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ln % is Iss u e : M a n 's F ir s t S y n th e tic F ib e r R e a l-E s ta te L o a n s D is t r ic t B u s i n e s s H i g h l i g h t s S ix tf r D itir id S to tid k s : I C o n d i t i o n o f 2 7 M e m b e r B a n k s in L e a d i n g C i t i e s D e b its t o I n d iv id u a l D e m a n d D e p o s it A c c o u n ts D e p a r tm e n t S to r e S a le s a n d I n v e n to r ie s I n s ta lm e n t C a s h L o a n s R e t a i l F u r n itu r e S t o r e O p e r a t i o n s W h o le s a le S a le s a n d I n v e n to r ie s S ix tH D ffir id In d e x e s : C o n s tr u c tio n C o n tr a c ts C o t to n C o n s u m p tio n D e p a r tm e n t S to r e S a le s a n d S to c k s E le c tr ic P o w e r P r o d u c tio n F u r n itu r e S t o r e S a l e s a n d S t o c k s M a n u fa c tu r in g E m p lo y m e n t M a n u fa c tu r in g P a y r o lls N o n fa rm E m p lo y m e n t P e tr o le u m P r o d u c tio n T u rn o ver o f D e m a n d D e p o sits D IS T R I C T B U S IN E S S H I G H L I G H T S E c o n o m ic a c tiv ity , w ith fe w e x c e p tio n s , e x p a n d e d fu rth e r in la te s u m m e r. N o n fa r m e m p lo y m e n t a n d d e p a rtm e n t sto re sa le s re a c h e d n e w h ig h g ro u n d . A t th e sa m e tim e , d e b its, fa c to r y e m p lo y m e n t, a n d b a n k lo a n s in c re a s e d ; fa rm p ro s p e c ts c o n tin u e d to sh o w im p ro v e m e n t. R e s id e n tia l c o n tra c t a w a rd s a n d te x tile a c tiv ity , h o w e v e r, e ith e r re m a in e d u n c h a n g e d o r d e c lin e d s lig h tly . Department store sales, seasonally adjusted, set new records in July and the first three weeks of August. Furniture store sales, seasonally adjusted, in July reached the highest point in eight years. Department and furniture store inventories, seasonally adjusted, were down slightly in July from June. Nonfarm employment, seasonally adjusted, was at an all-time high during June. Manufacturing employment, seasonally adjusted, increased during June at a more rapid pace than in preceding months and began to approach the 1953 peak. Seasonally-adjusted factory payrolls, already above previous highs, rose considerably in June. Insured unemployment remained almost unchanged during July, although it cus tomarily rises during that month. Steel operations in Birmingham during the last part of August, although adversely affected earlier in the month by a labor dispute, almost reached the previous 1955 high. Cotton textile activity, as measured by seasonally adjusted cotton consumption, declined during July after having increased in the preceding month. Residential construction awards declined slightly during July, but remained con siderably above year-ago levels. Spending by check, measured by seasonally adjusted bank debits, increased during July and remained well above a year ago. Total loans at all member banks increased contra-seasonally during July, and according to preliminary information continued to expand in August. Time deposits at member banks in July were somewhat below June. Total deposits, seasonally adjusted, at all member banks declined during July, but according to preliminary information increased during August. Farm production loans outstanding at all member banks at the end of June were up slightly from a year earlier; farm real-estate loans were substantially larger. Demand deposits at banks in agricultural localities in July were above last July. Egg/ hog, beef, and broiler production in August were substantially above last year levels; milk production, however, did not increase. Farm wages are slightly above last year’s, but feed prices are significantly lower. Prices of most important crops and livestock products, except corn and hogs, in mid-July were above year-ago levels. The Federal Reserve Bank of Atlanta raised the rate charged on loans to mem ber banks from 1% percent to 2 percent on August 4 and to 2 percent on August 26. V a • 2 • M a n 's F ir s t S y n th e ti c F ib e r The Sixth District Is an Important Rayon Producer C onsiderations th at enter into a m an u factu rer’s decision to locate in a specific area are num erous. Sometimes tax concessions or other types of special inducem ents are im p o rtant, b u t m ore often industrial location is the result of adjustm ents to basic econom ic forces. F requently, these forces are difficult to isolate, and they vary am ong differ ent types of businesses. N evertheless, students of industrial location found th at the prim ary attractions for m ost plants are m arkets, m aterials, or labor, or a com bination of these factors. T he influence of these considerations