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MONTHLY REVIEW B U S IN E S S FED ERA L RESERVE C O N D IT IO N S IN T H E S IX T H F E D E R A L Trade Distribution of merchandise in the Sixth District at both retail and wholesale declined in July. Stocks at department stores were slightly lower, but wholesale in ventories increased. Business failures increased over June but were less than in July last year. ►Department store sales in July, on a daily average basis, were 18.0 per cent lower than in June, a decline somewhat smaller than usually occurs at that time of year, and after seasonal adjustment the index rose from 119.4 per cent of the 1923-1925 average for June to 125.9 for July. This is 11.0 per cent above the index for July last year and the highest for that month in the series. July sales by wholesale firms in this District reporting to the United States Depart ment of Commerce were off 2.1 per cent from June, but were 8.3 per cent greater than a year ago. For the seven months of 1939 department store sales have been 8.3 per cent, and wholesale trade 7.3 per cent, larger than in that part of 1938. C O N D IT IO N O F 2 2 M EM BER BANKS IN SELE C TED C IT IE S ( I n T h o u s a n d s of D o lla r s ) A u g . 16, C h a n g e F ro m : 1939 J u ly 1 2 ,1 9 3 9 A u g . 1 7 ,1 9 3 8 L o a n s a n d I n v e s tm e n ts — T o t a l................ . . . $ 5 7 8 ,5 6 6 — 1 6 ,8 7 0 + 2 7 ,1 1 6 L o a n s — T o t a l........................................................... . . . 2 8 2 ,0 0 1 — 271 — 2 5 ,4 5 8 C o m m e r c ia l, i n d u s tr i a l a n d a g r i c u l t u r a l l o a n s ...................................... . . . 1 5 2 ,5 7 7 — 2 4 ,6 6 5 — 1 ,2 3 0 O p e n m a r k e t p a p e r ...................................... 3 ,0 4 0 + 87 + 112 L o a n s to b r o k e r s a n d d e a l e r s in s e c u r i t i e s ..................................................., . . . 5 ,6 0 7 + 157 — 1 ,6 7 6 O th e r lo a n s fo r p u r c h a s i n g o r c a r r y i n g s e c u r i t i e s ............................. . . . — 3 ,4 7 2 1 1 ,2 0 9 — 681 + 3 ,3 8 7 R e a l e s t a t e l o a n s ........................................... . . . 3 0 .8 6 9 + 142 L o a n s to b a n k s ................................................ 1 ,3 7 7 + 245 — 2 ,3 1 0 + 3 ,0 8 5 O th e r l o a n s ........................................................ . 7 7 ,3 2 2 4- 1 ,0 9 0 + 2 7 ,3 8 5 In v e s tm e n ts — T o t a l ........................................... . . . 2 9 6 ,5 6 5 + 8 ,5 8 8 — 701 U . S . d ir e c t o b l i g a t i o n s ............................ 1 4 1 ,6 5 4 + 1 ,2 6 8 + 6 ,7 3 4 + 2 1 ,9 1 2 6 4 ,7 8 6 O b lig a tio n s g u a r a n t e e d b y U . S . . . + 6 ,1 8 6 9 0 ,1 3 5 + 596 O th e r s e c u r i t i e s .............................................. + 3 3 ,5 8 8 + 2 4 ,7 8 2 1 3 6 ,5 6 8 R e s e r v e w ith F . R. B a n k ............................... + 340 — 1 ,7 2 2 C a s h in v a u l t ............... .................................... 1 1 ,4 1 0 + 6 6 ,0 7 0 1 9 8 ,9 8 7 + 1 9 ,9 3 3 B a l a n c e s w ith d o m e s tic b a n k s ............... + 4 9 ,7 0 6 + 1 1 ,6 9 6 3 8 5 ,1 3 2 D e m a n d d e p o s i t s - a d j u s t e d .................... + 999 + 1 ,8 9 5 . 1 8 6 ,9 1 7 T im e d e p o s i t s ........................................................ — 1 ,5 5 7 + 1 5 ,5 4 3 3 8 ,4 8 8 U . S . G o v e r n m e n t d e p o s i t s ....................... + 6 0 ,9 9 4 + 1 0 ,7 5 7 2 5 6 ,7 2 5 D e p o s its o f d o m e s tic b a n k s ....................... B o r r o w in g s ............................................................. D IS T R IC T A u g u st 3 1, 1 9 3 9 BAN K O F A TLA N TA D is tr ic t In July merchandise distribution through S n m m n r 'V department stores in the Sixth District de^ clined less than usual, wholesale trade was only slightly lower , and there were notable gains in build ing permits, in contracts awarded for residential construc tion and in the rate of pig iron and coal production. Textile operations declined and there was a decrease in the total value of contract awards because of a decline in “All Other99 contracts. In July the changes in this District in department store sales, residential contracts and in output of pig iron were more favorable than those for the country, while the changes in total