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Ini s issue:
A la b a m a : A C lo s e -U p

A n o th e r L o o k a t t h e S o u th e a s t's F e d F u n d s M a rk e t

D is tric t B u sin e ss C o n d itio n s




A la b a m a :
A C lo s e - U p
b y B rian D . D itte n h a f e r

O n A la b a m a 's a u t o lic e n s e ta g s a p p e a r t h e w o r d s " H e a r t o f D i x i e , " c o n ju r i n g
v i s io n s o f s t a t e ly c o t t o n p la n t a t io n s a n d a le i s u r e ly r u r a l li f e . Y o u c a n s t i ll f in d
m o d e r n v e r s io n s o f t h is s o c i e t y t u c k e d a w a y in s o m e p a r t s o f t h e s t a t e , b u t
f o r t h e m a j o r it y o f A la b a m i a n s , lif e is u r b a n , i n d u s t r ia l , a n d f a s t - p a c e d .
W i t h o u t d e n y in g t h e a g r ic u lt u r a l s e c t o r 's im p o r t a n c e to t h e s t a t e 's e c o n o m y ,
w e c a n s a y t h a t , in r e c e n t y e a r s , t h e " H e a r t o f D i x i e " h a s g r o w n s t r o n g b e c a u s e
o f h e r c i t ie s ' e x p a n d i n g in d u s t r ia l a n d c o m m e r c i a l e c o n o m ie s .
A la b a m a 's c i t ie s — l i k e o t h e r c i t ie s — p r o v i d e s p e c i a l i z e d s e r v ic e s f o r
s u r r o u n d in g a r e a s a s w e l l a s f o r t h e re s t o f t h e s t a t e . F o r e x a m p l e , M o b i le 's
p o r t f a c il it i e s s e r v e t h e e n t ir e s t a t e o f A la b a m a a n d p a r t s o f F l o r i d a a n d
M is s is s i p p i a s a c o n t a c t w it h t h e w o r l d o f f o r e ig n c o m m e r c e . T h e r e f o r e , b e f o r e
a s s e s s in g t h e s t a t e 's e c o n o m y , it is h e lp f u l t o lo o k f ir s t a t t h e s t r u c t u r e a n d
e c o n o m ic c o n d i t io n s o f e a c h o f A la b a m a 's m a j o r c i t ie s .
B ir m i n g h a m
A la b a m a 's la r g e s t m e t r o p o li t a n a r e a is B ir m i n g h a m . Its e c o n o m y w a s b u il t
o n p r o d u c in g s t e e l a n d m in i n g c o a l a n d t o d a y h e a v y in d u s t r y s t i ll b u lk s la r g e .
B u t d e s p it e its r e p u t a t io n a s a m a n u f a c t u r in g c e n t e r , a n in c r e a s in g p o r t io n
o f its in c o m e is e a r n e d in its r o le o f c e n t e r f o r c o m m e r c e a n d in d u s t r y in t h e
s t a t e . In 1 9 7 1 , p e r c a p it a w h o le s a l e s a le s in B ir m i n g h a m w e r e t h e h ig h e s t in
th e s t a t e ; w h o l e s a l e a n d r e t a il t r a d e c o m b in e d p r o v i d e d 2 0 p e r c e n t o f
p e r s o n a l in c o m e . B ir m in g h a m n o w s e r v e s a s t h e c e n t e r f o r w h o l e s a l e
a c t i v i t y f o r m u c h o f A la b a m a . T h e s a m e c a n b e s a id f o r b u s in e s s s e r v ic e s ,
w h e r e B ir m in g h a m r a n k s f ir s t in t h e s t a t e in p o r t io n o f in c o m e e a r n e d .
T h e c i t y is h o m e f o r A la b a m a 's la r g e s t b a n k in g in s t i t u t i o n s a n d a B r a n c h
O f f ic e o f th e F e d e ra l R e s e rv e B a n k , b o th o f w h ic h c o n t r ib u t e to th e
c i t y 's g r o w in g r o le a s a f in a n c ia l a n d b u s in e s s s e r v ic e c e n t e r .
N o te:
SM SA
u n e m p lo y m e n t d a ta are
n o t se a so n a lly
in J u n e , t h e u n e m p l o y m e n t r a t e n o r m a l l y ris e s .

a d ju s te d .

As

stu d e n ts

e n te r

M o n th ly R e v ie w , V o l. L V III, N o . 8. Free s u b s c rip tio n an d a d d itio n a l c o p ie s a v a ila b le
u p o n re q u e st to th e R e se a rch D e p a rtm e n t, F e d e ra l R e se rv e B a n k o f A tla n ta ,
A tla n ta , G e o rg ia 3 0 30 3.

18
1




AUGUST 1973, M
ONTHLY REVIEW

1970 SM Definitions
SA

N SM -N ber 1971
ew SA ovem

Additions-June 1973

A la b a m a

S ta n d a rd

M e tr o p o lita n

T h is r e v i e w o f A la b a m a 's e c o n o m y f o c u s e s o n

S ta tis tic a l

A re a s

th e O f f ic e o f M a n a g e m e n t a n d B u d g e t o f th e

t h e c i t ie s a n d s u r r o u n d in g a r e a s w h i c h a r e

E x e c u t i v e O f f i c e o f t h e P r e s id e n t a n n o u n c e d

S t a n d a r d M e t r o p o li t a n S t a t is t ic a l A r e a s ( S M S A 's ) ,

t h r e e c h a n g e s in t h e A la b a m a S M S A d e f i n i t io n s .

as d e f i n e d b y t h e U .S . O f f i c e o f M a n a g e m e n t

T h e B ir m in g h a m S M S A w a s e x p a n d e d to in c l u d e

a n d B u d g e t . T h e r e a r e s p e c i f i c c r i t e r ia b y w h i c h

S t . C l a i r C o u n t y in a d d i t io n to J e f f e r s o n , W a l k e r ,

a n S M S A is d e f i n e d , b u t it c a n g e n e r a l ly b e

a n d S h e lb y C o u n t i e s ; M a r s h a ll C o u n t y w a s a d d e d

t h o u g h t o f a s a c o u n t y o r c o u n t i e s in w h i c h t h e

to t h e H u n t s v il le S M S A , j o i n i n g M a d is o n a n d

s u r r o u n d in g c o u n t r y s id e is e c o n o m i c a l l y a n d

L im e s t o n e C o u n t ie s . T h e M o n t g o m e r y S M S A w a s

s o c i a l l y in t e g r a t e d w it h a c e n t r a l, u r b a n iz e d a r e a .

e x p a n d e d to i n c l u d e A u t a u g a C o u n t y a s w e l l a s

F r o m t im e t o t i m e , c h a n g e s a r e m a d e in t h e

E lm o r e a n d M o n t g o m e r y C o u n t ie s . T h e c h a n g e s

c o u n t i e s in c l u d e d in a p a r t ic u la r S M S A a s t h e

in d e f i n i t io n s a r e f u r t h e r r e c o g n it io n o f r e g io n a l

u r b a n iz e d a r e a g r o w s a n d e c o n o m ic a n d s o c ia l

g r o w t h a n d v i t a l i t y w h i c h t h is a r t i c le h ig h lig h t s .

in t e r a c t io n s b e t w e e n t h e c e n t r a l c i t y a n d t h e

H o w e v e r , t h e s e c h a n g e s c a m e t o o la t e to b e

s u r r o u n d in g c o u n t r y s id e in c r e a s e . In J u n e 1 9 7 3 ,

in c l u d e d in t h e d a t a o n w h i c h t h is a r t i c le is b a s e d .

FEDERAL RESERVE
K
BAN OF ATLANTA


119

t o t a l in 1 9 7 1 . B u t it is a ls o a d iv e r s if ie d e c o n o m ic
a r e a , s e r v in g s o u t h w e s t A la b a m a a s a c e n t e r f o r
w h o le s a l e t r a d e a n d b u s in e s s a n d p e r s o n a l s e r v ic e s .
R e t a il a n d w h o l e s a l e t r a d e a c t i v it y a c c o u n t e d f o r
a lm o s t t w o - f if t h s o f in c o m e e a r n e d in 1 9 7 1 a n d
b u s in e s s a n d p e r s o n a l s e r v ic e s c o n t r i b u t e d 2 2
p e r c e n t , t h e b u lk r e la t in g t o p o r t a c t i v it ie s . T h e
g o v e rn m e n t s e c t o r c o n t r ib u t e d 1 5 p e r c e n t o f th e
S M S A 's e a r n e d in c o m e a n d is b o o s t e d b y M o b i le ' s
p o r t a n d A la b a m a 's s t a t e d o c k c o m p le x lo c a t e d
th e re .
S h ip b u il d i n g a n d r e p a ir w o r k f o r m a n im p o r t a n t
p a r t o f m a n u f a c t u r in g , p r o v i d i n g n e a r ly 3 ,0 0 0 jo b s
in m id - 1 9 7 3 . H o w e v e r , o n ly 2 0 p e r c e n t o f t h e t o t a l
w o r k f o r c e is in m a n u f a c t u r in g , a n d n e a r ly t w o t h ir d s o f t h e s e jo b s a r e in n o n d u r a b l e g o o d s .
M e a s u re d b y e m p lo y m e n t , p a p e r a n d p a p e r
p r o d u c t s a r e t h e la r g e s t s in g le in d u s t r y , w it h 7 ,5 0 0
w o r k e r s . T h is in d u s t r y u n f o r t u n a t e ly h a s n o t
p r o v i d e d a g r o w in g n u m b e r o f jo b s in r e c e n t y e a r s .
A s in t h e n a t io n , t h e im p o r t a n c e o f m a n u f a c t u r in g
h a s d e c li n e d in t h e p a s t t w e n t y y e a r s a n d s e r v ic e o r i e n t e d in d u s t r ie s e m p l o y a g r o w in g s h a r e o f th e
c i t y 's w o r k f o r c e . I f t h is t r e n d c o n t in u e s ,
M o b ile