on plant location is particularly well illustrated by the rayon industry in the Sixth Federal R eserve D istrict. A Y o u n g In d u stry The rayon industry, which because of the n atu re of its productive process is classified as a chem ical industry, is, com paratively speaking, a new com er to the D istrict. The first rayo n p lan t in the D istrict started production at Old H ickory, T ennessee, in 1925. Since E u ro p ean scientists discovered rayon and introduced it to the U nited States, most of the D istrict’s com panies were under E uropean control or ow nership at first. Since 1929, how ever, m any of them have broken their foreign ties, so th at now only two D istrict firms are E uropean owned or controlled. ample, em ployed alm ost 190,000 persons in 1954, w hereas synthetic fiber plants em ployed alm ost 25,000 w orkers. Wages in all branches of synthetic fibers are com paratively high; annual earnings last year cam e to 108 m illion dollars. In parts of Tennessee, A labam a, and G eorgia, rayon plants are im portant sources of payrolls. T hey further contribute to total incom e in th at their presence induces chem ical m anufacturers to locate nearby. They m ake another indirect contribution through their purchases of supplies from other businesses in the surrounding area. The M a k in g o f R a y o n The basic principles of m aking rayon are com m on know l edge; in fact, m ost basic patents are now public property. In the viscose process, which all but tw o D istrict plants use, cellulose pulp sheets are soaked in caustic soda, shredded to fluffy crum bs th at are properly aged and treated w ith carbon bisulphide. T he resulting mass of Location of District Rayon and Acetate Plants t R apid G ro w th until R e c e n tly R ayon and acetate are m ade from cellulose, as distin guished from the m ore recent discoveries of nylon, acrylic, polyester, and other non-cellulosic fibers m ade from petro leum, coal by-products, other m inerals, or proteins. E xcept in recent years, rayon and acetate enjoyed a m eteoric grow th in this country. O utput rose from 400,000 pounds in 1911 to 1.1 billion in 1954 and accounted for one-fifth of to tal m ill fiber consum ption. A m ong m an-m ade fibers, rayon an d acetate rem ain the overw helm ing choice of consum ers, their consum ption in 1954 being about four times as large as th at of non-cellulosic fibers. T he Sixth D istrict has shared in this grow th and is now a highly im portant producing region of rayon and acetate. Betw een 1924 and 1931, the num ber of rayon plants grew to five, about one-fifth of all such plants in the nation. Since W orld W ar II, alm ost all th e new plants have been built in this D istrict, so th a t its present eight plants con stitute alm ost 30 percent of the n atio n ’s total and about an equal percentage of the productive capacity of rayon and acetate. F u rtherm ore, one-third of all synthetic fiber em ployees are in the D istrict, a p ro p o rtio n which m ay actually understate the im portance of rayon since the D istrict’s share of these plants is twice th a t of its non-cellulosic fiber mills. Econom ic Im p o r ta n c e In the D istrict econom y as a whole, how ever, rayon is less im portant th an m any o ther industries. Textiles, for ex bright orange color is then dissolved in caustic soda to form the spinning solution. A fter further aging, the solu tion is forced through tiny holes of a nozzle or “spinnerette” which is subm erged in a chem ical bath. T he solution comes out in the form of a continuous solid thread, which is collected on spools or is spun into a rotating bucket. The individual strands are then either twisted together to form filam ent yarn, which after washing, drying, packaging, and inspecting is ready for shipm ent, or a num ber of filaments are chopped into short lengths to produce staple fiber. A cetate m anufactured by tw o D istrict producers ac 3 counts for about one-fourth of total rayon and acetate pro duction; this synthetic differs chemically from rayon and in some stages of its manufacture from viscose. However, the cuprammonium process, which one District producer fol lows, is similar to that used for viscose. R e la tiv e ly S m a ll M a n p o w e r R e q u ir e m e n ts Manpower requirements are small, compared with capital investment and with the physical size of a rayon plant. For a representative producer in the District, investment in plant and equipment averaged 17,750 dollars per em ployee in 1954. Unit labor requirements have actually declined in recent years with the improved handling of materials. Some plants now use a continuous spinning method in producing textile or tire yam, which eliminates