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Atlanta, Georgia August • 1958 Feed Manufacturing A Growth Industry in the Sixth District 1o Is in t h is is s u e : FLOW OF BANK LOANS TO DISTRICT BUSINESS DISTRICT BUSINESS HIGHLIGHTS SIXTH DISTRICT STATISTICS SIXTH DISTRICT INDEXES S e e k a growth industry in the Southeast and you will find one in feed manufacturing. Ninety-four new feed mills were built in Sixth District states from 1947 to 1954, and many others were enlarged. In Georgia alone feed companies built at least six major mills in 1954. Why are feed firms building so many new plants in the South? Be cause of the seemingly unlimited rise in broiler production and the vast amount of feed needed for it. Only ten years ago broiler sales in District states totaled a modest 47 million birds; last year 481 million were sold, about ten times more. With each bird taking about 2.5 pounds of feed, the 1957 flock ate 1.2 billion pounds, or 600,000 tons. Feed firms had several other incentives for service and growth. Animal agriculture is clearly on the rise here: Farmers now produce more beef, pork, milk, and eggs than they did only a decade ago and they therefore need more mixed feeds. Then too, feed men sought to offset rising transportation costs by building mills near markets for mixed feed rather than near areas where ingredients are produced. Growth in the feed industry helps both our farm and nonfarm economies. The industry’s increased capacity supports broiler output and helps sustain broiler income on farms. Also, feed mills use local labor and make heavy payments for services from railroads, trucking firms, barge lines, ports, grain elevators, and the like. Finally, by serv ing growers who produce broilers, eggs, beef, and pork, they help food processors such as meat and poultry packers. Location and Size of Mills Most District feed manufacturers make one or more prepared feeds for livestock or poultry; they mix corn products, oats, wheat products ^fcferaf %setve IBankgf jS fa n ta Proportion of 247 Feed Mills Making Prepared Animal Feeds Sixth District States, 1954 Proportion of Grains Used by the Mixed Feed Industry in the East South Central Region of the U. S., 1947 like bran and middlings, and other raw materials obtained largely from tne Midwest. Millers store their teed ingredients in bins or warehouses, grind or otherwise pro cess some of them, and tnen mix tnem by precise formula. Usually feed makers try to maintain production line oper ations, but many firms rely on batch or job-lot mixing. Feed mills in the District are concentrated in Tennes see, northern Alabama, and Georgia. These locations are convement because of the nearby poultry areas that provide the major market for mixed feeds. Two-thirds of the mixed feed tonnage produced in the nation is poul try feed, and the proportion is probably larger in District states. Although most of the tonnage in our region is broiler feed, laying and breeding mash for hens is being used here more and more. Dairy feed and high protein hog supplement, used especially in Tennessee and Georgia, are other important products made in District mills. Feed makers were also influenced by total costs in selecting a location for their plants. They sought low-cost water transport via the Tennessee River for bulk grains —principally com, oats, and wheat—which they have to import from the nation’s grain belts. Since 54 percent of the poultry mash is made of corn, that waterway is highly useful to these feed men. Com was barged from St. Louis to Guntersville, Alabama, in April 1953 for $2.45 per ton; the cost by rail was $10.68. Trucking from Alabama to Georgia raises millers’ costs, but not exces sively. Georgia mills get about three-fourths of their com and one-third of their oats by the barge-truck route. After World War II, national firms found that they too had to do something about high costs. District feed dealers, who were among their best customers, began mixing their own feeds rather than having mixed feeds