B ir m in g h a m w i l l b e le s s v u ln e r a b le to t h e f o r c e s o f

Thousands

t h e n a t io n a l e c o n o m y t h a n in t h e p a s t . H o w e v e r ,
m a n u f a c t u r in g s t ill p r o v i d e s 3 0 p e r c e n t o f t h e
in c o m e e a r n e d a n d e m p l o y s 2 5 p e r c e n t o f t h e
w o r k f o r c e . T h e b u lk is in p r im a r y m e t a ls , s o t h a t ,
w h e n d u r a b le s a r e d o in g w e l l , B ir m i n g h a m 's
u n e m p lo y m e n t r a t e f a ll s . T h e a c c o m p a n y i n g c h a r t
s h o w s a d r o p in t h e u n e m p lo y m e n t ra t e a n d r is e
in e m p l o y m e n t a s t h e r e c e n t n a t io n a l e c o n o m ic
e x p a n s io n g r e a t ly in c r e a s e d d e m a n d s f o r s t e e l a n d
o t h e r d u r a b le g o o d s .
D e s p it e B ir m i n g h a m 's s t r o n g s h o w in g in d u r a b le
g o o d s m a n u f a c t u r in g , it s la r g e s t jo b g a in s h a v e b e e n
in s e r v ic e s , r e f le c t i n g t h e a r e a 's im p o r t a n c e a s a
c e n t e r f o r t r a d e a n d c o m m u n i c a t i o n . G r o w t h in
t h e s e in d u s t r ie s h a s h e lp e d B ir m in g h a m a d d 8 ,0 0 0
w o r k e r s to its p a y r o ll s d u r i n g t h e p a s t 1 2 m o n t h s ,

B u t it a n d M o b i le ' s o t h e r la r g e in d u s t r y , c h e m ic a l

p u ll in g t h e n u m b e r o f u n e m p lo y e d d o w n to a b o u t

p r o d u c t s , w e r e g o in g f u l l b la s t in m id - 1 9 7 3 , w it h

4 p e r c e n t o f th e w o r k fo rc e b y M a y 1 9 7 3 .

w o r k e r s a v e r a g in g 4 3 - h o u r w o r k w e e k s .

G r o w t h in in d u s t r y a n d t r a d e h a s c a u s e d t h e
c i t y 's p e r s o n a l in c o m e to e x p a n d r a p id ly in r e c e n t

H u n t s v il le

y e a r s . P e r c a p it a p e r s o n a l in c o m e g r e w a t a n

In 1 9 7 1 , g o v e r n m e n t jo b s d i r e c t l y s u p p li e d 4 3

a v e r a g e a n n u a l r a t e o f 8 .5 p e r c e n t f r o m 1 9 6 9 to

p e r c e n t o f e a r n e d in c o m e in H u n t s v i l l e a n d

1 9 7 1 , a c c o r d i n g to U . S . D e p a r t m e n t o f C o m m e r c e

c o n t r i b u t e d to m u c h o f its " s e r v i c e " s e c t o r . W h e n

d a t a . T h e s t r o n g s h o w in g in e m p l o y m e n t g r o w t h ,

t h e 1 9 6 7 C e n s u s o f B u s in e s s w a s t a k e n , b u s in e s s

a lo n g w it h c o n t in u e d r a p id w a g e g a in s , in d ic a t e s

s e r v ic e r e c e ip t s p e r c a p it a w e r e $ 4 2 4 , f o u r t im e s

t h a t p e r s o n a l in c o m e r o s e s u b s t a n t i a ll y d u r in g

h ig h e r t h a n B ir m i n g h a m , its c l o s e s t A la b a m a r iv a l

1 9 7 2 a n d e a r l y 1 9 7 3 , a lt h o u g h p r e c is e f ig u r e s a r e

in t h is r e g a r d . F ir m s s u p p ly in g s e r v ic e s t o N A S A a r e

n o t y e t a v a il a b l e .

c l a s s if i e d a s " M i s c e l l a n e o u s B u s in e s s S e r v i c e s " in
C e n s u s a n d e m p l o y m e n t d a t a . In H u n t s v i l l e , t h is

Mobile

r e p r e s e n t s a e r o s p a c e r e s e a r c h , in c l u d i n g o f f ic e s

A la b a m a 's s e c o n d la r g e s t m e t r o p o li t a n a r e a ,

a n d r e s e a r c h f a c i l i t i e s o f p r iv a t e c o n t r a c t o r s w h o s e

M o b i le s e r v e s a s a n o u t le t to t h e s e a , a n d its

m a n u f a c t u r in g f a c i l i t i e s a r e lo c a t e d in o t h e r p a r ts

e c o n o m y is b a s e d o n a c t i v it y s u r r o u n d in g t h e p o r t .

o f t h e c o u n t r y . T h u s , m a n y o f t h e in d u s t r ie s

Its la r g e s t s h a r e o f e a r n e d in c o m e c o m e s f r o m

c l a s s if i e d a s b u s in e s s s e r v ic e s a r e t ie d to t h e S M S A 's

m a n u f a c t u r in g , a c c o u n t in g f o r 2 6 p e r c e n t o f th e

s p a c e a c t i v it y .

120



AUGUST 1973, M
ONTHLY REVIEW

a r e a o f A la b a m a a s a c e n t e r f o r w h o le s a l e
d is t r i b u t io n a n d b o t h b u s in e s s a n d p e r s o n a l s e r v ic e s .
A c c o r d i n g l y , t h e s e s e c t o r s c o m b in e d p r o v id e d

45

p e r c e n t o f t h e a r e a 's e a r n e d in c o m e in 1 9 7 1 —
s u b s t a n t i a ll y m o r e t h a n t h e a v e r a g e U . S .
m e t r o p o li t a n a r e a . M a n u f a c t u r in g p r o v i d e d o n ly 1 3
p e r c e n t o f M o n t g o m e r y 's in c o m e , w h i l e f a r m
e a r n in g s c o n t r i b u t e d a s t ill s i g n if ic a n t 3 p e r c e n t .
P e r s o n a l in c o m e g r e w a t a n a v e r a g e a n n u a l ra te
o f 1 0 p e r c e n t f r o m 1 9 6 9 to 1 9 7 1 , s h o w in g v ig o r o u s
g r o w t h e v e n d u r i n g t h e 1 9 7 0 r e c e s s io n w h e n o t h e r
a r e a s o f t h e s t a t e h a d li t t l e o r n o g r o w t h a n d w e r e
h it v e r y h a r d b y u n e m p lo y m e n t . M a n u f a c t u r in g , t h e
s e c t o r m o s t s e n s it i v e to b u s in e s s r e c e s s io n s , is o f
s m a ll im p o r t a n c e in M o n t g o m e r y a n d e x p l a in s t h e
S M S A 's c o m p a r a t i v e ly g o o d s h o w in g d u r in g t h e
r e c e s s io n .
S i n c e t h e n , e m p l o y m e n t h a s g r o w n s t e a d il y ,
t h o u g h n o t s p e c t a c u l a r l y . F o r e x a m p l e , d u r in g t h e
y e a r e n d i n g M a y 1 9 7 3 ,1 ,1 0 0 w o r k e r s w e r e a d d e d
to a r e a p a y r o ll s , e x c e e d i n g la b o r f o r c e g r o w t h a n d
C o n c e n t r a t i o n o f g o v e r n m e n t a n d s p a c e a c t i v it y
in H u n t s v il le h a s b e e n b o t h b le s s in g a n d b a n e t o
t h e lo c a l e c o n o m y . T h e d e v e lo p m e n t o f t h e

t h e r e b y k e e p in g t h e u n e m p lo y m e n t ra te u n d e r 3
p e r c e n t . S e r v ic e a n d t r a d e e m p l o y m e n t h a s
e x p a n d e d , b u t m a n u f a c t u r in g h a s s h o w n lit t le