contract awards, textile operations and coal produc tion were less favorable. Comparing July this year with July 1938 the District gain in total contract awards was slightly less than for the country, but in other available statistical series the District gains were appreciably larger than those for the country as a whole. R E S E R V E ►Inventories at department stores declined less than usual in July and were 4.7 per cent larger than for July 1938, while wholesale stocks increased 4.7 per cent over June and were 2.5 per cent larger than a year ago. ►The collection ratio, for both department stores and whole sale firms, declined slightly in July. Banking In early August the Commodity Credit Corpo ration took over from the commercial banks a considerable volume of loans on cotton, and loans at weekly reporting member banks declined, investments increased somewhat, interbank deposits increased after declining in July, and demand deposits-adjusted rose to a new peak at the middle of the month. Total loans and investments at these banks on August 16 were lower than on any other Wednesday since October 5 last year. ►Since December total loans have declined about 36 mil lions of dollars, while investments were at about the same level as in late December. Most of the decline in loans has been in those for commercial, industrial and agricultural purposes and in “All Other” loans. Investments declined early in July but have since increased because of larger holdings of securities guaranteed by the United States. At the middle of August total investments were about 27.4 mil lions greater than they were a year ago, and of this increase 21.9 millions is in guaranteed securities and 6.2 millions is in other securities, while holdings of United States direct obligations were slightly smaller. ►Following the transfer of cotton loans to the Commodity Credit Corporation, demand deposits-adjusted increased to a new high level on August 16, when they were 49.6 mil lions greater than a year ago, and reserve deposits at the Federal Reserve Bank to the credit of these weekly reporting member banks increased about 20 millions of dollars and on August 16 were 33.6 millions greater than at the same time last year. Deposits held for other banks were at the middle of August about 61 millions greater than a year ago, and balances maintained with other banks were 66 millions greater. ►At the Federal Reserve Bank of Atlanta total cash reserves and reserve deposits of all member banks in the District reached record high levels on August 9 and declined someC O N D IT IO N O F FED ERA L R ESERV E BANK O F ATLANTA ( I n T h o u s a n d s o! D o lla r s ) C h a n g e F ro m : A u g . 16, A u g . 1 7 ,1 9 3 8 1 939 J u ly 1 2 ,1 9 3 9 — 489 , . .$ 154 + 33 B ills d i s c o u n t e d ........................................... 19 B ills b o u g h t ................................................... + "640 — 14 755 I n d u s tr ia l a d v a n c e s ................................. — 8 ,0 4 8 — 3 ,7 6 2 1 0 3 ,1 4 8 U n ite d S ta t e s s e c u r i t i e s ....................... — 7 ,8 9 7 1 0 4 ,0 7 7 — 3 ,7 4 2 T o ta l b ills a n d s e c u r i t i e s ............... + 7 2 ,3 6 1 + 1 7 ,5 5 1 3 2 2 ,6 4 2 T o ta l c a s h r e s e r v e s ................................. + 1 1 ,2 2 9 + 739 1 5 3 ,3 5 9 F . R. N o te c i r c u la t io n ............................ + 4 0 ,5 7 2 + 2 3 ,7 0 1 2 0 8 ,8 2 8 M em ber b a n k re se rv e a c c o u n ts .. + 5 ,4 2 4 — 1 0 ,2 9 7 4 1 ,4 6 3 U . S . T r e a s u r e r g e n e r a l a c c o u n t. + 5 2 ,9 4 8 + 1 2 ,9 1 5 . . 2 6 6 ,5 0 1 T o ta l d e p o s i t s ......................................... C o m m itm e n ts to m a k e in d u s tr i a l — 41 — 1 139 a d v a n c e s ..................................................... B u s i n e s s C o n d it i o n s 2 in t h e D EB ITS T O IN D IV ID U A L A C C O U N T S ( I n T h o u s a n d s o i D o lla r s ) J u ly lu n e J u ly ALABAMA— 1939 1939 19 38 B ir m in g h a m .................. $ 8 4 ,4 5 9 $ 8 0 ,7 9 8 $ 7 3 ,7 4 5 2 ,3 7 6 2 ,6 8 5 2 ,5 1 7 D o t h a n . . .......................... M o b ile ............................... 3 4 ,8 7 0 3 4 ,2 2 0 3 4 ,3 4 6 M o n tg o m e r y .......... .. 2 1 ,7 0 1 2 0 ,9 8 3 1 7 ,9 7 1 FLO R ID A — J a c k s o n v il le .................. M ia m i................................. P e n s a c o l a ....................... T a m p a ............................... 