shipped from so far away. To meet that competition national firms built mills closer to the market; they offset efficiency of large volume central mills in surplus grain areas with lower transport and distribution costs at mills in the South. Being near their customers they could market fresher feed and operate with smaller inven tories, which require less bin and warehouse space. By handling inventories of ingredients locally rather than at distant mills they gained flexibility in mixing operations because smaller stocks enabled them to substitute an in gredient in the event of price changes and the like. Spurred by both its cost structure and the demand for its products, the feed industry invested 3.4 million dollars in new District plants and expansions in 1947 and 2.7 million in 1954, and probably comparable amounts in intervening years. In 1954, firms in Georgia made the largest investment, 917,000 dollars, which was 150 per cent more than they made in 1947. Recent construction includes two 250,000-dollar mills at Flowery Branch and Forest Park, Georgia, and two one-million-dollar mills at Chamblee, Georgia, and Chattanooga, Tennessee. Investments to modernize or erect plants have to be large nowadays. It takes 17,000 dollars’ worth of ma chinery and equipment, for example, to replace a mill man earning 2,600 dollars a year, according to the United States Department of Agriculture. Even small mills putting ??c” \ ? er eight' hour day cost between 55,000 and 175,000 dollars. Medium or 150-ton mills cost from 175,000 to a million dollars, and large or 500-ton m ills cost a million dollars or more. Investments since World War II have pushed the feed industry in the District to fair size. Its size is measured in one way by the 56 million dollars in value added through manufacture in 1954. This measure places it below the District s meat packing industry that produced 72 million dollars in value added, but above two other important industries—tobacco manufacture and electrical machin ery. By employment, another measure of size, the feed industry fell below tobacco and electrical machinery. The feed industry employed 6,971 people in 1954 and met a payroll totaling 22 million dollars. Workers in the tobac co manufacturing and electrical machinery industries totaled 9,000 and 7,000, respectively. More Efficiency Needed Although the feed industry in the District has invested capital in new facilities and has otherwise grown, it is not as efficient as it is elsewnere. Taken broadly, soutnern mills use 30 to 50 percent more man hours per ton than mills in other regions, according to analyses by the USDA. Since this poor productivity is offset by generally lower wage rates, manufacturing costs of District firms are low enough that they can compete with mills elsewhere. Never theless, wage rates are under upward pressure, and if they rise District millers will have to protect their competitive position by using labor more efficiently. The room for improvement is large. Based on an analysis of a national sample, small mills use 5.69 man hours per ton produced, whereas a model small mill uses only 1.80 man hours. Large mills too could do better. They now use 1.90 man hours per ton but could achieve a level of .80 hours. Analysts say that because all mills use two or three times the labor they should, they need to invest more funds to modernize and better equip their plants. Some investment will be most profitable if made in im * proving facilities and techniques in warehouses, since labor is used least efficiently there. Warehousing comes to about a third of a mill’s total labor cost or twice as much as mixing or mill maintenance costs. Yet warehouse labor is nonproductive almost a third of the working tim e, according to studies by the USDA. Men wait to unload cars or trucks; they wait to load; they wait for others down the line to complete their jobs. By speeding change-overs in daily operations and loading and unloading and by steadying the flow of work, District firms can cut