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V o lu m e X X V I
N u m b e r 12
A t la n ta , G e o r g ia , D e c e m b e r 3 1 , 1941
d i s t r ic t S u m m a r y
R e c o n n a is s a n c e
PER CEN T D E C R EA S E V
o f B u s in e s s C o n d itio n s
P E R C E N T IN C R E A S E
E x p a n s io n o f P r o d u c tio n
a n d E m p lo y m e n t
Retail liiiiiinilllllllllltil
In November Sixth D istrict departm ent
Since recent developments in the inter
store sales increased substantially, after
national situation have precipitated this
W holes
a second W orld W ar, the
declining in October, and continued well
Contracts
above a year ago. In the first half of
erve Bank of A tlanta has
Cotton Co|
December, although the effects of the
considered it a m atter of interest to its
outbreak of war were apparent in a
readers to recapitulate some of the in
Pig Iron ijfroduGtion
sm aller gain, sales nevertheless exceeded
dexes and trends that reflect the progress
Coal P rj
the record level of December last year.
of the all-out defense effort, insofar as
Emplo
W holesale trade declined seasonally in
this can be done without revealing inNovember, pig iron production was
orm ation not elsewhere available to
Pa
slightly lower, and construction con
the enemy.
Bank
tracts were awarded in a volume sm aller
►The Federal Reserve Board’s revised
lents
Bank Loans ax|H
than the record-breaking totals reported
index of industrial production (de
for August, September, and October.
scribed in the September 1941 Federal
Demand De
Textile activity increased in November
Reserve Bulletin) has been rising stead
30
20
20
10
10
30
to a new high rate.
ily since the beginning of the defense
program in June 1940, with the excep
►D epartm ent store sales increased in Sixth District statistics ior November 1941 com pared
w ith Novem ber 1940.
tion of a slight decline in A pril 1941
November, following a decline in Oc
resulting from the cessation of activities in most coal mines.
tober that was contrary to seasonal trend, and the index
Since A pril, however, the index has shown a steady increase,
established a new high for that month. Except for the months
and prelim inary figures for October indicate a further gain.
of January, June, and October, the 1941 indexes of daily
As would be expected, the durable goods division of the
average sales have been equal to, or higher than, the indexes
for corresponding months of any previous year. The unad index has shown the greatest rise; but the individual com
justed index rose 22 per cent from October to November ponents of the durables index have varied considerably in
and was 20 per cent above that for November 1940. In the their rate of acceleration.
list of reporting cities, Birmingham again had the largest in
Space lim itations preclude the possibility of a discussion of
crease, a gain of 34 per cent over November last year, and all the series contained in the industrial production index, and
was followed by these cities: Macon, 31 per cent; Chattanoo- for the purpose of this article, exam ination will be made only
Continued on page 68
Continued on page 66
EXPANSION OF PRODUCTION IN VITAL INDUSTRIES
SELECTED COMPONENTS OF THE BOARD OF GOVERNORS’ INDEX OF INDUSTRIAL PRODUCTION
PERCENTAGE INCREASE FROM JUNE. 1940 TO OCTOBER. 1941
IR O N
AND
i
STEEL
i
n .l
n .l
4* 26
-f 84
M A C H IN E R Y
T E X T IL E S A N D
PRODUCTS
T H E IR
N O NFERRO U S
PRODUCTS
M ETALS
m m m m m
AND
+ 28
C H E M IC A L S
M ANUFACTURED
PRODUCTS
LEATHER
AND
...
FO O D
IT S
T R A N S P O R T A T IO N
D
i
l
i
+ 16
PRODUCTS
E Q U IP M E N T
+
IO O
66
M o n th ly R e v ie w o f th e f e d e r a l R e s e r v e B a n k o f A tla n ta f o r D e c e m b e r 1 9 4 1
E x p a n s io n o f P r o d u c tio n a n d E m p lo y m e n t
of those indexes m ore directly concerned with the defense pro
gram and lease-lend activities. The index of total m anufac
tures includes production carried on by the government in
arsenals, quarterm aster depots, and shipyards (fo r which sep
arate data are not published). This total index has increased
57 per cent since August 1939, and has attained a point 39
per cent above that of June 1940.
►The most pronounced gains in any of the indexes connected
with defense production have been those in the transportation
equipm ent series, with a rise of 160 per cent since August
1939, and a gain of 100 per cent since June 1940; while the
machinery series has advanced 84 per cent since the latter
date and is 127 per cent above the prew ar level.
It is true that im portant increases were registered in a
large num ber of industries from the outbreak of the war to
the beginning of the all-out defense effort in June 1940. The
pace was unim portant, however, compared to the more rapid
acceleration that has been the rule during the past 18 months.