7 1 ,1 5 6 4 2 ,8 0 8 8 ,1 5 6 2 6 ,7 1 8 7 4 ,2 9 8 4 0 ,6 9 8 8 ,7 5 8 2 6 ,7 6 2 6 1 ,6 8 2 3 2 ,6 5 3 7 ,9 8 1 2 3 ,8 1 8 G E O R G IA — A l b a n y ............................... A t l a n t a ............................... A u g u s t a . . ....................... B r u n s w ic k ....................... C o lu m b u s ....................... E l b e r to n ............................ M a c o n ............................... N e w n a n ............................ S a v a n n a h ....................... V a l d o s t a .......................... 3 ,8 4 8 1 9 2 ,9 7 4 1 6 ,7 7 9 2 ,4 2 9 1 3 ,4 0 0 940 1 4 ,5 9 7 1 ,8 8 4 2 5 ,7 0 5 4 ,7 3 7 4 ,2 5 1 2 0 2 ,0 5 6 1 7 ,9 4 2 2 ,4 2 2 1 3 ,8 7 9 1 ,0 0 4 1 4 ,7 1 4 1 ,6 4 6 2 7 ,3 3 5 3 ,4 3 2 LO U ISIA N A — N e w O r l e a n s ................ 2 0 2 ,3 3 2 M IS S IS S IP P I— H a t t i e s b u r g .................. J a c k s o n ............................ M e r id i a n ....................... .. V ic k s b u r g ....................... TEN N ESSEE— C h a t t a n o o g a ............... K n o x v ille .......................... N a s h v ill e .......................... SIXTH D ISTR IC T 2 6 C i t i e s ............................ Per C ent C hange J u ly 1 9 3 9 F ro m : J u n e 1 9 3 9 J u ly l9 3 8 + 4.5 + 1 4 .5 — 5 .6 - 1 1 .5 + 1 .5 + 1 .9 +20.8 + 3 .4 — 4 .2 + 5 .2 — 6 .9 + 1 5 .4 + 3 1 .1 3 ,4 6 3 1 7 4 ,5 3 8 1 3 ,9 8 0 2 ,3 2 5 1 2 ,2 8 2 880 1 2 ,8 8 4 1 ,7 1 7 2 6 ,0 2 4 3 ,8 1 3 — — — + — — + 11.1 + 10.6 +20.0 2 1 9 ,8 7 2 2 1 8 ,6 5 0 — 8 .0 + 4 ,3 8 9 2 6 ,4 8 0 1 0 ,6 6 5 6 ,5 4 2 4 ,4 1 7 2 2 ,5 4 7 1 0 ,4 5 9 5 ,9 9 6 4 ,1 4 0 2 7 ,2 3 6 8 ,7 2 4 6 ,1 8 9 — 0.6 + 1 7 .4 2.0 + 6.0 + 2.8 +22.2 4 2 ,8 5 5 2 8 ,3 6 3 8 1 ,8 4 2 4 4 ,9 9 1 2 8 ,1 9 2 8 0 ,4 2 1 3 8 ,5 9 4 2 7 ,3 6 4 7 4 ,6 8 9 4 .8 9 7 3 ,0 0 5 9 9 4 ,7 7 8 9 1 2 ,2 0 5 • 2.2 U NITED STA TES— 141 C i t i e s ..........................$ 3 0 ,4 7 6 ,7 3 7 $ 3 3 ,9 8 7 ,9 2 0 $ 3 0 ,5 0 5 ,0 6 0 — 0.2 9 .5 4 .5 6 .5 0 .3 3 .5 6 .4 — 0.8 + 1 4 .5 — 6.0 + 3 8 .0 9 .1 0.6 1.8 + 3 .4 + 2.2 + 12.2 + 4 .5 + 9 .1 + 6.8 + 1 3 .3 + 9 .7 + 1-2 + 2 4 .2 7 .5 + 5 .7 + 11.0 + 3 .7 + 9 .6 + 6 .7 + 2 0 .8 what the following week. Discounts for member banks have shown a further gain although the volume continues small, while industrial advances have declined somewhat. Holdings of United States securities have declined about 12.8 millions since June. ►Excess reserves of all member banks in the District, esti mated on the basis of latest available data, amounted on August 16 to about 70 millions of dollars, or 45.7 per cent of legal requirements. In the latter half of July excess re serves in the District averaged about 47 millions. ►Check transactions at 26 cities in the District declined 2.2 per cent in July, while at 141 reporting centers throughout the country they dropped 10.3 per cent. Agriculture In the first half of 1939 total farm income in the six states of this District was 1.2 per cent larger than in that part of last year. The gain was due to a large increase in Government benefit payments. Receipts from crops were 27.3 per cent less, while income from live stock and livestock products rose 3.7 per cent. ►The first estimate of the season by the United States De partment of Agriculture indicates a cotton crop in the six states of this District of 4,707,000 bales, smaller by 2.5 per cent than that of last year, and 38.3 per cent smaller than the 1937 crop. Comparisons for these states follow: C o tto n P r o d u c tio n E s tim a te P ro d u c tio n P r o d u c tio n 000 B a le s ____________________________ A u g . 1, 1939______________ 1938______________ 1937 A l a b a m a ........................................... ................................ 946 1,081 1,631 F l o r i d a .................................................................................. 17 26 40 G e o r g i a ............... ............................................................... 1,000 852 1,500 L o u i s i a n a .......................................................................... 702 676 1,104 M is s is s ip p i........................................................................ 1/612 1,704 2,692 T e n n e s s e e .......................................................... 