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Atlanta, Georgia August • 1959 Also in this issue: COMMERCIALLY FREEZING FRUITS AND VEGETABLES IN THE SIXTH DISTRICT SIXTH DISTRICT BUSINESS HIGHLIGHTS SIXTH DISTRICT STATISTICS SIXTH DISTRICT INDEXES Ofecferaf ffeerw IBan/igf A Source of Funds for the South’s Economy G ro w th o f D is tric t F in a n c ia l I n s titu tio n s The South’s economy has expanded rapidly since the end of World War II. This expansion could be documented, as it frequently has been in the past, by citing increases in production, employment, in come, and other “real” economic phenomena. It might be more fruitful, however, to view an equally fascinating but somewhat neglected aspect of the South’s recent economic development: the growth in financial services and the financial institutions that pro vide them. Our review of the growth of financial institutions does not pur port to be the complete story of how the South’s expanding economy has been financed. To tell this tale would require a full accounting of the flow of all funds to southern industry, commerce, and agri culture. This would involve an analysis of all types of domestic institutions—those domiciled in the South— and foreign institu tions—those located and operated in the South but with headquarters elsewhere. In addition, we would have to determine the amount of all funds imported into the area from financial centers outside. Many problems prevent us from neatly debiting and crediting all the economic accounts in one writing. It would be well, therefore, to make one thing clear at the start. Our analysis of the growth of financial institutions will deal with commercial banks, life insurance companies, savings and loan asso ciations, credit unions, and consumer finance companies domiciled in Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee, all or parts of which make up the Sixth Federal Reserve District. One might ask why, at this late date, we are dredging up musty old statistics on the postwar growth of domestic financial institu tions. Do the data simply provide “nickel knowledge,” interesting but useless facts? The answer is that the domestic financial institu tions provide a very important source of funds for the financing of the District’s economy. It is imperative, therefore, to review from time to time changes in the different types of institutions within our financial structure and to determine what has happened to their capacity to provide funds for various purposes. We have spoken of a “local” financial structure. It should be emphasized, however, that the institutions operating within the Dis trict are linked with the national financial system in a variety of ways. Commercial banks located in the District have correspondent relations with banks in the large financial centers outside the Dis trict. Foreign insurance companies and consumer and sales finance companies are, of course, in close contact with their head offices which frequently operate on an interstate basis. More importantly, however, District financial institutions of all types respond to national money market changes, reflecting variations in the supply and demand for funds as well as changes in the credit policy of the Federal Reserve System. A Decade of Growth The assets of financial institutions—insured commercial banks, insured savings and loan associations, legal reserve life insurance companies, and credit unions—domiciled in the Sixth District states expanded greatly from 1947 to 1957. During this period, their number increased from 2,415 to 3,974, and their combined assets rose from $11.2 billion to $23.7 billion. This rise in assets about matched the growth in District personal income, which also in creased about twofold. The growth in financial institu tions, therefore, reflects the District’s expanding economy. As the need for financial services has developed, institu tions have grown and evolved to serve them. Selected Financial Institutions Domiciled in Sixth District States 1947 and 1957 Income and Assets1 Savings2 in clu d es total personal income and combined assets o! insured commercial banks, insured savings and loan associations, legal reserve life insurance companies, and credit unions, in c lu d e s time deposits at commercial banks, savings capital at savings and loan associations, and share capital at credit unions. Needs, however, are constantly changing. Shifts take place in both the nature of credit demands and in the quantity and kinds of saving that an economy generates. The changing flows of saving and investment are brought into rough alignment through the interest rate mechanism. Financial institutions must also adjust to changing savinginvestment patterns. The extent to which different types of financial institutions successfully adapt to new condi tions, however, depends in part upon the legal restrictions under which they operate and in part on their willingness and ability to modify their traditional roles by aggres sively competing in the financial market. Since the eco nomic roles of financial institutions vary, in reviewing their growth we will briefly describe their main functions. Commercial Banks Commercial banks are the predominant institutions in our District’s financial structure, as they are in the nation’s. This position results, not only because they account for a major share of the number and total assets of all finan cial institutions, but also because they, alone, can create deposits and participate with the central bank in the ex pansion and contraction of the money supply. The modern commercial bank is unique in another way. It provides a variety of financial services in contrast to