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mi uss *A I A A LA V / G A ^ IX ) ' a ^ i 7m j LA Atlanta, Georgia December • 1962 Also in this issue: INDEX FOR THE YEAR 1962 SIXTH DISTRICT STATISTICS DISTRICT BUSINESS CONDITIONS Monfhlu Review Time Deposit Expansion: Under a Microscope Any list of major financial stories in 1962 will undoubtedly show the “tale of time deposits” close to the top. You may recall that late last year, the Board of Governors of the Federal Reserve System announced an increase in the 3-percent maximum rate that banks could pay on time and savings deposits under Regulation Q. Effective January 1, 1962, the announcement read, member banks would be permitted to pay up to 3% percent on all savings deposits and on time deposits with a term of at least six months. On deposits with a term of a year or more, they were permitted to pay up to 4 percent. This announcement created quite a stir in financial circles in the District as well as the nation. At the time, some observers thought that the higher permissible rates on time deposits might produce some in crease in the flow of savings into commercial banks. Few, if any, antici pated the deluge that occurred or the effect it would have on bank loan and investment policies. Fortunately, the passage of time frequently enables us to see things more clearly, but how much we see depends largely upon our analytical perspective. We sometimes view District banks as though they were an amorphous mass, without form, without structure. “Time deposits have expanded,” we may say. Or, “banks have stepped up their purchases of state and local government securities.” Such statements are frequently based on aggregative data or, in other words, on data that describe the summa tion of activity of all banks in the District. This sort of economic recon naissance is often useful and sometimes necessary. Generally, however, it masks myriad changes. At times, we may wish— biologically speaking — to place aggregate data under a microscope so as to see more clearly certain parts of the banking organism. Statistically, this can only be done by viewing the behavior of individual banks and significant sub-groups of banks. This is the micro-economic approach we shall use in our review of the role played by District member banks in the dramatic story of time deposits and how they grew. The Setting % serw B < an(ef jS / a n t a Before getting to the heart of our story, it may be well to set the stage. The time: late 1961. The characters: 420 District member banks of various sizes and descriptions. Background information: Time deposits had been rising for many years and, together, District banks had accu mulated the tidy sum of $3.2 billion; amounts at individual banks, how ever, ranged from zero to $63 million. Additional information: Time deposits had flowed into banks at different rates, and, therefore, the demand-time deposit mix varied widely among banks. Time deposits accounted for 20 percent or less of total deposits at 50 banks and for 40 percent or more at 132 banks. The majority of banks, 238 in num ber, had ratios of time to total deposits of between 20 and 39 percent. The difference in the deposit mix of banks is a surface reflection of variations in bank location by city size. Five out of seven banks that had ratios of time to total deposits of more than 40 percent were located in cities with populations of 15,000 or less (small cities) and the others were located in cities with populations of 15,000 or more (large cities). Banks with ratios of time to total deposits of less than 40 percent, however, were distributed more evenly between small and large cities. Small banks tend to be located in small cities. Conse quently, about two-thirds of the banks with ratios of time to total deposits of more than 40 percent had total deposits of $10 million or less. Banks with ratios of less than 40 percent were more evenly split: 43 percent had total de posits under $10 million; 57 percent had total deposits over $10 million. A majority of the larger banks, those with total deposits of $50 million or more, had ratios of between 20 and 40 percent. Differences in the competitive environment in which banks find themselves probably explain why variations in the ratio of time to total deposits are associated with differences in city and bank size. In many small cities, for example, banks may readily attract and retain time de posits because of limited competition from savings and loan associations and credit unions. In large cities, how ever, banks may have more difficulty getting and keeping time deposits because they face vigorous competition for liquid savings from nonbank financial institutions. One thing we have tried to stress in setting the stage for our discussion of time deposit expansion in 1962 is diver sity. At the end of last year, the importance of time de posits differed among banks by city size, both in absolute amounts and in relation to total deposits. The competitive environment varied by bank location. Differences existed in the quality of bank management and in bank investment policies. When all of these differences are taken into ac count, one can readily understand why District bankers did not unanimously hail the recent change in