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M o n th ly W

R e v ie w

F E D E R A L R E S E R V E B A N K O F AT L A N T A
V o lu m e

X X V II

A tla n ta ,

G e o r g ia .

D ecem ber

31,

1942

N um ber

12

Sixth D istrict Business Trends
Most indexes of business activity in the Sixth District ranged
upward during the period under review. There were substan­
tial gains in department store sales, but a substantial decline
in furniture store sales. Cotton consumption and coal and
electric power production continued at high levels. Bank de­
posits and money in circulation reached amounts never before
attained. Responsible for these gains in large part was the
amount of wartime spending, for few sectors of business ac­
tivity now remain unaffected by the effort to equip and main­
tain our armed forces.
Rise in State Revenues: Increased District business ac­
tivity has been reflected in state revenue gains, but from
sources other than gasoline taxes. Restrictions on the sale of
gasoline have reduced gasoline tax collections. November gas­
oline tax collections were well under those of last year for
each state of the District. Florida and Georgia, the earlier
rationed states, reported especially large declines. Georgia
collections, for example, were $1,641,659 for November of
this year as compared with $2,309,853 for November 1941,
a decrease of 29 per cent. Florida gasoline tax collections for
November were $1,598,242 as compared with $2,267,394 for
November 1941, a decrease of 30 per cent. Indexes of gasoline
tax collections for Georgia and Florida, as well as for the
other states of the District, are shown on page 88 of this issue
of the Review.
Losses in taxes on gasoline were largely offset by gains in
other business-sensitive taxes. Greatly increased collections
from taxes on incomes, sales, admissions, and beverages were
generally reported in the District. With no change in income
tax rates or in exemptions, Georgia by mid-November re­
ported that its income tax collections for the calendar year
had reached an all-time high. Louisiana’s income tax collec­
tions for November were more than $800,000 greater than for
November a year ago. Mississippi’s retail sales tax reached
an all-time high for November, producing $1,366,376 as com­
pared with $888,770 for November of last year, an increase
of 54 per cent. Louisiana’s new sales tax produced some
$650,000 for November. Tennessee’s tobacco and beer tax
revenues for November were almost 25 per cent greater than
for November of last year.
Gains in Retail Trade: Department store trade in the Sixth
District continues to register substantial gains over last year.
Indexes of department store sales and stocks are shown on
page 88 of this Review. Sales of 22 reporting stores for the
week ending December 19 were 6 per cent above the corres­
ponding week of last year; and for the four weeks ending
December 19, were 11 per cent above the corresponding pe­
riod of last year.
The volume of Christmas shopping last year was unusu­
ally large, but for the majority of reporting stores the 1942
Christmas season apparently broke all previous records, even
though curtailment of store deliveries, delays in obtaining




R e c o n n a is s a n c e
P E B C E N T D EC R E A S E

PER C EN T IN C R E A SE

D e p a rtm e n tlliilliis
Department |$ ||^ e Stocks
F u r * e Sales
Constructiojlll
Cotton Consumption
M

(7 1 )

Collections

m

Bank I

H ilia n k Loans
M ember
Demand De
40

30

20

10

(9 8 )

+
0

10

20

30

40

S ix th D is tric t s ta tis tic s lo r N o v e m b e r 1942 c o m p a r e d w ith N o v e m b e r 1941