the relatively specialized functions of some types of institutions. Commercial banks receive demand and time deposits, and extend credit to both businesses and con sumers, and many of them conduct a trust business. Most of the credit extended is of the short- and intermediateterm variety, but some long-term investment funds are provided to businesses and some mortgage funds are made available to consumers. They also help finance Federal, state, and local governments by buying their securities. The total assets of all insured commercial banks in the District states amounted to $16.3 billion on Decem ber 31, 1957, compared with $9.6 billion at the end of December 1947, a gain of 70 percent. This expansion in bank assets has been accompanied by an increase in the number of banks from 1,360 to 1,521, or an increase of 10 percent. A major factor in the increase in the number of banks and in assets in the District states was the sharp expansion in Florida. In that state, the number of banks increased 50 percent and total bank assets more than doubled. The rate of growth in total assets of banks in District states, although impressive, was slower than that of other financial institutions under study. When the assets of banks are combined with those of savings and loan asso ciations, credit unions, and domestic life insurance com panies, the banks’ proportion declined from 86 percent in 1947 to 69 percent in 1957. The growth in the principal categories of assets pro vides some clues as to how banks in District states re sponded to the economy’s changing needs. Investments— which had expanded greatly during World War II—in creased from $4.5 billion in 1947 to $5.9 billion in 1957, or about 30 percent. This increase reflected a modest rise in United States Government securities and a sharp expansion in the holdings of other securities. Loans and discounts, however, increased from $2.3 billion to $6.1 billion, or 165 percent, over the ten-year period as bank credit expanded to finance the rising ex penditures of businesses and consumers. Loans to indi viduals, essentially short- and intermediate-term credit to finance automobiles and other consumer goods and serv ices, rose almost 300 percent. Commercial and industrial loans and loans secured by real estate increased some what less sharply than consumer loans. The expansion of bank loans and investments has been accompanied by a sharp growth in total deposits at banks in District states during the 1947-1957 period. Time de posits, moreover, have been growing at a more rapid pace than demand deposits. In 1947, time deposits at District commercial banks totaled $1.8 billion and accounted for more than three-fourths of the combined savings at banks, savings and loan associations, and credit unions. By 1957, time deposits at commercial banks had risen to $3.7 bil lion, but their share of total savings had decreased to about one-half. Savings and Loan Associations Savings and loan capital at insured savings and loan asso ciations in District states rose by a spectacular 500 ptf' cent from 1947 to 1957. The ability of these i n s t i t u t i o n s • 2 • Number and Asset Value Selected Financial Institutions Domiciled in Sixth District States, 1947-57 Insured Commercial Banks and Savings and Loan Associations, Credit Unions, and Legal Reserve Life Insurance Companies NUMBER OF INSTITUTIONS Percent ______ Number Distribution l9Jj.7 Alabama Florida . Georgia . Louisiana Mississippi Tennessee District . 1957 VALUE OF ASSETS Assets Percent ______ ($Millions) Distribution 1947 1957 191,7 1957 1947 334 544 14 14 1 ,4 9 9 .1 2 , 7 7 0 .5 419 872 17 22 2 ,1 2 4 . 2 6 ,7 5 0 .0 508 762 21 19 2 ,0 2 6 . 0 3 ,8 6 4 .3 440 734 18 18 2 ,0 1 2 .2 3 ,9 9 5 .9 261 393 11 10 8 9 7 .6 1 ,4 7 3 .6 453 669 19 17 2 , 6 0 0 .7 4 ,8 9 2 . 2 2 ,4 1 5 3 ,9 7 4 1 0 0 1 0 0 1 1 ,1 5 9 .8 2 3 ,7 4 6 .5 14 19 18 18 8 1957 12 28 16 17 6 23 21 100 100 Insured Commercial Banks NUMBER OF INSTITUTIONS Percent Number Distribution Alabama Florida . Georgia . Louisiana Mississippi Tennessee District . 1947 1957 219 180 311 159 239 265 353 181 192 291 1 ,5 2 1 202 289 1 ,3 6 0 VALUE OF ASSETS Assets Percent ($Millions) Distribution 1947 1957 16 13 23 16 17 23 15 21 100 13 19 100 12 12 1947 1 .3 4 1 .2 1 .8 1 6 .7 1 .8 0 1 .5 1 .7 3 5 .8 8 3 4 .6 2 . 0 5 8 .5 9 .5 8 8 .3 1957 1947 1957 1 ,9 4 9 .2 4 ,3 9 3 .7 2 .7 5 1 .1 3 .0 0 2 .1 1 .1 6 5 .2 3 , 0 5 4 .4 1 6 ,3 1 5 .7 14 19 19 18 9 12 27 17 18 7 19 21 100 100 Insured Savings and Loan Associations VALUE OF ASSETS Assets Percent ($Millions) Distribution NUMBER OF INSTITUTIONS Percent Number Distribution A la b a m a F lo r id a . G e o r g ia . L o u is ia n a M is s is s ip p i T en n esse e D is t r ic t . . . . . . . 1947 1957 19U7 1957 19^7 1957 1947 1957 26 49 51 67 23 35 251 35 94 83 81 34 46 373 10 20 20 27 9 14 100 10 25 22 22 9 12 100 4 1 .4 2 2 9 .9 1 4 7 .0 1 6 3 .1 2 2 .9 9 7 .3 7 0 1 .6 2 8 1 .0 1 ,9 7 7 .7 7 5 2 .4 6 3 9 .3 1 8 8 .5 4 9 2 .1 4 ,3 3 1 .0 6 33 21 23 3 14 100 7 46 17 15 4 11 100 Credit Unions VALUE OF ASSETS Percent Assets Distribution ($Millions) NUMBER OF INSTITUTIONS Percent Number Distribution 1947 A la b a m a F lo r id a . G e o r g ia . L o u is ia n a M is s is s ip p i T en n esse e D is t r ic t . 78 170 133 137 25 119 662 1957 223 487 293 360 143 310 1 ,8 1 6 1947 12 25 20 21 4 18 100 1957 12 27 16 20 8 17 100 1947 6 .3 8 .4 7 .3 4 .9 0 .8 7 .4 3 5 .1 1957 1947 1957 4 9 .6 8 0 .9 4 8 .8 4 9 .0 1 0 .9 6 5 .6 3 0 4 .8 18 24 21 14 2 21 100 16 26 16 16 4 22 100 Legal Reserve Life Insurance Companies VALUE OF ASSETS Percent Assets ($Millions) Distribution NUMBER OF INSTITUTIONS Percent Number Distribution A la b a m a F l o r id a . G e o r g ia . L o u is ia n a M is s is s ip p i T en n essee D is t r ic t . . . . . . . 