Regulation Q as “a good thing.” The differences also suggest that in the race for time deposits this year some groups of banks could be expected to do better than others. But, let’s see what actually happened. The Action Bankers acted quickly, following the announcement of the upward revision of the maximum rate late last year. As one commentator put it, “One would have almost thought that the amendments to Regulation Q were mandatory rather than permissive.” In a survey conducted by the Atlanta Federal Reserve Bank in early 1962, 86 percent of the 82 District member banks contacted raised their rate on “other time” deposits; of these, almost all moved to the 4-percent ceiling permissible on deposits with a maturity of at least a year. About 62 percent of the banks surveyed also reported that they had raised their maximum rates on savings deposits; more than one-half of these banks moved to 4 percent and the rest to 3y2 percent. “We didn’t fall, we were pushed,” expressed the attitude of some bankers who had raised their rates. Generally, the “pusher” referred to competition, either from rival banks or nonbank financial institutions. Other bankers, however, welcomed the increase in rates, for “now we can effectively compete for savings with other thrift institutions.” One banker, however, voiced the fears of others when he said: “Rate hikes will increase our costs with no substantial in crease in new savings and time deposits.” This prediction turned out to be something less than correct. Time deposits rose sharply in the months immediately following the authorization of higher maximum rates. While expansion slowed somewhat this summer, the gain for the first nine months of 1962 amounted to a record $531 million, or 17 percent. As may be seen in the accom panying table, time deposit growth was heavily concen trated in savings of the non-passbook variety, particularly at large banks located in large cities and in banks located in Florida. The table shows these dollar figures in neat columns, but the story behind the figures may not be as precise because it must necessarily be based on inference. Nevertheless, here goes. Change between Dec. 30, 1961 and Sept. 28, 1962 (Millions of Dollars) District Member Banks Classified by Characteristic Ratio of time to total deposits, Dec. 1961 0 -9 . . 1 0 -1 9 . . 20 - 29 . . 3 0 -3 9 . . 40 - 49 . . 50 and Over . Total . . Time Deposits Total . . . . . . . . . . Savings Total Loans and Investments Securities other than U.S. Gov't Real Estate Loans • • . . . . . • . + 2 + 71 + 229 +127 + 96 + 6 531 + 2 — 7 + 92 + 41 + 39 — 4 163 + 3 +102 +245 +170 + 110 + 9 639 . . . . • • . . + 8 + 69 +130 +324 + 1 + 17 + 13 + 132 + 12 +121 +152 +354 + 24 + 46 +131 + 2 + 18 + 18 + 67 Size of total deposits, Dec. 1961 (Mil. of $) Under 2 . . . . 2 - 5 ....................... 5-10 . . . . 1 0- 25 . . . . 25 - 50 . . . . 50 and Over . . . • . . . . . + 6 + 30 + 46 + 84 + 56 +309 + 3 + 4 + 12 + 10 + 13 +121 + 11 + 51 + 61 + 124 + 80 +312 + * + 9 + 8 + 30 + 27 +128 + + + + + + 1 7 13 18 io 56 + + — + — + +102 +232 +149 + 43 + 41 + 72 + + + + + + + + + + + + 16 19 33 17 5 15 Size of city, 1960 Census of Population Under 2,500 . 2,500 - 14,999 15,000 - 99,999 100,000 and Over . State Alabama . . . Georgia . . . Louisiana . . . Mississippi . . Tennessee . . . + 83 +222 . . + 60 + 50 . . • + 31 . . + 85 . 26 75 14 28 4 52 + + + + + + * 47 80 58 15 1 202 29 70 46 16 10 31 + 14 + + 4 105 * Less than $1 million. More than two-thirds of the increase in time deposits in the nine months ending September 1962 was in deposits other than savings. Holders of such deposits are frequently corporations or private individuals with large accounts who tend to shift funds from one asset to another in re sponse to changes in yields. As we have already indicated, most of the banks in our survey earlier this year raised their rates on “other time” deposits to 4 percent. At this level, the differential between the rate on time deposits and savings and loan shares narrowed or even vanished in some cases. The higher rate also increased the spread be tween interest rates on 3-month Treasury bills and time deposits, favoring saving in the latter form. Some funds shifted from demand accounts to time deposits because the cost of holding money in idle balances increased. Other funds moved from a security market that seemed shaky •2 • Banks whose ratio of time to total deposits ranged from between 20-39 percent accounted for the m ajor share of loans and investments of a ll District member banks. Of the 420 member banks in the District, 238 had ratios of time to total deposits of between 20-39 percent. throughout much of 1962 to higher-yielding, liquid, time deposits. Some of the same factors that stimulated growth in “other time” deposits undoubtedly encouraged expan sion in savings deposits. “Big” savers, whether they are businesses or individuals, tend to cluster around “big” cities and to maintain their accounts with “big” banks. Banks with total deposits of over $50 million and banks in cities with populations of 100,000 or more apparently raised rates on time deposits more frequently than other banks and pushed them to the ceiling more often. Because of all of these things, banks in such cities increased