moving of the yam in “cake” form through the various processing stages. The trend toward shipping rayon in cakes and cones instead of skeins, and more recently, in bulk packages, has also reduced labor requirements. Labor costs, nevertheless, remain a fairly important component of total expenses. The hourly wage rates for production workers in synthetic fiber plants in the District averaged $1.84 in the first five months of 1955, compared with $1.41 for manufacturing as a whole. High pay reflects the industry’s three-shift operations and its requirements for a large amount of skilled personnel. The typical pro duction worker bears great responsibility because the equipment is so intricate that any mistake can cause con siderable loss. Also, a majority of the rayon plants in the District are unionized and, in opposition to some major industries, practically no wage differential exists between District and national synthetic fiber plants. District rayon workers experience few, if any, of the seasonal variations in employment common to many branches of the textile industry. The large amount of controls and instrumentation found in rayon plants rules out all but minor changes in employment unless output is appreciably changed. Because inventories are used to cushion any slight seasonal or irregular fluctuations in demand, production levels for the rayon industry through out the country have been generally maintained in the short-run. Similarly, rayon prices fluctuate little from month to month. F actors A ffe c tin g L ocation Because tremendous amounts of pure water in the manu facture of rayon and acetate are needed, availability of water was often the principal site-determining factor in this region. One viscose yarn producer in the District, for example, uses 20 million gallons of water daily. This ex plains why all rayon plants are found near rivers or large streams. Their location was further influenced by the proximity to supplies of cellulose in the form of refined cotton linters and wood pulp. Most District plants now use cellulose made from wood pulp almost exclusively because it is cheaper and, according to many observers, technically superior to cotton linters. A great deal of it, consisting of Southern pine, comes from one particular mill in Florida, and another District producer supplies the remainder. Several rayon firms buy small amounts of hardwood pulp from mills in the Pacific Northwest and Canada. Another attraction has been the ready availability of chemicals. Many important producers of sulfuric acid and caustic soda are located in Tennessee and Alabama. Ten nessee also has plants that make carbon bisulphide and the chief chemicals needed to make acetate: acetic anhy dride and acetone. These plants supply most of the chemi cal needs of this District’s rayon producers. Nearness to the coal-producing areas of eastern Ken tucky, Tennessee, and Alabama is another advantage— coal being a source of steam as well as power to rayon producers. Cheap electricity, on the other hand, played little or no part in attracting them because they generate their own electricity. Combining their own facilities with commercial power assures them of a dependable power supply, a consideration that looms important because the nature of rayon production makes a power shutdown extremely costly. Earnings and Employment District Synthetic Fiber Plants Availability of labor also influenced plant location. By locating principally outside the major District cities, rayon firms have been able to draw on workers from rural areas and nearby small communities. Finally, the desire to be close to customers has in duced rayon producers to locate in District states. Although comparatively few processors of rayon are found in this region, many are located in adjacent states, especially the Carolinas. In 1954, about two-thirds of the rayon and acetate produced by all domestic manufacturers was proc essed in 14 Southern states. Direct tax concessions had practically no effect on location. E conom ic S tru ctu re The economic structure of the District’s rayon industry corresponds more closely to other mass-production indus tries than to cotton textiles. For one thing, the rayon in dustry is made up of a very small number of companies— six in all—and for another, output is highly concentrated among two or three firms. Concentration in the District is probably similar to that in the nation where, according to 4 one study, two companies in the early post-World War II period accounted for almost 50 percent of installed capacity. The rayon industry, however, is unlike industries in which a firm produces everything from the raw materials to the finished