430_______________ 490_______________ 661 S ix S t a t e s ..................................................................... 4,707 4,829 7,628 U n ite d S t a t e s ........................................................... 11,412 11,943 18,946 S ix t h F ed era l R eserve D is t r ic t ►Between July 1 and August 1 there were increases in the official estimates of wheat, rice and potatoes in this District, but declines were indicated in com, hay, tobacco, sweet po tatoes and peaches. Growing conditions in Florida during July were favorable for development of citrus fruits from the 1939 bloom. Prospects for oranges are relatively better than for grapefruit. 1939 production of pecans is indicated at 13.5 per cent larger than in 1938* but a decrease of 13.0 per cent is shown for peanuts. The Georgia peach crop was about 21.0 per cent smaller than last year, but the estimate for peaches in Tennessee is nearly three times that of 1938. In the year ending July 31 farmers apparently used about 35.0 per cent less fertilizer than they did in the previous year. Industry For the fifth consecutive month the value of building permits issued at twenty reporting cities increased in July over the preceding month and was sub stantially larger than a year earlier. An increase in resi dential contracts was, however, more than offset by a decline in other awards. The rate of textile activity declined, but output of coal and pig iron increased further in July. ►Residential contracts increased 6.6 per cent in July and were 68.0 per cent greater than a year ago, while other awards declined 19.2 per cent from June and were about the same as in July last year. For the seven months period total awards were up 51.9 per cent from that period last year, residential awards were 63.3 per cent larger, and other awards increased 44.8 per cent. Value of building permits increased further in July by 9.4 per cent, were two and onequarter times the July 1938 total and the largest for any month since December 1928. The seven month total of $49,735,307 was the largest for that period since 1929. ►In the year that ended July 31 cotton mills in Georgia, Alabama and Tennessee consumed 2,251,373 bales of cot ton, a gain of 23.4 per cent over the preceding cotton year. Only in the cotton year of 1936-1937 was total consumption in these states greater. ►Steel mill activity in the Birmingham area declined from 82.0 per cent of capacity in the last week of July and the first week of August to 75.0 per cent in the following two weeks. For the first three weeks of August, however, the average of 77.3 per cent was about 6.0 per cent higher than the average for July and compares with a national average of about 61.2 per cent. Alabama production of pig iron increased further in July by about 12.0 per cent, was larger by 138.2 per cent than in July last year, and for the seven months of 1939 has been 59.6 per cent greater than in that part of 1938. In the United States July production increased 7.6 per cent over June, was 96.1 per cent greater than in July last year, and for the seven months the gain over that part of last year was 64.0 per cent. Coal production in Alabama and Tennessee increased further in July and was about half again as large as in July last year. ►The rate of electric power production increased 6.2 per cent in this District to a new high level in June, compared with a gain of 5.2 per cent for tfie country. In the District June production was 19.9 per cent greater than a year ago while the country’s gain was 14.0 per cent. B u s i n e s s C o n d it i o n s in t h e SIX T H D IS T R IC T B U SIN E SS S T A T IS T IC S SALES J u ly 19 39 C o m p a r e d w ith R E T A IL T R A D E Ju n e 1939 J u ly 1938 A t l a n t a ....................................— 2 1 .5 + 7 .3 4 - 1 1 .7 B ir m in g h a m ....................... — 1 8 .2 M o n tg o m e r y .................... — 1 9 .6 + 1 1 .7 N a s h v ill e .............................. — 2 3 .2 + 10.1 N e w O r l e a n s ..................... — 1 9 .9 + 8 .3 O t h e r s .................................... — 1 8 .7 + 1 2 .2 D IST R IC T (4 6 F i r m s ) . — 2 0 .7 + 9 .5 W H O L E S A L E TR A D E G r o c e r i e s ............................ — 3 .8 D ry G o o d s .......................... — 6 . 9 H a r d w a r e ............................ + 2 .9 E le c tric a l G o o d s .............— 4 .5 D r u g s .......................................— 1 .4 S h o e s . . .................................. + 4 0 . 2 T O T A L ............................... — 2 .1 STOCKS CO LLEC T IO N J a n .-J u ly RA TIO In c l. J u ly 1939 C o m p a red C o m p a re d J u ly w ith w ith 1939 Y ear A go J u ly 1 938 2 5 .4 + 1 5 .3 + 11.1 3 0 .4 + 4 .0 + 1 0 .3 — 2 1 .5 + 11.1 2 6 .6 — 1.3 + 8.2 3 0 .5 + 5 .2 + 4 .8 3 1 .0 + 3 .9 + 7 .6 2 8 .6 + 4 .7 + 8 .3 — 2.2 — 1 .5 — 2. 1 + 2 0 .6 + 2 6 .2 + 1 1 .9 + 1 8 .6 +8.3 — 4 .3 + 4 .5 + 4 .5 + 9 .5 — 1 2 .4 + 7 .2 + 17 .6 + 1 8 .9 + 1 3 .5 — 4 .2 + 7 .3 + 2 .5 7 4 .5 3 3 .2 4 7 .7 6 0 .8 66.8 2 6 .5 5 5 .1 (000 O M ITTED ) C O M M ER C IA L FA IL U R E S — D IS T R IC T ......................................... N u m b e r .............................................. Ju ly 1939 48 608 liabilities.............................$ C O N TR A C TS AW A R D ED — D IS T R IC T .........................................$ 2 4 ,3 6 1 11 ,4 5 1 R e s i d e n t i a l ...................................... A ll O t h e r s ......................................... 1 2 ,9 1 0 A l a b a m a ........................................... 3 ,0 7 0 F l o r i d a ................................................. 9 ,2 9 5 G e o r g i a .............................................. 5 ,8 4 0 L o u i s i a n a ........................................... 2 ,4 1 8 M is s is s ip p i. 2 ,0 9 2 T e n n e s s e e .......................... 6 ,7 8 0 B U ILD IN G P ER M ITS— 2 0 C IT IE S ............................ A t l a n t a ................................. B ir m in g h a m ....................... J a c k s o n v il le ....................... N a s h v ill e ............................ N e w O r l e a n s ..................... 15 O th e r C i t i e s ................ 1 0 ,6 7 6 955 725 603 244 989 7 ,1 6 0 Ju n e 1939 38 482 'ife 68 1,120 J a n .-J u ly , In c l. 19 38 1 9 39 394 405 4 ,9 2 1 $ 4 ,2 4 5 $ 2 6 ,7 2 8 1 0 ,7 4 6 1 5 ,9 8 2 4 ,2 9 5 7 ,7 8 1 6 ,6 0 8 4 ,9 2 8 2 ,1 6 2 5 ,7 4 5 1 9 ,7 7 0 6 ,8 1 6 1 2 ,9 5 4 2 ,3 0 9 7 ,3 8 1 4 ,3 6 4 3 ,6 3 0 1 ,4 2 9 3 ,8 4 3 $ 1 7 0 ,5 2 9 7 0 ,9 3 4 9 9 ,5 9 5 2 4 ,1 3 7 5 1 ,7 2 4 3 7 ,3 8 3 3 7 ,8 9 6 2 1 ,2 8 8 3 1 ,0 9 6 $ 1 1 2 ,2 4 8 4 3 ,4 5 1 6 8 ,7 9 7 1 3 ,6 8 1 3 5 ,8 2 0 2 2 ,6 0 4 2 3 ,7 7 5 1 1 ,9 3 9 2 5 ,4 4 0 9 ,7 6 2 592 286 773 564 627 6 ,9 2 0 4 ,7 2 7 231 155 493 123 247 3 ,4 7 8 $ 4 9 ,7 3 5 3 ,4 7 5 2 ,4 8 2 4 ,4 7 7 2 ,6 8 5 3 ,9 1 8 3 2 ,6 9 9 3 2 ,3 4 2 2 ,0 8 5 1 ,6 3 2 6 ,2 0 9 878 2 ,8 1 5 1 8 ,7 2 4 P IG IR O N P R O D U C T IO N —Tons A l a b a m a ............................................ 211 1 8 3r 89 1 ,4 4 8 908 C O A L P R O D U C T IO N — Tons A l a b a m a ............................................ T e n n e s s e e ......................................... 972 418 960r 377 654 302 5 ,8 9 7 2 ,5 8 3 5 ,7 8 2 2 ,2 6 9 S ix t h F ed eral R eserve D is t r ic t IN D EX ES (1923*1925— 100 except a s\ noted) R E T A IL S A L E S *— U n a d ju s te d ily 1 939 J u n e 1939 D ISTR IC T (27 F i r m s ) ............................................................. 88.1 1 0 7 .5 88.1 A t l a n t a ..............................................................................................15 152.4 2.4 1 8 3 .2 B ir m in g h a m ....................................................................................8 . 877.2.2 103.1 N a s h v ill e ......................................................................................... 77.3 7 7 .3 9 6 .8 N e w O r l e a n s ................................................................................ 77.1 7 7 .1 9 2 .6 R E T A IL S A L E S 41— A d ju s te d D IST R IC T (27 F i r m s ) ............................................................. 1 12 25 5.9 .9 A t l a n t a ..............................................................................................22 0 8 .8 B ir m in g h a m ....................................................................................1 .11199.5 .5 N a s h v ill e ......................................................................................... 112..0 112.0 N e w O r l e a n s ...............................................................................111.7 1 1 1 .7 J u ly 1 939 D IST R IC T (24 F i r m s ) ............................................................. 