total time deposits $324 million and accounted for 61 percent of the total expansion in time deposits in the first nine months of 1962. Gains in time deposits were widespread among all banks in this city-size group. Almost half of the 66 banks in such cities experienced gains of 20 percent or more, and about onefourth of them experienced increases of 30 percent or more. When all District member banks are considered as a group, the picture of time deposit change becomes one of contrasts. About 7 percent of all these banks experienced declines in time deposit holdings between December 1961 and September 1962. Most of these banks were located in cities with populations of under 15,000. At the other end of the scale, 15 percent of all banks enjoyed time deposit gains of 30 percent or more. There were, of course, many rates of change in between. More banks experienced in creases in time deposits of between 5 and 15 percent, however, than any other rate of gain. The Response The sharp growth in time deposits of District member banks during 1962 undoubtedly w as accompanied by a further change in the dem and-time deposit m ix of banks. Billions of Dollars Billions of Dollars During the first nine months of 1962, the rate of change in tim e deposits v aried w id ely among District member banks. Number of Banks Number of Banks Our story would be incomplete if we ended on the high key of time deposits pouring into commercial banks. For, this is only part of the story. Banks are confronted with the problem of obtaining increased income to offset the higher costs of attracting time deposits. How have banks responded to this challenge? The answer is that they have aggressively tried to put their funds to work by investing in higher-yielding assets. Between December 30, 1961, and September 28, 1962, District member banks expanded total bank credit—loans and investments— $639 million. This growth represented an amount $270 million greater than in the 9-month period a year earlier. As the accompanying table shows, banks increased their holdings of securities other than U. S. Governments— mostly state and local issues— $202 mil lion, or 32 percent of the increase in total bank credit. Growth in such securities was concentrated at large banks in large cities, for these banks were the major gainers of the enlarged flow of time deposits. Expansion in real estate lending, however, appeared to be less closely related to gains in time deposits. At banks in Georgia, expansion in real estate loans was equal to about half of the increase in time deposits, while at banks in Florida it amounted to only 9 percent. The combined expansion of real estate loans and hold ings of state and local securities equaled about half of the gain in the loans and investments of all member banks this year. All other major categories of bank assets, how(Continued on Page 6) • 3 • Index for the Year MONTH 1 9 6 2 PAGE AGRICULTURE MONTH PAGE ECONOMIC CONDITIONS, SIXTH DISTRICT STATES Migratory Farm Labor in the South’s Economy Jan. N. Carson B r a n a n ........................... 3 A New Twist in Florida Lawrence F. M a n sfie ld ............................ Mar. 4 Workers Leave Southern Farms Arthur H. K an tn er........................... 1 Diverse Trends Mark Georgia’s Economy Robert M. Y o u n g ....................................... Apr. 3 Hesitant Recovery in Alabama Albert A. H i r s c h ....................................... May 5 Mississippi’s Economy Continues to Expand W. M. Davis . ....................................... Oct. 3 Scrootch Owl in Louisiana Jack L. C o o p e r ....................................... Nov. 4 . Mar. 1 Southern Income Growth and a Changed Economic Environment Charles T. T a y lo r ....................................... Feb. 1 The Changing Southerner Robert M. Y o u n g ....................................... Sept. 3 The South and Its Future Earle L. R a u b e r ...................................... June 1 Adjusting Reserves Through the Federal Funds Market, Albert A. Hirsch Oct. 1 Recession to Recovery, 1960-62 Charles T. T a y lo r...................... ..... May 1 The Workings of the Federal Open Market Committee, Harry B ra n d t............................ July 1 District Banks Finance Foreign Trade Lawrence F. Mansfield . . . . . . Nov. 1 Financing Bank Loan Expansion Alfred P. Jo h n so n ...................... ..... Feb. 4 . Dec. 1 Feb. 1 June 1 Jan. BANK ANNOUNCEMENTS Feb. Apr.-May June July-Dee. 6 6 5 6 BANKING Adjusting Reserves Through the Federal . Funds Market, Albert A. Hirsch District Banks Finance Foreign Trade Lawrence F. M a n s fie ld ...................... . . Financing Bank Loan Expansion Alfred P. Jo h n so n ........................... Oct. Nov. 1 1 Feb. 4 How Have District Banks Been Doing? . . Sept. 3 Recession in Bank Earnings W. M. D a v i s ...................................... . Apr. 1 Time Deposit Expansion: Under a Microscope, Alfred P. Johnson . . Dec. 1 ECONOMIC DEVELOPMENT Occupational Change: Reflection of Economic Change, Philip M. Webster . FEDERAL RESERVE SYSTEM CONSUMER A Change in the Reluctant Borrower? Jack L. C o o p er................................. July 4 DEPARTMENT STORE TRADE Revisions in Measures of Department Store T r a d e ............................................ • Aug. 4 FINANCE DIRECTORS Directors of Federal Reserve Bank of Atlanta and Branches Apr. ...................................... 5 DISTRICT BUSINESS CONDITIONS Jan.-Dec. 8 Time Deposit Expansion: Under a Microscope, Alfred P. Johnson . . ECONOMIC CONDITIONS, GENERAL INCOME Greater Competitive Thrust Philip M. W ebster................................. . Aug. 1 On the State of the Economy Malcolm B r y a n ................................. . Sept. 1 Southern Income Growth and a Changed Economic Environment Charles T. T a y lo r....................................... May 1 The South and Its Future Earle L. R a u b e r ....................................... Recession to Recovery, 1960-62 Charles T. T a y lo r ................................. • 4 * MONTH PAGE MONTH PAGE SIXTH DISTRICT STATISTICS (Tables) MANUFACTURING Partial Recovery in Manufacturing Employm ent, P h ilip M . W eb ster . . . . Jan. 5 A v e r a g e W e e k ly H o u rs in M a n u f a c t u r i n g .................................. J a n .-D e e . 7 B a n k D e b its C o n stru ctio n C o n tracts MONETARY POLICY C o tto n C o n su m p tio n Adjusting Reserves Through the Federal Funds M arket, A lb e r t A . H ir sc h . . O ct. 1 M a lc o lm B r y a n ................................................ S ep t. 1 On the State of the Econom y D ep a r tm en t S tore S a les D e p a r tm en t S tore S to ck s E lec tr ic P o w e r P ro d u c tio n F a rm C ash R e c e ip ts F a rm E m p lo y m e n t Recession to Recovery, 1960-62 C h arles T . T a y l o r ................................................M a y 1 In sta lm en t C red it a t B a n k s In su red U n e m p lo y m e n t The Workings of the Federal Open Market Committee, H a rry B r a n d t ........................... Ju ly 1 M a n u fa ctu rin g E m p lo y m e n t M a n u fa ctu rin g P a y ro lls M em b er B a n k D e p o sits OPERATING RATIOS M e m b er B a n k L o a n s Recession in Bank Earnings N o n fa r m E m p lo y m e n t W . M . D a v i s .......................................................A p r. 1 N o n m a n u fa c tu r in g E m p lo y m e n t P e r so n a l In c o m e POPULATION Occupational Change: Reflection of Economic Change, P h ilip M . W eb ster . P e tr o le u m P r o d u c tio n . M ar. 1 D e b its to In d iv id u a l D e m a n d D e p o sit A c c o u n ts The Changing Southerner R o b e r t M . Y o u n g ................................................ S ep t. 3 D ep a r tm e n t S tore S a les an d In v en to r ie s The South and Its Future E a rle L . R a u b e r ................................................ Ju n e 1 Workers Leave Southern Farms A rthu r H . K a n t n e r ................................................ Jan. 1 P e r so n a l In c o m e in S ix th D istr ic t S ta tes J a n .-A p r. 6 J u n e -D e e . 6 Jan . 6 M a rch 6 J u n e -A u g . 6 O c t.-N o v . 6 J a n .-A p r. 6 TIM E D E P O S IT E X P A N S I O N (Continued from Page 3) Debits to Individual Demand Deposit Accounts (In Thousands of Dollars) ever, a lso in crea sed . B u sin e ss lo a n s , fo r e x a m p le, in crea sed $ 9 0 m illio n in th e first n in e m o n th s o f th is year in co n tra st to a m ark ed d e c lin e a y ea r earlier. C o n su m er lo a n s an d U . S. G o v er n m e n ts a lso reg istered h ea lth y in crea ses. M o s t b a n k s, in o th er w o rd s, m a n a g e d to k eep rather fu lly in v ested . A t th is stage, it is to o ea rly to a sse ss th e im p a ct o f th e in crea se in c o sts o n b a n k earn in gs. B a n k s th at sh o u ld d o w ell p rofit-w ise in 1 9 6 2 , h o w e v e r , m a y b e ch a ra cterized as fo llo w s. T h e y h a d m o d e r a tely lo w ra tio s o f tim e to to ta l d e p o sits at th e b eg in n in g o f th is y ear. T h e y e n jo y ed large p ercen ta g e g ain s in tim e d ep o sits, a n d th e y rem a in ed fu lly in v ested . B a n k s th at d o n o t p o ss e ss th e se ch a ra cteristics m a y n o t fare q u ite as w ell. T h e recen t m o d ifica tio n o f R e g u la tio n Q th at p erm itted p a y m en t o f h igh er in terest rates o n tim e d ep o sits m a y b e, at o n ce, a b u rd en a n d a b o o n . In th e sh o rt run, it m a y b e a b u rd en fo r so m e b a n k s b e c a u se it m a y in c re a se co sts m ore th an rev en u es. In th e lo n g e r run, h o w e v er , th e a b ility o f b an k s to e ffectiv ely c o m p e te fo r sa v in g s m a y a ccelera te th e b a n k in g in d u stry ’s rate o f g ro w th a n d e n a b le it to carve o u t its o w n d estin y to a grea ter d eg ree th an in th e p ast. A l f r e d P. Jo h n so n Detailed statistics relating to the distribution of time de posits among District member banks and changes in such deposits during the first nine months of 1962 are available on request to the Research Department, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. Bank Announcements On November 7, the Northwestern National Bank of Miami, Miami, Florida, a newly organized member bank, opened for business and began to remit at par for checks drawn on it when received from the Federal Reserve Bank. Officers include Henry D. Perry, Chairman of the Board; Charles W. Lantz, President; and R. F. Busby, Vice Presi dent and Cashier. Capital totals $450,000, and surplus and other capital funds, $225,000. The Bank of South Brevard, Melbourne, Florida, a newly organized nonmember bank, opened for business on November 15 and began to remit at par. Officers are John M. Thompson, Jr., Chairman of the Board; James F. Hunt, President; and I. M. Nichols, Cashier. Capital totals $500,000, and surplus and undivided profits, $125,000. On November 16, the Merchants Bank, Jackson, Ala bama, a newly organized nonmember bank, opened for business and began to remit at par. Officers include R. R. Bedwell, Chairman of the Board and President; and Everett A. Phillips, Executive Vice President and Cashier. Capital totals $200,000, and surplus and undivided profits, $200,000. The County National Bank of North Miami Beach, North Miami Beach, Florida, a newly organized member bank, opened for business on November 27 and began to remit at par. Officers are Louis J. Diek, President; Lee Howard, Vice President; and Walter J. Allison, Cashier. Capital totals $600,000, and surplus and other capital funds, $360,000. On November 30, the Citizens Bank of Palm Beach County, West Palm Beach, Florida, a newly organized non member bank, opened for business and began to remit at par. Officers include Ralph J. Blank, Jr., Chairman of the Board; Roy Cuthrell, President; and Thomas E. Rossin, Cashier. Capital totals $370,000, and surplus and undivided profits, $157,250. Oct. 1962 Sept. 1962 Oct. 1961 ALABAMA Anniston . . . . 52,281 45,061 45,088 Birmingham . . . 860,847 992,505 904,451 Dothan . . . . 45,432 43,551 43,072 Gadsden . . . . 42,206 34,963 38,355 108,052 Huntsville* . . . 85,048 86,181 Mobile . . . . 329,769 279,407 301,998 Montgomery . . 228,938 188,307 188,267 Selma^ . . . . 34,043 34,350 33,472 Tuscaloosa* . . 81,128 64,606 70,246 Total Reporting Cities 1,914,354 1,636,140 1,711,130 859,780 739,418 Other Citiesf . . . 814,277r FLORIDA Bartow* . . . . 20,779 n.a. n.a. Bradenton^ . . . 46,864 38,082 n.a. Clearwater* . . . 71,230 n.a. n.a. Daytona Beach* 61,352 53,170 53,140 Fort Lauderdale* . 217,774 181,455 194,330 Fort MyersNorth Fort Myers* 50,476 n.a. n.a. Gainesville* . . 54,954 45,561 48,525 Jacksonville . . 900,693 772,195 816,710 Key West^ . . . 17,814 15,604 17,161 Lakeland* . . . 83,178 71,585 73,943 Miami . . . . 1,004,562 850,332 863,349 Greater Miami♦ 1,472,840 1,233,766 1,270,258 Ocala* . . . . 41,226 n.a. n.a. Orlando . . . . 287,053 226,954 243,062 Pensacola . . . 91,455 82,929 85,348 St. Petersburg . . 187,802 229,991 207,083 Sarasota* . . . 81,446 n.a. 63,585 Tallahassee* . . 76,055 66,280 n.a. Tampa . . . . 460,732 392,446 429,615 W. Palm-Palm Bch.* 158,891 135,786 141,226 Winter Haven* . . 34,713 n.a. n.a. Total Reporting Cities** 4,459,516 3,570,164 3,577,437 1,519,281 Other Citiesf** . . 1,431,520 l,686,174r GEORGIA Albany . . . . 66,360 55,613 61,446 Athens* . . . . 40,454 47,723 46,452 Atlanta . . . . 2,764,784 2,348,846 2,412,200 Augusta . . . . 134,738 125,215 123,687 Brunswick . . . 33,244 29,484 29,686 Columbus . . . 129,523 115,323 121,155 Dalton* . . . . 61,514 53,497 n.a. Elberton . . . . 10,669 9,220 9,954 Gainesville* . . . 58,027 52,610 47,662 Griffin* . . . . 25,420 21,250 21,013 LaGrange* . . . 17,246 16,375 17,152 157,480 128,364 Macon . . . . 146,293 38,084 36,366 Marietta* . . . 34,186 Newnan . . . . 19,797 26,337 21,243 56,910 Rome* . . . . 47,036 53,748 Savannah . . . 191,206 176,295 174,360 Valdosta . . . . 37,019 33,653 36,565 Total Reporting Cities 3,854,835 3,310,847 3,356,802 Other Citiesf . . . 958,411 1,120,119 l,098,935r LOUISIANA 75,757 Alexandria* . . . 84,324 74,881 Baton Rouge . . 309,878 272,346 271,091 Lafayette* . . . 74,894 68,324 68,034 Lake Charles . . 89,893 79,971 81,263 New Orleans . . . 1,544,681 1,306,373 1,342,330 1,802,771 Total Reporting Cities 2,103,670 1,837,599 Other Citiesf . . . 753,512 622,840 636,189r MISSISSIPPI Biloxi-Gulfport* . 65,818 56,143 56,282 Hattiesburg . . . 42,033 38,643 38,366 Jackson . . . . 428,474 338,445 357,371 Laurel* . . . . 30,520 25,710 28,084 Meridian . . . . 53,340 46,832 49,655 Natchez* . . . 25,832 24,342 22,991 PascagoulaMoss Point* . . 36,653 n.a. n.a. Vicksburg . . . 27,137 22,828 23,514 Yazoo City* . . 23,420 n.a. n.a. Total Reporting Cities** 733,227 552,943 576,263 262,202 Other Citiesf** . . 246,704 275,616r TENNESSEE Bristol* . . . . 55,088 51,838 54,775 Chattanooga . . 370,125 339,908 354,575 Johnson City* . . 49,201 44,429 41,868 92,621 87,556 Kingsport* . . . 89,743 Knoxville . . . 279,525 245,917 268,208 872,441 781,921 Nashville . . . 812,001 Total Reporting Cities 1,719,001 1,551,569 1,621,170 Other Citiesf . . . 691,777 770,235 651,620r SIXTH DISTRICT . 20,054,234 17,130,602 17,843,212r Reporting Cities**. 14,784,603 12,424,434 12,680,401 Other Citiesf *♦ . . 5,269,631 4,706,168 5,162,811r Total, 32 Cities . . 12,233,055 10,481,237 10,901,361 UNITED STATES 344 Cities . . . 