11 20 13 77 n 10 142 47 26 33 112 24 22 264 8 14 9 54 8 7 100 18 10 13 42 9 8 100 1 1 0 .2 6 9 .2 7 0 .2 1 0 8 .4 3 9 .3 4 3 7 .5 8 3 4 .8 to attract savings has been an essential factor in their rapid postwar growth. Without these funds, they would not have been able to take advantage of the investments which arose out of an extremely active housing market. At the same time, high earnings on mortgages—which account for about 83 percent of their total assets— en abled them to pay high dividends and attract additional savings. Money, mortgages, and management are the elements which have combined to spark the remarkable growth of these institutions. The total assets of all insured savings and loan asso ciations in District states amounted to $4.3 billion in December 1957, an amount five times larger than that in 1947. The number of associations have also shown a marked expansion throughout each District state. It would be difficult indeed to ignore the state of Florida in any discussion of savings and loan associations. In the tenyear period, 1947-57, total assets rose from $230 million to slightly under $2 billion. Florida associations now ac count for almost one-half of the asset value of all insured savings and loan associations in District states. 4 9 0 .7 2 9 7 .7 3 1 2 .0 3 0 5 .5 1 0 9 .0 1 ,2 8 0 .1 2 ,7 9 5 .0 13 8 8 13 5 53 100 17 11 11 11 4 46 100 Credit Unions Credit unions are mutual organizations designed to pro mote savings and make low-cost loans to their members. A major difference between the credit unions and the savings and loan associations is that the former are en gaged chiefly in making short- and intermediate-term cash instalment loans, whereas the latter are engaged primarily in mortgage lending. Another major difference is that credit union charters are usually granted only to organ ized groups, such as employees of a company or members of a non-profit association. Their activities, moreover, are limited to members of the group. Credit unions in District states and in the nation have grown faster than any other type of financial institution. The total assets of all credit unions—Federal and state chartered—in the District amounted to $305 million at the end of 1957, compared with $35 million ten years earlier. If the growth in savings and loan capital can be called “spectacular,” the 900-percent rise in share saving at credit unions can only be described as “colossal.” Like most other types of institutions, the number has also grown rapidly: In 1957, there were 1,816 credit unions in the District, almost three times more than in 1947. Consumer Finance Companies The sharp expansion in spending for consumer durable goods and services with the aid of instalment credit has been a factor in the growth of many types of financial institutions, including consumer finance companies, which specialize in the short-term lending of cash loans of rela tively small average amounts. National data show that the loans outstanding of consumer finance companies rose from $1.4 billion in 1947 to $3.3 billion in 1957, or an increase of 136 percent. Detailed information on the activities of these institutions by region is still rather fragmentary but, from what we can piece together, they have also flourished in District states. In Florida, outstanding loans of consumer finance companies rose at a much more rapid rate than in the •3* nation, expanding from $15 million in 1947 to $128 mil lion in 1957. At the same time, the number of offices increased from 208 to 805. In 1957, moreover, about one-half were offices of companies domiciled in the state. These domestic institutions, however, accounted for only one-third of the loans outstanding. Consumer finance companies are also thriving in Geor gia. In 1957, there were approximately 670 offices with outstandings of about $100 million. As in Florida, domestic companies accounted for about one-half of the number of offices and about one-third of the outstand ing loans. Life Insurance Companies Life insurance companies operate on the principle of “distributed risk,” and for a premium, they pay the bene ficiary a specified sum of money on the death of the in sured. The premiums so obtained are invested primarily in long-term bonds and mortgages. In 1957, there were about 1,200 life insurance com panies operating in District states, but only 264 were domestic companies. Domestic companies account for about 40 percent of all premiums collected from resi dents in District states, according to Economic Study No. 6, “The Savings and Investment Function of Life Insur ance Companies in the Sixth Federal Reserve District,” prepared by this Bank in 1956. The total assets of these companies amounted to $2.8 billion in 1957, compared with $835 million in 1947. Tennessee companies loom large in the total, accounting for almost one-half of all assets of District domestic companies. Looking Ahead Further development of the District’s financial institu tions will be related to the pace and pattern of real eco nomic growth. The nature of the Inancial expansion will also be affected by shifts in saving and investment. With the number of kinds of saving likely to increase, on the supply side, and with an infinite variety of potential types of investments, on the demand side, the variety of institu tions, as well as resources, should grow. In the past, the financial institutions in the District have helped provide the financial needs of the South’s economy, and in all like lihood they will continue to be equal to the economic challenges of the future. A l f r e d P. J o h n s o n