their costs. Adjusting plant facilities and schedules to cut labor costs,.however, is not easy. Often a firm manager m ust first answer difficult questions: Should I specialize my P10" duction, that is, produce only a few feeds? Should I ^ straight production line mixing to turn out a large but steady flow of one feed or batch m ixing that allows ® e to use labor and materials more flexibly or a combination of line and batch mixing? Can I profitably use bulk de livery to my plant, bulk storage in the plant, a n d butt delivery to my patrons if poultry feed is my major item Can I economically adjust or relocate my equipment t° keep my labor fully employed? To find the right answer to these questions is often to reduce operating costs. Th,s • 2 • is true because labor accounts for 60 percent of those costs in a feed mill. Firms also seek to lower costs by raising tonnage han dled. They try to spread their costs for machinery, labor, electricity, trucks, and so on over many tons of feed. Costs can be lowered significantly as volume is gained: Fixed costs at a sample of mills producing less than 5,000 tons a year, for example, were five dollars a ton in 1952, say USDA specialists. They were two dollars a ton at mills mixing 45,000 tons or more. Operating costs at the time were 16 dollars a ton at mills with small volume, but nine dollars a ton at mills with large volume. Small mills, of course, can have management skilled enough to achieve low manufacturing costs and thus compete with large mills. Nevertheless, even small mills do better as they gain vol ume because volume accounts for almost two-thirds of the variation in labor costs per ton among plants. Finally, District mills seek to lower costs through their policies on the principal item in their total cost—raw ma terials. With raw materials accounting for four-fifths of total cost, how cheaply they are bought, stored, and moved helps determine net profits. Mill managers, there fore, strive to make their inventory policy profitable, that is, to keep the rate of turnover high. Small mills generally turn their inventories 10 times a year; large mills 25 times. Further Progress Possible Feed manufacturers seeking lower costs, higher volume, and higher inventory turnover know they must resolve some subsidiary problems that affect their over-all suc cess. A major one is whether to rely more or less on the feed dealer system for marketing their feeds. Trucking feed direct from a plant to farms within a trade area may be the most profitable system for some. For others, bulk delivery may build volume, since fewer and fewer poultry- men want to wrestle with 100-pound bags of feed. Bulk delivery, however, does not necessarily cut feed handling costs. Then there is the perennial problem of pricing fin ished goods. Should the small volume items be marked up sufficiently to carry their share of the manufacturing and marketing costs? This matter is especially troublesome to mills producing many feeds. Finally, District millers speculate about how intensive ly they should seek higher volume. True, they see oppor tunity or potential for more sales. The broiler market, for example, evidently is still growing and farmers’ mount ing interest in laying flocks generates potential sales of laying mash. Rising pork and beef output should also build the feed market. Although feed makers see those potentials for added business, they are uncertain about how best to get it. They are not sure how far to push financing programs and contract farming. And they wonder about how much emphasis to put on trade credit as a competitive weapon. Those whose business is based on broiler feed can decide most easily. They have had experience with it. They are less decisive, however, about their programs for laying mash and livestock feed. Simply building tonnage without controlling manufacturing costs or the costs of buying, storing, and moving raw materials or the risks on their capital can prove an illusory gain. Feed firms that have made investments so far