It is of interest to note that in some of the nondurable series
production actually declined from August 1939 to June 1940.
This is p articularly true of leather and its products and of
textiles and their products that showed a decrease of 7 per
cent and 4 per cent, respectively. Of course, gains since June
1940 have been extensive in both durables and nondurables.
Freight-car loadings increased only 10 per cent from the
outbreak of the war to the beginning of the defense p ro g ram ;
but they have increased 14 per cent since June 1940, and 26
per cent since August 1939. This series reflects the increase in
freight movement that of necessity accompanies any large in
crease in industrial output.
The nonferrous metal series has shown a rem arkable gain
from June 1940, after a 13 per cent increase from the prewar
level to that d a te ; but it apparently attained a plateau in May
1941 and has varied but slightly since then. October 1941 out
put was 47 per cent above that of June 1940, according to
prelim inary data from the Federal Reserve Board, and 65 per
cent above the A ugust 1939 figure. Despite this expansion,
however, supply is still trailing demand, and although direct
defense requirem ents absorb only about one third of the out
put, the indirect requirem ents (m achinery, construction, etc.)
are straining all available sources of supply.
►The transportation equipm ent index referred to above in
cludes arm am ent production in the shipbuilding, aircraft,
railroad equipment, and autom obile industry series. As would
be expected, the aircraft series has risen at an unequalled
speed and w ith no exception for the past eighteen months, and
prelim inary estimates for October show this as continuing.
The shipbuilding series also has had a practically uninter
rupted rise for the same period, as is true as well for the ra il
road cars and locomotives divisions. Automobile factory sales,
however, have varied much m ore than seasonally, m aintain
ing a high level until recent production curtailm ent occa
sioned a sharp decline. In the new index, though, only a small
part of the weight for the autom obile industry has been given
to the factory sales series, and the rem ainder of the weight
has been assigned to a new series based on man-hours worked
in the entire industry. This index, which reflects arm am ent as
well as other production in the autom obile industry, has
shown much less fluctuation than the factory sales index and
currently it is 58 per cent higher than before the w ar and 34
per cent above June 1940.
The production of m achinery has m ade great strides in the
two years of the war, and output is now 127 per cent greater
than it was at the outset. A lthough the progression of the
series has been steadily upw ard, the continued acceleration
depends upon the available supplies of m aterials and skilled
labor.
►The iron and steel industries have had an alm ost constant
upward movement for the past eighteen m onths; but they
have had a sm aller percentage increase than the other durable
goods industries since the beginning of the defense program .
Iron ore shipments have m aintained a high level over the past
year, and now are 31 per cent greater than the June 1940
figure and 88 per cent more than that for August 1939.
The textile products division of the nondurables group has
shown the sharpest change in that series, with an increase of
41 per cent over the June 1940 production level, after having
declined 4 per cent from the August 1939 index num ber, 111.
A great num ber of textile m ills are running at capacity rates
(based on an 80-hour week) to fill defense orders, while many
more have huge back-logs of consumers’ goods orders. Cotton
consumption is 35 per cent above that of a year ago, and
apparel wool consumption is 50 per cent higher.
The chemical index, which includes am m unition and its
components, has risen 48 per cent since August 1939, 28 of
INDUSTRIAL PRODUCTION AND EMPLOYMENT INDEXES,
INDUSTRIAL PRODUCTION*
1 9 3 5 - 3 9 = IO O
Total Industrial Production . . . .
Total Manufactures......................
Durables...................................
Nondurables..........................
Minerals.......................................
Iron and S t e e l ..........................
Machinery...................................
Transportation Equipment . . .
Nonferrous Metals and Products .
Chemicals..................................
Manufactured Food Products . .
Leather and Its Products . . .
Textiles and Their Products . .
— P R E L IM IN A R Y
Digitized forp FRASER
‘ F E D E R A L R E S E R V E BO A R D IN D E X
http://fraser.stlouisfed.org/
* * B U R E A U O F L A B O R S T A T IS T IC S D ATA
Federal Reserve Bank of St. Louis
October
1941p
lune
1940
August
1939
164
170
209
138
132
191
236
270
105
148
133
121
151
122
122
131
114
119
152
128
135
126
116
115
96
107
105
108
105
108
92
113
104
104
112
100
111
103
111
Per Cent Change
October 1941 from
June 1940
Aug. 1939
+ 34
+ 39
+ 60
+ 21
+ 11
+ 26
+ 84
+ 100
+ 47
+ 28
+ 16
+ 26
+ 41
+ 56
+ 57
+ 99
+ 28
+ 43
+ 69
+ 127
+ 160
+ 65
+ 48
+ 20
+ 17
+ 36
October
1941p
132.5
142.0
123.5
138.6
179.5
201.2
143.0
145.9
139.8
99.7
112.6
M o n th ly R e v ie w o f th e f e d e r a l R e s e r v e B a n k o f A tla n ta f o r D e c e m b e r 1 9 4 1
these percentage points having been added since June 1940.