M a r s h a ll S p a c e F lig h t C e n t e r a n d t h e r a c e t o t h e
m o o n d u r i n g t h e e a r l y 1 9 6 0 's r e d u c e d t h e f a r m
e m p lo y m e n t c o m p o n e n t a n d c a u s e d n o n fa rm
e m p l o y m e n t t o s u r g e to a p e a k in 1 9 6 6 . T h u s ,
g o v e r n m e n t - s p o n s o r e d r e s e a r c h w a s t h e d r iv in g
f o r c e b e h in d g r o w t h in t h e la r g e r H u n t s v il le a r e a .
S in c e c u t b a c k s in g o v e r n m e n t s p e n d in g b e g a n ,
H u n t s v il le h a s c o n s t a n t ly s t r u g g le d t o a t t r a c t t h e
in d u s t r y n e c e s s a r y f o r e s t a b lis h in g a d iv e r s if ie d
lo c a l e c o n o m y . H o w e v e r , o n ly in M a y 1 9 7 2 d id
a r e a e m p l o y m e n t c l im b b a c k t o t h e 1 9 6 6 t o t a l.
T h e p r o b le m is il lu s t r a t e d b y t h e b e h a v i o r o f
g o v e r n m e n t a n d s e r v ic e s e c t o r s t a t is t ic s d u r in g t h e
1 2 m o n t h s e n d in g in M a y . W h i l e t o t a l n o n f a r m
e m p l o y m e n t r e m a in e d r e l a t iv e ly s t a b le a t 8 1 ,0 0 0 ,
g o v e r n m e n t a n d b u s in e s s s e r v ic e s jo b s d e c li n e d b y
1 ,3 0 0 . G r o w t h in o t h e r s e c t o r s w a s n o t e n o u g h to
o f f s e t t h is d e c li n e , r e s u lt in g in a n e t lo s s o v e r t h e
p e r io d o f 2 0 0 jo b s . U n f o r t u n a t e l y , f u r t h e r c u t b a c k s
in F e d e r a l G o v e r n m e n t e m p l o y m e n t a r e s c h e d u le d
f o r t h e s e c o n d h a lf o f 1 9 7 3 .
D e s p it e t h e s e p r o b l e m s , a r e a g r o w t h c o n t in u e s .
F r o m 1 9 6 9 t o 1 9 7 1 , p e r s o n a l in c o m e g r e w a t a n
a n n u a l ra te o f 7 .9 p e r c e n t , a f u l l p e r c e n t a g e p o in t
h ig h e r t h a n t h e U . S . m e t r o p o li t a n a v e r a g e . T h e

g r o w t h in r e c e n t y e a r s . S u r p r i s i n g ly , d u r in g a n e ra

u n e m p lo y m e n t ra t e in M a y 1 9 7 3 w a s a r o u n d 4

o f g r o w in g g o v e r n m e n t , a r e a e m p l o y m e n t in t h is

p e r c e n t , a s t h e a r e a s t r iv e s t o r e g a in it s g r o w t h

s e c t o r h a s h o v e r e d in t h e n e ig h b o r h o o d o f 1 8 ,0 0 0

m o m e n t u m in t h e f a c e o f a d e c li n i n g g o v e r n m e n t a l

f o r t h e p a s t f iv e y e a r s .

s e c to r.

In t h e y e a r e n d in g M a y 1 9 7 3 , jo b g r o w t h h a s
o c c u r r e d in e v e r y s e c t o r e x c e p t a g r ic u lt u r e , w h ic h

M o n tg o m e ry

d e c li n e d b y 2 0 0 w o r k e r s . M a n u f a c t u r in g a d d e d 5 0 0

T h e s t a t e c a p it o l is M o n t g o m e r y , a n d , a s m ig h t b e

w o r k e r s , p r im a r i ly in n o n d u r a b l e g o o d s , w h i l e 1 ,3 0 0

e x p e c t e d , d r a w s t h e la r g e s t p o r t io n o f its in c o m e —

jo b s w e r e a d d e d in n o n m a n u f a c t u r i n g . D e s p it e a

31 p e r c e n t — f r o m t h e g o v e r n m e n t s e c t o r .

3 8 - p e r c e n t in c r e a s e in v a l u e o f c o n s t r u c t io n

M o n tg o m e ry se rv e s th e s o u th e a s t a n d so u th c e n tra l

c o n t r a c t s a w a r d e d d u r in g t h e f ir s t f iv e m o n t h s o f

FEDERAL RESERVE BAN
TA
 K OF ATLAN


121

1 9 7 3 , M a y 1 9 7 3 's c o n s t r u c t io n e m p l o y m e n t w a s n o

d e c li n e o f 6 0 0 w o r k e r s in d u r a b le g o o d s d u r i n g t h e

h ig h e r t h a n in M a y 1 9 7 2 .

t w e l v e m o n t h s e n d i n g in M a y . In t h is s e c t o r , o n ly

Florence

jo b s . B e c a u s e o f a d r o p in t h e w o r k f o r c e , t h e

R e la t i v e l y r a p id g r o w t h in p e r s o n a l in c o m e in r e c e n t

u n e m p lo y m e n t r a t e t h is s p r in g h a s b e e n a b o u t 5

y e a r s — 9 .2 p e r c e n t a n n u a l l y f r o m 1 9 6 9 t o 1 9 7 1 —

p e r c e n t a f t e r a v e r a g in g 5 .5 p e r c e n t d u r i n g 1 9 7 2 .

p r im a r y m e t a ls , t h e a r e a 's la r g e s t in d u s t r y , in c r e a s e d

s y m b o li z e s t h e o v e r a ll a d v a n c e o f t h e F l o r e n c e
T u s c a lo o s a
H o m e o f t h e U n i v e r s i t y o f A la b a m a , T u s c a l o o s a 's
e c o n o m y r e f le c t s t h e U n i v e r s i t y ' s im p a c t . T h e
g o v e r n m e n t s e c t o r p r o v id e s 2 8 p e r c e n t o f th e
F lo r e n c e

T h o u sa n d s

c o u n t y 's e a r n e d in c o m e , p r i m a r i l y b e c a u s e
U n iv e r s it y e m p l o y e e s a r e c l a s s if i e d a s g o v e r n m e n t

N o t s e a s . adj.

- 36.3

-

w o r k e r s . M o r e t h a n 1 6 p e r c e n t o f t h e p o p u la t i o n
a r e p r o f e s s io n a l o r t e c h n i c a l w o r k e r s o f h ig h s k i l l .

Nonfarm Employment
-

-

34.9

R a p id e x p a n s io n o f t h e U n i v e r s i t y h e lp e d g iv e
T u s c a l o o s a t h e h ig h e s t r a t e o f p e r s o n a l in c o m e

B -

-

33.5

-

32.1

g r o w t h in t h e s t a t e in r e c e n t y e a r s . T h e lo c a l
e c o n o m y is d i v e r s i f i e d , w i t h 3 0 p e r c e n t o f in c o m e
e a r n e d in m a n u f a c t u r in g a n d 1 2 p e r c e n t e a c h in

_
Unemployment Rate
/V

/V

>

P e rc e n t

V

y

s e r v ic e s a n d t r a d e . T h e 1 2 .2 - p e r c e n t a n n u a l in c r e a s e
in p e r s o n a l in c o m e f r o m 1 9 6 9 t o 1 9 7 1 w a s n e a r ly
d o u b le t h a t f o r m e t r o p o li t a n a r e a s in t h e U n it e d
S t a t e s a n d e a s i ly e x c e e d e d M o n t g o m e r y 's , its

A

c lo s e s t A la b a m a r iv a l.
M a n u f a c t u r in g e m p l o y s 2 3 p e r c e n t o f T u s c a l o o s a 's
w o r k f o r c e . P r im a r y m e t a ls p r o v i d e t h e la r g e s t jo b

1971

1972

1973

s l i c e ; r u b b e r p r o d u c t s a r e a c l o s e s e c o n d . P r o c e s s in g
lu m b e r a n d f o o d p r o d u c t s o f t h e g r e a t e r T u s c a l o o s a
a g r ic u lt u r a l s e c t o r a ls o p r o v i d e s m a n y f a c t o r y jo b s .
S t a t e g o v e r n m e n t h a s b e e n t h e f a s t e s t g r o w in g
s e c t o r , b u t a ll h a v e c o n t r i b u t e d t o r e c e n t g r o w t h .

a r e a e c o n o m y . U r b a n iz e d S h e f f ie l d , M u s c le S h o a ls ,
a n d T u s c u m b ia h a v e g r o w n t o g e t h e r a n d w h e n
c o m b in e d w it h F l o r e n c e , t h e ir a c r o s s - t h e - r iv e r
n e ig h b o r , t h e Q u a d C i t i e s m e e t t h e s i z e a n d o t h e r

D u r in g t h e t w e l v e m o n t h s e n d i n g in M a y 1 9 7 3 , t o t a l
jo b s r o s e n e a r ly 2 ,0 0 0 , s i g n i f i c a n t l y b o o s t in g t h e
S M S A 's e c o n o m y a n d p u ll in g d o w n t h e u n e m p l o y ­
m e n t r a te to 2 .4 p e r c e n t . T h e lo c a l e c o n o m y 's

c r i t e r ia f o r d e s ig n a t io n a s a s t a n d a r d m e t r o p o lit a n
s t a t is t ic a l a r e a . T h e r e f o r e , F l o r e n c e w a s s o
d e s ig n a t e d in N o v e m b e r 1 9 7 1 . C o l b e r t a n d
L a u d e r d a le C o u n t ie s , w h i c h c o m p r is e t h e S M S A as
d e f in e d b y t h e F e d e r a l G o v e r n m e n t , h a d a p o p u la ­

TUSCalOOSa

t io n o f 1 1 7 ,0 0 0 in 1 9 7 0 .