have not only benefited themselves but farmers and other business men as well. To the extent that feed men justifiably invest funds to lower costs, raise output, and increase over-all efficiency, livestock and poultry producers here gain ad vantage over those in other areas. To the extent that small mills can cut their costs enough and raise their volume enough to keep them in the competitive struggle for feed sales, our agriculture also is strengthened. A r t h u r H. K a n t n er Flow of Bank Loans to District Business The South needs more funds to finance its expanding economy than can be generated within the region. It is necessary, therefore, to supplement funds from its own sources with credit from other parts of the country. These facts are generally recognized, but little is known specifically about how much financing is obtained from sources outside the South, where the funds come from, 0r to whom they go. Answers to some questions relating to one phase of the financing of southern economic activity, that is, bank lending to businesses in the South, are now forthcoming. A recent analysis of a survey of commercial bank loans conducted by the Federal Reserve System in October 1955 provides detailed information on the flow of bank loans into and out of that part of the South lying within Sixth Federal Reserve District—Alabama, Florida, Georgia, the southern half of Louisiana and Missis sippi, and the eastern two-thirds of Tennessee. In addi tion, data on the location of District borrowers relative to their banks are available for the first time. The survey showed bank financing of Sixth District businesses is largely provided by District banks, although some businesses, particularly the larger ones, obtain bank funds from outside the District, mainly from New York City. Funds do not flow in only one direction, however, and some District banks extend credit to businesses in cities outside this District. Since more funds flow into the District than flow out, the District as a whole is a net borrower. Local Banks Are Major Source of Funds Do borrowers in the Sixth District patronize banks in their own vicinity or do they go away from home for financing help? In order to answer this question, we placed banks in three groups: those located in the same city, county, or metropolitan area as the borrower, those located outside the county or metropolitan area in which the borrower is situated, and those located outside the District. When borrowers and lenders were grouped in this manner and loans were tabulated by amount, we • 3 • is quantitatively much more important than nonlocal lending. District banks that do the most nonlocal lending — lending to borrowers outside the metropolitan area or county in which the bank is situated— are the large banks. Since banks with deposits of $100 million or more tend to locate in large cities, nonlocal lending is relatively more important there than in smaller cities and towns. Banks in major cities in the District for which separate loan data were obtained accounted for more than 50 per cent of all nonlocal loans outstanding. The proportion of nonlocal loans outstanding in the portfolios of banks varied substantially among major cities in the District, ranging from a high of 39 percent for banks in Atlanta to a low of 13 percent for banks in Miami. Jacksonville and Nashville ranked behind Atlanta, with 32 and 28 per cent of their outstanding loans going to nonlocal bor rowers, followed by Birmingham and New Orleans with 26 and 20 percent, respectively. A l f r e d P. J ohnson Debits to Individual Demand Deposit Accounts (In Thousands of Dollars) Percent Change June 1958 from 1958 May June from 1958 1957 1957 June 1958 ALABAMA Anniston . . . . Birmingham . . Dothan . . . . Gadsden . . . . Mob le . . . . Montgomery . . Selma* . . . . Tuscaloosa* . . . FLORIDA Daytona Beach* Fort Lauderdale* . Gainesville* . . Jacksonville . . . Key West* . . . Lakeland* . . . Miami . . . . Greater Miami* Orlando . . . . Pensacola . . . St. Petersburg . . Tampa . . . . West Palm Beach*. GEORGIA Albany . . . . Athens* . . . . Atlanta . . . . Augusta . . . . Brunswick . . . Columbus . . . Elberton . . . . Gainesville* . . . Griffin* . . . . LaGrange* . . . Macon . . . . Marietta* . . . Newnan . . . . Rome* . . . . Savannah . . . Valdosta . . . . LOUISIANA Alexandria* . . . Baton Rouge . . Lafayette* . . Lake Charles . . New Orleans . . MISSISSIPPI Bilaxi-Gulfport* Hattiesburg . . . Jackson . . . . Laurel* . . . . Meridian . . . Natchez* . . . Vicksburg . . . TENNESSEE Bristol* . . . . Chattanooga . . Johnson City* . . Kingsport* . . . Knoxville . . . Nashville . . . SIXTH DISTRICT 32 Cities . . . UNITED STATES May 1958 June 1957 34,978 726,663 23,355 28,529 239,551 139,994 43,316 35,855 711,070 24,155 32,791 243,332 144,793 21,476 46,183 36,133 693,551 22,809 33,661 243,255 122,035 19,365 40,018 54,878 183,573 33,518 626,514 14,394 63,690 759,119 1,131,635 165,477 76,627 149,074 311,980 95,549 52,696 173,637 33,536 641,240 15,045 61,648 691,607 1,059,591 166,123 78,436 145,324 327,750 104,794 47,691 159,334 30,719 609,973 11,838 57,310 653,080 997,730 152,118 83,523 141,259 289,951 84,580 54,695 35,892 1,625,495 87,952 18,672 93,990 8,534 49,341 15,782 16,302 101,217 24,032 14,401 35,693 184,156 20,713 60,076 34,844 1,599,704 89,266 20,990 93,422 10,435 53,391 16,965 18,408 104,858 26,797 15,810 36,541 177,200 23,031 48,986 30,909 1,604,851 83,713 17,899 96.878 8,008 44.878 16,046 18,841 99,000 25,022 14,542 35,804 165,% 7 21,144 66,616 —3 —8 — 15 —3 +3 —5 20,111 64,665 184,061 51,351 80,804 1,211,772 60,148 83,5% 1,236,988 61,072 169,898 47,664 75,588 1,179,837 41,353 29,680 237,149 22,523 36,067 18,414 17,148 40,141 31,397 252,212 22,882 43,163 19,581 18,640 35,978 29,093 170000 21,831 35,064 21,025 16,825 40,316 287,673 37,631 70,143 206,122 618,139 8,400,301 ‘ Not included in Sixth District totals. 201,011 39,426 269,543 37,765 68,055 201,382 589,189 8,364,389 37,350 268,862 36,209 62 806 199,938 572,535 — —3 — 3 2 +2 +5 +0 — +2 — 3 0 —13 — 15 —7 — — — 2 2 10 — 3 +15 +4 +4 +2 +8 +4 +6 +8 + 15 +15 +9 +3 +9 +3 +9 +9 +3 — 0 — 2 — +22 4 +3 +10 + 1 1 + 16 +7 + 13 — 0 tl —2 +3 —5 —9 —9 +3 +2 — 1 — 11 +1 — 18 —8 —7 +6 +8 +13 +12 + 16 +1 +5 +4 —3 +7 +10 — 2 —1 — 13 1 —3 +2 — 10 —4 —9 —1 — — 2 0 +4 +11 — — 10 2 — 2 —6 — 2 — 16 +6 •+6 +8 +15 +2 +39 +3 +3 — 12 +2 +12 +3 +8 The newly organized City Bank and Trust Company, New Iberia, Louisiana, opened for business July 9 as a nonmember bank and began to remit at par for checks drawn on it when received from the Federal Reserve Bank. Officers of the bank are Leon J. M invielle, Sr., Chairman of the Board; Francis J. Voorhies, President; Wilfred J. Begnaud, Senior Vice President; John T. Abdalla, Vice President; Paul Romero, Jr., Executive Vice President and Cashier; and Marlin /. Nereaux, Assistant Cashier. Its capital totals $150,000 and surplus and undivided profits, $120,000. On July 15, the Hancock Bank, Gulfport, Missis sippi, a nonmember bank with branches at Bay St. Louis, Long Beach, and Pass Christian, began to remit at par. Officers are Leo W. Seal, President; Donald Sutter, Vice President and Cashier; George E. Estes, Vice President and Senior Trust Officer; N. D. Good win, Vice President and Trust Officer; W. B. Stewart, T. W. Milner, Jr., W. C. Helveston, W. C. Lewis, Leo W. Seal, Jr., Ruth Cazeneuve, and Robert L. Hamil ton, Vice Presidents; C. E. Hutchins, Jr. and Margaret P. Gause, Assistant Vice Presidents; Gertrude 0. Dowling, Charles A. Webb, Jr., J. B. Rouse, Russell W. Chapman, and Drusilla Courtenay, Assistant Cash iers; James T. Tune, Auditor. Capital totals $350,000 and earned surplus and undivided profits, $1,283,000. The First Park Bank, Pinellas Park, Florida, opened for business August 1 as a nonmember par-remitting bank. Officers are George Ruppel, Chairman of the Board and President; Lewis E. Scruggs, Executive Vice President and Cashier; Stanley W. Mohr, Vice Presi dent; and Ray L. Coon, Assistant Cashier. Capitol stock of the bank amounts to $250,000 and surplus and undivided profits to $150,000. Department Store Sales and Inventories* Percent Change +2 +6 _____________ Sales___________ June 1958 from 6 months June 1958 from May 1957 1957 1958 +2 +1 +11 +8 +6 +3 —7 +1 — 0 +3 —3 +0 —7 +1 +6 — 2 +8 +8 +2 +6 +7 +3 +7 +4 +3 +3 —3 +1 +8 +2 +5 +6 +8 — 0 +7 +8 Bank Announcements +9 +7 +1 +10 +7 +4 — 2 — 2 — 0 —1 +4 +3 —3 +3 +0 +6 +2 + 12 + 14 State and Metrop. A r e a _________ A L A B A M A ............................ Birm ingham .............. M ob ile..................... Montgomery................. FLO RID A..................... Daytona Beach Jacksonville......................... ’ Miami A r e a .............. Miami O rla n d o .............. ’ \ St. Petersburg-Tampa GEORGIA . . . . Atlanta** . . . ! ! ’ ** Augusta Columbus................. ’ M acon.............. Rome1 ** Savannah L O U ISIA N A ................. Baton Rouge .............. New Orleans . M ISSISSIP P I . . . . Jackson ................... Meridian** . . . . TENNESSEE Bristol-Klnqsport>Johnson City** ! Bristol (Tenn. & Va.)** . . Chattanooga.............. Knoxville.............. ! ’ * ’ D IS T R IC T .............. ; ; — 13 — 14 — 13 — 13 —8 +4 — 21 —4 — 2 — 12 — 10 — 11 — 13 — 10 —9 —8 — 23 — 1 — 11 — 8 — 13 — 15 — 18 — 13 — 17 —6 — 10 — 20 — 21 — 11 Inventoria__ jiie30TW 58jf*! May 31, J"eM. 1958 1957 —c —3 +U —3 — 4 — 2 — 3 +0 +1 —5 +1 — 3 — 3 +5 —0 +1 —8 +5 +1 — 22 — 2 —5 —5 +0 —4 —7 — 11 — 2 — 1 — 3 — 2 +3 +6 — 3 +3 +1 — 3 +8 +6 +7 — 7 +1 1 +10 — 25 til —c — 1 — 2 —3 +1 +6 — 3 —7 +2 — 1 — 5 — 2 — 4 — 1 — 5 — 11 — 3 —2 6 — 2 —5 •• —5 —6 •• —4 —6 —7 •• —2 —3 -b —3 —3 -— 6 —5 —6 — -4 —6 +5 . . r ep°rVn» stores account for over 90 percent of total District departmem department stores, hmever, are not used in computing the District P«fC*nt -2 -0 -14 __2 +0 -2 -10 — 20 -7 -3 -2 —8 -18 -7 -7 -5 -jy , Sixth District Indexes Seasonally Adjusted (1947-49 = 100) 1958 1957 SIXTH DISTRICT OCT. NOV. DEC. JAN. FEB. APR. MAY JUNE 135r 119r 166 131 186r lllr 78r 161 106r 89r 220r 195r 85r 303 135r 118r 166 131 185r lllr 76r 159 lO lr 134r 118 164 132r 181r lllr 76r 159 lOOr 89r 226r 194 78r 295 134 117 167 130r 181r 114r 75r 158 96r 88r 215r 187 82r 317 133 115r 167 129 177r 113r 74r 156 91r 87r 200r 182 79r 325 133r 115r 165 127 174r llO r 72r 157r 91r 85r 194r 183 79r 311 132r 114r 161 r 131r 176r llO r 72r 158 90r 85 187r 182 74 306 132r 113r 167r 133r 176r 109r 72r 157r 93r 85r 172 183 75 297 133 115 170 131 183 109 72 158 91 84 88r 297 136r 120r 166r 133 186r 112r 77r 159 105r 90r 235r 198r 91r 299 172 330 319 340 142r 131r 155r 171 159 177 128 149 119 127 151 147 267 148 183 204 114 162 263 231 152 168 111 160 330 341 321 104r 79r 154r 175 167 194 138 151 164 315 324 308 89r 70r 152r 168 154 181 132 147 167 283 334 241 99r 84r 158r 154 149 187 128 141 175 259 294 229 128r 103r 172r 169 156 169 264 272 257 119r 97r 161r 157 151 181 170 298 293 303 118r 92r 156r 147 147 171 118 139 136 244 145 177 208 103 159 265 167 n.a. n.a. n.a. 153e n.a. n.a. 175p 169 205p 129 144 106 126 137p 165 259p 144p 107 161 270 227 146 157 128 99 116 128 137 227 135 174 199 93 161 269 226 144 155 110 162r 318 301 332 150r 134r 177r 155 153 164 117 136 99 108 141 151 242 135 181 190 103 170 275 229 141 160 106 169 n.a. n.a. n.a. 157r 145r 176r 164 154 172 130 145 107 132 156 141 267 151 189 142 109 127 146 139 234 132 192 168 309 279 333 121r 87r 160 158 157 175 132 141 97 135 158 166 274 148 185 203 161 261 288 239 104r 90r 152r 162 154 205 123 147 115 130 144 143 231 140 195 206 108 159 263 216 136 144 99 123 114 185 113 140 219 122r 114 187 131 140 219 123 113 193 125 139 223 123r 109 186r 100 139 226 123r 107 173 117 139 121r 105 170r 123 139 224 119r 103 162 99 139 221 119r 102 165 104 140 223 119 103 162 109 150 226 119 104 166 117 147 229 178r 175r 277r 115r 201 405 180r 176r 284r 124 206 410 180r 179r 287r 114 207 414 181r 177r 290r 111 179r 178r 287r 106 176r 171r 278r 176r 171r 273r 99 206 428 175r 168r 264r 95 213 436 176r 167r 271r 109 218 448 177r 171r 280r 107 221 444 128r 122r 194r 105 142 216 129r 121r 197r 106 145 218 128r 115r 183r 107 141 210 132r lOOr 172r 128 155 262 133r 101 r 171r 137r 155 261 . 