Commercially Freezing Fruits and Vegetables in the Sixth District Buying frozen fruits and vegetables in convenient size cartons with instructions for preparing enticing dishes is popular with today’s busy housewife. Every man, woman, and child in the United States ate 51 pounds of such frozen items in 1957, compared with only ten pounds ten years earlier, according to latest data available. This rapid rise in per capita consumption has encouraged District food processors to develop and expand freezing plants and facilities. When the 1959 citrus crop is all harvested, over one-half of it will be frozen. Large volumes of straw berries, green beans, peas, and okra, as well as many other items, will find their way into District freezers. Higher incomes, a growing population, and technologi cal advances in food processing have encouraged growth in commercial freezing. Postwar gains in consumer in comes have had a dual effect on the frozen food industry. First, higher incomes have allowed housewives to become more selective in their food purchases. They can afford to pay extra pennies for added services. Also, rising incomes have helped well over 90 percent of all American families to purchase mechanical refrigeration units for their homes. Most housewives place a premium on food items that are consistent in quality. Standardization of quality, there fore, has been a prime aim of the frozen fruit and vege table industry since its inception. This has helped it grow. Today a consumer can confidently buy most frozen items knowing that she is getting the same product she bought last week. Add to this the effects of a growing urban population who must purchase all the food they eat from their grocery and the reasons for rapid growth in the freezing industry become apparent. Despite a bright growth record and a favorable out look for demand, processors of frozen fruits and vege tables are wrestling with several major problems that may have an impact on future growth in industry in the District. District Industry Small Compared with related industries, the frozen fruit and vegetable industry is small in this area. Although it is Fruit and Vegetable Freezing Plants Sixth District, 1957 •4 • growing, it represents but a small part of its parent industry and region leader, the food processing industry. In 1954, the latest year for which data are available, value added by frozen fruit and vegetable manufacturers was only 4 percent of the total value added by all food processors in District states. For a manufacturing indus try, this figure is usually considered the best measure of economic importance. During 1954, District freezing plants paid out around $14 million in salaries and wages to employees. Wage disbursements, however, are not regular throughout the year because the demand for workers in frozen fruit and vegetable plants is seasonal. Payrolls during the winter and spring months are much larger than during other seasons. Many workers who are gainfully employed in citrus processing during the winter have similar jobs in other areas during the remainder of the year. Citrus Weighty The District frozen fruit and vegetable industry is concentrated in a relatively small area. Central Florida accounts for about 50 percent of all commercial freezing plants. Most Florida plants are citrus freezers. This year plants in that state alone will freeze over 76 million gallons of concentrated orange juice, around 95 percent of all the orange juice frozen in the United States. The annual frozen citrus pack in Florida is larger than the combined pack of all other District frozen fruits and vege tables. Strawberries follow oranges in importance, but quantitative measures are not available for other items. Plants freezing citrus products are much larger than plants freezing other fruits and vegetables. Citrus plants employ roughly 700 workers each; other District freezers work around 100. Capital investment in citrus freezer plants is also higher than that in other plants. Some $2 million is invested per plant for citrus freezing plant and equipment, compared with less than $500,000 per plant for all other freezers. Capital Investment Large Capital investment in plants freezing fruits and vegetables is high in relation to total output and when compared with that required for other food processing industries. Around $170 million is invested in the frozen citrus industry in this District alone, ac cording to estimates made by this Bank. This does not include any investments in home freezers necessary to preserve the finished product in the home. Investment in plant and equipment amounting to roughly $50 million constitutes the largest single component. Equipment for zero-degree warehousing, transporting, and retailing ac counts for the remainder. Comparable figures are not available for plants freezing other foods, but probably in vestment is less than that in the citrus industry because citrus freezers are usually larger. Operating Funds Needed District processors’ operating needs are large: Their costs for raw products make up a sizable part of the sale price for their finished product, and the seasonal production of fruits and vegetables necessitates large inventories during much of the year for applying a year-round demand. Bankers Serve the Industry District bankers supply some of the funds needed by com mercial freezing plants. Before a banker finances a freezer in this region, ordinarily he studies the plant operation and the operator’s financial position. He appraises the company’s management, its plant and equipment, its inventory and sales record, its source and quality of raw products, and its repayment ability. Then he