Thousands

F a r m e a r n in g s s t i ll c o n s t it u t e 6 p e r c e n t o f t o t a l
e a r n e d in c o m e , m o r e t h a n f o r a n y o t h e r S M S A in
th e s t a t e . T h u s , a g r ic u lt u r e r e m a in s e x t r e m e ly
im p o r t a n t to t h e a r e a . Y e t its m a j o r s o u r c e o f
in c o m e is m a n u f a c t u r in g , w it h 3 7 p e r c e n t o f w a g e s
a n d s a la r ie s o r i g i n a t in g in t h is s e c t o r . M o s t o f
F l o r e n c e 's f a c t o r y jo b s a r e in a l u m i n u m o r r e la t e d
p r o d u c t s , t ie d to t h e r e l a t iv e ly in e x p e n s iv e a n d
p l e n t if u l e l e c t r i c i t y a v a il a b l e f r o m t h e T e n n e s s e e
V a l l e y A u t h o r i t y . A l u m i n u m in g o t p r o d u c t i o n ,
w h i c h h a s a v o r a c io u s a p p e t it e f o r e l e c t r i c i t y ,
p r o v i d e s r a w m a t e r ia l f o r o t h e r p r o d u c t s r a n g in g

Unemployment Rate

f r o m w i r e to a u t o m o b ile e n g in e b l o c k s .

**
Percent

D e s p it e t h is e m p h a s is o n h e a v y in d u s t r y , o n ly

A

n o n d u r a b l e g o o d s m a n u f a c t u r in g h a s s h o w n r e c e n t
e m p l o y m e n t g r o w t h . T e x t il e s a n d a p p a r e l
c o m m o d it i e s h a v e b e e n e s p e c ia l ly e x p a n s iv e t h is

1971

1972

1973

p a s t y e a r , b u t t h is h a s b e e n m o r e t h a n o f f s e t b y a

122



AUGUST 1973, M
ONTHLY REVIEW

diversity played a major role in keeping the
unemployment rate under 4 percent even during
1970's recession, a very strong performance for an
area with a large manufacturing sector.
G adsde n

As it should be, Gadsden, too, is noted for its
manufacturing; manufacturing provided 47 percent
of income earned in 1971. Wholesale and retail
trade provided the next largest portion— 14 percent
— followed closely by services. A dependence on
manufacturing makes Gadsden especially sensitive

G ad sd e n

A/

Thousand s

m
Unemployment Rate

Per*

steadily. The expansion in wholesale and retail
trade, the largest employment category outside
manufacturing, has been a bright spot, and the
construction of new shopping facilities is expected
to send retail employment even higher in the second
half of this year.
Putting It A ll Together

Alabama's recent economic news has been mostly
good. Nonfarm jobs have been growing steadily
and at a pace fast enough to cause a decline in
unemployment to under 5 percent of the work force
during the first half of 1973. This is the first
extended period since 1969 during which the rate
has been under 5 percent. A soaring national
economy has sent demand for Alabama's durable
manufactured goods bounding upward with
favorable employment results. While the civilian
work force was growing by just 10,000 persons,
nonfarm jobs grew by 41,000, or 3 percent, during
the year ending May 1973. This employment gain
was spread broadly, with nearly every industrial
sector sharing in the advance. Largest gains have
been in the transportation equipment industry,
boosting durable goods employment by more than
6,000 workers. This is particularly notable, since
this industry has been stagnating since 1969. Growth

to swings in the national economy. Between 1969
and 1971, which includes the 1970 recession, total
personal income grew at only a 5-percent annual
rate. In contrast, from 1965 to 1969 when the
national economy was booming, Gadsden's total
personal income grew at an annual rate of 1
1
percent.
Manufacturing jobs are concentrated in primary
metals and rubber products, particularly tires and
tubes. This dependence on heavy industry has
meant a relatively high overall unemployment rate
in recent years, averaging 7.2 percent in 1972. A
booming national demand during the first half of
1973 finally caused manufacturing to expand
enough to pull the unemployment rate below 5
percent in early spring. A drop in people seeking
work has also been a contributing factor.
Following a slight decline during the 1970
recession, nonmanufacturing jobs have grown
FEDERAL FRASER
Digitized forRESERVE BAN K OF A T IA N T A


123

in nondurable manufacturing has been less robust
than in durables but still added more than 2,000
jobs in the past year.
The gain in employed people and the higher rate
at which they are paid boosted manufacturing
payrolls by 13 percent between mid-1972 and mid1973 to an estimated $2.5 billion per month at an
annual rate. Average weekly hours worked in
manufacturing increased only a fraction, from 41.1
to 41.4, as employees apparently added workers to
payrolls rather than schedule much additional
overtime.
In employment outside manufacturing, where
more than half the gains took place, the only drop
was in Federal Government jobs. Wholesale and re­
tail trade were particularly strong as workers made
use of expanding income. Business and personal
services, meanwhile, were in the vanguard of the
economic advance, and contract construction
employment made gains reflecting boom conditions
in both residential and nonresidential building
during 1972.
Following the national pattern, the pace of
Alabama's residential construction slowed during
the first five months of 1973 when compared to the
same period of 1972. Commercial and industrial
construction, on the other hand, has surged and,
in some parts of the state, appears to be rebounding
from a rather slow 1972. The net result has been an
increase of nearly 27 percent in the value of
construction contract awards during the first five
months of 1973, a slightly higher rate of gain than
that for 1972.

thing can be said for 1973. The impact from a
booming national economy shows up in many
sectors. With demand for Alabama's coal, oil, and
gas growing even faster than the national economy,
mining income jumped 60 percent during 1972.
Durable goods manufacturing payrolls were up
sharply, sending manufacturing income up
accordingly. Serving more local needs and mirroring
a 12-percent gain in manufacturing income, whole­
sale and retail trade and business and personal
services incomes rose at an equal rate. Only the
contract construction and government sectors, with
personal income gains of 10 and 11 percent,
respectively, were less expansive than maufacturing.
Alabama farmers also had a good year as their
1972 realized net income increased by 9 percent.
Cash receipts from livestock sales led the surge early
in the year as prices advanced strongly. Later, crop
receipts also joined the spurt, accompanying a
substantial rise in cotton prices. In 1973, farmers

Income growth is faster than the nation’s.
1967=100

Total Personal Income

Sp e n d in g and In co m e s U p Sharply

Stimulating the construction of commercial
establishments were strongly performing retail sales
all of last year and continuing into this one.
According to University of Alabama estimates, retail
sales for the first four months of 1973 have
advanced at a rate in excess of 20 percent over the
same period of last year, a pace nearly twice as fast
as 1972's. Even drugstore sales, the slowest retail
trade sector, rose more than 10 percent. Sales at
eating places were up more than 30 percent,
followed closely by sales at clothing stores and
service stations. Even allowing for rapid price
increases, these estimates indicate very impressive
gains.
This spurt in sales is undoubtedly a direct result
of several years of rapidly rising income for
Alabamians. For example, during 1972, total
personal income increased by 1 percent, and even
1
taking account of inflation, the real income gain
undoubtedly exceeded 5 percent. Constituting
more than two-thirds of Alabama's personal income,
wages and salaries grew by 12 percent. Both of
these growth rates are above the national figure for
1972 and, according to early indications, the same

124


1970

1972

seem to be doing even better, since total cash
receipts are up 63 percent during the first four
months of 1973 from a year ago. Nationally, prices
received by farmers jumped 33 percent during the
12 months ending May 1973. At the same tim
e,
prices paid by farmers went up less— 10 to 14
percent. Thus, if Alabama farmers follow the
national income and cost trends, net farm income
should again be up substantially in 1973.
Banks Reflect G row th

Judging by loan and deposit growth, Alabama
member bankers have been enjoying the state's
A U G U S T 1973, M O N T H L Y RE V IEW

recent rapid gains. During 1972, loans grew by 22
percent and investments by about that much.
Deposits were up 19 percent, with time deposits up
slightly more than demand deposits. For the year
ending in mid-1973, the story is much the same:
Total deposits are up 17 percent; time deposits,
2 percent; demand deposits, 12 percent; and
1
loans, 22 percent. Reflecting the high demand
for loans and rising yields on business and
commercial lending, investment growth is down.
Summing Up
Alabama's economic future is based on the growth
of its cities. A review of the major urban areas'

 BAN K O F ATLANTA
FEDERAL RESERVE


economic performances shows growth through
diversification. In the past, most Alabama
metropolitan areas have been vulnerable to
fluctuations in one or two major sectors, and an
apparent movement away from such vulnerability
is healthy. Employment growth has been steady for
the state during the past two years, but erratic for
some cities precisely because of changes in a few
major industries. As national economic growth
continues, Alabama is likely to have an opportunity
to attract new industry. If recent trends continue,
its urban areas will use the opportunity to diversify
their economies and provide a wider base for
future growth.*

125


126


A

n

t h

e

F e d
by

o

t h
S

o

e r
u

L
t h

F u n d s

A r n o ld

A.