merchandise, and difficulties in obtaining trained personnel
disrupted usual sales procedures. Early in the Christmas rush
the supplies of such items as tricycles, bicycles, wagons, and
skates were largely exhausted, but buyers turned eagerly to
other items.
Retail sales of 113 reporting furniture stores in the District
for the month of November showed a decrease of 11 per cent
over October and a decrease of 6 per cent over November a
year ago. Gains or losses, of course, were not uniform through­
out the District. Four Columbus stores reported an aggregate
gain of 13 per cent for November over October, and 3 Savan­
nah stores and 5 New Orleans stores reported aggregate gains
for the same period of 9 and 6 per cent, respectively. De­
creases were reported for November as compared with Octo­
ber for stores in most of the other leading cities of the Dis­
trict: Chattanooga reporting a decrease of 3 per cent; Bir­
mingham, 5 per cent; Nashville, 8 per cent; Atlanta, 10 per
cent; and Tampa, 15 per cent.
In spite of growing difficulties in merchandise replacement,
the inventories of reporting stores of the District were 6 per
cent greater at the end of November than for the same date a
year ago. There was practically no change, however, in inven­
tories at the end of November as compared with the end of
October this year.
Reflecting in part the Board of Governors’ Regulation W
and in part the greater abundance of money, the ratio of fur­
niture store collections to receivables continues to be high.
November collections, for example, were 20 per cent of receiv­
ables outstanding at the end of October. During the month of
May 1942, in contrast, the collection ratio was 16 per cent.
Continued on next page

8 6

M

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for December 1942

Shift? in Civilian Population: Wartime activities have
sharply affected the movement of the civilian population
within the District. Some light on this movement is given by
preliminary population estimates released by the Bureau of
the Census, comparing May 1, 1942, with April 1, 1940. The
largest gains in civilian population in the District were re­
ported for the metropolitan counties centering in the cities of
Mobile, Montgomery, and Jacksonville, with gains of 33, 30,
and 23 per cent, respectively. Columbus showed a gain of 11
per cent, while the areas centering in Atlanta, Augusta, Bir­
mingham, Chattanooga, Jackson, Knoxville, Macon, Nashville,
New Orleans, and Savannah recorded gains of between 5 and
10 per cent. The Atlanta, Birmingham, and New Orleans areas
were credited with having populations of more than 500,000
each.
Coin and Currency Dem ands: The sustained acceleration
of business activity has resulted in greatly increased demands
for coins and currency. In order to relieve somewhat the
stringency in the coin situation, a special pre-Christmas drive
W conducted among the school children to encourage them
as
to turn in coins, especially pennies and 5-cent pieces. Letters
were sent to the school authorities in the District asking that
the school children exchange their coins for war stamps and
bonds so that the coins might be turned into business chan­
nels. Commercial banks were also asked to accept minor coins
in exchange for silver or currency. In order to head off the
growing use of paper 1-cent and 5-cent pieces by merchant
associations, the Treasury issued a warning that the use of
such paper scrip was illegal.
The note circulation of the Federal Reserve Bank of At­
lanta continued to mount to higher levels. As of December
23, 1942, notes of this Bank in actual circulation amounted
to $542.0 million, as compared with $279.7 million on the
same date a year earlier, an increase of 94 per cent. This
Bank, by December 18, had also placed in circulation $1 mil­
lion of Federal Reserve Bank notes. The last such issue by the
Atlanta Federal Reserve Agent was on September 30, 1933.
The 12 Federal Reserve Banks have been authorized to issue
some $660 million of these notes in order to relieve the pres­
ent shortage of currency. The use of these notes, which have
been in storage since 1933, will save some $300,000 in the




cost of printing new currency. These bank notes are issued
in denominations of $5, $10, $20, $50, and $100 and are al­
most identical with the present Federal Reserve notes.
W ar Financing O perations: Treasury financing continues
to be the dominant factor in Sixth District banking relation­
ships. During the month of November the Federal Reserve
Bank of Atlanta made a special effort to encourage the banks
in the Sixth District to qualify with the Treasury for the car­
rying of War Loan accounts. As of the third week in Decem­
ber, about 90 additional banks had been qualified as special
depositaries, bringing the total number of such depositaries
in the District to approximately 400. Additions to the quali­
fied list and increases in designations for banks already on
the list brought the total War Loan deposit limits of the Dis­
trict banks to about $260 million, of which $122 million was
outstanding. It is definitely in the interest of the commercial
banks to become designated as special depositaries, because
they are thus able to retain the proceeds from the sales of se­
curities, subscribed for their own account and for account of
their customers, until such time as the Treasury draws upon
the deposits.
The December Victory Fund drive to sell some $9 billion
in Government securities closed on December 23 with respect
to three issues: the 2l/2 per cent Treasury bonds due December
15, 1968; the 1% per cent Treasury bonds due June 15, 1948;
and the % per cent certificates of indebtedness due December
1 , 1943. Tax notes and Series F and G Savings bonds continue
on sale. Results of the Victory Loan Campaign in the Sixth
Federal Reserve District through December 23 are shown in
a table on page 89.
Ration Banking Preparations: In cooperation with the
Office of Price Administration, the Board of Governors of the
Federal Reserve System early in December made arrange­
ments to provide for the clearance of ration checks. Proce­
dures for bank handling of ration coupons have already been
tested on a small scale. The system will be placed in opera­
tion early in 1943.
Under present plans the individual consumer will not main­
tain a ration coupon account. On the contrary, only retailers,
distributors, and other large purchasers of rationed commod­
ities will maintain such accounts with their commercial banks.