product. Most District rayon plants, if not all, buy cellulose from companies with which they have no financial connection. This also applies largely to pur chases of chemicals, although one rayon producer in the District does manufacture chemicals used in rayon and other industries, and several rayon plants receive small quantities of chemicals from mills owned by their parent company. Only a few firms with which District rayon pro ducers are affiliated produce cloth, and only one makes garments. C ap ital I n v e stm e n t a n d F inancing As is true in other mass-production industries, capital re quirements for producing rayon are large. Fiber can be turned out economically only on a large scale, and that calls for a large plant. Moreover, even a relatively small plant frequently has a generating plant, a water purification system, laboratory facilities, and machine shops; in short, facilities that are all expensive. A recently announced ex pansion of one of the District’s medium-size plants will cost 20 million dollars. Because financial requirements are generally too large for local banks to handle, rayon plants have made a practice of borrowing from large out-of-District banks and insurance companies. One large District rayon producer, for instance, has a credit agreement with a group of banks and one insurance firm. Frequently, these take the form of term-loans amortized over a fairly long period rather than short-term financing, because seasonal fluctuations in pro duction are uncommon. Expansions of plant and equip ment, on the other hand, sometimes have been financed entirely from depreciation charges and retained earnings. P r o b le m s The industry’s most pressing problem in recent years has been a decline in over-all sales. Annual mill consumption of all rayon and acetate in the United States has fallen almost continuously since 1950. The loss was concen trated in the all-important use of filament yarn for women’s and children’s dresses and underwear fabrics; meanwhile, use of nylons and other synthetics and cotton for this purpose increased. Some of the loss, however, was offset by gains in indus trial uses of viscose yarn, particularly in the manufacture of tire cord. As tire yarn made of rayon almost completely displaced cotton, tires and related uses have become an important market outlet for the rayon industry. This cate gory accounted for 46 percent of total United States rayon and acetate yarn shipments in 1954. In the District the ECONOMIC STUDY NO. 2 Tuf ted Te xtil e s, a study of the economic evolution of a small South ern industry developed with local labor and capital, is availab le for distribution. Copies may be obtained upon request to the Re search Department, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. productive capacity of three plants that make viscose tire yarn is about one-fourth of the region’s total of rayon and acetate fibers. Another bright note has been the spectacular rise in viscose staple. Production in the nation rose 65 percent between 1950 and 1954 and is now equivalent to almost one-third of total rayon and acetate output. The ability of viscose staple to blend with other fibers and its popularity in tufted rug manufacturing and other uses contributed to this success. It is, therefore, understandable that the most recently built rayon plant in the District and the expansion of two others are intended for production of rayon staple. R esea rch To meet the lagging demand for some of their products, rayon producers have worked hard at improving existing fibers, finding additional uses for them, and developing new fibers. All District rayon producers have research facilities aimed at improving methods for processing rayon. In some cases, the fundamental fiber research activities of rayon producers are also centered in this District. It is evident that research has been effective. For example, fibers, notably tire yarn, have been improved and solution-dyed yarns have been developed. Rayon producers have also made efforts toward diver sifying their products. One District plant, for example, has gone into the cigarette filter field, while another one will soon make a new high-strength yarn for heavy power transmission belts and other industrial uses. O u tlo o k The rayon business has recovered in recent months, but many long-term problems remain. Most observers predict a bright future for rayon staple and for yarn used by industry; they are less optimistic about filament yarn for the textile trade. In addition, nylon, which already ac counts for a small but rising proportion of tire-cord output, may become a serious competitor. In that event, rayon tire yarn producers will face