o o k

a t

e a s t 's
M

a r k e t

D ill

Previous studies in this Review have described how the Fed funds market
functions in the Southeast. These studies show, in part, that:
market participation of Sixth District member banks rose from
5 percent in 1958 to nearly 90 percent in 1972;
profit opportunity is the main market lure;
the larger the bank, the more likely it is a market participant and
a net purchaser of funds;
major banks in the ten or so largest cities often stand ready to buy
and sell funds in order to accommodate the needs of their smaller
correspondents; and
District member banks in aggregate were usually in a net sell position
but were often in a net buy position in 1966,1969, early 1970, and
again after April 1972.1
Rather than comprehensively examining the District market, this note focuses
on only a few aspects. Specifically, it provides an insight into the structure
of the Fed funds market, measures the degree of market participation by
individual banks, and describes this region's long-run and cyclical Fed funds
pattern.
Fed Funds Behavior
To gain insight into the Fed funds market structure, we classified banks into
six groups on the basis of market behavior for each year from 1969 through 1972.
The first class includes banks that reported substantial transaction volumes
and that both purchased (borrowed) and sold (lent) funds every week, or nearly
every week of the year. The second consists of banks that both purchased
and sold often during the year but on a smaller scale and less often than those
in the first class. The third group includes banks that participated frequently
in the market but mainly as sellers. The fourth contains banks that purchased
frequently but seldom sold. The fifth class is occasional participants, those
banks reporting transactions in fewer than twelve weeks a year. Nonparticipants
make up the sixth grouping.
As shown in Table 1, the majority of District member banks were pre­
dominantly sellers (class 3) each year, but the number of such banks declined
in 1972. Banks in the first and second classes increased sharply between 1969
and 1972, while occasional and nonparticipants (classes 5 and 6) decreased.
In recent years, many have entered the market first as sellers and then have
begun buying funds with gradually increasing frequency. Very few were found to
JFor a general description of how the funds market functions in the District, see Arnold Dill,
"Liability Management Banking: Its Practice in the Sixth District," this Review, December 1971. For
a detailed study of the structure and characteristics of the District market, see Harry Brandt and Paul A.
Crowe, “The Fed Funds Market in the Southeast,” this Review, January 1968.

A U G U ST 1973, M O N T H L Y REVIEW

TA BLE 1
S ix th D is t r ic t M em ber B a n k P a rtic ip a tio n in th e Fed F u n d s M arket

1969
1970
1971
1972
*Class 1:
Class 2:
Class 3:
Class 4:
Class 5:
Class 6:

Class
No.
15
23
24
34

1*
%
2.8
4.2
4.3
5.9

Class
No.
82
86
96
122

2
%
15.2
15.8
17.1
21.2

Class 3
No.
%
282
52.4
361
66.1
374
66.5
365
63.5

Class
No.
15
7
5
6

Class
No.
86
36
41
39

4
%
2.8
1.3
0.9
1.0

Class 6

5

No.

%
16.0
6.6
7.3
6.8

58
33
22
9

All Classc
No.

%
10.8
6.0
3.9
1.6

538
546
562
575

Purchasing and selling Fed funds in at least 47 weeks of the year and with weekly average purchases
or sales of usually $10 million or more.
Purchasing in at least 12 weeks of the year and selling in at least 12 weeks of the year (but not
necessarily in the same week), but at a frequency or volume of transactions less than banks in Class 1.
Selling more frequently than buying and reporting transactions in at least 12 weeks of the year but
buying in less than 15 weeks.
Purchasing more frequently than selling and reporting transactions in at least 12 weeks of the year
but selling in less than 15 weeks.
Reporting transactions in less than 12 weeks of the year.
Reporting no transactions.

be predominant buyers (class 4). Data for the first
half of 1973 indicate that there has been a further
increase in the number of banks in the first and
second classes and a continued decline in oc­
casional participants.
A surprisingly large number qualify as heavy
buyers and sellers (class 1). In 1972, 34 banks
in 15 large District cities both bought and sold
substantial volumes of funds nearly every week,
compared with only 15 in 7 cities in 1969. The
number of banks, mostly moderately sized, that
both purchase and sell funds frequently (class 2) is
also large and growing— 122 banks in 1972
compared with 82 in 1969. This indicates that many
turn to the market, at least temporarily, to purchase
needed funds as well as to dispose of excess
and that this number is expanding. However, over
60 percent of member banks were still predominant­
ly sellers in 1972, though this percentage may have
peaked out. In that year, only nine did not
participate in the market.
M arke t Participation

Relatively few banks rely continuously on the
market to finance their asset positions. Only
twenty have nearly always been in a net purchase
position since weekly data began to be collected
in early 1969. The number regularly in a net
purchase position has been increasing, however;
but few of these have relied heavily on the
market as a source of funds. The degree of market
participation was measured by finding the
ratio of interest expenses on funds purchases—
net of earnings on funds sales— to total operating
expenses. Only a small number ever reported net
funds expenses as more than 5 percent of total
operating expenses. For example, even in 1969
when money was tight and Fed funds interest
rates were high, only 12 did (see Table 2). However,
the number reporting high ratios should jump in
1973 because of sharp increases in Fed funds rates
FEDERAL RESERVE
 BANK O F ATLANTA


TA BLE 2
Net Fed Funds Expenses as a
Percent of Total Operating Expenses
No. of Banks
1971
1969
1970
12% or more
10-11
8-9
6-7
4-5
2-3
0-1

3
2
2
5
10
13
20

2
2
2
2
8
6
21

1972
1
1
3
3
7
11
42

0
0
1
3
6
13
26

Note: Figures cover Sixth District member banks reporting
positive ratios. Net Fed funds expenses are interest
paid on Fed funds purchases minus interest earned
on Fed funds sales.

TA BLE 3
Earnings on Fed Funds Sales as a
Percent of Total Operating Earnings
No. of Banks
1969
1970
1971
20% or more
13
15
6
15-19
14
18
14
10-14
34
51
27
5-9
101
154
106
0-4
314
271
383
No earnings
62
37
26

1972
4
6
27
104
420
14

Note: Figures cover Sixth District member banks.

and in the number of banks in a net purchase
position. The highest ratio reported by an individual
bank was, respectively, 28 percent in 1969, 22
percent in 1970, 9 percent in 1971, and 12 percent
in 1972.
Funds sales, on the other hand, have been an
important source of interest income to many banks,
especially in 1969 and 1970 when Fed funds rates
were high. Sixty-one banks in 1969 and 84 in 1970
reported funds earnings equal to 10 percent or more
of total operating earnings (see Table 3).2The
2ln each year, a few new banks that sold funds heavily in the
months immediately after opening reported high ratios.

127

Federal Funds Transactions and Rate

Bil. $

2.0

1.0

0
%
10

• F ig u r e s co v e r S ix th D is t ric t m e m b e r b a n k s an d r e p re se n t w e e k ly a v e ra g e s of d a ily fig u re s.

number in this category declined in 1971 and 1972,
reflecting a decline in Fed funds rates. Because
of sharp increases in rates, Fed funds income has
become more important this year to those that are
regular sellers.
Trends and C yclical Behavior

Both purchases and sales by District members
trended up strongly between 1969 and 1972
(see chart). Gross purchases grew steadily in 1969
and early 1970, leveled off from April 1970 to
August 1971, and then grew steadily again. Gross
sales fluctuated around the $500-million level in
the first eight months of 1969 and then climbed
rapidly through April 1971. Since then, sales have
been on an upward trend but shown wider swings

128



than purchases. Sales, moreover, usually reach
a low in late summer and a high around year-end
or early in the year.
In aggregate, District members were a net pur­
chaser of funds from the rest of the banking
system in much of 1969 and in most of the period
since April 1972, generally times of high or
rising Fed funds interest rates. Conversely,
District members were in a net sell position
from early 1970 to April 1972 when Fed funds rates
were generally low or falling. An earlier article
found the District a net purchaser in 1966, a tight
money year, and a net seller in the early 1960's, a
period of easy money. Over the past ten years,
therefore, the District has usually been in a net buy
position when money was tight and in a net sell
position when money was easy. ■

A U G U ST 1973, M O N T H L Y REVIEW

July 9 ,1 9 7 3

E X C H A N G E STA TE B A N K

B an k
A n n o u n ce m e n ts

June 15,197 3

S E C O N D N A T IO N A L B A N K O F H O M E S T E A D

Homestead, Florida
Opened for business as a member. Officers: Anthony
P. Cassinelli, chairman; Paul Mansfield, ]r., president;
Robert Swarthout, assistant vice president; George D.
Munroe, cashier. Capital, $400,000; surplus and other
funds, $600,000.

Clinton, Mississippi
Opened for business as a par-remitting nonmember.
Officers: Edwin Faust, Jr., president; Odie Smith, Jr.,
vice president and cashier. Capital, $300,000; surplus and
other funds, $450,000.

July 10,197 3

FIRST S E C U R IT Y B A N K

Bradenton, Florida
Opened for business as a member. Officers: W. James
Tyrrell, chairman; Samuel L. Bender, president; Glen C.
Dimon, vice president and cashier; Genevieve C. Roak,
assistant cashier. Capital, $600,000; surplus and other
funds, $400,000.