6 4 .4 A t l a n t a ..............................................................................................11 1 9 .2 B ir m in g h a m ....................................................................................6 , 6 4 .7 N a s h v ill e ........................................................................................ 43 , 4 3 .6 N e w O r l e a n s ................................................................................. . 55 5 5 .6 R E T A IL S T O C K S —Adjusted D ISTR IC T (2 4 F i r m s ) ............. A t l a n t a .............................................. B ir m in g h a m ................................. N a s h v ill e ......................................... N e w O r l e a n s ............................... W H O LE S A L E S A LE S — T o ta l. H a rd w a re . D r u g s .......... B a le s 13 6 12 723 1 ,3 5 5 173 2 ,2 5 1 588 1 ,0 8 3 153 1 ,8 2 4 55 49 1 ,5 5 8 2 ,3 1 5 F E R T IL IZ E R T A G S A L E S — Tons 36 35 TO TA L SIX STATES * G e o r g i a , A la b a m a , L o u is ia n a a n d M is siss ip p i. 27 1 ,5 4 5 2 ,3 8 9 A l a b a m a ........................................... G e o r g i a .............................................. T e n n e s s e e ......................................... TO TA L TH REE S T A T E S .. . 25 101 CO TTO N SEED CRU SH ED — T o n s * ................................................... June 1 939 3 8 ,9 3 0 4 ,9 9 0 8 ,0 6 8 5 ,8 9 7 5 ,3 7 3 4 ,8 4 7 9 ,7 5 5 A la b a m a .. . F l o r i d a .......... G e o r g i a ___ L o u isia n a .. M is s is s ip p i. T e n n e s s e e .. E L E C T R IC P O W E R PR O D U C TIO N — kw hours A l a b a m a ............................................ F l o r i d a ................................................. G e o r g i a .............................................. L o u i s i a n a ........................................... M is s is s ip p i...................................... T e n n e s s e e ......................................... TO TA L S IX S T A T E S ............. B y W a te r P o w e r ..................... B y F u e l s ......................................... 13 167 62 116 15 193 53 3 4 7 ,7 7 0 8 6 ,5 8 5 1 3 9 ,7 4 3 1 5 7 ,4 2 3 5 ,0 2 4 1 3 6 ,4 6 2 8 7 3 ,0 0 7 5 5 5 ,1 0 6 3 1 7 ,9 0 1 (000 Omitted) J a n .- J u n e , In c l. June M ay 19 39 19 39 1938 1938 $ 5 1 ,5 6 7 $ 3 7 ,4 3 0 $ 2 8 5 ,4 4 1 $ 2 8 2 ,1 0 3 3 5 ,8 3 4 5 ,2 4 1 3 5 ,8 7 2 9 ,5 6 0 6 8 ,9 4 7 1 1 ,8 0 7 5 ,4 3 7 7 2 ,3 0 2 3 4 ,5 7 6 3 6 ,3 4 7 8 ,6 0 7 6 ,3 8 4 3 5 ,8 7 9 3 5 ,3 7 5 8 ,6 8 9 4 ,0 0 2 4 7 ,4 6 9 5 ,1 1 1 6 ,4 6 6 4 8 ,0 5 2 7 ,6 7 7 5 6 ,9 8 9 5 9 ,9 0 2 1 0 ,0 1 6 3 0 1 ,7 5 9 8 7 ,1 8 1 1 5 1 ,7 6 7 1 5 5 ,6 3 5 4 ,6 9 6 1 4 8 ,2 7 7 8 4 9 ,3 1 5 5 2 5 ,6 2 8 3 2 3 ,6 8 7 ‘ Includes Government payments, r — revised. 44 80 2 5 0 ,4 2 5 1 ,7 6 0 ,3 8 1 1 ,4 4 9 ,2 7 1 5 0 6 ,3 4 6 5 5 2 ,3 2 4 7 3 ,4 8 3 7 0 4 ,1 7 5 8 4 3 ,2 6 9 1 1 8 ,5 9 0 7 4 5 ,9 2 6 8 5 4 ,3 5 5 1 4 8 ,3 0 1 3 5 ,6 2 4 5 ,0 0 5 2 8 ,5 2 0 7 0 0 ,1 2 1 9 5 3 ,4 2 1 1 3 2 ,0 3 5 4 ,1 4 1 ,4 6 3 7 2 7 ,8 3 9 4 ,9 9 2 ,2 7 0 4 4 6 ,4 5 3 3 ,1 0 7 ,8 2 0 2 ,3 2 1 ,5 3 7 2 8 1 ,3 8 6 1 ,8 8 4 ,4 5 0 1 ,8 1 9 ,9 2 6 . . 7 0 .0 , 1 3 1 .0 68.1 5 8 .5 .. 6 2 .8 . 9 2 .5 . . 6 9 .4 . 8 1 .6 . G e o r g i a ....................... L o u i s i a n a .................. M is s is s ip p i................ T e n n e s s e e ................ B U ILD IN G PERM ITS— 2 0 C itie s . A t l a n t a ...................................................... B ir m in g h a m ......................................... J a c k s o n v il le ........................................... N a s h v ill e ................................................. N e w O r l e a n s ......................................... 15 O th e r C it ie s .................................... A u g .- ■July, In c l. 1 9 3 7 -3 8 1 9 38 -3 9 June 19 39 1 1 9 .4 J u ly 1938 7 9 .4 1 3 9 .4 7 8 .1 6 0 .2 7 1 .2 1 1 0 .9 1 0 5 .2 1 0 4 .0 1 1 3 .4 1 9 1 .0 1 0 7 .0 8 7 .2 1 0 3 .2 6 5 .1 1 1 3 .3 6 4 .9 4 9 .4 5 4 .7 6 0 .8 9 9 .9 6 0 .9 4 4 .2 5 2 .8 6 8 .5 1 1 8 .0 6 5 .6 5 0 .9 5 8 .2 1 0 9 .8 6 4 .1 4 7 .5 5 5 .6 6 4 .1 5 0 .4 4 6 .4 8 9 .9 9 2 .0 6 3 .1 4 8 .4 4 5 .4 7 0 .7 8 4 .4 7 6 .2 7 8 .6 7 5 .9 9 3 .9 5 3 .6 9 9 .1 7 8 .4 5 6 .3 4 8 .6 6 1 .5 5 0 .5 5 0 .9 6 5 .5 5 7 .7 7 4 .1 6 9 .3 210.6 R E T A IL S T O C K S * — U n a d ju s te d P IG IRO N P R O D U C TIO N — ALABAM A* C O T T O N C O N SU M PTIO N — 3 6 7 .1 . . 