confectionery......................... —7 9 Drugs and sundries . . . . 17 Dry goods ............................... +9 Groceries— Full-line . . . . 38 3 “ Voluntary group . + 19 “ Specialty lines . . +7 Tobacco products.................. 14 + 18 Miscellaneous......................... Total...................................... 171 *Based on U. S. Department of Commerce figures. 6 10 +12 +21 +6 6 10 12 +20 +6 +12 —0 +11 + 15 —3 + 14 —9 Inventories Nn nf Percent Change pjr'ms Mar. 31,1953, from Feb. 28 Mar. 31 Report 1953 1952 ing — 15 5 4 +3 +5 +4 +4 5 +4 5 — 14 +4 3 0 6 3 6 + 19 +4 3 +14 +5 26 —2 —1 +9 +1 +0 +7 11 12 103 +2 t a t i s t i c s —4 — 13 +3 (In Thousands of Dollars) Loans— G r o s s .................. Commercial, industrial, and agricultural loans Loans to brokers and dealers in securities . Other loans for pur chasing or carrying securities.................. Real estate loans . . . Loans to banks . . . . Other loans ................. Investments— Total . . . Bills, certificates, and notes .................. U. S. bonds ................. Other securities . . . . Reserve with F. R. Banks . Cash in vault..................... Balances with domestic Demand deposits adjusted . Time d ep osits.................. U. S. Gov’t deposits . . . Deposits of domestic banks Borrowings...................... Apr. 16 1952 . 2,895,700 , 1,234,115 2,899,149 1,240,335 1,262,011 2,761,788 1,089,119 1,108,920 —0 —1 —0 716,052 727,601 644,903 —2 + 11 15,202 12,393 9,719 +23 +56 35,307 102,934 3,811 ,. 382,560 . 1,661,585 34,063 95,411 7,552 384,991 1,658,814 33,266 88,680 5,612 326,740 1,672,669 +4 +8 — 50 —1 +0 +6 + 16 — 32 + 17 —1 693,200 715,082 253,303 491,635 45,556 695,972 711,874 250,968 536,021 46,154 797,935 634,494 240,240 522,234 43,858 —0 +0 +1 —8 —1 — 13 +13 +5 —6 +4 . 251,589 . 2,126,006 . 562,118 . 105,526 . 642,931 11,000 232,212 2,151,477 560,020 69,241 676,624 19,000 249,055 2,062,250 541,927 107,988 627,448 15,000 +8 —1 +0 +52 —5 — 42 +1 +3 +4 —2 +2 —27 . . . . +2 (In Thousands of Dollars) Percent Change Feb. 1953 31,705 449,270 18,689 24,468 174,576 91,915 36,404 27,167 386,119 15,872 21,345 145,119 85,048 28,227 30,153 449,810 18,677 23,099 162,438 90,243 39,491 + 17 +16 + 18 + 15 +20 +8 +29 +5 +0 +0 +6 +7 +2 —8 +4 —2 —3 +6 +8 +1 —1 477,288 442,973 683,892 93,808 54,549 101,026 208,158 78,596 389,615 385,554 597,368 91,756 50,302 94,408 190,273 70,257 412,726 375,260 590,378 82,170 46,016 94,374 182,018 67,875 +23 +15 + 14 +2 +8 +7 +9 + 12 + 16 +18 + 16 + 14 +19 +7 +14 + 16 + 12 + 14 + 11 + 18 +14 +13 +15 +10 41,889 36,805 34,802 1 282,892 1,044,675 1,111,362 90,324 Augusta . . . 82,818 88,058 Brunswick . . 12,064 12,403 11,324 Columbus . . 79,108 70,874 81,508 4,746 Elberton . . . 5,293 4,247 Gainesville* . 25,875 22,400 21,866 14,340 Griffin* . . . 13,895 13,692 Macon . . . 81,118 71,757 76,668 Newnan . . . 10,273 8,252 11,361 27,864 24,641 Rome* . . . 23,045 Savannah . . 126,771 107,854 109,206 Valdosta . . . 16,212 14,350 14,738 LOUISIANA Alexandria* . 43,346 41,082 41,732 Baton Rouge . 143,226 119,591 109,490 Lake Charles . 56,078 51,857 50,651 New Orleans . . 956,727 848,723 895,149 MISSISSIPPI Hattiesburg . 21,577 19,769 20,918 155,685 Jackson . . . 164,819 175,544 32,975 30,257 Meridian . . . 30,628 Vicksburg . . 15,086 13,653 14,995 TENNESSEE Chattanooga . 213,018 186,018 185,686 159,668 143,764 Knoxville . . 123,668 438,994 Nashville . . . 400,510 430,178 SIXTH DISTRICT 32 Cities. . . ., 6,106,856 5,316,620 5,547,165 UNITED STATES 342 Cities . . 153,511,000 129,331,000 136,312,000 + 14 +23 +9 —3 + 12 — 10 +16 +3 + 13 +24 + 13 + 18 +13 +20 +15 +3 +7 —3 + 12 + 18 +5 +6 — 10 +21 + 16 +10 +13 +6 +5 +5 —1 + 14 +0 +8 —2 — 21 + 11 + 11 +12 +6 +20 +8 + 13 +4 +31 + 11 +7 +3 + 17 + 13 +8 +9 —6 +9 + 10 +3 — 11 +8 +1 +2 +1 +2 +2 + 15 + 11 + 10 + 15 +29 +2 + 19 +21 +4 + 15 + 10 +8 + 19 + 13 +8 Place —4 — i +6 —2 +2 ALABAMA Anniston . . Birmingham . Dothan . . Gadsden . . Yr.