Practically all such plants are now running at fu ll capacity;
and other im portant facilities are under construction that will
add substantially to those already operating.
Total factory em ployment increased but nom inally from
August 1939 to June 1940, but by October 1941 had risen
38 per cent above the form er level and 32 per cent above
the latter. As might be expected, the greater increases in
employment have been in those industries that have had the
most im portant increases in production. The durable goods
employment index has jum ped 47 per cent, and the non
durables only 14 per cent, since June 1940. The transporta
tion equipment industry has made the most rem arkable gain,
86 per cent, while employment in the m anufactured food
products industries in the nondurable series increased only
6 per cent. The table below shows the relationship between
production, employment, and hours worked in the industries
specifically m entioned above.
W hile industrial production and employment have been
showing pronounced gains in the past two years, bank loans
for defense purposes have also been rising. A ccording to a
survey made by the American Bankers Association of 376
banks in the United States fo r the quarter ending September
30, 1941, these banks had $873.4 m illion outstanding in
loans for defense purposes, a gain of approxim ately $191
m illion over the previous quarter. Of this total, 45 per cent
was for supplies and equipment, 31 per cent was fo r plant
facilities and construction, and 24 per cent was fo r working
capital purposes. The 26 banks covered in the Sixth Federal
Reserve D istrict showed a somewhat different distribution of
uses for their loans outstanding. P lan t facilities and con
struction accounted for 45 per cent of the $34 m illion out
standing in this District, 32 per cent was used fo r working
capital purposes, and 23 per cent went for supplies and
equipment.
It is not possible, of course, to estimate the rate of indus
trial expansion due to defense causes in the Sixth D istrict
as distinct from the rest of the nation. However, defense con
tracts totaling approxim ately $1.1 billion have been awarded
in this area from June 1, 1940, to September 1, 1941, and
the Sixth D istrict index of employment has increased 54
per cent through November 1941, m aintaining a steady rise
throughout the entire period. Cotton consumption in Georgia,
Alabama, and Tennessee since the beginning of the all-out
defense effort has increased 56 per cent through November
1941, and every other index of business activity in this
D istrict has made im portant gains.
Since the declaration of war December 7 those firms hand
ling war contracts have been requested to work a 7-day week,
24 hours a day. This will undoubtedly result in more sig
nificant strides in all branches of industry, except those deal
ing exclusively in consumers’ durable goods, that are already
being curtailed due to lack of strategic m aterials diverted to
war purposes. Any decline in employment, however, will
probably be of short duration since the war industries are
expected to absorb the slack in most instances.
H. D.
R E G IS T R A T IO N U N D E R
R E G U L A T IO N W , C O N S U M E R C R E D IT
In order to avoid penalties that may be imposed for violation
of the registration requirements under Regulation W, the
Consumer Credit Regulation of the Board of Governors of
the Federal Reserve System issued in accordance with an
executive order of the President of the United States, any
person required to register and who has failed to do so
should immediately file a Registration Statement. The neces
sary form s are procurable from the Federal Reserve Bank of
A tlanta or its branches.
The Regulation provides that no person engaged in the
business of making extensions of intalm ent sale credit or
instalm ent loan credit, or engaged in the business of lending
on the security of, or discounting or purchasing obligations
or claims arising out of such extensions of credit, shall make
any paym ent or receive any payment arising out of such
obligations unless such persons shall have filed a Registra
tion Statement on or before December 31, 1941.
A pproxim ately seven thousand instalm ent lenders and sell
ers in the Sixth Federal Reserve D istrict have filed Registra
tion Statements with the Federal Reserve Bank of A tlanta and
its branches pursuant to the registration requirem ents of
Regulation W.