determines how bank financing will increase the company’s profits. If he makes the loan, the banker may establish a line of credit with the upper limit determined by the company’s needs and potentials. This form of credit is probably the most desirable for the freezing company; it allows the flexibility needed in adjusting inventories to meet crop conditions. Loans made to freezers are most often secured by warehouse receipts or invoices. In some cases bankers take additional collateral; personal notes and even mort gages are used. Maturity varies from demand to six months on operating loans to fruit and vegetable freezers, and most banks charge 5y2 to 6 percent interest annually. A thumb rule is often used for extending this type of credit. On warehouse receipt secured loans, for example, bankers may lend 60 percent of the resale value of the warehoused product. Those lending on invoices may lend 90 percent of the face value. Because bankers specialize in short-term loans, the industry cannot depend on bank credit for its investment needs. Relatively small loans for modernization or enlargement, however, may be obtained if the bank is repaid in three to five years. Local bank credit is not used by all District freezers. Often large companies, especially those in the citrus area, are financed by internal funds. Then too, some freezing plants are branch plants that depend entirely upon their home office for all their capital needs. Processors Have Problems Correctly evaluating their capital needs is probably one of the most difficult jobs commercial freezers have. They operate in a new, dynamic industry, one that is growing and changing rapidly. New techniques and methods are developed each year which often makes their equipment obsolete. If they attempt to write old equipment off as new equipment becomes available, they run the risk of over-extending themselves. On the other hand, if they hold on to obsolete methods and equipment, they risk losing their market to competitors who adapt new methods and possibly improve their product. Plant managers are faced with the problem of selling a product that is both superior in quality to its canned counterpart and comparable in price. Holding the sale price in line is not easy. Then too, frozen products must also compete with fresh products for the consumer food dollar. To market a product that meets these requirements managers need access to high quality raw farm products at reasonable prices. They need to operate their costly freez ing equipment at capacity and that is difficult because farm production follows seasonal patterns. Many processors are overcoming some of these ob stacles by integrating their operations to include farm production. For some processors, this means a contract with a local farmer or farm cooperative. Still other fruit and vegetable freezers lease or own farm land outright for farm production. Those who operate farms, of course, •5 • have the most direct line to their raw product supply; still they are plagued by all the hazards connected with weather, diseases, and insects. The most serious difficulty in some local plants is main taining quality control from the farm to the consumer. To do this, a plant manager must begin with a good quality product. Vegetables to be frozen, for example, must be free from insect damage and they must be harvested at the proper stage of development. Frozen products are unique in the food family because they require special attention to maintain quality from the moment they are frozen until the housewife prepares them for her family. There must be a completely con tinuous zero-degree temperature chain for holding, trans porting, and retailing frozen products. If at any time the product is subjected to a thawing temperature, it starts deteriorating. Transportation companies and retailers are improving their facilities to handle frozen foods at low temperatures. Most transportation equipment now in use is adequately refrigerated and insulated. If normal handling practices are followed in shipping, frozen foods usually reach their destination in good order. Food stores are making more zero-degree shelf space and storage area available for marketing frozen foods. Future Growth Likely In the years ahead frozen fruits and vegetables will likely gain an even more prominent spot in the District’s food processing industry. As plants have improved the de livery of a hard-frozen product to the housewife, addi tional years of research and experience will enable them to obtain high quality produce and correctly assess their Department Store Sales and Inventories* Percent Change ___________ Sales Place ALABAMA ................................. M o b ile ................................. Montgomery...................... F L O R ID A ................................. Daytona Beach . . . . Ja ckso n ville ...................... Miami Area ...................... M i a m i ........................... Orlando................................. St. Petersburg*Tampa Area G EO R G IA ................................. A tla n ta * * ........................... Augusta................................. Colum bus........................... M a c o n ................................. Rom e**................................. Savannah ........................... LO U ISIA N A ........................... Baton R o u g e ...................... New O rle a n s...................... M ISSISSIPPI........................... Jackson................................. Meridian** ...................... TENNESSEE ........................... Bristol-Ki nosport* Johnson City** . . . Bristol (Tenn* & Va.)** Chattanooga...................... K n o x v ille ............................ DISTRICT . . • . • • . Inventories June 1959 from 6 Months May June 1959 from 1959 1958 1958 10 +7 +7 +2 +4 +9 +7 —10 +9 +6 —4 +14 +12 +10 +4 + 11 —15 +14 +15 +1 +2 9 __ 4 —8 3 8 15 7 . —13 16 14 13 . —12 . —2 . -—14 . —1 1 +11 +8 +13 +26 +7 +7 +9 —1 +6 +1 +5 +0 +7 + 11 + 12 +7 +10 +11 +10 +23 +17 +13 +9 June 30,1959 from May 31 June 30 1959 1958 —3 — 5 +8 +i +8 +4 +4 +14 +20 +6 +6 +14 —3 —3 +6 +22 —1 +4 +5 +5 —3 —4 —3 —1 —0 —1 + 11 +11 +8 +25 +6 +7 +5 +13 +4 +27 —0 +3 +4 +9 +12 +6 +4 + 11 +8 +8 +3 —2 —0 —5 +16 +6 t t t jf f f ii !1!9 .St0fCS “ Cooni , for.°V€r 90 ***** of total District department store sales. P“bhcat'?n fibres for this city, a special sample has been awistnjcteo that is not confined exclusively to department stores. Figures for nonDepartment stores, however, are not used in computing the District percent changes capital needs. Emphasis on quality control is already strong. Meanwhile, some local plants will begin operating farms to insure their raw product supply, and consumers will find their grocery better stocked the year-round with frozen fruits and vegetables. N . C a r so n B ranan Debits to Individual Demand Deposit Accounts (In Thousands of Dollars) June 1959 May 1959 June 1958 Percent Change Year-to-dale June 1959 from6 ""fJS May June from 1959 1958 1958 ALABAMA Anniston . . 40,096 34,978 40,303 Birmingham 726,663 906,012 771,730 Dothan . . 31,423 27,287 32,373 Gadsden . . 30,431 38,399 37,949 Huntsville* . 62,536 64,653 51,709 Mobile . . 300,850 239,551 292,533 Montgomery 168,506 167,596 139,994 Selma* . . 22,565 20,111 24,556 Tuscaloosa* . . 49,957 43.316 50,869 Total Reporting Cities 1,620,344 1,482,562 1,314,040r Other Citiesf . . 718,265 754,240 617,890r FLORIDA Daytona Beach* 60,698 59,929 54,878 Fort Lauderdale* 202,881 201,010 183,573 Gainesville* . . 41,839 36,826 33,518 Jacksonville . . 812,782 827,699 649,893 Key West* . . 16,375 16,322 14,394 Lakeland* . . 76,663 76,319 63,690 Miami . . . 870,680 845,919 759,119 Greater Miami* 1,291,733 1,267,459 1,131,635 Orlando . . . 252,924 254,419 188,678 Pensacola . . 89,986 86,144 76,627 St. Petersburg . 223,179 215,356 178,439 Tampa . . . 428,365 418,598 336,879 West Palm Beach* 125,555 138,916 109,704 Total Reporting Cities 3,622,980 3,598,997 3,021,908 Other Citiesf . . . 1,536,046 1,539,148 1,322,534 GEORGIA Albany . . 65,094 62,567 54,695 Athens* . . 38,543 36,822 35,892 Atlanta . . 1,980,702 1,927,974 1,704,904 Augusta . . 111,357 99,593 92,650 Brunswick . 26,509 25,682 19,328 Columbus 106,920 101,433 93,990 Elberton . . 9,172 9,356 8,534 Gainesville* 48,580 51,067 49,341 Griffin* . . 18,324 18,522 15,782 LaGrange* . 19,356 20,164 16,302 Macon . . 118,956 115,105 101,217 Marietta* 30,679 32,572 24,032 Newnan . . 15,810 16,612 14,401 Rome* . . 43.853 42,351 35,693 Savannah 213,501 202,376 184,156 Valdosta . . . 33,619 33,923 23,544 Total Reporting Cities 2,880,975 2,796,119 2,474,461 Other Citiesf . 891,638 874,050 706,789 LOUISIANA Alexandria* . 73,892 65,813 64,665 Baton Rouge 265,354 279,706 230,891 Lafayette* . 65,004 63,715 51,351 Lake Charles 84.854 88,111 80,804 New Orleans 1,328,096 1,288,361 1,211,772 Total Reporting Cities 1,817,200 1,785,706 1,639,483 Other Citiesf . , 571,843 582,397 450,617 MISSISSIPPI Biloxi-Gulfport* 49,502 47,580 41,353 Hattiesburg . 35,634 35,045 29,680 Jackson . . . 306,253 280,485 237,149 Laurel* . . , 27,134 26,744 22,523 Meridian . . 47,428 43,370 36.067 Natchez* . , 21,572 23,468 18,414 Vicksburg . . 19,080 18,525 17,148 Total Reporting Cities 506,603 475,217 402,334 Other Citiesf . 253,454 242,128 202,116 TENNESSEE Bristol* . . 49,495 44,494 40.316 Chattanooga 339,963 319,583 287,673 Johnson City* 44,769 39,247 37,631 Kingsport* . 81,825 79,692 70,143 Knoxville . . 233,237 219,784 206,122 Nashville . . 713,825 680,911 618,139 Total Reporting Cities 1,463,114 1,383,711 1,260,024 Other Citiesf . 550,567 542,712 428,576 SIXTH DISTRICT 16,433,029 16,056,987 13,840,772 Reporting Cities 11,911,216 11,522,312 10,112,250r Other Citiesf 4,521,813 4,534,675 3,728,522r Total, 32 Cities 10,218,566 9,839,121 8,641,403 UNITED STATES 344 Cities . 228,581,000 215,964,000 219,477,000 —1 +i l +1 —3 +3 +15 +25 + 15 +26 +21 +26 +15 +14 +11 +19 +27 —8 —2 +9 —5 + 15 +23 +16 +14 +15 +19 +1 +11 +1 +20 +12 +11 +25 +25 +14 +0 +0 +20 +15 +3 +14 +34 +17 +4 +25 +4 +2 +27 —10 +14 + 1 +20 —0 +16 +19 +4 +7 +5 +16 +3 +20 +12 +37 +14 +11 +21 +10 +9 +9 +14 +13 +10 +18 +16 +15 +28 +10 +19 +19 +16 +16 +15 +13 +8 +14 +12 +25 +9 +7 +6 —2 +1 +16 +13 — 1 —4 +19 +16 tK +18 +28 +21 n +® —5 +10 —5 +4 ±1 +3 +2 3 + , ±s +2 ±i ts +9 +23 +16 +43 +16 +26 +14 +15 +27 +}4 +15 +28 +1J +1? +10 +11 +27 +S +7 +5 +8 +11 +1^ +? +16 +20 +20 +20 +15 +29 +32 +20 +22 +31 +?0 +17 +12 +7 +5 +26 +25 +25 + I7 +ll +6 +23 + JJ ts 1 +28 + 10 —8 + 12 +? +6 +5 +1 +11 tB +5 +1 ±0 +4 + 19 +K +18 +14 +21 +JZ +18 + I 4 +6 +4 +j? * Not included in total for 32 cities that are part of the National Bank Debit Series. f Estimated. r Revised. •6 * Sixth District Indexes Seasonally Adjusted (1947-49 — 100) 1958 SIXTH DISTRICT Nonfarm Employment...................... Manufacturing Employment . . . Apparel............................................ Chemicals....................................... Fabricated Metals*** . . . . Food.................................................. Lbr., Wood Prod., Fur. & Fix. Paper & Allied Products . . , Primary M e t a ls ............................ Textiles............................................ Transportation Equipment . . . Manufacturing Payrolls . . . . Cotton Consumption** . . Electric Power Production** . . . Petrol. Prod, in Coastal Louisiana & Mississippi** . . . Construction Contracts* . . . . Residential....................................... All O t h e r ....................................... Farm Cash Receipts............................ Crops ............................................ L iv e sto ck ....................................... Dept. Store S a le s*/**...................... A tla n ta............................................ Baton Rouge ................................. Birm ingham ................................. Chattanooga................................. Jackson ....................................... Ja ckso n ville................................. K n o x v ille ....................................... M a c o n ............................................ M ia m i............................................ New O rle a n s................................. Tampa-St. Petersburg . . . . Dept. Store Stocks*...................... Furniture Store Sales*/** , . . Member Bank Deposits* . . . . Member Bank Loans* . . . . Bank D eb its*....................................... Turnover of Demand Deposits* . . In Leading C itie s............................ Outside Leading Cities . . . . ALABAMA Nonfarm Employment . . . . Manufacturing Employment*** . Manufacturing Payrolls . . . . Furniture Store Sales . . . . Member Bank Deposits . . . . Member Bank Loans...................... Farm Cash Receipts...................... Bank D e b it s ................................. FLORIDA Nonfarm Employment . . . . Manufacturing Employment . . Manufacturing Payrolls . . . . Furniture Store Sales . . . . Member Bank Deposits . . . . Member Bank Loans...................... Farm Cash Receipts...................... Bank D e b it s ................................. GEORGIA Nonfarm Employment . . . . Manufacturing Employment . . Manufacturing Payrolls . . . . Furniture Store Sales . . . . Member Bank Deposits . . . . Member Bank Loans...................... Farm Cash Receipts . . . Bank D e b it s .................................. LOUISIANA Nonfarm Employment . . . . Manufacturing Employment . . Manufacturing Payrolls . . . . Furniture Store Sales* . . . . Member Bank Deposits* . . . Member Bank Loans* . . . . Farm Cash Receipts . . „ Bank D e b its*............................ MISSISSIPPI Nonfarm Employment . . . . Manufacturing Employment . . Manufacturing Payrolls . . . . Furniture Store Sales* . . . . Member Bank Deposits* . . . Member Bank Loans* . . . . Farm Cash Receipts . . Bank D e b its*............................ TENNESSEE Nonfarm Employment . . . . Manufacturing Employment . . Manufacturing Payrolls . . . . Furniture Store Sales* . . . . Member Bank Deposits* . . . Member Bank Loans* . . . Farm Cash Receipts...................... Bank Debitsi* . MAY JUNE 134 116 168 132 175r 109 74 154 91 84 210 195 80 312 JULY 1959 SEPT. 134 117 170 130 178r 111 75 154 89 85 208 199 81 312 AUG. 135 117 168 130 181 r 110 76 156 88 85 221 200 83 313 167 394 381 405 165 146 184 177r 169 199 130r 144 106 126 137 165 260r 146r 202 191 138r 174 279 233 144 168 104 170 427 377 468 134 90 184 173 168 185 127 159 111 127 139 164 268 141 207 192 139 170 278 240 148 165 110 118 104r 175 129r 150 231 147 206 . . 180 . . 177 . 289 . . 157 . 221 . 441 . . 249 . . . . . , . . . . . . . . . . . . . . . . . . 115 167 133 172r 110 74 156 . . . . . 84 . 183 . 186 . 75 . . 164 . . 375 . . 157 . . 168 . . 145 . . 122 . . 203 . 193 . . 143 . . 170 . 276 226 . . 140 . . . . . . . . . . 118 103r 167 134 146 230 142 110 170 138 148 213 157 . . 96 . . 166 . . 157 . 271 . 128 . . 125 . . 107 . . 186 . 334 . . 119 . . 113 . 181 . 158 . 245 NOV. 137 119 170 128 178r 112 80 159 90 86 213 204 87 316 DEC. | 136 118 172 129 179r 112 79 160 92 86 217 205 84 330 JAN. 137 119 173 132 182r 113 79 160 91 86 213 204 91 351 FEB. 137 120 174 132 178r 114 80 161 92 87 205 206 92 346 MAR. 138 121 174 133 I79r 115 78 161 95 88 200 209 93 341 APR. 138 121 176 135 180r 115 79 161 98 87 207 214 94 340 MAY 139 122r 179 135 181r 113 80 163 lOOr 88 210 215r 92 346 JUNE 136 117 167 127 182r 112 79 159 89 86 220 200 89 311 OCT. 136 118 169 127 179r 113 80 159 94 86 203 199 87 314 176 397 413 384 136 118 182 183 183 187 147 161 124 138 156 183 285 147 219 192 153 176 281 230 147 165 113 187 393 421 371 104 82 185 167 158 179 133 150 107 129 151 147 250 140 209 198 145 175 282 257 146 161 116 190 364 433 308 112 84 217 165 154 180 131 154 111 135 146 153 258 144 209 202 145 175 285 250 142 149 105 190 333 375 298 123 99 216 170 161 214 129 163 126 136 155 158 230 144 214 207 152 180 291 243 139 146 102 201 309 367 262 130 92 211 176 162 204 138 156 124 142 163 158 256 148 212 205 148 179 292 273 150 161 121 192 336 364 314 141 128 162 174 164 195 136 162 124 143 161 161 242 145 207 200 161 181 298 265 144 153 114 193 445 382 496 134 113 164 168 161 180 127 154 116 141 154 155 248 139 203 198 154 178 303 270 153 162 121 189 463 394 520 142 105 185 167 155 171 127 148 104 136 147 143 251 130 221 195 141 179 305 271 149 160 118 191 453 398 499 150 127 183 175 169 190 135 148 111 130 151 170 263 142 230 201 157 178 311 272 145 164 112 207 397 429 370 151 131 181 182 161 187 135 164 121 135 153 166r 269 144 251 200 153 182 316 259 158 174 126 206 n.a. n.a. n.a. n.a. n.a. n.a. 186p 174 192p 127 161 114p 139 148 168 277p 151p 245p 202 148p 183 321 276 152 174 117 118 104r 175 130 150 235 143 210 118 104 177 145 154 233 130 208 118 104r 175 138 152 234 97 231 120 104r 182 136 153 239 106 221 120 104r 186 136 158 246 101 216 120 I05r 179 131 155 242 111 232 121 105r 182 147 155 248 126 233 120 106r 185 154 154 254 123 232 121 107r 189 125 154 250 147 231 120 107 193 145 156 254 148 235 121 107r 190r 135 157 259 132 227 121 106 196 138p 160 266 n.a. 249 182 