308,700,000 263,300,000 274,700,000 Percent Change Year-to-date 10 Months Oct. 1962 from i% 2 Sept. Oct. from 1962 1961 1961 +16 +15 +4 +21 +27 +18 +22 —1 +26 +17 + 16 +16 +10 +5 +10 +25 +9 +22 +2 +15 +12 +6 +8 +8 +7 +5 +20 +3 +10 +9 +13 +8 +1 n.a. +23 n.a. +15 +20 n.a. n.a. n.a. +15 +12 n.a. n.a. n.a. +8 +7 n.a. +13 + 17 +14 +16 + 18 + 19 n.a. +26 +10 +22 +28 +15 +17 +17 n.a. ** ** n.a. +21 + 10 +4 +12 +16 + 16 n.a. +18 +7 + 11 n.a. n.a. +7 +13 n.a. ** ** n.a. +14 +6 +6 +4 +10 +4 n.a. +7 +3 +6 n.a. n.a. +6 +15 n.a. +12 +2 +19 + 18 +18 +8 +13 +12 +15 — 14 + 10 +20 +5 +23 +5 +33 +21 +8 + 10 +16 +17 +8 +3 +15 + 9 +12 +7 n.a. —7 + 22 +21 +1 +8 + 11 +24 +6 +10 +1 +15 +2 +12 +8 + 15 +12 +24 +9 n.a. +6 +11 +12 —1 + 11 +12 +9 +4 +7 +3 + 15 +6 +11 +14 +10 + 12 +18 +17 +21 +13 +14 +10 +11 +15 +14 +18 +16 +13 +10 +9 +9 +10 +9 +17 +9 +27 +19 +14 +6 +17 +10 +20 +9 +7 +12 + 15 +5 +13 +2 +10 +8 n.a. +19 n.a. ** *• n.a. + 15 n.a. ** ** n.a. +10 n.a. +13 +1 +6 +9 +11 +6 +14 +12 +11 +11 +17 ** ** + 17 +1 +4 +18 +3 +4 +7 +6 +18 + 12 ** ** +12 +7 +5 +13 +7 +3 +7 +6 +12 +9 + 11 +4 +9 +24 +17 +11 ♦Not included in total for 32 cities that are part of the national debit series maintained by the Board of Governors. fEstimated. r Revised. n.a. Not available. ♦♦Addition of new reporting centers affects comparison of current figures with those of previous months. •6• S ix th D is tr ic t S ta tis tic s Seasonally Adjusted (All data are indexes, 1957-59 = 100, unless indicated otherwise.) Latest Month (1962) One Month Ago Two Months Ago One Year Ago One Month Ago Latest Month (1962) Two Months Ago One Year Ago GEORGIA SIXTH DISTRICT INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Sept. 38,536 37,972r 123 141 Farm Cash Receipts***.............................. Sept. 129 C r o p s .......................................................Sept. 161 117 Livestock..................................................Sept. 115 112 Department Store S a le s * /* * .................... Nov. 126p 119 Department Store S to ck s* ......................... Oct. 125 Instalment Credit at Banks,* (Mil. $) 133 New L o a n s ............................................. Oct. 151 137 Repayments.............................................Oct. 130 PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Oct. Manufacturing........................................ Oct. Apparel.................................................. Oct. Chemicals.............................................Oct. Fabricated M e t a ls ..............................Oct. Food....................................................... Oct. Lbr., Wood Prod., Furn. & Fix. . . . Oct. P a p e r ..................................................Oct. Primary M eta ls...................................Oct. Textiles .............................................Oct. Transportation Equipment . . . . Oct. Nonmanufacturing...................................Oct. Construction........................................Oct. Farm Employment***..............................Oct. Insured Unemployment, (Percent of Cov. Emp.) Oct. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Oct. Manufacturing P a y ro lls..............................Oct. Construction Contracts*..............................Sept. R esid en tia l............................................. Sept. All O th er..................................................Sept. Electric Power Production**....................Sept. Cotton Consumption**.............................. Oct. Petrol. Prod, in Coastal La. and Miss.** . Oct. FINANCE AND BANKING Member Bank Loans* All Banks..................................................Oct. Leading C i t i e s ........................................ Nov. Member Bank Deposits* All Banks..................................................Oct. Leading C i t i e s ........................................Nov. Bank D e b its * /* * ........................................Oct. 37,482r 35,926 114 101 119 98 111 105 121 109 116 110 141 135 129 127 107 106 119 102 104 103 97 105 94 94 117 107 96 81 4.3 40.7 125 109 120 100 133 96 154 107 106 119 102 104 103 96r 105r 93r 95 111 107 96 86 4.3 40.6 125 112 115 109 138 100 155 106 106 120 101 99 104 97 105 93 96 106 106 96 90 4.5 40.3 124 113 111 114 136 104 147 104 103 111 100 102 103 96 102 97 97 95 105 91 89 5.2 40.6 118 115 113 116 124 105 135 141 140 139 140 138 138 127 127 127 122 128 124 125 130 123 122 122 117 116 119 INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Sept. 7,059 Farm Cash Receipts***..............................Sept. 103 Department Store S a les* * ......................... Oct. 108 7,173r 121 113 7,041r 118 111 6,564 95 103 PRODUCTION AND EMPLOYMENT Nonfarm Employment...................................Oct. Manufacturing........................................Oct. Nonmanufacturing...................................Oct. Construction........................................Oct. Farm Employment***..............................Oct. Insured Unemployment, (Percent of Cov. Emp.) Oct. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Oct. Manufacturing P a y ro lls..............................Oct. 108 105 109 113 75 3.1 40.6 125 107 104r 108 lllr 75 3.2 40.4 125 107 105 109 115 85 3.2 40.2 122 104 101 105 97 85 4.4 40.3 116 FINANCE AND BANKING Member Bank L o a n s...................................Oct. Member Bank D ep o sits..............................Oct. Bank D eb its* * .............................................Oct. 147 131 134 143 128 135 145 126 128 130 122 125 5,684r 156 102 5,571r 113 107 5,414 108 95 98 95 98 74 82 4.5 41.9 113 98r 94 98 71 91 4.5 43.2r 114 97 94 98 73 95 4.5 42.2 111 98 93 99 76 85 5.8 41.1 106 133 117 117 132 114 117 131 115 111 121 111 106 2,881r 128 102 2,839r 107 105 2,730 103 98 110 113 108 103 83 4.8 39.8 126 110 114 108r 101 85 4.7 40.5 128 109 114 106 99 89 4.7 40.1 128 107 107 107 100 89 6.1 40.4 118 165 141 138 158 133 139 154 131 130 138 120 125 6,107r 110 113 6,072r 101 102 5,866 109 100 105 107 104 113 79 5.3 40.9 123 105 107 104 113 91 5.5 40.9 123 105 106 105 112 91 5.3 40.5 120 103 105 103 111 92 6.1 40.2 117 142 126 127 141 125 139 139 123 126 129 117 121 LOUISIANA INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) Sept. 5,782 Farm Cash Receipts***..............................Sept Sept. 161 Department Store S a le s * /* * ....................Oct.Oct. 95 PRODUCTION AND EMPLOYMENT Nonfarm Employment...................................Oct. Oct. Manufacturing........................................OctOct. Nonmanufacturing...................................Oct. Oct. Construction........................................ Oct. Oct. Farm Employment***.............................. Oct. Oct. Insured Unemployment, (Percent of Cov. Emp.) Oct. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Oct. Oct. Manufacturing P a y ro lls..............................Oct.Oct. FINANCE AND BANKING Member Bank Loans* . Member Bank Deposits* Bank Debits*/** . . Oct. Oct. Oct. MISSISSIPPI ALABAMA INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . Farm Cash Receipts***......................... Department Store S a les* *.................... Sept. 5,163 130 Sept. Oct. 98 5,153r 121 110 5,065r 114 107 4,946 88 105 Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. 102 98 104 87 75 5.0 40.3 115 102 99r 104r 87r 87 4.9 40.6 115r 102 99 103 88 86 5.0 40.8 114 102 96 105 92 86 5.0 40.6 111 Oct. Oct. Oct. 141 125 125 137 124 130 137 122 118 128 115 119 PRODUCTION AND EMPLOYMENT Insured Unemployment, (Percent of Cov. Emp.) FINANCE AND BANKING Bank D eb its* * ................................... INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Sept. 11,038 Farm Cash Receipts***..............................Sept. 117 Department Store S a les* * .........................Oct. 137 FINANCE AND BANKING Member Bank L o a n s................................... Oct. Member Bank D ep o sits..............................Oct. Bank D eb its* * ............................................. Oct. PRODUCTION AND EMPLOYMENT Nonfarm Employment......................... Oct. M anufacturing........................................Oct, Oct. Nonmanufacturing...................................Oct Oct. Construction........................................Oct, Oct. Farm Employment***..............................Oct, Oct. Insured Unemployment, (Percent of Cov. Emp.) Oct. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Oct Oct. Manufacturing P a y ro lls..............................Oct Oct. FINANCE AND BANKING Member Bank Loans*......................... Member Bank Deposits* . . . . . Bank D e b its * /* * .............................. Oct. Oct. Oct. TENNESSEE FLORIDA PRODUCTION AND EMPLOYMENT Nonfarm Employment...................................Oct. Manufacturing........................................Oct. Nonmanufacturing...................................Oct. Construction........................................Oct. Farm Employment***.............................. Oct. Insured Unemployment, (Percent of Cov. Emp.) Oct. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Oct. Manufacturing P a y ro lls.............................. Oct. INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . Sept. 3,284 Farm Cash Receipts***..............................Sept Sept. 233 Department Store S a le s * /* * ....................Oct. Oct. 89 10,974r 10,894r 10,406 119 132 117 146 142 129 116 121 115 98 105 3.8 41.3 155 115 120 114 100 93 4.0 41.8r 153 114 121 113 98 98 4.2 41.0 153 111 116 110 89 101 4.4 41.8 146 138 128 130 136 126 130 135 125 124 123 116 120 INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate). Sept. 6,210 Farm Cash Receipts***.............................. Sept. Sept 132 Department Store S a le s * /* * .................... Oct. 99 PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Oct. M anufacturing........................................Oct. Oct. Nonmanufacturing......................... Oct. Construction........................................Oct. Oct. Farm Employm ent***..............................Oct Oct. Insured Unemployment, (Percent of Cov. Emp.) Oct. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Oct. Oct Manufacturing P a y r o lls.............................. Oct. FINANCE AND BANKING Oct. Oct. Oct. *For Sixth District area only. Other totals for entire six states. p Preliminary. r Revised. **Daily average basis. ***Figures for farm cash receipts and farm employment reflect recent revisions to monthly estimates published by the U.S.D.A. and revisions in the seasonal adjustments. Sources: Personal income estimated by this Bank; nonfarm, mfg. and nonmfg. emp., mfg. payrolls and hours, and unemp., U.S. Dept, of Labor and cooperating state agencies; cotton consumption, U.S. Bureau of Census; construction contracts, F. W. Dodge Corp.; petrol, prod., U.S. Bureau of Mines; elec. power prod., Fed. Power Comm.; farm cash receipts and farm emp., U.S.D.A. Other indexes based