AND AVERAGE HOURS WORKED IN SPECIFIED INDUSTRIES
AVERAGE HOURS WORKED**
EMPLOYMENT*
PER WEEK
1923-25 = lOO
lune
1940
August
1939
Per Cent Change
October 1941 from
Aug. 1939
June 1940
67
October
1941p
June
1940
August
1939
Per Cent Change
October 1941 from
Aug. 1939
June 1940
100.4
96.4
108.5
95.9
85.3
105.9
+ 32
+ 47
+ 14
4- 38
4- 66
4- 17
41.1
42.9
39.1
37.5
38.7
36.4
38.0
38.4
37.8
+ 10
4- 11
4- 7
~ 8
+ 12
+ 3
103.7
114.9
108.2
111.8
122.4
131.9
89.6
96.8 ■
92.5
97.3
88.3
96.2
111.9
129.7
97.4
104.6
4- 34
4- 56
+ 86
4- 28
4- 19
+ 6
+ 11
4- 16
4- 50
4- 84
+ 128
4- 49
4- 30
+ 8
4- 2
+ 8
41.5
45.4
43.0
42.7
40.2
40.9
37.8
37.6
37.6
40.8
38.1
39.0
38.5
40.1
33.2
37.0
39.0
38.1
39.0
38.4
40.5
37.7
36.1
4+
+
444+
4-
+
+
44+
444-
33.5
10
11
13
9
4
2
14
12
12
16
13
9
5
1
0
4
68
' '{ M o n th ly R e v e i w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r D e c e m b e r 1 9 4 1
CONDITION OF FEDERAL RESERVE BANK OF ATLANTA
(In Millions oi Dollars) p er Cent Change
Dec. 17, 1941, from
Dec. 17 Nov. 19
Dec. 18 Nov. 19 Dec. 18
1941
1941
1940
1941
1940
Bills d iscounted .............................. $ .07 $ .03
$ .04
Industrial ad v an ce s.......................
.5
.5
.3
U. S. secu rities................................ 95.2
93.2
83.8
+ 2
+ 14
Total bills an d secu rities........... 95.7
93.7
84.2
+ 2
+ 14
F. R. note circulation..................... 272.2
253.8
194.9
+ 7
+ 40
Member bank reserve d ep o sits. . . 316.6
304.2
226.1
+ 4
+ 40
U. S. G ov't d ep o sits....................... 32.5
33.5
15.0
— 3
-+117
Foreign bank d ep o sits................... 29.3
36.2
27.1
— 19
+ 8
O ther d ep o sits................................
8.4
7.1
5.2
+18
+62
Total d ep o sits.............................. 386.9
381.0
273.4
+ 2
+ 42
Total reserv es.................................. 564.6
546.2
390.7
+ 3
+ 45
Industrial advance com m itm ents.
1.8
1.8
.01
CONDITION OF 20 MEMBER BANKS IN SELECTED CITIES
(In Millions ol Dollars) p er Cent Change
Dec. 17, 1941, from
Dec. 17 Nov. 19
Dec. 18 Nov. 19 Dec. 18
1941
1941
1940
1941
1940
Loans an d Investm ents—T o ta l... $821.9
$794.5
$713.2
+ 3
+15
Loans—Total.................................... 427.1
422.0
373.8
+ 1
+ 14
Commercial, industrial, and
agricultural lo an s................... 223.4
218.2
196.6
+ 2
+ 14
Open market p a p e r.....................
7.0
5.7
3.6
+ 23
+ 94
Loans to brokers and dealers
in se c u ritie s..............................
6.8
7.1
9.3
— 4
— 27
O ther loans for purchasing
12.7
12.8
11.2
— 1
+ 13
and carrying secu rities.........
Real estate lo an s......................... 37.1
37.9
33.7
— 2
+ 10
Loans to b an k s............................
2.0
1.2
1.9
+67
+ 5
Other lo an s.................................. 138.2
139.2
117.6
— 1
+ 18
Investments—Total......................... 394.8
372.4
339.4
+ 6
+ 16
U. S. direct o bligations............. 220.8
196.9
157.2
+ 12
+ 40
Obligations g u aran teed by
,
U S ......... .............................. 64.5
62.3
63.4
+ 4
+ 2
Other secu rities.......................... 109.6
113.2
118.7
— 3
— 8
Reserve with F. R. Bank............... 196.0
190.7
??
Cash in v a u lt................................... 18.3
17.0
I
I" oi
Balances with domestic b an k s. . . 243.3
256.0
196.8
5
+ 24
Demand deposits-adjusted........... 558.2
552.6
449.6
+ 1
+ 24
Time d ep o sits.................................. 194.2
198.3
189.2
— 2
+ 3
U. S. G ov't d ep o sits....................... 57.5
39.7
„42 £
1" n
t oo
Deposits of domestic b an k s....... 404.3
402.3
330.0
+ 0
+ 23
B orrow ings......................................
-1
•••
DEBITS TO INDIVIDUAL ACCOUNTS
(In Thousands of Dollars) per Cent Change
Nov.
Oct.
Nov.Nov. 1941, from
ALABAMA
1941
19411940 ° ct1941 Nov.1940
Birmingham.....................$ 150,457 $ 164,814 $
107,657
— 9
+ 40
D o th an ...........................
5,409
6,438
3,430
— 16
+ 58
M obile..............................
68,064
76,998
46,112
— 12
+ 48
M ontgom ery...................