M

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for December 1942

It is expected that by thus curtailing the number of ration
coupon banking accounts, the banks for the most part will be
able to handle the volume of ration coupon “checks” with
existing facilities. With the announcement that some 200 com­
modities will be rationed, beginning in February 1943, the
ration banking problem promises to be of major scope. The
facilities of the commercial banks are well adapted to dealing
with such problems as guarding against counterfeit coupons,
safeguarding coupons against theft and misuse, and checking
transfers and facilitating clearance.
Open M arket Activities: The Federal Open Market Com­
mittee continued its purchases during the month. On Novem­
ber 18 the System Open Market account held guaranteed and
direct obligations of the United States Government aggregat­
ing $4,695 million. On December 16 the holdings had been
increased to $5,537 million, a gain of 18 per cent. The share
of the Federal Reserve Bank of Atlanta in the System Invest­
ment account amounted to $212 million on November 18 and
$263 million on December 16.
The greatest increases were reflected in the holdings of
bonds and certificates of indebtedness, which gained $471
million and $234 million, respectively. Holdings of bills were
increased $135 million while notes gained $3 million.
Open market activities were reflected in increased reserves
of all member banks of the System, which totaled $13,517
million on December 16 as compared with $12,662 million
on November 18, an increase of $895 million, or 7 per cent.
The reserves of the Sixth District members likewise increased
from $432 million on November 18 to $483 million on De­
cember 16, an increase of $51 million, or 11 per cent.
Excess reserves of all member banks rose from $2,490 mil­
lion on November 18 to $2,640 million on December 16, not­
withstanding a decline of $160 million in the last week of the
period. It is to be expected that Sixth District members will
likewise report an increase in excess reserves, which on No­
vember 30 stood at approximately $89 million.
Crop Plans and Estim ates: Under the 1943 crop produc­
tion goals, cotton farmers in the District will be asked to
plant less cotton and to increase production of special war
crops. The Department of Agriculture has announced a goal
of 22.5 million acres to be planted to cotton in 1943, which
is 6 per cent below the 1942 reported acreage and 10 per cent
below the 1942 goal. The acreage goal for peanuts, an impor­
tant war crop, is 32 per cent above the 1942 reported acreage.
Other parts of the agricultural program, including benefit
payments and deferment of some agricultural labor, have the
purpose of securing full production of war crops. Under the
1943 program, farmers must plant at least 90 per cent of their
allotted acreage and 90 per cent of their special war crop
goals in order to be eligible for maximum payments. War
crops, in addition to peanuts, include soy beans, flaxseed,
hemp, grain sorghum, dry edible beans, and vegetables for
processing. Benefit rates for 1943 are 1.1 cent per pound for
cotton, 2 cents per 100 pounds for rice, and $1.10 per ton for
peanuts, compared with the 1942 rates of 1.2 cents, 2.4 cents,
and $1.25, respectively.
Deferment of agricultural labor by local selective service
boards is to be governed by a directive drawn up by the
United States Department of Agriculture and approved by
the War Manpower Commission. According to the order, pro­
duction of 16 “war units” of essential farm products is re­
quired for deferment. For example, no war unit credits are



Continued on next page

8 7

SIXTH DISTRICT BUSINESS STATISTICS
FARM INCOM E (In T h o u sa n d s oi D ollars)
Y e a r to D a te
1942
1941

O ct.
1942
SIX S T A T E S .........
A la b a m a .............
F lo r id a ..................
G e o r g i a ...............
L o u is ia n a ...........
M is s is s ip p i.........
T e n n e s s e e .........

