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Fe d e r a l R e s e r v e B a n k
OF ATLANTA.
ATLANTA, GA., August 25th, 1919.
Monthly Report on Business and Agricultural Conditions in the
Sixth Federal Reserve District
--------
BY
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J O S . A. M c C O R O ,
FEDERAL R ESER VE AGENT
COMMERCIAL.
The month of August has seen little of the usual slackening of commercial activity in the
Sixth Federal Reserve District. In a very few instances there are indications of a slight lull, but
in a large majority of our reports no mention is made of anything in the nature of a let-up in
the pace that has existed for several months. Fall buying has continued, although the agitation
of the question of the high cost of living has caused some merchants to exercise caution in buying,
and has probably caused some dealers to purchase in somewhat smaller quantities than was antici
pated a few weeks ago.
FINANCIAL.
On the recent rise in the price of cotton sales were made by a number of those who had held
the staple for 35 cents. This has caused considerable liquidation of commercial paper based on
cotton, making these funds available for other purposes, and relieving to this extent the demand
for loans. Interest rates have remained steady. Bank deposits have increased in many instances,
and collections are reported fair for this season of the year.
FOREIGN TRADE.
The favorable conditions outlined in last month’s report in connection with trade with Central
and South American countries through the Gulf ports, continue, although unfavorable labor condi
tions have delayed shipping to a small degree.
Much interest is manifested over the announcement that the South Atlantic and Gulf ports
are to be placed on a parity with North Atlantic ports in the matter of freight rates from the middle
west. The press announcement indicates that orders have been issued by the Railroad Adminis
tration for the issuance and filing of tariffs quoting reduced rates from middle western points to
South Atlantic and Gulf ports, which will place these ports on an equal footing with North Atlantic
ports with regard to exports originating in the middle western states.
AGRICULTURE.
Heavy rains have continued in a large part of this District during the month. In South
Georgia, South Alabama, and South Mississippi and Florida excessive rains have resulted in consid
erable injury to crops and prevented their cultivation. The excessive wet weather has been ex
tremely favorable to the rapid multiplication of the boll weevil, and in the territory mentioned the
damage from this insect promises to be greater than ever before over such a large area. The rains
have also resulted in an unusually large amount of leaching of the soils and reports indicate that
practically no crops are fruiting as well proportionately as their general appearance would indicate.
In some counties in Southeast Georgia it is reported there will be less than half a crop of cotton,
the condition in some instances being indicated as low as 25%.
Information taken from the reports of the Co-operative Crop Reporting Service indicates
that the quality of wheat raised in Georgia is below the average, but the yield per acre is about the
same as last season. The condition of the oat crop at harvest was very poor. Irish potatoes are
not very promising. Tobacco has suffered greatly from rains and unsatisfactory curing condi
tions. Reports now indicate that the crop will be only about 50% of normal in some sections, and
between 50 (i and 75c/ of normal in other parts of the District. In Georgia, Alabama and Missis
sippi the grades are very poor, and tobacco warehousemen and buyers have found it difficult in
many cases to deliver the tobacco from the warehouse to redrying plants before moulding or dam
aging because of the excessive wet weather.
Tennessee reports indicate that the wheat crop of that state has proved a disappointment,
this crop being one of the poorest on record as to yield and quality. Unlike other States of the
District, a general drouth has prevailed over the entire State of Tennessee during the latter part
of July and early August, from which all crops have suffered. The tobaco crop, one of the largest
in point of acreage, was badly handicapped in May and June by rains, but is now clean; it has
made slow growth and shows a tendency to button out too soon. Potatoes of both kinds are in
fair condition, but show the need of more moisture. The condition of oats and barley at harvest
was fair, but below the average. Vegetables of all kinds are below normal, and gardens depleted.
Fruits of all kinds are short, except blackberries, the production of which is above normal.
The corn crop in North Georgia, Alabama and Mississippi is fairly promising, and has suf
fered but little from rains. Most fields, however, contain more or less weeds and grass which are
sapping the soil fertility. Peanuts, velvet bean^, soy beans, etc., are making splendid growth and
while late promise good yields. Ribbon cane and sorghum for syrup havebeen poorly cultivated,
though where weeds and grass are not interfering too seriously, the crop promises fair yields.
Pastures are splendid and live stock on pasture are doing better than usual.
FLORIDA FRUITS AND VEGETABLES.
The citrus crop is reported to be in very good condition and development somewhat advancedv|
Buyers are now offering $1.75 to $2.25 on the trees for fruit, which is an unusual price at thiq|{
season, and indicates that the crop will bring record prices this fall and winter.
The unusually rainy weather has been detrimental to most of the staple crops, especially
com. In some sections the damage has been serious, and will result in high prices.
FLORIDA MEATS.
Though the cattle receipts in this market show considerable improvement over the previous
month, they were only about 25% of the receipts for July, 1918. Prices on heavy steers range
fifty cents higher than a month ago, or practically as high as at this season last year. Light
steers and other stuff are from seventy-five cents to $1.50 under last year’s prices.
The hog run for July, 1919, shows an increase of about 75% over receipts of July, 1918.
NAVAL STORES.
Turpentine has advanced very sharply since last report, and during the week ending August
25 the highest prices on record were reached, the Jacksonville quotation on August 8 being $1,611/4.