June 16,197 3

July 13,197 3

U N IT E D C IT IZ E N S B A N K O F
CHEATHAM COUNTY

A M E L IA IS L A N D B A N K

Ashland City, Tennessee
Opened for business as a par-remitting nonmember.
Officers: Charley Ray Harris, president; Shelton
Harrison, chairman. Capital, $200,000; surplus and other
funds, $400,000.

Fernandina Beach, Florida
Opened for business as a par-remitting nonmember.
Officers: A. B. Maxwell, Sr., president; Dale P. McKinney,
vice president; James M. Horn, cashier. Capital, $400,000;
surplus and other funds, $350,000.

July 15,197 3
June 26,197 3

T H E W E S T S ID E B A N K O F V E R O B E A C H

Vero Beach, Florida
Opened for business as a par-remitting nonmember.
Officers: Warren D. Haffield, president; Angelo J.
Sanchez, vice president and cashier. Capital. $350,000;
surplus and other funds, $262,000.

T H E PER R Y C O U N T Y B A N K

Marion, Alabama
Opened for business as a par-remitting nonmember.
Officers: Robert R. Frayne, president. Capital, $300,000;
surplus and other funds, $300,000.

July 17,1973
July 2 ,1 9 7 3

F IRST STATE B A N K O F A R C A D IA

A U B U R N B A N K A N D TRU ST C O M P A N Y

Arcadia, Florida

Auburn, Alabama
Opened for business as a par-remitting nonmember.
Officers: Kermit Wilson, president; John F. Dunlap,
Jr., cashier. Capital, $377,000; surplus and other
funds, $377,000.

Opened for business as a par-remitting nonmember.
Officers: William J. Briscoe, president; James C. Kynett,
vice president and cashier. Capital, $275,000; surplus
and other funds, $275,000.

July 19,1973
July 7, 1973

FENTRESS C O U N T Y B A N K

Jamestown, Tennessee
Opened for business as a par-remitting nonmember.
Officers: Glen Massengill, president; Don Free, vice
president and cashier. Capital, $300,000; surplus and other
funds, $450,000.

F IRST N A T IO N A L B A N K O F P O R T S A L E R N O

Port Salerno, Florida
Opened for business as a member. Officers: Duane K. Luce,
chairman; Jack T. Williams, president and chief
executive officer; Charles R. Harris, executive vice
president; Mrs. Jean P. Sempey, cashier. Capital, $600,000;
surplus and other funds, $400,000.

July 9 ,1973

July 25,197 3

C E N T R A L B A N K O F M IS S IS S IP P I

B IV E N S G A R D E N S B A N K

Brandon, Mississippi

Gainesville, Florida

Opened for business as a par-remitting nonmember.
Officers: Charles H. Griffin, president; James E. Huffstatler,
vice president and cashier. Capital, $510,000; surplus
and other funds, $510,000.

Opened for business as a member. Officers: Robert F.
Lanzillotti, chairman of the board; Robert L. Vasbinder,
president; James L. Kaercher, vice president and cashier.
Capital, $900,000; surplus and other funds, $270,000.

FEDERAL RESERVE
 BAN K O F ATLANTA


129

S

i x

t h

D

i s

t r i c

t

S

t a

t i s t i c

s

S e a s o n a l l y A d ju s t e d
(A ll d a ta a re in d e x e s, u n le s s in d ic a t e d o th e r w is e .)

Late st Month

One
Month
Ago

Two
Months
Ago

One
Y ea r
Ago

SIX T H D IS T R IC T

Month
Unem plo ym ent R ate
(P erce n t of W ork F o r c e ) .................... Ju n e
Avg. W eekly H rs. in Mfg. (H rs.) . . . Ju n e

IN COM E AND SP EN D IN G
.
.
C r o p s ............................................................,
Live sto ck
...................................................
In stalm e n t Cre d it at B a n k s* / 1 (Mil. $)
.
.

Ju n e
May
May
May

161
164
239
184

159
166
153
183

161
173
184
179

146
114
151
107

Ju ne
Ju ne

632
547

679
563

684
562

614
502

One
Month
Ago

TWo
M onths
Ago

One
Y ea r
Ago

4.3
41.4

4.3
40.5

4.1
41.3

5.0
41.5

214
186
205

213
185
194

208
182
197

176
160
165

169
214

164
149

169
151

145
140

141
120
146
177
103

141
118
145
177
105

140
119
144
177
99

132
114
136
157
85

2.8
40.8

2.8
40.8

3.2
41.6

3.2
41.3

263
224
270

259
224
267

251
216
259

196
185
217

155
178

154
185

158
184

142
132

122
109
127
125
81

122
109
128
126
86

122
109
127
127
84

120
108
125
124
80

3.7
39.7

3.8
40.4

3.6
41.1

3.6
40.9

FIN A N C E AND BAN KIN G
Mem ber B an k L o a n s ................................... Ju ne
M em ber B an k D e p o s i t s .............................. Ju n e
B an k D eb its**
............................................. Ju n e
FLO RID A
IN COM E

EM P LO Y M E N T AND P R O D U CTIO N
Nonfarm E m p l o y m e n t ...............................Ju n n e
Ju e
M anufacturin g
........................................ Ju ne
. Ju ne
Nondurable G o o d s ..............................June
F o o d .......................................................Ju ne
Ju ne
T e x t i l e s ..............................................June
Apparel
.............................................Ju ne
. Ju ne
P a p e r ..................................................June
. Ju ne
P rinting and Pu b lish ing
. Ju ne
C h e m i c a l s ........................................June
D urable G oods . . . .
. Ju ne
Lbr., Wood Prods., Furn . & Fix . Ju ne
June
Stone, C lay, and G la ss
. Ju n e
P rim ary M e t a l s .............................. Ju n e
Fab ricate d M e t a l s ..........................Ju n n e
Ju e
M a c h i n e r y ........................................ June
Transportation Equipm ent
. Ju ne
N onm anufacturing
. . . .
. Ju ne
C o n s t r u c t i o n ...................................June
. Ju ne
Transportation
..............................June
. Ju ne
T r a d e ..................................................Ju ne
F in ., in s., and real e st...................Ju ne e
. Ju n
S e r v i c e s .........................
Fed eral G o v e r n m e n t ....................June
. Ju ne
Sta te and Local Governm ent
. Ju n e
Farm E m p lo y m e n t ........................................Ju ne
Unem ploym ent R ate
(P ercent of Work F o r c e ) .....................Ju ne
Ju ne
Insured U nem ploym ent
(P erce n t of Cov. E m p . ) ..........................Ju nn e
Ju e
Avg. W eekly H rs. in Mfg. (Hrs.
. Ju n e
. Ju ne
C o n stru ctio n C o n tra cts*
. .
R e s i d e n t i a l ...................................................Ju nn e
Ju e
All O t h e r .......................................................Ju n n e
. Ju e
E le ctric Pow er Pro d uctio n **
. Dec.
Cotton C o n s u m p t i o n * * ...............................Apr
Apr.
Petroleum P ro d uctio n **
. .
. Ju ly
M anufacturing P r o d u c t i o n ....................Apr.
. Apr.
Apr.
N ondurable G o o d s ....................................Apr.
. Apr.
Food
..............................
. Apr.
T e x tile s
.............................................Apr,
Apparel
.............................................Apr
. Apr.
P a p e r ...................................................Apr,
Apr.
P rinting and Pu b lish in g
. Apr.
. Apr.
C h e m i c a l s ........................................Apr.
D urable G o o d s .........................................Apr.
Apr.
Lum b er and W o o d ....................Apr.
. Apr.
. Apr.
Fu rn itu re and F ix tu re s
. Apr.
Stone, C lay, and G la s s
P rim ary M e t a l s ......................... ..... Apr.
Fab ricate d M e t a l s ..........................Apr.
Apr.
. Apr.
N o n electrical M achinery
. Apr.
E le c tric a l M a c h i n e r y ....................Apr.
. Apr.
Transp o rtatio n Eq uipm ent

125
114
112
101
111
111
111
124
107
116
110
119
111
127
141
108
129
131
122
131
136
134
99
132
84

125
114
112
103
110
110
111
123
107
116
110
120
110
127
139
106
129
132
123
131
135
134
102
131
86

125
114
112
104
110
110
111
123
106
116
110
121
109
127
138
107
128
133
122
131
135
132
101
131
81

120
111
111
102
108
109
110
119
105
112
107
114
106
119
130
108
124
125
117
125
130
130
100
126
86

3.8

3.8

3.7

4.0

1.8
40.6
275
308
242
188
79
115
292
244
188
288
297
223
164
306
349
200
191
207
232
289
445
770
454

1.7
40.6
203
276
131
187
85
114
291
242
188
284
294
223
164
307
349
200
191
207
234
285
436
772
459

1.6
41.2
227
285
171
186
81
114
289
239
186
282
287
222
162
306
348
200
191
207
231
283
436
778
453

2.4
41.1
196
249
144
168
85
124
269
234
185
266
290
215
164
299
311
193
183
185
200
267
398
650
413