34,592
38,789
29,363
— 11
+ 18
FLORIDA
Jacksonville...................
104,680
112,321
93,469
— 7
+ 12
58,936
60,864
57,877
— 3
+ 2
Miami..............................
P ensacola.........................
12,949
14,375
11,059
— 10
+ 17
Tam pa..............................
37,985
40,663
38,809
— 7
— 2
GEORGIA
A lbany............................
8,599
8,837
6,454
— 3
+ 33
A tlanta............................
311,715
335,825
251,918
— 7
+ 24
A u g u sta..........................
33,139
33,233
22,430
— 0
+ 48
Brunsw ick.......................
3,535
3,956
2,983
— 11
+ 19
C olum bus.......................
26,594
28,779
21,928
— 8
+ 21
E lberton..........................
1,501
1,844
1,663
— 19
— 10
M acon..............................
27,878
31,805
19,411
— 12
+ 44
N e w n a n .........................
3,244
4,009
2,466
— 19
+ 32
S avannah.........................
38,746
42,465
32,433
— 9
+ 19
V aldosta..........................
7,070
7,447
4,473
— 5
+ 58
LOUISIANA
New O rlean s.................
268,137
332,786
239,601
— 19
+ 12
MB ? S ? S g .....................
9,931
Jackson............................
37,531
M eridian..........................
17,501
V icksburg.......................
10,795
TENNESSEE
C hattanooga...................
59,774
Knoxville........................
39,308
N ashville.........................
118,481
SDCTH DISTRICT
26 C ities..........................
1,496,551
UNITED STATES
274 C ities........................ 45,081,000
11,434
41,006
19,104
13,780
15,805
30,673
13,804
9,215
—
—
—
—
13
8
8
22
—
+
+
+
37
22
27
17
69.748
41,636
134,370
47,293
33,551
92,350
— 14
— 6
— 12
+ 26
+ 17
+ 28
1,677,326
1,238,227
— 11
+ 21
50,874,000
39,088,000
— 11
+ 15
R E T A IL T R A D E — N O V EM B ER 1941
(C itie s for w h ich no indexes are com piled)
Oct.
Baton R ouge. . . . —
C hattanooga. . . . —
Jackson............... +
Jacksonville........ +
Sales for November com pared w ith :
1941 Nov. 1940
Oct. 1941 Nov. 1940
+ 20
3
+ 5
Knoxville........... — 1
+ 31
0
+24
M acon................. + 8
+ 15
1
+ 23
M ontgom ery---+ 5
+ 20
3
+ 15
Tam pa................. + 26
d i s t r i c t S u m m a r y o f B u s in e s s C o n d itio n s
Continued from, page 65
ga 24 per cent; Jackson, 23 per cent; K noxville and Tam pa,
20 per cent; Nashville, 19 per cent; A tlanta, Jacksonville,
New Orleans, and M ontgomery, 15 per cent; and Baton
Rouge, 5 per cent. For the January-Novem ber period total
sales this year were up 18 per cent over that part of 1940, and
in this cumulative com parison Jacksonville led with a gain
of 26 per cent. Other cities registered gains as follow s:
Macon, 25 per cent; Birmingham, 24 per cent; Chattanooga,
23 per cent, Jackson, 22 per cent; Tam pa, 21 per cent; N ash
ville and Knoxville, 20 per cent; A tlanta, 18 per cent; New
Orleans, 17 per cent; M ontgomery, 15 per cent; and Baton
Rouge, 14 per cent. Reports of sales classified by departm ents
from a sm aller num ber of firms showed sm aller gains in most
classifications than those of earlier months and sales of furs,
furniture, and m ajor household appliances were sm aller than
in November a year ago. In the early part of December it
seems apparent that the outbreak of w ar had a dam pening
effect on retail trad e; although sales continued larger than
the record-breaking figures for December a year ago, the
gain for the first two weeks of the m onth was less than half
as large as the average for the first eleven months. W hole
sale trade in the D istrict declined 12 per cent in November,
about the usual seasonal amount, and was 15 per cent greater
than it was a year earlier.
Inventories at both departm ent stores and wholesale firms
changed less than one per cent from October to November.
Stocks at departm ent stores were slightly sm aller a t the close
of November, but were 31 per cent larger in dollar value than
a year ago, and wholesale stocks increased slightly in Novem
ber and were up 23 per cent from a year ago.
Life Insurance sales in this D istrict declined 4 per cent in
November but were 17 per cent greater than the same month
last year and the largest reported for November since 1930.
In the United States November sales were down 12 per cent
from October and were 15 per cent greater than a year ago.