-to-Date 19531952 Place + 12 . ALABAMA . . . . +8 Birmingham . . . . +26 M o b ile .................. Montgomery . . . . + 11 +8 +i + ii FLORIDA .................. . +4 +4 +9 Jacksonville . . ■ . + 9 — 0 + 10 M ia m i................. + 10 Orlando.................. . St. Petersburg+ 12 +7 Tampa Area . . . +23 +6 —i + i7 St. Petersburg . . . +14 + 11 +34 +7 + 14 T a m p a .................. + 32 +8 +5 +5 +7 GEORGIA .................. + 33 +9 +5 +7 +3 Atlanta** . . . . +4 Augusta.................. . +23 +1 + 29 + 5 + 7 +9 + 1 Columbus . . . . +5 +2 +6 M a c o n .................. . +37 + 11 + 22 + 14 Rome**.................. . +47 + 13 + 10 Savannah** . . . . +31 +4 + 19 +6 . +43 LOUISIANA . . . . + 11 +28 + 19 + 10 +8 Baton Rouge . . . . +43 + 18 + 10 +3 +5 New Orleans . . . . +42 +8 +7 + 13 +3 MISSISSIPPI . . . . +36 +5 —1 +6 +3 Jackson .................. . +34 + 23 + 16 Meridian** . . . . +44 . +41 +22 + 14 +8 +8 TENNESSEE . . . . +2 • +54 +2 Bristol** . . . . +8 +1 Bristol-Kingsport+8 + 14 Johnson City** . . +53 +25 + 14 Chattanooga . . . . +43 + 24 + 14 +44 +i 2 +3 Knoxville . . . . + 15 +7 + 21 +8 . +35 Nashville . . . . . +32 + 13 + 8 + 4 + 10 DISTRICT ................. ^Includes reports from 123 stores throughout the Sixth Federal Reserve District. **ln order to permit publication of figures for this city, a special sample has been constructed which is not confined exclusively to department stores. Figures for non department stores, however, are not used in computing the District percentage changes. Mar. 1953 from Yr.-to-Date Feb. Mar. 3 Mos.1953 1953 1952 from 1952 Mar. 1953 +3 Inventories Mar. 31, 1953, from Feb. 28 Mar. 31 1952 1953 +5 + 11 +4 +3 +5 + 13 + 13 Debits to Individual Demand Deposit Accounts +0 +0 —4 +1 Mar. 18 1953 Item Loans and investments— Total............................... Percent Change Apr. 15,1953, from Mar. 18 Apr. 16 1952 1953 Apr. 15 1953 +25 — 13 +11 Percent Change S +8 +12 —2 Department Store Sales and Inventories* Sales Mar. 1953 from Feb. Mar. 1952 1953 + 19 +38 +38 + 15 +37 +49 +25 + 15 +18 + 12 +39 +7 + 12 +26 + 15 t Condition of 2 7 Member Banks in Leading Cities Outstandings Percent Change Mar. 1953 from Mar. Feb. 1952 1953 + 43 +3 + 35 Volume Percent Change Mar. 1953 from Mar. Feb. 1952 1953 +60 +23 + 26 + 13 No. of Lenders ReportLender__________________________________ing Federal credit u nio ns......................35 State credit unions.......................... 18 Industrial banks...............................8 Industrial loan companies . . . . S Small loan companies......................32 Commercial b a n k s .......................... 33 i c . . . . Montgomery . Tuscaloosa*. . FLORIDA Jacksonville Greater Miami* Orlando . . . Pensacola . . St. Petersburg . Tampa . . . . W. Palm Beach* GEORGIA Albany . . . Mar. 1952 *Not included in Sixth District totals. • 7 • S i x t h D i s t r i c t I n d e x e s 1 9 4 7 -4 9 = 100 Manufacturing Employment UNADJUSTED District Total................. Alabama...................... F lo r id a ...................... Georgia...................... Lo u isia n a .................. Mississippi................. Tennessee.................. SEASONALLY ADJUSTED District Total................. Alabama...................... F lo rid a ...................... Georgia...................... Louisiana..................... Mississippi.................. Tennessee.................. Cotton Consum ption** Feb. 1953 Jan. 1953 Feb. 1952 Mar. 1953 Feb. 1953 Mar. 1952 114 108 139 113 103 114 115 113 108 139r 113 102 113 115 108 105 129 112 98 106 106 110 109 111 112 111 106 110 111 115 142 107 124 108 109 