. Ju ne
. Ju ne

234
221

231
216

226
214

181
167

. Ju ne
. Ju ne

195
173
236

194
171
234

190
168
232

165
146
191

F IN A N C E AND B AN KIN G
Lo an s*

D ep o sits*

M anufacturin g Pa yro lls
......................... Ju ne
Farm C a sh R e c e i p t s ................................... May
EM P LO YM EN T
Nonfarm E m p l o y m e n t .............................. June
M anufacturing
........................................ Ju ne
N onm anufacturing
.............................. Ju n e
C o n s t r u c t i o n ........................................ Ju n e
Farm E m p lo y m e n t ........................................ Ju ne
Unem ploym ent Rate
(P ercent of Work F o r c e ) .................... Ju n e
Avg. W eekly H rs. in Mfg. (H rs.) . . . Ju n e
F IN A N C E AND B AN KIN G
M em ber B an k L o a n s ...................................Ju ne
Member B an k D e p o s i t s ..............................Ju ne
B an k D eb its**
............................................. Ju ne
G EO R G IA
IN CO M E
M anufacturing P a y r o l l s .............................. Ju ne
Farm C a sh R e c e i p t s ................................... May
EM P LO YM EN T
Nonfarm E m p l o y m e n t .............................. Ju n e
........................................ Ju n e
M anufacturin g
N o n m a n u f a c tu r in g ................................... Ju n e
C o n s t r u c t i o n ........................................ Ju n e
F arm E m p lo y m e n t ........................................ Ju n e
Unem ploym ent R ate
(P ercent of Work F o r c e ) .................... Ju ne
Avg. W eekly H rs. in Mfg. (H rs.) . . . Ju n e
F IN A N C E AND B AN KIN G
M em ber B an k L o a n s ...................................June
M em ber B an k D e p o s i t s ......................... Ju n e
B an k D e b i t s * * ............................................. Ju n e

232
182
264

231r
183
261

233
179
283

179
148
203

148
234

147
143

148
143

136
106

112
104
114
93
76

114
105
115
97
76

114
105
115
100
73

111
104
113
95
75

6.1
41.4

6.0
41.4

5.4
4 1.9

5.7
42.5

214
173
187

211
169
175

197
166
172

159
153
161

175
118

171
205

174
245

163
140

121
126
119
109
81

122
126
120
113
82

122
126
120
114
64

118
123
116
112
88

LO UISIAN A
JN CO M E
M anufacturin g P a yro lls
......................... Ju n e
F arm C a sh R e c e i p t s ...................................May
EM P LO YM EN T
Nonfarm E m p l o y m e n t .............................. Ju n e
M anufacturin g
........................................ Ju ne
N o n m a n u f a c tu rin g ...................................Ju ne
C o n s t r u c t i o n ........................................ Ju ne
Farm E m p lo y m e n t ........................................ Ju ne
Unem ploym ent R ate
(P ercent of Work F o r c e ) .................... Ju n e
Avg. W eekly H rs. in Mfg. (H rs.) . . . Ju n e
F IN A N C E AND B AN KIN G
M em ber B an k L o a n s * .............................. Ju n e
M em ber B an k D e p o s i t s * ......................... Ju n e
B an k D e b its*/**
........................................ Ju n e
M IS S IS S IP P I
IN CO M E

. Ju ne
. May

158
224

153
209

155
200

142
62

. June

115
112
116
114
70

115
112
116
117
80

114
111
116
113
74

112
109
113
111
76

EM PLO YM EN T

E M P LO Y M E N T

M anufacturing

130



M anufacturing P a y r o l l s .............................. Ju n e
Farm C a sh R e c e i p t s ................................... May

Nonfarm E m p l o y m e n t .............................. Ju n e
M anufacturin g
........................................ Ju n e
N o n m a n u f a c tu r in g ................................... Ju n e
C o n s t r u c t i o n ........................................ June
Farm E m p lo y m e n t ........................................ Ju ne

A U G U S T 1973, M O N T H L Y RE V IEW

One
Month
Ago

L ate st Month
U n em ploym ent R ate
(P ercent of Work F o r c e ) ....................Ju n e
Avg. W eekly Hrs. in Mfg. (H rs.) . . . Ju n e

Tw o
M onths
Ago

One
Y ear
Ago

4.2
40.7

4.3
40.9

Tw o
M onths
Ago

On*
Y ear
Ago

124
116
128

124
115
129
123
83

119

EMPLOYMENT
4.2
40.6

4.2
40.3

228
195
219

220
189
217

Nonfarm E m p l o y m e n t ..............................Ju n e
M anufacturing
........................................Ju ne
N o n m a n u f a c tu rin g ...................................Ju ne
C o n s t r u c t i o n ........................................Ju n e
Farm E m p lo y m e n t ........................................June
U nem ploym ent Rate
(P ercent of Work F o r c e ) ....................Ju n e
Avg. W eekly H rs. in Mfg. (H rs.) . . . Ju n e

F IN A N C E AND BAN KIN G
Mem ber B an k L o a n s * ..............................Ju n e
M em ber B an k D e p o s i t s * ......................... Ju ne
B an k D e b its*/**
........................................Ju n e

On*
Month
Ago

Late st Month

212
183
221

183
168
193

124
116
128
121
93

12
2
84

3.0
40.5

12
1
123

10
2
92

40.9

40.5

213
177
188

179
158
173

TEN N ESSEE
F IN A N C E AND B AN KIN G
M anufacturing P a y r o l l s .........................June
Farm C a sh R e c e i p t s ...................................May

165
252

166
159

166
175

*F o r Sixth D istrict area only; o ther to tals for e ntire six state s

M em ber B an k L o a n s * ..............................Ju n e
M em ber B an k D e p o s i t s * ......................... Ju n e
B an k D e b it s * / * * .............................................Ju n e

149
106
**D a iIy average b a sis

tP re lim in a ry data

214
178
183

219
178
198

r-Revised

N.A. Not av a ilab le

Note: Indexes for bank debits, construction contracts, cotton consumption, employment, farm cash receipts, loans, petroleum
production, and payrolls: 1967 = 100. All other indexes: 1957-59=100.
S o u rce s: M anufacturin g production e stim a ted by th is B an k; nonfarm , mfg. and non mfg. em p., mfg. p ayro lls an d hours, and unem p., U .S . Dept, of Lab or and cooperating
state ag e n cie s; cotton con su m p tio n, U .S. B ureau of C e n s u s ; con stru ction co n tracts, F . W. Dodge Div., M cGraw-Hill Inform ation Sy ste m s Co.j petrol, prod., U .S . B u re au of
M ines; in d u stria l u se of e le c. power, Fed. Power Com m .; farm ca sh receip ts and fa rm em p., U.S.D .A. O ther ind ex es based on data co llected by th is B an k. All indexes
ca lcu la te d by th is B an k.
’ Data b enchm arked to Ju n e 1971 Report of Condition

D

e

b

i t s

t o

D

e

m

a

n

d

D

e

p

o

s

i t

A

c

In s u r e d C o m m e r c ia l B a n k s in th e S ix t h D is t r ic t
(In T h o u s a n d s o f D o lla r s )
Pe rce n t Shange

Ju ne
1973

May
1973

Ju ne
1972

P e rce n t Change

Y ear
to
Ju n e
date
1973
6 mos.
From
1973
May Ju ne from
1973 1972 1972

Y ea r
to
d ate
6 m os.
1973
May Ju n e from
1973 1972 1972

STAN DARD M ETR O PO LITA N
ST A T IS T IC A L A R E A S **
B irm in gham
. . . .
G ad sden
. . . .
H un tsville . . . .
....................
Mobile
Montgomery . . .
T u scalo o sa
. . .

3,251,777
98,600
305,283
1,056,940
619,006
217,036

2,749,881
90,002
263,750
864,642
508,634
157,648

+ 2
+ 2
+ 8
- 2
—7
- 3

+ 21
+ 12
+ 25
+ 20
+ 14
+ 33

+ 19
+ 18
+ 16
+ 14
+21
+ 26

716,103
347,569

748,261
362,849

601,134
306,412

- 4
—4

+ 19
+ 13

+ 25
+21

1,776,008
308,846
241,649
3 ,641,502

1,778,040
320,666
241,844
3,688,497

1,621,908
220,637
214,393
3,325,793

—4
- 0

+ 10
+ 40
+ 13
+ 9

+ 15
+ 35
+ 19
+ 22

446,998
6,418,014
1,473,773
432,957
502,901
763,134
3,812,678
1,141,515

443,185
6,613,924
1,464,200
418,450
481,536
911,258
3,840,789
1,233,882

371,080
5,191,506
1,283,001
412,144
332,795
541,333
3,009,760
884,897

+ 20
+ 24
+ 15
+ 5
+51
+41
+27
+ 29

+ 27
+ 26
+ 21
+ 10
+ 47
+ 45
+23
+ 36

194,594
15,184,118
496,861
406,285
515,173
504,621

186,459
15,333,669
514,352
375,412
519,144
525,302

168,257
11,393,197
448,375
365,907
453,632
457,436r

+ 16
+33
+ 11
+ 11
+ 14
+ 10

+ 20
+41
+ 17
+ 10
+ 18
+ 19

.
.