£ In November business failures in the D istrict declined in
both num ber and liabilities. November liabilities were 32 per
cent less than those for October and were down 58 per cent
from November 1940. In the January-Novem ber period fail
ures in this D istrict were 29 per cent fewer than in that part
of 1940 and liabilities were 25 per cent less, and in the coun
try as a whole the num ber of failures was 12 per cent sm aller
and liabilities were down 18 per cent.
Following three consecutive record-breaking months— Au
gust, September, and October—-the value of construction con
tracts awarded in the Sixth D istrict declined substantially in
November. The total of about $53 m illion compares with the
record am ount reported for October of nearly $146 m illion.
Residential contracts declined nearly one-half in November
and other aw ards were down 66 per cent. In comparison with
November 1940, the total for November this year is larger by
50 per cent, and while residential awards were about a fifth
less, other contracts were alm ost twice as large. November
awards increased over October in Louisiana and M ississippi,
and over November last year in Alabam a, Louisiana, Missis
sippi, and Tennessee. In the eleven m onth period, January
through November, total aw ards in the D istrict amounted to
$676.6 m illion, a gain of 59 per cent over the corresponding
part of 1940. Residential aw ards were down 4 per cent, but
other contracts were nearly double those of last year. State
totals for the January-Novem ber period were also larger, exCondnuned on page 70
M o n th ly R e v e iw o f th e f e d e r a l R e s e r v e B a n k o f A tla n ta f o r d e c e m b e r 1941
INDUSTRIAL
PRODUCTION
_
----------
..
r
■ ~
-
?
69
National Summary o f Business
P repared by the Board of Governors of the Fe d e ra l Reserve System
---------
Industrial activity was maintained at a high rate in November and the first half of
December and distribution of commodities continued in large volume. Our entry into the
war was reflected in a sharp advance in the prices of some commodities, some decline in
security prices, and further curtailment of nonmilitary production.
P r o d u c tio n
Volume of industrial output was sustained in November at the high rate of the pre
-------- \|
vious two months, although a decline is usual at this season. The Board’s adjusted index
advanced from 163 to 167 per cent of the 1935-39 average. In industries engaged in pro
duction of armament and munitions activity continued to increase and in most other lines
1935
1936
1937
1939
1941
1938
1940
volume of output was maintained or declined less than seasonally.
Fe d eral Reserve index of p h ysical volum e oi production,
Output of materials, such as steel and nonferrous metals, was maintained at about
adjusted ior seasonal variation, 1935-1939 average = 100.
capacity. In the automobile industry activity increased, reflecting larger output of both
B y months. January 1935 to November 1941.
military and civilian products, and at lumber mills and furniture factories activity de
clined less than seasonally. At cotton and rayon textile mills activity rose to new record
WHOLESALE PRICES OF BASIC COMMODITIES
levels, and at woolen mills the high production rate of other recent months was main
tained. Less than seasonal declines in output were indicated for shoes and manufactured
food products.
Crude petroleum production increased further in November. Bituminous coal produc
tion declined somewaht owing to temporary shutdowns at some mines during November,
and anthracite production was curtailed as a result of unusually warm weather in some
areas and the existence of considerable stocks of coal accumulated in earlier months.
is o
|
......... A a
< Y«\>J FOODSTUFFS
1
pi
Iron ore shipments continued in large volume until the shipping season closed early in
J ,
160
December; during 1941 about 80 million tons of ore were brought down the Lakes as
\ |
compared with the previous record of 65 million tons in 1929. Stocks of ore at lower
\
140
N /r A
Lake ports on November 30 amounted to about a seven months’ supply at the current
v
/
I
S
O
vkjv P
consumption rate of around 6.5 million tons a month.
Following a declaration of war by this country in early December further steps were
1
0
0
taken to curtail output of nondefense goods using critical materials. Output quotas for
V * INDUSTRIAL \ s /
MATERIALS
v
passenger cars and household appliances were greatly reduced and cessation of output of
some other products was ordered as of the end of January. Also, the production and sale
Bureau of Labor Statistics' indexes based on 12 foodstuffs
of new automobile tires and tubes for civilian use were halted temporarily, pending es
and 16 industrial m aterials, A u gu st 1939 — 100. Thursday
tablishment of a system for controlling their distribution.
figures, January 3, 1935, to Decem ber 11, 1941.
Value of construction contracts awarded in November declined sharply from the high
level of other recent months, according to figures of the F. W. Dodge Corporation.
MONEY RATES IN NEW YORK CITY
Awards for privately-financed construction decreased more than seasonally and contracts
for publicly-financed projects also declined following a continued large volume of awards
since last spring. Total awards in November were about a fifth larger than a year ago,
while for the first ten months of the year they were three-fifths larger.
/
V
NOS
D is tr ib u tio n
A
TR EASUR Y NOTES
..