178 298 155 227 447 308 354 186 183 309 156 225 449 214 360 186 185 313 172 233 456 206 342 188 187 320 171 233 457 212 384 188 187 326 153 235 463 162 388 188 186 322 170 241 477 147 357 187 186 316 167 241 477 162 403 188 188 318 176 242 485 281 370 189 190 326 184 238 492 232 378 191 193 319 163 235 500 182 383 193 195 343 183 233 511 230 379 195 195 351 176 241 526 227 387 197 198 351 175 243 534 n.a. 420 128 113 186 134r 152 216 167 212 128 114 193 133 146 213 129 219 129 114 195 154 154 212 157 212 130 116 191 147 155 219 158 236 130 115 190 151 154 223 104 224 130 116 201 141 158 226 124 218 130 116 200 153 158 227 153 243 131 115 195 149 159 230 143 236 131 116 197 143 157 237 142 238 131 117 204 134 157 235 169 242 132 118 206 151 157 244 150 247 132 119 211r 148 160 246 158 235 132 120 215 139p 159 250 n.a. 252 129 95 167 175r 159 272 147 211 127 94 164 177 153 264 143 209 127 95 168 189 157 273 109 201 128 96 167 181 155 265 72 235 128 % 165 166 152 268 99 215 128 98 172 197 156 277 114 199 129 97 169 196 159 274 109 230 129 96 173 171 163 284 103 210 129 95 173 174 160 287 112 216 128 96 175 203 165 293 130 227 128 96 178 177 160 293 123 230 128r 96r 179r 191 165 295 159 218 128 96 174 177 165 295 n.a. 241 127 125 231 113 186 337 145 191 127 127 235 101 184 367 138 207 127 129 246 123 192 352 100 201 130 130 247 101 194 359 59 221 130 132 247 80 197 359 99 211 131 133 248 107 198 363 129 214 130 132 245 133 195 369 122 233 132 131 247 114 197 361 93 217 131 131 246 106 190 367 85 210 131 131 251 97 198 378 146 226 130 132 250 114 195 383 129 226 132 134 247 120 191 391 139 209 131 133 249 132 195 398 n.a. 240 119 113 182 103r 161 248 113 199 119 113 187 105 156 243 114 201 119 114 193 105 159 250 112 202 120 115 192 103 158 247 77 217 120 116 187 103 159 251 114 220 120 116 187 112 161 251 114 213 120 116 196 113 162 256 100 235 120 117 202 111 165 262 98 230 121 118 204 114 160 267 107 243 122 119 205 109 159 268 119 232 123 119 208 114 162 272 109 231 122r 119r 207r 116 166 276 95 228 123 120 217 ll6 p 164 283 n.a. 238 District area only. Other totals for entire six states. Daily average basis. ***Revisions reflect new seasonal factors. n.a. Not Available. p Preliminary. 139 123 182 135 182 113 79 164 103 88 207 221 89 n.a. r Revised. Nonfarm arK* mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; petrol, prod., U. S. Bureau Mines; elec. power prod., Fed. Power Comm. Other indexes based on data collected by this Bank. All indexes calculated by this Bank. •7 • S I X T H D I S T R I C T B U S I N E S S H I G H L I G H T S ^ N o n f a r m e m p l o y m e n t in June held at advanced levels. Total spending, m easured by bank debits, and factory payrolls set new records. C onsum er spending changed little, and farm m arketings dropped. L o a n dem and increased w ithout letup. Mfg. Employment Nonfarm employment in June, seasonally adjusted, held at the record set in May. Manufacturing employment rose slightly, but nonmanufac turing employment was virtually unchanged. Manufacturing payrolls rose substantially because of longer hours worked and higher earnings, with all states except Louisiana sharing in this increase. Insured unemployment declined further. Electric power production rose in May, with increases occurring in each District state. June crude petroleum production in Coastal Louisiana and Mississippi held near the seasonally adjusted record set in May, and cotton textile activity, as measured by cotton consumption, declined. Steel mill activity in July dropped sharply as a result of the strike. The three-month average of construction contract awards, including data for June, dropped further, and construction employment rose less than it usually does in June. Cotton Consumpti< Farm prices decreased in June, reflecting declines in milk, beef cattle, broilers, hogs, vegetables, and cotton. Farm marketings were down, chiefly because fewer hogs, citrus, eggs, and milk were sold than in May. Farm employment exceeded that of last June as more workers were needed to cultivate additional acreage, especially cotton. Overall prospects for most summer crops remain favorable. Measures of consumer spending continued at high levels in May and June. Retail sales in May rose somewhat more than usual for that month. Auto mobile sales increased further in May. Spurred by a sharp rise in Atlanta, seasonally adjusted department store sales established a record in June. Consumer instalment credit outstanding at commercial banks in June continued to increase more than seasonally, reflecting a moderate gain in automobile paper and a sharp increase in other consumer goods paper. Credit extended by consumer finance companies and credit unions rose mod erately. Consumer savings, measured by time deposits at commercial banks, savings and loan shares, and ordinary life insurance sales, also increased. International trade through District ports in May showed increases in exports as well as imports. Through May, however, exports remained below last year’s level, while imports were up. Bank debits, a measure of total District spending, set a new record in June. Member bank loans, seasonally adjusted, increased further in June. Deposits at member banks also edged up after seasonal adjustment, but RATIO TO REQUIRED RESERVES were used somewhat less actively at reporting banks than during the record month of May. Interest rates on most sizes of short-term business loans made by Atlanta and New Orleans banks in early June were higher than those made in early March. In July, total loans at banks in leading cities rose more than normally, and member bank borrowings from the Fed eral Reserve Bank of Atlanta set a new high.