S e p t.
1942

O ct.
1941

226,350
34,527
14,933
38,639
28,938
74,518
34,795

175,090
27,806
5,604
34.761
25,326
55,789
25,804

191,543
38,007
6,470
36,120
19,313
58,038
33,595

959,929
124,229
154,844
173,976
126,299
204,248
176,333

711,660
105,758
102,591
131,666
86,892
149,409
135,344

RETAIL FURNITURE STORE OPERATIONS
N um ber
of
S to re s

P er C ent C hange
N o v e m b e r 1942 fro m
O c to b e r 1942. N o v e m b e r 1941

113
99
99
109
109
80

T o tal S a l e s .....................................................
C a s h S a l e s .....................................................
I n s ta lm e n t a n d O th e r C r e d it S a l e s . .
A c c o u n ts R e c e iv a b le , e n d of m o n th .
C o lle c tio n s d u r in g m o n t h ......................
I n v e n to r ie s , e n d of m o n t h ....................

— 11
— 0
— 13

— 6
+ 76

—
—

4
7

— 11
— 35
+
7

—

0

+

6

WHOLESALE SALES AND INVENTORIES—NOVEMBER 1942
SALES
P ercen t
C h an g e from
Oct.
Nov.
1942
1941

No. of
Firm s
A u to m o tiv e S u p p l i e s .............
C lo t h in g .......................................
S h o e s ..............................................
D r u g s a n d S u n d r i e s ...............
D ry G o o d s ...................................
E le c tric a l G o o d s ........................
F re s h F ru its a n d
V e g e t a b l e s ............................
F u r n i t u r e .....................................
M e a ts a n d M e a t P r o d u c ts . . .
G r o c e r i e s .....................................
B e e r ................................................
H a r d w a r e .....................................
L u m b e r a n d B u ild in g
M a c h in e ry a n d E q u i p m e n t. .
P a p e r P r o d u c t s ........................
M is c e l la n e o u s ............................
T o t a l.......................................

4
3
3
7
12
4

+
—
—
—
—
+

6
3
3
39
4
17

— 12
— 5
+
6
— 17

14
18
16
8
16
4

+
+
+
+

34
55
24
38
28

+
+
+
+
+

38
28
22
21
65
—7

— 11

3
5
3
5
10
131

INVENTORIES
P ercen t
C h an g e irom
No. of
Oct.
Nov.
Firm s
1942
1941

+
-

28
23
9
— 9
-- 7
— 12

+
—
+
4+
+

+

6

— 31

16
4
5

7
31
27
27
37
16

— 18

— 2
— 11
— 2

— 21
+ 20
— 30

—

7

— 24

— 3
— 5

— 9
— 21

3
21
55

S o u r c e : U. S. D e p a r tm e n t of C o m m e rc e .

INSTALMENT CASH LOANS
N um ber
R eporting

P e r C en t C h an g e
O ct. 1942 to Nov. 1942
V olum e

F e d e r a l C r e d it U n io n s ......................
S ta te C r e d it U n io n s ..........................
I n d u s tr ia l B a n k in g C o m p a n ie s . . .
P e r s o n a l F in a n c e C o m p a n ie s . . . .
C o m m e rc ia l B a n k s ...............................