3 8 .5 1 0 3 .6 .. 9 4 .9 . 7 6 .9 . 8 9 .3 . .1 4 1 .2 T en n essee. 112.1 . 1 3 3 .4 .. 1 3 8 .9 86.8 3 8 .3 1 9 .3 9 3 .9 8 8 .9 4 8 .7 1 2 6 .3 7 9 . 8r 66.1 4 2 .0 1 4 .9 1 0 .5 5 9 .9 19 .4 19.1 6 3 .5 3 7 .5 1 5 6 .4 1 7 7 .2 1 4 7 .8 1 5 1 .0 1 1 4 .7 1 3 2 .0 1 0 6 .5 1 1 9 .7 EM PLO YM EN T (A v . fo r 1 9 3 2 = 1 0 0 ) A l a b a m a ....................................................................... .. 1 2 8 .3 F l o r i d a ............................................................................ .. .. 9........ 6 .8 G e o r g i a ............................................................................................ 1 3 7 .4 L o u i s i a n a .........................................................................................1 , .1 2 5 .0 M is s is s ip p i.................................................................... ,, .1 0 3 .9 T e n n e s s e e .................................................................... 1 2 9 .8 S IX S T A T E S ...............................................................................126. 1 2 6 .8 1 2 5 .8 1 0 1 .7 1 3 7 .5 1 2 6 .4 1 1 4.1 8 8 .5 1 2 7 .9 1 1 6 .0 1 2 9 .0 1 2 6 .8 1 1 4 .6 1 1 5 .5 P A Y R O L LS (A v . fo r 1 9 3 2 = 1 0 0 ) A l a b a m a ......................................................................................... 1 9 2 .5 8 3 .0 G e o r g i a ........................................................................................... 1 7 6.1 L o u i s i a n a ......................................................................................... M is s is s ip p i...................................................................................... T e n n e s s e e ...................................................................................... 1 6 2 .2 SIX S T A T E S ............................................................................ 1 6 2 .0 186.9 8 4 .8 1 7 7 .2 1 4 6 .6 1 2 4 .2 1 6 3 .0 1 6 3 .6 1 5 9 .3 7 3 .1 1 5 8 .3 1 4 7 .3 1 2 5 .9 1 3 9 .5 1 4 5 .8 E L E C T R IC P O W E R P R O D U C TIO N * J u n e 1 9 39 A l a b a m a ......................................................................................... . . 4 4 9 .8 . . 4 3 9 .9 , 2 4 0 .4 . . 8 2 .8 T e n n e s s e e ...................................................................................... . . . 2 2 4 .8 .8 .. 3 5 2 .2 , . . 4 2 6 .1 , ,2 7 0 .3 100.2 M a y 1 9 39 3 7 7 .7 4 2 8 .7 2 5 2 .6 5 8 4 .4 7 2 .2 2 3 6 .3 3 3 1 .6 3 9 0 .4 2 6 6 .4 101.0 3 2 3 .9 3 7 3 .3 2 0 4 .0 5 7 5 .4 799 2 1 7 .4 2 9 3 .6 3 4 2 .7 2 3 9 .3 ^Indexes of retail sales, electric power and pig iron production, and of cotton consumption are on a daily average basis, r = revised. 4 B u s i n e s s C o n d it i o n s in t h e S ix t h F ed era l NATIONAL SUMMARY OF BUSINESS CONDITIONS R eserve D is t r ic t ' INDUSTRIAL PRODUCTION P repared b y the B oard of G o vern ors of the Fe d e ra l R eserve System TN JULY industrial activity, seasonally adjusted, rose sharply and was close to the level reached last December. Prices of some industrial materials increased in recent weeks while those for agricultural products continued to decline. P r o d u c tio n The Board’s index of industrial production, according to preliminary returns, ad vanced to 102.0 per cent of the 1923-1925 average in July as compared with 98.0 in June and 92.0 in April and May. The advance in July reflected chiefly a considerable further increase in output of iron and steel, which usually declines at this season. Steel ingot production rose from an average rate of 52.0 per cent of capacity in June to 57.0 per cent in July and in the first three weeks of August was maintained around 60.0 per cent which for the month would represent about the usual seasonal increase. Lumber pro duction showed little change in July, although a decline is usual. In the automobile industry output showed a sharp seasonal curtailment during July and the first half of August, reflecting preparations for the shift to new model produc tion which will be made about a month earlier this year than in other recent years. Retail sales of new cars continued in excess of production and