225,932
1,295,321
254,304
212,866
4,086,837

235,908
1,242,160
266,460
220,726
4,156,968

203,518
1,103,748
222,816
203,892
3,625,015

4
+ 4
— 5
- 4
- 2

+ 11
+ 17
+ 14
+ 4
+ 13

+ 18
+ 10
+21
+ 8
+ 9

Biloxi-Gulfport . .
Ja ckso n ....................

268,126
1,390,882

281,968
1,436,628

227,293
1,181,157

_

+ 18
+ 18

+ 22
+ 23

Chattanooga . . .
K noxville
. . . .
N a shville
. . . .

1,210,253
846,598
3,141,170

1,232,366
860,827
3,209,257

1,003,684
753,506
2,899,624

+21
+ 12
+ 8

+ 19
+ 19
+ 20

Albany
....................
A t l a n t a ....................
A u g u s t a ...................
Colum bus . . . .
Macon
....................
Sa van nah
. . . .
A lexandria
. .
Baton Rouge
.
Lafayette
. . . .
Lak e C h a rle s
.
New O rlea ns
.

.
.

O T H ER C E N T E R S
Anniston
. . . .

Ju ne
1973
Dothan
S elm a

3,323,085
100,427
330,191
1,035,244
577,406
210,117

Bartow -LakelandW inter Haven
Daytona B ea ch . .
Ft. LauderdaleHollywood . . .
Ft. M yers . . . .
G a in e sv ille
. . .
Ja ck so n v ille
. . .
M elbourneT itu sv ille C o co a
. . . .
....................
Miami
O r l a n d o ....................
P ensaco la . . . .
Sa raso ta
. . . .
T a lla h a sse e
. . .
Tam pa-St. Pete
W. Palm B ea ch

Ju n e
1973
From

110,670

115,068

102,373

0

1

■ 1

—3

+ 1
+ 3
+ 4
16
- 1
- 7
+ 4

—1
—3
+ 8
— 1
- 4
_

5
3

_ 2
—2
-

2

4

+ 8

+ 15

. . . .
. . . .

May
1973

Ju n e
1972

175,024
71,148

170,437
75,671

125,106
58,800

+ 3
- 6

+ 40
+ 21

+ 28
+ 28

B radenton . . .
Monroe County
O c a l a ....................
St. Augustine
St. Petersb urg .

168,488
70,210
194,952
29,479
988,644
1,808,967

178,016
72,570
194,903
26,956
1,012,003
1,846,631

141,513
58,223
153,930
32,090
703,277
1,508,443

_

+ 0
+ 9
— 2
- 2

+ 19
+ 21
+ 27
- £
+ 41
+ 20

+ 29
+ 25
+ 32
-1 0
+ 36
+19

A then s
. . . .
B ru n sw ick . . .
Dalton
. . . .
Elberton . . . .
G a in e sv ille
. .
Griffin
. . . .
LaG rang e
. . .
Newnan . . . .
R o m e ...................
Valdosta

162,051
95,591
179,908
22,667
126,714
65,919
47,522
67,223
139,004
94,583

153,196
101,606
182,160
21,787
133,617
70,621
37,807
65,846
135,697
96,493

158,144
80,801
164,367
25,568
106,878
64,442
33,332
52,104
124,304
84,361

+ 6
— 5
1
• 4
- 5
— 7
+ 26
+ 2
+ 2
- 2

+ 2
+2C
+ S
-1 1
+ 19
+ 2
+ 43
+2S
+ 12
+ 12

+ 13
+ 22
+ 18
+ 5
+ 28
+ 20
+ 25
+ 47
+ 13
+ 13

16,546
10,882
77,054
53,163
25,472
38,504

16,061
9,626
81,669
57,748
26,895
37,132

15,947
8,643
56,421
50,600
16,658
30,346

+ 3
+ 13
6
8
- 5
+ 4

+ 3
+ 26
+ 37
+ 5
+ 53
+ 27

+ 1
+ 24
+ 32
+11
+ 54
+ 12

133,233
67,402
113,730
51,280

125,723
72,984
120,384
51,664

108,457
59,442
104,376
59,506

+ 6
— 8
— 6
— 1

+ 23
+ 13
+ 9
-1 4

+ 23
+ 20
+ 17
+ 5

.
.

139,563
67,691
38,019

152,649
65,622
39,456

153,635
59,516
36,515

9
+ 3
- 4

- 9
+ 14
+ 4

+ 20
+ 23
+ 3

B ristol
. . . .
Johnson City
Kingsport . . .

114,982
166,638
254,935

111,779
175,303
261,944

128,246
154,704
226,784

+ 3
— 5
- 3

-1 0
+ 8
+ 12

- 0
+ 14
+ 17

.

. 71,483,057

72,258,607

59,459,567r -

1

+ 20

+ 25

Alabam a
. . .
Florida
. . . .
Georgia . . . .
L o u isia n a '
. .
M ississip p i1 . .
T e n n e sse e 1
. .

. 8,040,573
. 24,448,013
. 20,877,609
. 7,284,519
. 2,994,069
. 7,838,274

7,876,763
24,956,948
21,120,817
7,357,955
3,066,320
7,879,804

6,587,714
20,177,359r
16,506,218
6,421,404
2,667,168
7,099,704

_

2
2
1
1
2
1

+ 22
+21
+ 26
+ 13
+ 12
+ 10

+ 19
+ 25
+ 34
+ 21
+ 19
+ 18

A bbeville
.
B un kie
. . .
Ham mond
.
New Iberia
P laquem ine
Thibodaux .

.

.
.

.
.
.
.

H attiesburg
.
Laurel
. . . .
M eridian
. .
N atchez . . . .
PascagoulaM oss Point
Vicksb urg . .
Yazoo City
.

strict

Total

.

.
.
.
.
.
.

5

— 3

_

—

—
—
—

-

1 District portion only

r-Revised
Fig ures for som e areas differ sligh tly from p relim inary figures published in “ Bank Debits and Deposit Turno ver” by Board of G overnors of the Federal R eserve System .
** Conform s to SM S d efinitions as of Decem ber 31, 1972.

FEDERAL RESERVE
 BAN K OF ATLANTA


131

c

D

i s

t r i c

t

B

u

s

i n

e

s

s

C

o

n

d

i t

i o

The lack of unused capacity is m oderating the Southeast's ec o n o m ic grow th this sum m er. Farm prices,
incom es, and costs rose briskly, but livestock p ro du ction declined. T ight labor m arkets continue. Despite
som e slow in g, consum e r sp e n d in g and b o rro w in g rem ain at a high level. Bank le n d in g contin u es strong
but b e low the very rapid pace seen earlier this year. C onstru ction activity reb ou n d e d in June after tw o
m onths o f decline.
the farm sector confirm s the

than in any m onth since July 1972. Loans to pu r­

current agricultural price pressures; farmers received

M o s t news from

chase n on au tom otive co nsum e r g o o d s and to repair

higher prices in June, especially for grain. The price

hom es grew less than in the average m onth of 1973.

advance w as m ore m oderate in the livestock sector
with cattle and calf prices registering slight declines
from

M a y 's

levels. G ro w in g

crops show ed

good

prospects for excellent yields, but pork, poultry, and

Personal loans were the only strong c o nsum e r len d­
ing category in June. Sales at departm ent stores in
m ajor

m etropolitan

areas

continued

to

be

w ell

above last year's level. The fast pace o f District auto
sales slow ed in June.

e gg producers cut back production in response to
rapidly rising costs. A verage June prices for livestock
feed advanced 14 percent from M a y 's level. A large
agricultural len ding agency in the District recently
raised its interest rate on short-term loans to 8.25
percent; it was 5.75 percent at the be gin n in g of the
year. Farm cash receipts continue to increase.
A

d w in d lin g sup ply o f u nem p loyed

contributed to

rapid pace o f spring. A lth o u gh deposit grow th w as
strong, banks relied heavily on Federal funds pur­
chases and b o rrow in gs from the Federal Reserve.
C o n su m e r loans and real estate loans contin u ed to
increase at large banks, w hile business loans regis­

labor has

a slo w in g o f em p loym en t

Bank lending, w hile still registering strong gains,
appears to have m oderated from the exceptionally

gains.

Sm all gains in m anufacturing jobs were offset by job
losses in non m anu facturin g The u nem p loym en t rate
rem ained u nchanged at 3.8 percent. Reflecting tight
labor markets, all District states except Louisiana
have u nem p loym en t rates belo w the U. S. average.
The factory w orkw eek held steady, but m anufactur­
ing payrolls rose after d ip p in g the previous month.
G row th in consum er credit continues to slow.
In June, lending for auto purchases increased less

tered o n ly m oderate gains. By late July, m ost District
banks had increased their prim e rate for larger b u si­
ness custom ers to 83A percent.
A b u n ch in g o f large contracts b o o ste d the value
of construction contract aw ards in June. After tw o
m onths of decline, both residential and n on residen ­
tial aw ards regained their relatively high first quarter
levels.

Large contracts

boosted

both

sectors.

At

thrift institutions, deposit inflow s and value of c o m ­
m itm ents declined w hile len din g increased slightly.
Residential m ortgage rates contin u ed to rise.

Note: Data on which statements are based have been adjusted whenever possible to eliminate seasonal influences.


132


A U G U ST 1973, M O N T H L Y REVIEW

n