125r . 121r . 206r 90 . 155 . 280 122r Nonfarm Employment . . . . 120r Manufacturing Employment . . 191r Manufacturing Payrolls . . . . 87 [urnlture Store Sales* . . . . Member Bank D e p o s it s * .............. 144 229 Member Bank L o a n s * .................. 229 MAY Nonfann Employment..................... 135r Manufacturing Em ploym ent.............. 121r Apparel................................... 171r Chemicals................................135r Fabricated M e t a ls ..................... 182r Food...................................... 114r Lbr., Wood Prod., Fur. & Fix. . . . 77r Paper & Allied P ro d u c ts.............. 163r Primary M e t a ls .........................109r Textiles................................... 92r Transportation Equipment.............. 223r Manufacturing P a y r o lls .................. 194 Cotton Consumption**..................... 87r Electric Power Production**.............. 308 Petrol. Prod, in Coastal Louisiana & Mississippi** . . . . 195 Construction C o n tra cts*.................. 311 Residential................................ 291 A llO tlie r................................ 327 Farm Cash Receipts.........................122r C r o p s ................................... 98r Livestock................................155r Dept. Store Sales* /*• ..................168 Atlanta ................................... 163 183 Baton R o u g e ............................ Birm ingham ............................ 134 Chattanooga............................ 144r Jackson................................... 112 Jacksonville............................ 128r Kn oxville................................ 154 M a c o n ................................... 149 M ia m i................................... 250r New O rle a n s............................ 142 Tampa-St. Petersburg.................. 185 Dept. Store Stocks*......................... 200 Furniture Store S a l e s * / * * .............. 108 Member Bank D e p o sits* .................. 160 Member Bank L o a n s * ..................... 260 Bank D e b its*................................ 224 Turnover of Demand Deposits* . . . . 144 In Leading C itie s......................... 159 Outside Leading C it ie s .................. 109 JUNE JULY AUG. SEPT. 135 121 171 135r 189r 114r 77r 164r 108r 90 235r 197r 89 310 136r 121 165r 135r 193r 115r 77r 158r 108 90r 240r 201 88r 298 136r 121r 164 132r 189r lllr 76r 161 107 90r 248r 170 320 325 315 127r 108r 147r 171r 158 186 131 148r 107 130r 148 151 251 148 187 201r 111 159 261 223 140 160 103 200 121 110 160 268 225 147 166 106 111 201 105 161 268 231 144 158 110 102 221 138 145 101 ALABAMA Nonfann Em ploym ent.............. ... 123 Manufacturing Employment . . . . 113 Manufacturing Payrolls..................181 Furniture Store S a l e s ..................117 Member Bank D eposits.................. 140 Member Bank Lo an s..................... 215 123 112 188 111 136 223 88 1% 220r 84r 299 122 112 185 120 136 218 201 126 145 117 133 156 149 255 147 207 207 113 162 269 235 149 160 113 222 121 202 111 FLORIDA Nonfarm Employment . . Manufacturing Employment M ber Bank Loans . . . . em . 176r . 172r 271r 113 201 . 404 212 415 416 213 417 177r 177r 288r 126 213 423 129r 119r 198r 107 141 219 129r 118 191 r 107 141 217 129r 116r 186r 103 138 212 128r 118r l% r HI 137 208 128r 117r 190r HO 142 212 133r 101 172r 139 156 267 134r 100 172r 147 155 272 134r lO lr 173 133 154 271 133r 101 r 172 133 153 268 132r 99 170r 135 151 265 124r 122r 208r 105r 155 283 125r 124r 217r 83 157 286 124r 123r 217r 75 158 288 126r 123r 212r 85 154 282 126r 123r 206r 80 147 293 125r 121r 205r 95 149 294 121r 120r 189r 86 144 233 120r 119r 192r 85 148 236 120r 119r 194r 82 148 236 120 119r 191 r 82 147 236 120r 118r 190r 82 146 230 119r 118r 188r 80 147 233 211 178r 180r 287r 111 100 210 427 111 112 GEORGIA Nonfarm Employment........................ 