a serious problem because most of the existing machinery cannot be converted to nylon yarn. On the other hand, two District producers who now make rayon tire yarn, have bought new machinery and have gone into semi-commercial production of nylon in order to acquire the necessary “know-how.” While the rayon industry faces obstacles to its future growth, this District, nevertheless, offers such advantages to the loca tion of these plants that it is likely to gain from any general growth of this industry. H arry B randt Bank Announcement The Federal Reserve Bank of Atlanta is pleased to welcome the Central National Bank of Jacksonville, Jacksonville, Florida, as a member of the Federal Reserve System. The bank's officers are E. G. Breedlove, President; David J. Lewis and J. L. Tison, Jr., Vice Presidents; C. H. Williams, Cashier; and Miss A. Marie Tuttle and R. F. Howalt, Assistant Cashiers. Capital stock amounts to $200,000 and surplus, profits and reserves to $247,000. 5 R e a l-E s ta te L o a n s .. Hand-in-hand with the postwar building boom has been an expansion of real-estate loans at commercial banks. Be tween December 30, 1945, and June 30, 1955, loans se cured by farm, residential, and commercial property at District member banks increased about 470 percent and on the latter date totaled 450 million dollars. Meanwhile, the ratio of real-estate-to-total loans rose from 7 to 14 percent. The change since 1945 represents more than just a change in the attitude of bankers. During the war Govern ment regulations restricted the use of funds and building materials, but when these restrictions were lifted, building expanded to meet the demand that had accumulated during the war years. The change-over from a wartime to a peace time economy thus released a large demand for real-estate loans at banks. The availability of Government insured mortgages also contributed to the increase in such loans. Following national trends in mortgage activity, the ratio of real-estate loans to total loans at District banks increased rather sharply after the war, reached a peak in mid-1950, declined slowly between June 1950 and De cember 1953, and then started up again. Much of the increase during the last year, particularly during the last six months, can be attributed to large gains in loans insured by the Federal Housing Administration and the Veterans Administration. These mortgages ac counted for 52 percent of the gain in all loans on resi dential property. FHA loans increased 30 percent and VA loans 72 percent. With the decline in yields on bonds during this period, the high yield on Government insured and guaranteed mortgages made them a more attractive outlet for bank funds. All of the expansion during this period, however, cannot be attributed to Government-insured paper. Con ventional financing increased 27 percent and loans secured by commercial property gained 30 percent. Loans on farm land also increased rapidly, probably because farmers, faced with an income loss during the year, obtained funds for production by using real estate as collateral, and also because many large banks purchased sizable amounts of loans insured by the Farm Home Administration. The 450 million dollars in real-estate loans now held rce n t . An Outlet for Bank Funds by District member banks does not reflect the full contri bution of local banks to home ownership and construction, as banks also make temporary loans to individuals and contractors to finance the erection of homes, churches, factories, and other buildings. But more than this, banks include in their business loans, loans to such firms as insurance and mortgage companies, savings and loan asso ciations, and other concerns who in turn invest in mortgage paper. A recent survey of the large banks in this District Ratio of Real-Estate-to-Total Loans by Size of Bank Sixth District Member Banks October 7 , 1954 Ala. Fla. Ga. La. Hiss. Less than $3.5 mil. . . 28.1 3 .5 -1 0 ................. 25.3 1 0 -1 0 0 ................. 19.6 $100 mil. and over . . 