O u tstan d in g s

— 11
+
8
— 7
— 1
— 18

47
35
39
65
37

— 7
— 4
— 3
— 6
— 10

CONDITION OF FEDERAL RESERVE BANK OF ATLANTA
(In T h o u sa n d s of D ollars)

D ec. 16,
1942
I n d u s tr ia l a d v a n c e s ...........
U. S. S e c u r i tie s ....................
T o tal b ills a n d s e ­
c u r i t i e s .................................
F. R. n o te c i r c u la t io n .........
M em ber b a n k re s e rv e
d e p o s i t s ...............................
U. S. G o v 't d e p o s i t s .........
F o re ig n b a n k d e p o s it s . ..
O th e r d e p o s i t s ......................
T o ta l d e p o s i t s ..................
T o tal r e s e r v e s ......................
I n d u s tr ia l a d v a n c e co m -

Nov. 18,
1942

D ec. 17,
1941

175
481
262,524

175
524
211,564

70
472
95,159

263,180
544,878

212,262
497,735

482,979
560
25,238
3,717
512,493
765,206
135

P e rC e n tC h an g e
D ec. 16, 1942
from
Nov. 18.Dec. 17
1942
1941
— 8
+ 24

+
2
+ 176

95,700
272,172

+
+

+ 175
+ 100

432,218
13,186
24,660
2,628
472,692
745,816

316,603
32,543
29,347
8,379
386,871
564,562

+ 12
— 96
+
2
+ 41
+
8
+
3

135

1,777

24
9

+
—
—
—
+
+

53
98
14
56
32
36

M

8 8

o n t h l y

of the Federal Reserve B a n k of Atlanta for December 1942

R e v ie w

given for the production of upland cotton under one inch,
while the war unit credit given for the production of upland
cotton of one inch or over is less than that for the production
of American Egyptian cotton.
SIXTH DISTRICT BUSINESS INDEXES
D e p artm e n t S to re Sales*
(1935-39 A v e r a g e =

100)
U n a d ju s te d

A d ju s te d * *
N ov.
1942
186
177
199
171
194
224
243
172
268
143
221
166
170
220

D I S T R IC T ...
A tla n ta . . .
B a to n R o u g e . . .
B ir m in g h a m ...
C h a t t a n o o g a . ..
J a c k s o n .. .
J a c k s o n v ille
K n o x v ille .
M a c o n .. . .
M ia m i.. . .
M o n tg o m e r y ...
N a s h v ille .
N ew O rle a n s . . .
T a m p a ___

O ct.
1942

.

N ov.
1941

N ov.
1942

O c t.
1942

N ov.
1941

173
160r
175
159
182
221
219
160
214
151
198
141
154
220

160
156
160
146
167
195
187
158
191
139
185
142
145
190

206
185
211
193
206
256
259
177
287
160
246
170
191
253

183
163r
207
179
193
245
248
166
240
121
210
148
159
214

177
163
170
165
178
223
129
163
204
157
205
146
163
219

D e p artm e n t S to re Stocks
(1935-39 A v e r a g e =

100)

A d ju s te d * *

U n a d ju s te d

N ov.
1942

N ov.
1941

N ov.
1942

O ct.
1942

N ov.
1941

158
196
146
167
192
154

D I S T R IC T ...
A tla n ta . . .
B ir m in g h a m ...
M o n tg o m e r y ...
N a s h v ill e .
N ew O rle a n s . .

O ct.
1942
166
197
157
143
193
165

151
173
143
141
170
146

182
226
173
194
223
174

186
231
177
162
221
186

174
200
168
164
197
165

C o tto n C onsum ption*

C oal Production*

(1935-39 A v e ra g e =
N ov.
1942

O ct.
1942

N ov.
1941

N ov.
1942

O ct.
1942

N ov.
1941

190
197
189
165

T O T A L ...........
A l a b a m a ..
G e o rg ia ..
T e n n essee

100)

180
187
178
159

172
173
171
172

167
171

160
163

156
152

152

i5 2

158

(1935-39 A v e ra g e

100)

C o n stru ctio n C o n tra c ts

G a so lin e Tax
C o llections

(1923-25
A v e r a g e == 100)

(1939 M o n th ly
A v e r a g e = 100)

N ov.
1942

O ct.
1942

N ov.
1941

D I S T R I C T ....
278
R e s id e n tia l
185
O t h e r s .........
340
A l a b a m a .. .
797
F lo r id a ----60
G e o r g ia ...
311
L o u i s i a n a ..
234
M is s is s ip p i 1,195
T e n n essee.
137

420
188
574
528
235
288
507
493
809

162
77
219

341
81
96
201
479
127

N ov.
1942
D IS T R IC T .. . .
A la b a m a . . .
F lo r id a .........
G e o r g ia . ..
L o u is ia n a . .
M is s is s ip p i.
T e n n essee.