*
T R E A S JRY B IL L S
J
/V'~/v V
A -
W e ek ly averag es of d aily y ie ld s of 3- to 5-year tax-exempt Treasu ry notes. Treasu ry bonds, and average dis
count on n e w issu e s of Tre a su ry b ills offered w ithin the
w e e k . F o r w eeks ending Jan. 5, to D ec. 13, 1941.
MEMBER
BANK RESERVES AND RELATED
•ILLIO
NSO
FD
O
LLA
R
S
PPLY
IN
GRtSESV
EFU
N
D
S
FA
C
TO
R
SSU
ITEMS
BILLIO
N
SO
FD
O
LLA
R
S
U
SIN
GR
ESER
V
E
E
M
B
ER
B
A
N
K
REM
SE
R
V
E
BA
L
A
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CES/\r
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60JDSTO
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V*
--------------- ---------------
L
TREASURY-------CURREN
CY_ ...__
- RESERVESANKCREDIT-"p-- ----1939
1940
1941
O
N
E
NN t
CIM
R
C
U
LY
ATIIO
— -t-"
ANDDEPO
SITS
NO
N
M
E
M
B
E
R
DEPO
SITSy*
—
1940
C o m m o d ity P r ic e s
Following the entry of the United States into the war, prices of grains, livestock, and
foods rose sharply. Prices of most industrial materials traded in the organized markets,
being limited by Federal regulation, showed little change. Additional measures to prevent
advances in wholesale prices were soon announced for wool and shellac and for such
imported foods as cocoa, coffee, pepper, and fats and oils.
Retail food prices, as measured by the Bureau of Labor Statistics’ index, increased 1%
per cent further from the middle of October to the middle of November to a level 18 per
cent above a year ago. Indications are that retail prices of both foods and other com
modities continued to rise in December.
B a n k C r e d it
..
.
1941
Wednesday figures. January 4, 1939, to December 10, 1941.
Volume of retail trade increased in November following some decline in the previous
month. Department store sales, as measured by the Board’s seasonally adjusted index,
advanced to 115 per cent of the 1923-25 average as compared with 105 in October and
116 in September. Larger sales in November were also reported by variety stores. Sales
of automobiles increased somewhat, according to trade reports, but, as in other recent
months, new car sales were smaller than output and dealers’ stocks rose further.
In the second week of December sales at department stores rose less than seasonally,
particularly in the coastal regions.
Freight traffic on the railroads continued in large volume in November and the first
half of December. Grain shipments increased considerably and loadings of miscellaneous
merchandise, which includes most manufactured products, were maintained at the high
level reached several months earlier. Coal loadings declined somewhat, owing in part to
temporary shutdowns at some mines. Shipments of most other classes of freight decreased
less than is usual at this season.
Total loans and investments at banks in leading cities continued to advance during
November and the first two weeks of December, owing mostly to increased holdings of
Government securities at banks outside New York City. Commercial loans, after showing
Continued on page 70
M o n th ly R e v ie w o f th e F e d e r a l R e s e r v e S a n k o f A tla n ta f o r D e c e m b e r 1 9 4 1
70
S IX T H D IS T R IC T B U S IN E S S IN D IC A T O R S
In dexes
Continued from page 68
cept for a sm all decrease reported for Florida where 1940 con
tracts were in large volume. The increases fo r the other five
states ranged from 70 per cent for Tennessee to 180 per cent
for Alabam a. In the 37 Eastern States for which F. W. Dodge
figures are compiled, November awards were down 24 per
cent from October and were 21 per cent greater than in No
vember last year, and the January-Novem ber total was 57 per
cent larger than for that p art of 1940.
►In November cotton textile m ills in Alabam a, Georgia, and
Tennessee consumed 291,679 bales of cotton. This is some
what less than the num ber used in O ctober; but because of the
sm aller num ber of working days in November, the daily aver
age rate increased 2 per cent and was the highest on record for
any m onth in available statistics. The November rate in this
D istrict was 18 per cent above that m onth last year and, ac
cording to the Board’s index, consumption in the United States
as a whole was 20 per cent greater than it was a year ago.
Steel m ill activity in the Birmingham-Gadsden area was re
ported by The Iron Age at 99.0 per cent of capacity from the
m iddle of October to the m iddle of November, and at 95.5
per cent from then until the m iddle of December. In the third
week of December it rose to 98.5 per cent. In the country as a
whole activity averaged 97 per cent of capacity in November
and the first week of December and 97.5 per cent in the fol
lowing week. November production of pig iron in Alabam a
was at a daily rate 4 per cent below that of October and only
slightly above the rate for November last year. In November
two A labam a furnaces were blown out or banked, and on De
cember 1 there were 17 in active operation.