9.2 A ll S iz e s............... 18.1 13.0 23.3 20.0 30.0 23.9 17.9 31.0 18.4 15.6 10.9 17.6 10.9 37.8 33.4 22.4 7.5 14.5 Deposit Size 6.2 16.4 Tenn. District 33.1 26.5 12.3 5.7 11.7 29.3 25.6 18.9 7.3 14.5 revealed that for every dollar in real-estate loans, there was an additional fifty cents in loans to mortgage firms. These loans generally are short-term, and because of their size, are confined to large banks. Despite the rather rapid increase in real-estate loans at large banks, these loans make up only a minor part of their total loans, compared with the same ratio at small banks. According to the October 1954 call reports, at banks with deposits of less than 3.5 million dollars, the ratio was 29.3 percent, compared with 7.3 percent at banks with deposits of over 100 million dollars. The importance of real-estate loans also varied by state—Ala bama banks had the highest ratio, 18.1 percent; the low of 10.9 percent was at banks in Georgia. All loans secured by real estate are not used for the purpose of buying property; nevertheless, changes in these loans are a fairly good indication of changes in bankers’ views toward real-estate financing. Judging by recent trends in mortgage loans at District banks, bankers are now placing a new importance on real-estate paper. Charles S. Overmiller p e rc e n l ..........................................II................................I l l l ...............11 6 Sixth District Statistics In s t a lm e n t C a s h Condition of 27 Member Banks in Leading Cities Lo a n s (In Thousands of Dollars) Lender Federal credit unions . . State credit u n io n s. . . Industria! b a nks . . . . Industrial loan companies Small loan companies . . Commercial banks . . . Volume Percent Change July, 1 9 5 5 , from June July 1955 1954 —32 + 23 — 17 + 28 —6 + 20 + 14 —2 —11 + 35 —7 + 48 No. of Lenders . . 39 17 7 . . 12 . . 29 . . 32 Outstandings Percent Change July, 1 9 5 5 , from June July 1954 1955 +2 + 19 +4 + 14 + 15 +1 + 16 +1 + 57 +0 —1 + 14 Retail Furniture Store Operations Percent Change July 1 9 5 5 from June 1 9 5 5 July 1 9 5 4 +2 + 11 +7 —0 +2 + 11 +1 +8 +4 +6 —7 —9 Item Total s a le s ................................................. Cash s a l e s ........................... ..... . . . Instalment and other credit sales . Accounts receivable,end of month . Collections during month . . . . Inventories, end of month , . . . Wholesale Sales and Inventories* No. of Firms ReportType of Wholesaler ing Grocery, confectionery, meats 3 4 Edible farm products . . . 17 Drugs, chems., allied prods. 1 5 D r u g s ......................................1 0 Furniture, home furnishings 6 Electrical, electronic & appliance goods . . . . 7 Hardware, plumbing & heating g o o d s ......................3 4 Machinery: equip. & supplies 3 5 Sales Percent Change July 1 9 5 5 from June July 1955 1954 +0 +3 —23 —15 —1 —3 —2 +9 0 +0 —0 + 11 + 22 +9 No. of Firms Report ing 19 11 9 6 6 8 —9 6 +3 +7 +7 +1 + 21 + 26 24 14 + Inventories Percent Change July 3 1 , 1 9 5 5 , from June 3 0 July 3 1 1954 1955 +6 +5 +7 +2 —1 +2 —1 +1 +0 +1 8 +0 +6 + + 16 Percent Change . July June 1955 —2 —4 —2 —1 FLORIDA............................... Jack so n v ille..................... . . —8 —5 n.a. —6 —6 —6 —7 —0 +2 —6 —3 —4 —1 + 10 +1 n.a. +3 7 Months 1 9 5 5 from 1954 +9 + 10 +9 +7 + 14 +4 n.a. +9 +4 Inventories July 3 1 ,1 9 5 5 , from July 3 1 June 3 0 1954 1955 —4 +9 —6 —3 +8 +3 —2 —1 n.a. n.a. . —1 St.Ptrsbg-Tam paA rea . . +5 —i +8 + 16 St Petersburg . . . . —5 . +1 —2 + 12 + i5 + 10 GEORGIA ............................... . + 13 + 12 + 13 —3 A tla n ta * * .......................... ■ —1 +3 A u g u s t a ............................ . + 25 —0 + 13 + 19 . —2 +2 +7 . +5 +9 +6 —6 R o m e * * ........................... . +9 + 10 Savannah** ..................... . — 3 +9 +6 +3 +5 —7 L O U IS IA N A ....................... . —2 —0 +4 +3 Baton Rouge ..................... ■ + 4 +6 +3 +5 + 11 New O rle a n s.................... . — 9 +4 +4 + 13 —0 M IS S IS S IP P I..................... . — 5 —1 +3 + 10 +2 . —7 +9 +8 M e rid ia n * * ..................... . — 5 +3 +7 —5 + 15 TENNESSEE ...................... . +3 —4 —9 —5 +5 Bristol (T enn.& V a.)** . — 1 0 Bristol-Kingsport—1 +6 Johnson City** . . . . — 1 0 —1 +4 Chattanooga ..................... +6 —i7 + 12 + 26 K noxville.......................... . + 1 1 +5 +8 —1 + 14 N ash v ille.......................... . +0 —2 +8 + 10 +9 D IS T R IC T ........................... . — 3 *Reportng stores account for over 9 0 percent of total District department store sales. **ln order to permit publication of figures for this city, a special sample has been constructed that is not confined exclusively to department stores. Figures for non department stores, however, are not used in computing the District percent changes, n.a. Not available. 3 ,2 5 1 ,9 0 2 1 ,5 5 8 ,8 1 5 Loans— G r o s s ........................... 1 ,5 8 2 ,7 4 1 Commercial, industrial, and agricultural loans . 8 6 5 ,3 7 2 Loans to brokers and dealers in securities . 2 9 ,2 7 6 Other loans for purchasing or carrying securities . 4 1 ,4 7 7 Real estate loans . . . 1 4 7 ,0 3 1 Loans to banks . . . . 27 733 Other loans ........................... 4 7 1 ,8 5 2 Investments— Total . . . . 1 ,6 9 3 ,0 8 7 Bills, certificates, and notes ...................... 5 7 2 ,6 0 0 U. S. bonds ............................. 