on data collected by this Bank. All indexes calculated by this Bank. • 7 • DISTRICT BUSINESS CO N D ITIO N S | I I II I | I I I I I I I I I I! | II I 11 I 1 I I I I | I I I 1 I Billions of Dollars _ Annual Rote Seas Adj ^39 - o, Personal Income n balance, the District's economy forged ahead, brightening some what the mixed picture of previous months. Some indicators, such as personal income and consumer spending, turned in their best perform ances in several months. Others, namely the various categories of employment, remained lethargic. The farm sector, however, contrib uted to the general advance as cash receipts moved upward. Loans and deposits at member banks also rose further. IS is is Average Weekly Hours'"' Consumers have been spending more freely than in previous months. F o llo w in g a dip in O c to b er , D istr ict d ep a rtm en t store sa les r eb o u n d ed sharply in N o v e m b e r to rea ch a n e w reco rd , a cc o r d in g to p relim in a ry figures. W h ile sa les a t h o u se h o ld a p p lia n c e sto res w ere v irtu a lly u n c h a n g e d d u ring O cto b er, sa les a t fu rn itu re sto res e d g e d d o w n slig h tly , as d e c lin e s in A la b a m a , F lo rid a , a n d G eo rg ia o ffset g a in s in T e n n e sse e a n d L o u isia n a . F o llo w in g a lu ll sin ce m id -y ea r, D istric t sa les ta x c o lle c tio n s a d v a n c e d to a reco rd h ig h in S ep tem b er, th e la te st m o n th fo r w h ich d ata are a v a ila b le . T h e w a llets o f D istr ic t resid en ts w ere a little th ick er in S ep tem b er as p e r so n a l in c o m e ro se in a ll sta tes e x c e p t G eo rg ia . M is sis sip p i’s in c o m e g a in w a s th e la rg est, b e c a u se ea rly h arvests b o o ste d a g ricu ltu ral in c o m e m o re th an u su a l. O u tsta n d in g co n su m e r in sta lm en t cred it at D istr ic t b a n k s e x p a n d e d sh arp ly d u rin g O c to b e r , after d e c lin in g sligh tly in S ep tem b er. R e fle ctin g a large in crea se in b o rro w in g to fin a n ce a u to p u rch a ses, th e n et in crea se in th e o u tsta n d in g c o n su m er d eb t reg istered in O cto b e r set the reco rd fo r th e cu rren t ex p a n sio n . O th er lo a n ty p e s, h o w e v er , w ere virtu ally u n ch a n g ed fr o m th e p rev io u s m o n th . C o n su m er liq u id sa v in g s, rep resen tin g tim e d e p o sits a n d sa v in g s a n d lo a n sh a res, in c re a se d slig h tly d u rin g S ep tem b er. IS IS is Employment and production changed very little during October. T o ta l n o n fa rm e m p lo y m e n t in c h e d h ig h er, b u t m a n u fa ctu rin g e m p lo y m e n t crept d o w n w a rd , as g a in s in G eo rg ia , F lo r id a , an d L o u isia n a w e r e m o re th an offset b y lo s se s in A la b a m a , M ississip p i, a n d T e n n e sse e . E m p lo y m e n t in ap p arel and te x tile -m ill esta b lish m en ts a lso d ec lin e d an d w a s a c c o m p a n ie d b y a drop in c o tto n c o n su m p tio n . H o w e v e r , th e rate o f in su red u n e m p lo y m e n t rem ain ed u n ch a n g ed . S teel p r o d u ctio n reg istered n o ch a n g e fr o m S ep tem b er, an d the th ree-m o n th a v era g e o f c o n str u c tio n co n tr a cts, b a se d p a rtly o n O c to b er data, d ec lin ed further. IS i s is Farmers have experienced an improvement in their economic cli mate. F a rm p r o d u c tio n , p rices fo r fa rm p r o d u c ts, a n d w ea th e r h a v e fa v o red th em recen tly an d h a v e g iv en th eir c a sh rec e ip ts a w e lc o m e lift. T o ta l farm m ark etin g s in cr e a se d b ec a u se a large c o tto n h a r v e st in th e r eg io n a n d in crea sed sh ip m en ts o f su gar c a n e a n d o r a n g es in F lo r id a m o r e th a n o ffset a d eclin e in liv e sto c k m a rk etin g s. A ls o , th e in d e x o f p rices r e c e iv e d b y fa rm ers ro se sligh tly in O c to b er as p rices fo r so m e im p o rta n t c r o p s in cr e a sed . T h e se fa v o ra b le tren d s h a v e b e e n a c c o m p a n ie d b y h ig h ly d esira b le w ea th e r th a t h a s spurred th e g ro w th o f sm a ll grain s an d e n a b led fa rm ers in m a n y p la c e s to p u sh ah ead w ith th eir h a rv ests. IS PERCENT OF REQUIRED RESERVES : b er b a n k s in A la b a m a , M ississip p i, a n d T e n n e sse e h a v e le d th e o th er D istrict sta tes in th e rate o f ex p a n sio n . In O c to b e r , to ta l lo a n s a t a ll m e m b er b an k s ro se sh arp ly; b a n k s lo c a te d in th e D istr ic t’s sm a ller c itie s a n d to w n s registered larger g a in s th an th o se in o th er g e o g r a p h ic areas. T o ta l d e p o sits o f D istrict 1 m em b er b a n k s a lso ro se d u rin g O c to b e r . I9 6 0 •*3.7 Borrowings from _ F R. Bank m i i i Im i i in i .<* f l r > is The renewed loan expansion that began last summer is still in progress, according to the latest available data. In rece n t m o n th s, m e m Excess Reserves 4.i — is r 4 < v n « 4 < f ^ ^j I 1961 Digitized ♦ S e a s . a dfor j . f iFRASER g u r e ; n o t a n in d e x . 19(32 i y N o t e : D a t a o n w h ic h s ta te m e n ts a re b a s e d h a v e b e e n a d ju s te d t o e lim in a t e s e a s o n a l in flu e n c e s .
@FedFRASER