dealers’ stocks were greatly reduced. Plate glass production declined sharply in July, following a substantial increase in June. Changes in output of nondurable manufactures in July were largely of a seasonal nature. At cotton textile mills and meat-packing establishments activity showed some what less than the usual declines and at sugar refineries output increased from the low level reached in June. Flour production continued in substantial volume. Mineral production expanded further in July as output of bituminous coal continued to increase and petroleum production, which had been reduced in June, rose sharply. On August 14 the Texas Railroad Commission ordered a shutdown of most Texas oil wells for 15 days, beginning August 15, and subsequently similar shutdowns were or dered in several other important oil producing States. Value of construction contracts, as reported by the F. W. Dodge Corporation, in creased somewhat in July, owing principally to a small rise in contracts for public projects. Awards for residential work, both public and private, were practically un changed from the June total. E m p lo y m e n t Factory employment, which usually declines in July, was maintained this year at about the June level and payrolls showed a less than seasonal decrease, according to reports from a number of leading industrial States. In dex of p h y sic a l volum e of production, adju sted for se aso n a l variation , 1923-1925 a v e ra g e = 100. B y months, Ja n u a ry, 1934, to Ju ly, 1939. In dex of total loadin gs of revenu e freight, adju sted for se a so n a l variation , 1923*1925 a v e ra g e = 100. B y months, Ja n u a ry, 1934, to lu ly , 1939. WHOLESALE PRICES D is tr ib u tio n Sales at department and variety stores in July showed about the customary seasonal decline. In the first half of August department store sales increased. Freight-car loadings increased further from June to July. Loadings of coal con tinued to expand and shipments of miscellaneous freight, which usually decline at this season, showed little change. C o m m o d ity P r ic e s Prices of most farm products and foods declined from the beginning of July to the middle of August. Some industrial materials, principally steel scrap, nonferrous metals, and textile fabrics, showed advances in this period, while crude petroleum prices were reduced. A g r ic u ltu r e On August 1 prospects for major crops were about the same as a month earlier, according to the Department of Agriculture. The first official estimate on cotton in dicated a crop of 11,400,000 bales, somewhat smaller than last year’s crop and 2,400,000 bales less than the 1928-1937 average. World carryover of American cotton, however, was estimated to have been somewhat larger on August 1 than the record volume of a year ago. In dexes com piled b y U . S . B u reau of Labo r Statistics, 1926 = 100. B y w e e k s, 1934, to w e e k ending A ugust 12, 1939. MEMBER BANK RESERVES B a n k C r e d it Total loans and investments of member banks in 101 leading cities increased sub stantially during the four weeks ending August 9, reflecting chiefly increases in hold ings of United States Government obligations and the purchase by New York banks of a large share of a new issue of New York State short-term notes. Commercial loans continued to increase at New York banks but declined at banks in 100 other leading cities as corn and cotton loans that were approaching maturity were taken over by the Commodity Credit Corporation in accordance with a standing agreement. Deposits at reporting banks remained at high levels. Excess reserves of member banks increased further to new high levels in the latter part of July and the first half of August, owing principally to gold imports and net Treasury disbursements, partly offset by a reduction in Federal Reserve bank holdings of Treasury bills. M o n e y R a te s The average rate on new issues of 90-day Treasury bills has increased slightly in recent weeks and on August 10 was 0.032 per cent. Prices of Treasury bonds showed little from the middle of July to the middle of August. Digitized for change FRASER W e d n e sd a y fifrures of total m em ber ban k reserve b a l a n ce s at F e d e ra l R e se rv e B a n k s, w ith estim ates of re qu ired and e xcess re se rv e s, Ja n u a ry 3, 1934, to A ugust 16, 1939.