7 9 3 ,6 4 6 Other securities . . . . 3 2 6 ,8 4 1 Reserve with F. R. Bank . 4 9 7 ,8 4 0 Cash in vault ........................... 4 8 ,4 7 0 Balances with domestic 2 7 7 ,1 5 2 Demand deposits adjusted . 2 ,3 5 7 ,8 1 8 Time d e p o s its ........................... 6 2 8 ,4 0 0 U. S. Gov’t deposits . . . 8 9 ,6 0 1 Deposits of domestic banks 6 7 4 ,1 9 0 3 8 ,0 0 0 July 2 0 , 1955 Aug. 1 8 , 1954 3 ,2 5 4 ,7 8 4 1 ,5 2 9 ,4 0 0 1 ,5 5 3 ,2 2 5 3 ,1 2 3 ,4 6 0 1 ,2 5 1 ,6 7 9 1 ,2 7 3 ,5 5 5 —0 +2 +2 +4 + 25 + 24 8 5 5 ,2 1 5 7 0 0 ,6 7 6 1 4 ,4 7 3 +1 +22 + 24 2 3 ,9 4 4 4 1 ,1 5 8 1 4 4 ,2 9 2 1 8 ,1 2 1 4 7 0 ,4 9 5 1 ,7 2 5 ,3 8 4 3 3 ,3 2 0 9 2 ,8 7 9 2 6 ,0 1 6 4 0 6 ,1 9 1 1 ,8 7 1 ,7 8 1 1 +2 + 24 + 58 +7 + 16 6 2 0 ,5 1 3 7 7 5 ,6 6 1 3 2 9 ,2 1 0 5 1 0 ,0 3 3 4 9 ,0 5 7 7 0 9 ,9 7 9 8 7 5 ,8 0 8 2 8 5 ,9 9 4 4 9 5 ,1 0 4 4 6 ,1 6 7 2 4 4 ,3 0 4 2 ,3 4 3 ,6 1 2 6 3 2 ,2 8 3 1 0 7 ,9 8 8 6 2 3 ,0 6 6 6 6 ,3 0 0 2 3 7 .2 7 9 2 ,2 5 4 ,7 0 4 6 0 2 ,4 8 3 1 0 2 ,4 4 0 6 6 8 ,0 6 0 6,000 + + 53 +0 —2 —8 +2 —1 —2 —1 + 13 +1 —1 —17 +8 —43 * —10 —19 —9 + 14 +1 +5 + 17 +5 +4 — 13 +1 *100 percent or over. Debits to Individual Demand Deposit Accounts (In Thousands of Dollars) June 1955 3 3 ,7 3 8 5 6 1 ,7 0 5 2 9 ,4 2 4 2 0 8 ,1 7 5 1 1 5 ,8 3 1 3 7 ,7 0 6 3 3 ,9 4 8 5 9 9 ,5 7 7 1 9 ,0 7 8 2 9 ,5 3 7 2 2 3 ,1 5 4 1 1 7 ,0 0 5 3 9 ,2 2 7 3 0 ,4 5 8 4 4 2 ,8 5 5 1 6 ,9 9 2 2 3 ,3 8 5 1 7 1 ,4 5 1 9 8 ,4 6 2 3 5 ,5 7 8 5 2 1 ,5 3 7 5 5 3 ,1 2 6 8 2 2 ,3 6 0 1 1 2 ,1 1 9 6 4 ,1 1 2 1 1 8 ,4 5 9 2 1 3 ,0 1 4 6 5 ,2 6 7 5 6 4 ,5 8 5 4 9 4 ,7 5 8 7 6 8 ,2 5 6 1 2 4 ,0 5 3 6 4 ,5 0 5 1 1 2 ,2 7 0 2 4 3 ,7 0 8 7 2 ,1 9 6 4 7 8 ,1 1 9 4 0 1 ,2 8 0 6 0 3 ,2 5 4 8 9 ,4 3 5 5 4 ,8 6 0 9 5 ,0 9 9 1 8 3 ,0 4 2 5 3 ,9 8 9 . 4 7 ,3 3 2 1 ,3 6 5 ,4 8 8 8 6 ,9 8 1 1 4 ,5 3 5 9 0 ,3 4 7 4 ,8 0 4 3 9 ,6 2 9 1 4 ,3 1 9 9 7 ,2 3 1 1 3 ,1 0 1 3 8 ,5 6 7 1 2 9 ,4 2 2 2 5 ,9 0 7 4 6 ,5 3 9 1 ,4 2 7 ,7 7 9 9 1 ,9 1 2 1 4 ,5 3 3 9 0 ,3 8 9 5 ,2 3 8 3 9 ,3 2 6 1 3 ,9 5 0 9 6 ,7 9 0 1 1 ,5 0 3 3 6 ,3 1 5 1 4 3 ,8 8 7 2 2 ,1 7 8 4 0 ,0 0 9 1 ,2 4 0 ,8 4 0 7 9 ,5 9 1 1 4 ,2 5 9 8 1 ,8 1 7 4 ,3 1 5 3 0 ,5 5 1 1 2 .5 4 3 9 6 ,8 1 7 1 2 ,4 1 7 2 9 ,3 2 1 1 2 4 ,5 1 0 3 1 ,8 8 6 . . . . 5 2 ,4 4 4 1 5 5 .0 6 3 6 6 ,3 4 5 1 ,0 3 1 ,5 2 4 5 4 ,8 7 6 1 6 4 ,3 3 5 6 8 ,0 8 2 1 ,0 7 3 ,7 0 3 4 9 ,6 0 6 1 3 8 ,5 9 9 5 5 ,1 6 0 9 7 1 ,1 6 3 . 2 4 ,5 6 7 1 7 9 ,9 5 3 3 0 ,6 0 6 1 5 ,3 7 3 2 3 ,5 9 0 1 8 0 ,0 7 5 3 1 ,1 1 2 1 6 ,2 2 5 2 1 ,3 8 8 1 5 1 ,6 5 9 2 8 ,0 2 5 1 4 ,9 0 1 . 3 0 .0 4 7 2 2 7 ,5 5 9 33319 5 8 ,1 8 0 1 6 1 ,3 7 4 5 0 9 ,0 3 2 3 1 ,7 4 2 2 4 8 ,5 6 8 3 3 ,9 5 4 6 3 ,8 2 8 178 672 5 2 8 ,7 8 3 2 7 ,7 9 9 2 1 3 ,9 7 4 3 1 ,0 9 3 4 4 ,6 6 8 1 4 0 ,8 5 9 4 4 7 ,9 3 1 . 6 ,8 2 7 ,8 0 4 7 ,0 9 0 ,0 7 1 ALABAMA Anniston . . . . Birmingham . . . 20,020 Gadsden . . . . M o b ile ...................... Montgomery . . . Tuscaloosa* . . . FLORIDA Jacksonville . . . M i a m i ...................... Greater Miami*. . Pensacola . . . . S t. Petersburg . . West Palm Beach* GEORGIA Augusta . . . . Brunswick . . . . Columbus . . . . Elberton . . . . Gainesville* . . . Griffin*....................... N ew nan..................... Savannah . . . . Valdosta . . . LOUISIANA Alexandria* . . Baton Rouge . . Lake C harles. . New Orleans . . MISSISSIPPI Hattiesburg . , —1 —6 +5 —0 —7 —1 + 11 + 27 + 18 + 26 + 21 + 18 +6 —8 + 9 + 12 + 3 8 +7 + 36 —10 + 2 5 —1 + 1 7 +6 + 2 5 — 13 + 16 —10 +21 +2 + 1 8 — 4 + 10 —5 +9 +0 +2 —0 + 10 —8 + 11 +1 + 3 0 +3 + 14 +0 +0 + 14 +6 +6 + 3 2 —10 + 4 —4 + 11 + 18 +6 + 18 +20 + 19 + 10 + 13 + 23 + 26 + 27 +9 +22 + 16 + 21 + 22 + 11 +12 +6 + 17 +5 + 30 +9 + 18 + 18 +21 + 10 +6 + 17 — 19 —4 +6 + 12 +9 + 12 + 22 + 11 —0 —2 + 15 + 19 +9 +3 +10 +11 + 12 —5 +8 +6 +10 —4 +7 + 30 + 15 + 14 5 ,9 9 5 ,5 5 8 —4 + 14 + 14 . 1 6 1 ,7 4 1 ,0 0 0 1 7 7 ,9 0 8 ,0 0 0 1 5 4 ,8 5 6 ,0 0 0 —9 +4 +6 Meridian . . . . Vicksburg . . . . TENNESSEE Chattanooga . . Johnson City* . Kingsport* . . Knoxville . . . . Nashville . . . SIXTH DISTRICT 3 2 Cities . . . UNITED STATES 3 4 5 Cities . . . Percent Change July 1 9 5 5 from 7 Months July June July 1 9 5 5 from 1954 1955 1954 1954 July 1955 +6 Department Store Sales and Inventories* Place ALABAMA ........................... Loans and investments— T o t a l ...................................... + 16 Iron & steel scrap & + 29 —13 waste materials . . . . 12 *Based on information submitted by wholesalers participating in the Monthly Wholesale Trade Report issued by the Bureau of the Census. Sales 1 9 5 5 from July 1954 +9 +9 + 14 Aug. 1 7 , 1955 Item Percent Change Aug. 1 7 ,1 9 5 5 , from July 2 0 , Aug. 1 8 , 1955 1954 . . . *Not included in Sixth District totals. 