129r Manufacturing Employment . . . . 121r Manufacturing Payrolls.........................193r Furniture Store S a l e s ........................ 106 M ber Bank Deposits........................ 142 em M ber Bank Lo an s............................. 214 em LOUISIANA Manufacturing Employment 132r %r 172r 148 153 274 125r 120r 210r 107 154 2% TENNESSEE s r r s zxuzzs?™- 118r 116r 186r 87 148 236 122 139 148 233 125 186 193 95 166 272 220 139 150 122 147 159 244 137 203 191r 104 171r 276 219 141 155 112 192 80 n.a. 202 191 p 104p 174 278 237 147 168 110 119 105 173 HOp 151 234 180 174 292 108p 226 446 126r 113r 177r 91 147 212 125r 112 171r 92 150 214 131r 98 169r 116 154 269 130r 96 168r 137 156 266 129r 96 171r 123 155 267 129r 95 169r 121 158 270 127 94 167 125p 160 269 126r 122r 211r 88 163 302 125r 122r 207r 77 164 305 125r 122r 226r 79 167 308 125r 124r 221r 90 187 309 125r 123r 221 r 88 189 333 123 123 226 97 191 338 119r 116r 179r 85 146 239 117r H 2r 179r 72 148 233 118r 113r 181r 75 155 236 118r 112r 178r 84 156 242 117r 112r 179r 84 158 246 117 114 180 79p 160 251 131 r 98 171 r 135 151 268 124r 109r 167r 104 150 214 201 126r 114r 177r 86 141 208 MISSISSIPPI Nonfarm Employment . . Manufacturing Employment Manufacturing Payrolls . . Furniture Store Sales* . . Member Bank Deposits* Member Bank Loans* . . MAR. 125 114 182 102p 153 218 - SIXTH DISTRICT BUSINESS HIGHLIGHTS Nonform Employment M. L ost i n d i c a t o r s of economic activity have im proved recently. Mfg Employment Nonfarm employment rose in June as a result of gains in most types of manufacturing employment. A longer work week, together with the expanded employment, increased factory payrolls appreciably. Bank lending continued to rise. Farm receipts, however, declined slightly, reflecting softening in prices for fruits, vegetables, and some livestock products. Consumers stepped up their spending, judging from increases in both bank debits and sales at most retail outlets. Nonfarm employment, seasonally adjusted, increased slightly in June after declining almost steadily since last summer. Improvement in manufactures employment was primarily responsible for the gain; the nonmanufoctuHnf sector changed little. An increase in the average work week, together wiA the rise in employment, brought a sharp rise in factory payrolls. The rat# ti insured unemployment dropped more than usual. Cotton Consumption Form C o sh Receipts Cotton textile activity, as measured by seasonally adjusted cotton consump> tion, increased in June for the second consecutive month, but is still coa* paratively low. Steel output declined in July, which is usual for that tin* of year. Crude oil production in Coastal Louisiana and Mississippi declined slightly in June. Bank debits, seasonally adjusted, increased sharply in June, suggesting * rise in total spending. Department store sales, seasonally adjusted, remainsi unchanged in July at the record high; inventories also were unchanged Furniture store sales held steady in June at recently improved levels tai household appliance stores reported larger-than-usual gains in sales. Cash receipts from farm marketings, seasonally adjusted, declined i June, but still exceeded year-ago levels by a sizable margin. Farm prices & clined in June, largely because of lower prices of fresh fruit and vegetables beef cattle prices also declined, but hog and broiler prices improved. Beskhl being slightly larger than last year, the flue-cured tobacco crop— now movtaj to market—is of high quality. Member Bonk Member bank deposits and loans, seasonally adjusted, rose sharply • June. All states shared in the rise in deposits, and only Louisiana failed • register an increase in loans. Investments also rose as banks, principal those in major cities, added to their holdings of both Government and otW securities. In July, loans outstanding at banks in leading cities dropp* more than they did during the same period last year. Member bank bor rowings from the Federal Reserve Bank of Atlanta declined further 4 July.