^ Coal production increased substantially in November and
was at a daily rate that had been exceeded only once— in
M arch this year— in nearly twelve years. The November in
crease was in A labam a where output had been seriously cur
tailed in Septem ber and October by labor difficulties. Novem
ber output in A labam a and Tennessee combined was up 17
per cent from October and was 21 per cent greater than in
November last year. In the country as a whole November pro
duction was down 1 per cent from October and was 9 per cent
greater than a year ago.
H c tio n a l S u m m a r y o f B u s in e s s
(1923-1925 A verage = 100, except as noted)
Adjusted
Nov. Oct. Nov.
1941 1941 1940
RETAIL SALES* (1935-1939 Av. = 100)
DISTRICT (47 F irm s).............................154
125
129
A tlanta.....................................................
Birmingham............................................
New O rleans..........................................
RETAIL STOCKS
DISTRICT (21 F irm s).............................113
A tlanta..................................................... 217
Birmingham................... .....................105
N ashville................................................. 98
New O rleans.......................................... 91
115
226
109
inn
92
84
166
79
63
68
WHOLESALE SALES
TOTAL.....................................................
G roceries...............................................
Dry G oods..............................................
H ardw are................................................
CONTRACTS AWARDED
DISTRICT................................................
R esidential..............................................
A labam a.................................................
G eorgia...................................................
M ississippi..............................................
BUILDING PERMITS
20 CITIES................................................
Birmingham............................................
Jacksonville............................................
N ashville.................................................
New O rleans..........................................
PIG IRON PRODUCTION*
A labam a................................................
COAL PRODUCTION* (1935-1939 Av. = 100)
TWO STATES..........................................146
123
A labam a.................................................
T ennessee................................................
120
COTTON CONSUMPTION*
THREE STATES......................................
Alabam a.................................................
G eorgia...................................................
EMPLOYMENT (1932 Av. = 100)
SIX STATES............................................
Alabam a.................................................
Florida.....................................................
Louisiana.................................................
PAYROLLS (1932 Av. = 100)
SIX STATES............................................
Continued from page 69
little net change in November, again increased sharply in
the first two weeks of December.
Excess reserves increased through most of the period as
a result of Treasury expenditures from Reserve Bank b al
ances, but declined sharply on December 15 when these bal
ances were replenished in connection with the issue of 1.6
billion dollars of new Government securities. Money in cir
culation has continued to show a m arked increase.
ELECTRIC POWER PRODUCTION* (1935-1939 Av. = 100)
TOTAL.....................................................
By W ater Pow er....................................
169
180
174
157
163
138
152
139
133
121
141
151
147
128
136
126
245
118
110
100
127
254
120
113
101
94
188
88
70
74
87
61
76
148
137
99
73
90
183
157
74
52
68
125
115
151
77
200
341
81
96
201
479
127
415
148
593
931
217
542
156
129
610
101
99
102
116
85
169
54
154
95
117p
57
41
62
20
271
73
28
25
93
11
53
49
21
33
110
23
42
136
142
134
156
152
158
133
122
158
129
135
117
256 ; 251
302
303
239
232
238
222
217
266
200
185
159
178
109
175
149
135
156
158
176
103
174
148
136
156
140
152
104
157
131
113
136
267
389
118
291
215
233
277
267
403
112
289
209
226
280
202
278
104
227
164
145
184
160
84
260
173
257
155
143
172
110
Statistics
(000 Omitted)
COMMERCIAL FAILURES
Number (Actual, not th o u sa n d s)..
Y ie l d s o n U n ite d S ta te s G o v e r n m e n t S e c u r itie s
The yield on 2 ^ per cent United States Government bonds
of 1967-72, which reached a record low level of 2.32 per cent
on November 5, advanced somewhat in November and, after
the entry of the United States into the war, rose to 2.50 per
cent. Yields on short-term Government securities increased
further. The yield on T reasury notes of December 1945
advanced to 0.93 per cent on December 17, com pared with
0.62 per cent on September 15, and the rate on three-month
bills rose to .295 per cent.
U nadjusted
Nov. Oct. Nov.
1941 1941 1940
Nov.
1941
29
Oct.
1941
36
456
Nov.
1940
38
$ 744
Year to Date
1941
1940
429
601
$ 4,977 $ 6,612
FARM IN C O M E
Farm incom e data w ere not received in time
ior publication in this issu e of the M o n th ly
R e v ie w . W hen they becom e available, how
ever. the Fed e ra l R eserve Bank of Atlanta
w ill be glad to furnish them upon request.
‘Indexes of retail sales, electric power, coal, and pig iron production, and
of cotton consumption are on a daily average Dasis.
p = Preliminary.
@FedFRASER