7 —6 —3 —4 +4 —5 —8 —2 —9 —10 +20 +6 +5 +5 +9 + 28 + 12 + 12 Sixth District Indexes N o n fa rm E m p lo y m e n t SEASONALLY ADJUSTED District Total . . . . A la b a m a ...................... F l o r i d a ...................... G e o r g i a ...................... L ouisiana...................... Mississippi . . . . Tennessee . . . . UNADJUSTED District Total . . . . A la b a m a ...................... F l o r i d a ...................... G e o r g i a ...................... L o u isiana...................... Mississippi . . . . Tennessee . . . . 1947-49 = 100 Manufacturing Manufacturing Payrolls Employment June 1955 May 1955 June 1954 June 1955 May 1955 121 112 120 112 139 122 118 115 109 142 113 107 141 138 124 116 118 117 120 112 134 123 115 118 117 115 118 115 120 111 136 122 114 117 115r 110 134 118 116 114 114 117 109 129 118 116 114 114 122 102 120 100 116 114 115 113r 114 107 139 119 113 106 141 118 99 114 100 116 113 112 June 1954 llO r 104 136r 115r 102r lllr 110 109 102 132 r 112r lO lr lllr 109 June 1955 May 1955 174 151 184 167 152 135 184r 150r 146r 162r 152r 166 153 194 170 151 182 167 163r 151r 198 169r 147 174r 163r 149 133r 178r 147r 146r 160r 152r 201 July 1955 June 1954 164 152 198 172r 150 174r 165r 169 155 Construction Contracts 169 281 290 337 329 163 _______ Adjusted________ _______ Unadjusted_______ July June July July June July ___________________________1 9 5 5 1955 1 9 5 4 _________ 1 9 5 5 1955 1954 136 139r 104r 113 124 108r 119 133 130r H Sr 131r 142r 125 151r 133r 134r 120r 119r 129r 119r 120r 130r 142r 123r 126r 148r 132r 137r 122p 125 109 103 113 97 103 141 124 113 110 122 112 139 121 118 101 103 109 100 105 122 124 109 116 125 116 142r 107r 108r 101 91r 104r 94r 9Sr lOSr 113r 96r lO lr 118r 114r 128r >To permit publication of figures for this city, a special sample has been constructed that is not confined exclusively to department stores. Figures for non-department stores, however, are not used in computing the District index. *For Sixth District area only. Other totals for entire six states. **Daily average basis. Sources: Mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; furn. sales, dept, store sales, turn over of dem. dep., FRB Atlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. w m ljy s e r v e M ap ( f t f ie m te c fS ta te s O Reserve Bank Cities • Branch Bank Cities mm District Boundaries — Branch Territory Boundaries ^ Board of Governors of the Federal Reserve System 338 306 356 276 252 215 July 1954 242 223 171 222 141 164 July 1955 June 1955 July 1954 11 9 p 126p 1 28p 12 5 p 1 1 8p 102 lO lr 110 105 114r 104r 116r 115r 97r lllr 98 p 75r 82r 112p lllp 1 18p 123 p 1 1 3p 106 108r 112 109 121r 102 105 96 107 96p sir 80 97 Other District Indexes Department Store Sales and Stocks** DISTRICT SA L E S *. . . . 1 5 2p A tlanta 1 ................................ 1 5 6 Baton Rouge.......................... 1 3 0 B irm in g ham ..........................1 3 4 C h attan ooga.......................... 1 4 0 Jack so n .....................................1 2 2 Jack so n v ille........................... 1 2 5 K noxville................................ 1 6 9 M a c o n ..................................... 1 5 5 N a sh v ille ................................1 4 5 New O rle a n s .......................... 1 3 8 S t. Ptrsbg-Tampa A re a . . 1 5 2 T a m p a ..................................... 1 3 0 DISTRICT STOCKS* . . . 148 June 1955 Furniture Store Sales*/** July 1955 Adjusted June July 1955 1954 Construction contracts* . . . . R esidential...................................... Petrol, prod, in Coastal Louisiana and Mississippi** . Cotton consumption** . . . . Furniture store stocks* . . . . Turnover of demand deposits* 10 leading cities ...................... Outside 1 0 leading cities . . Elec. power prod., total** . . . Mfg. emp. by type A p p a r e l........................................... C h e m ic a ls ...................................... Fabricated m e t a l s ...................... Lbr., wood prod., furn. & fix. . Paper and allied prod. . . . Primary m e t a l s ........................... Trans, equip..................................... r Revised. p Preliminary. 145 98 98 p 21.1 2 2 .5 1 7 .8 143r 103 107r 134 r 88 106 20.8 20.8 22.2 2 3 .1 1 7 .4 June 1955 May 1955 155 132 165 109 83 153 105 96 189 154 132 160r 108 83 151 105 96r 175 1 7 .6 June 1954 147r 126r 160r 108r 80r 148r 95r 93 175 July 1955 Unadjusted June July 1955 1954 266 255 275 304r 262r 336r 200 199 201 145 83 95p 2 0 .3 2 1 .4 1 7 .1 142r 98 104r 134r 75 20.8 22.1 1 7 .4 102 20.0 21.1 1 6 .9 June 1955 245 May 1955 240 June 1954 205r 150 127 159 107 83 152 105 95 184 150 129 157 106 83 150 103 94 177 142r 121r 155r 106r SOr 147r 94r 92r 169r