Rosin has declined within the past two weeks, but the decline is considered to be only temporary
and that after strike conditions are adjusted the price will be as high as before the decline. The
unfavorable weather still prevails and it is felt that this year’s crop will be no larger than that
of 1918.
LUMBER.
The demand for lumber continues in excess of the supply, while production remains below
80% of normal. Values are strong, and in all probability will continue so for many months.
LABOR.
While there still seems to be a large number of returned soldiers, and a large number of
colored people, idle in the cities, the manufacturing industries report no appreciable surplus of
labor, and farm labor is still very scarce. High prices are being paid for that which is available,
but the quality of labor has not equaled that before the war.
REAL ESTATE AND CONSTRUCTION.
The building boom continues in practically all of the cities of the District, and trading in
residences, business property and in farm lands, is active. There is still an acute shortage of
houses, especially for renting purposes.
COAL.
Coal production is reported not up to the standard, although there is some improvement
caused by increased domestic demand. The opening of several blast furnaces ’•gently has caused
an increased demand for coke. The total production of the Birmingham district for July, 1919,
was 1,107,775 tons, compared with 1,238,506 tons for June.
IRON, STEEL AND MISCELLANEOUS INDUSTRIALS.
The foundries, machine shops and pipe plants are working full time and business seems to
be improving. Pig iron manufacturers, from a sales standpoint, report that the pig iron situation
in this District has shown considerable improvement during the past six weeks. There has been
J* slight increase in price, and a much better demand during recent months.
The output of pig iron shows an increase in tonnage in July, as compared with June, of
1|*361 tons.
Cotton mills in Georgia are reported to be very active, operating full time, but not at night.
Reports from Alabama indicate that cotton mills in that State are not very active.
The business of the steel industry of that State appears to be improving. A brisk demand
for nails and all wire products, as well as steel bars, is reported, and orders are being received
freely. Prices have advanced during the past month from $2.00 to $5.00 per ton on nails and wire.
Operations show improvement and the output is slowly increasing.
The unfilled steel tonnage of the U. S. Steel Corporation shows a substantial increase. The
unfilled steel tonnage on July 31, 1919, was reported to be 5,578,661 tons, compared to 4,892,855
tons on June 30, 1919,
CLEARINGS— JULY.
1918.
9170,050,598.27
13,406,513.98
(not available)
24,637,900.25
19,477,971.53
5,502,523.00
11,202,008.65
192,559,281.10
1,350,232.01
23,279,509.80
62,697,159.52
11,487,342.06
18,579,600.85
6,247,949.59
5,484,797.10
Atlanta, (ia...............................................................................................................
Augusta, (ia..............................................................................................................
Macon, (la.
......................................................................................................
Savannah, (ia...........................................................................................................
Jacksonville, Fla. .................................................................................................
Tampa, Fla...............................................................................................................
Pensacola, Fla..........................................................................................................
New Orleans, La......................................................................................................
Vicksburg, Miss........................................................................................................
Chattanooga. Tenn..................................................................................................
Nashville, Tenn.......................................................................................................
Knoxville, Tenn....................................................... ...............................................
Birmingham, Ala......................................................................................................
Mobile, Ala................................................................................................................
Montgomery, Ala. ...................................................................................................
1919.
$244,476,445.38
16,232,187.53
87,395,499.65
36,825,463.92
33,836,462.57
7,299,484.27
15,023,417.27
251,525,430.03
1,415,617.82
27,097,366.00
62,679,545.33
11,849,984.35
53,266,485.98
8,718,449.41
6,789,290.24
BUILDING OPERATIONS—JULY, 1919.
Atlanta, (ia.......
Augusta, (la. ...
Brunswick, (ia.
Macon, (ia.........
Home, (ia. .......
Savannah, (la. .
Wayeross, (ia. .
•Columbus, Ga.
•Montgomery, Ala........
Anniston, Ala...............
•Sheffield, Ala...............
•Tuscaloosa, Ala...........
Mobile, Ala...................
Florence, Ala...............
Bessemer, Ala. ..........
Jacksonville, Fla.........
Miami, Fla....................
•Orlando, Fla................
Tampa, Fla...................
West Tampa, Fla. .....
•West Palm Beach, Fla.
Gainesville, Fla............
'•Pensacola, Fla..............
•Chattanooga, Tenn.......
Knoxville, Tenn.
New Orleans, La.
Meridian, Miss......
•Vicksburg, Miss. .
Alexandria, La. ....
Repairs and Additions
Number
Value
193
$181,638
149
49,920
30
5,040
34
41,955
15
6,125
39
61,225
4
700
236
64,813
127
542,865
13
15,650
7
16,000
1
6
600
5,368
26
7
62,075
3,700
21
11
6
31
94
198,300
75,135
13,270
171,931
396,600
69
14
15,930
1,265
23
8
35,415
13,924
5
960
134
65,172
246
96
44
4
32,085
81,063
73,200
14,600
113
39
69
1
180,622
235,061
716,801
11,710
30
5,986
24
38,545
•Not reporting.
••Combined figures for new' construction and repairs.
New Buildings
Number
Value
130
$1,352,760
19
116,900
13
26,000
21
70,365
3
660
61
322,815
2
1,620
@FedFRASER