109 114 107 131 113 106 115 114 113 106 129 113 104 115 116 108 103 121 112 101 108 105 105 104 107 Construction Contracts Feb. 1953 Mar. 1952 Mar. 1953 Feb. 1953 Mar. 1952 Mar. 1953 123 151 180 164 200 114 157 136 221 309 237 100 196 134 234 197 271 297 140 132 170 133 115 152 131 149 142 172 143 117 154 157 142 131 165 133 140 152 129 86 92 93 87 88 150 143 162 146 125 161 148 149 149 159 150 120 168 163 153 143 157 145 152 147 80 169 Mar. 1953 124p 118 106 118 130 107 104 118 123 134 117 124 122 145p Unadjusted________ Feb. Mar. 1953 1952 102r HOr 97 108r 80 83 93 105r 99 104 87 104 82 97r 89 96r 97 117 135 127 93 96 94 106 99 108 139r 132r ’To permit publication of figures for this city, a sample has been constructed that is not confined to department stores. Such non-department stores are not included in the District index. *Does not include data for all of La., Miss., and Tenn. Other totals for entire six states. **Daily average basis. Sources: Mfg. emp., state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; gas. tax, state depts. of rev.; furn. sales, dept, store sales, turnover of dem. dep., FRB Atlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. mm/ym? M f cftk O • mi — Reserve Bank Cities Branch Bank Cities District Boundaries Branch Territory Boundaries Board of Governors of the Federal Reserve System Furniture Store S a le s * / * * Mar. 1953 Feb. 1953 Mar. 1952 83r 85 88 90r 83 88 100 93 93 81 71 70 72 97 106 103 98 103 98r 97 98 102r 96 99 114 103 105 95 89 80 Other District Indexes Department Store Sales and Stocks** __________ Adjusted_________ Mar. Feb. Mar. 1953 1953 1952 DISTRICT SALES* . . . . 128p 121r 114r Atlanta1 .......................... 122 118 119r Baton Rouge...................... 106 99 91r Birmingham...................... 118 115 108r Chattanooga...................... 134 125 113 Jackson...............................I l l 111 114 Jacksonville...................... 107 102 105r Knoxville.......................... 119 115 107r M acon............................... 130 125 139 M ia m i............................... 120 122 117 N ashville.......................... 124 125 107 New Orleans...................... 128 115 116 Tam pa............................... 129 115 113 DISTRICT STOCKS* . . . 138p 141r 126r Gasoline Tax Collections Adjusted Mar. Feb. Mar. 1952 ______________________________________1953 1953 Construction contracts*...................... Residential........................................ Other .................................................... Petrol, prod, in Coastal 131 Louisiana and Mississippi** . . 144 140 24.0 Turnover of demand deposits* . . 23.8 22.9 In d e x ....................................... 123.5 118.9 124.6 Feb. Jan. Feb. Mfg. emp. by type 1953 1953 1952 Apparel...................................... 138 137 Chemicals.................................. 118 116 164 Fabricated m e t a ls ................. 164 140 104 Food...........................................105 107 Lbr., wood prod., furn. & fix. . 94 94 96 Paper and allied prod................ 134 134 131 Primary metals..........................105 104 Textiles...................................... 101 101 157 127 Trans, equip............................... 159 Elec. power prod.**............................... Hydro-gen............................................ Fuel-gen............................................... ............. ;J_ Mar. 1953 147 167 132 122 112 100 100 Unadjusted Feb. 1953 192r 162r 214r Mar. 1952 218 290 163 144 24.4 142 23.1 132 24.6 Feb. 1953 137 119 166 104 94 136 106 101 164 185 143 224 Jan. 1953 135 117 165 105 94 134 105 101 157 178 127 225 Feb. 1952 121 113 142 103 95 132 101 100 131 157 140 173 r Revised p Preliminary YORK ^^(PHILADELPHIA ^ ^WASHINGTON
@FedFRASER