121
133
127
113

134
142

112
131
143
137
150

A n n o u n cem en t

(1935-39
A v e r a g e = 100)
N ov.
O c t.
N ov.
1941
1942
1942

C lo th in g ...
R e n t..............
F u e l, e l e c ­
tr ic ity ,
an d ic e . ..
H o m e f u r­
n is h in g s . .
M is c e lla n ­
e o u s ...........

99
125
73
84
108
109
118

N ov.
1941

E lectric P o w e r
P roduction*

C o st of L iving

A LL IT E M S .

105p
126
79
93
111
** *
131

O c t.
1942

121
134

113
116

SIX S T A T E S ..

127
113

119

124

H y d ro ­
g e n e ra te d . .
F u e l- g e n e r a te d

105

105

103

121

121
113

(1935-39
A v e r a g e = 100)
N ov.
N ov.
O c t.
1942
1942
1941
***
216
160
*

206

84

246

260

115

113

108

*

I n d e x e s o f d e p a r t m e n t s to r e s a le s , e l e c tr i c
a n d of c o tto n c o n s u m p tio n a r e o n a d a ily
** A d ju s te d fo r s e a s o n a l v a r ia tio n
‘ “ F ig u r e s n o t y e t a v a ila b le
p = p re lim in a ry
r = re v is e d
B a c k f ig u r e s fo r d e p a r t m e n t s to r e s a le s a n d
a n d c o s t of liv in g in d e x e s in th e n e w s e r ie s w ill




The Secretary of Agriculture has also advised farmers that
the Department will not assist them with the production and
marketing of the less essential winter vegetable crops. The
Department will not undertake to furnish labor, nor will it
pay for the transportation of employees into the production
region, and it may establish priorities on transportation. The
use of nitrogen fertilizer for less essential crops will be re­
duced to 50 per cent of the 1942 use.
On December 14 cotton growers in the Southern and South­
western states approved Federal market control over the pro­
duction and marketing of cotton for the next crop year. The
growers were asked whether they favored marketing quotas
on the 1943 cotton crop. Approval by at least two thirds of
those voting was required. Cotton loans would not have been
available if marketing quotas had not been approved.
The naval stores conservation program, it has been an­
nounced, will be continued in 1943. It will be administered
by the Forest Service as part of the AAA program. On the
basis of participation by naval stores farmers, who account
for about 90 per cent of the total production, benefit pay­
ments are expected to total approximately $1.3 million for
1943.
Labor Supply and Industrial Activity: The demands of
the war economy upon industry are reflected in growing scar­
cities of labor in a larger number of areas in the District.
Although labor shortages in the industrial areas of the Dis­
trict are not as acute as in other sections of the United States,
shortages are appearing and others are imminent. In Septem­
ber, according to the Bureau of Employment Security of the
Social Security Board, general labor shortages existed in only
4 of the District industrial areas surveyed. In contrast, accord­
ing to the survey report released on December 7, labor short­
ages now exist in 9 industrial areas in the District: Florence,
Huntsville, Mobile, Talladega, Panama City, Brunswick, Ma­
con, Savannah, and Pascagoula. Labor shortages are antici­
pated in Jacksonville, Tampa, New Orleans, and Bristol. In
the other 16 areas surveyed, a surplus of manpower is re­
ported to be available.
To an increasing extent, labor demands of the war economy
must be met by the employment of women. In November
total United States employment was 400,000 above October,

p o w e r a n d c o a l p r o d u c tio n ,
a v e r a g e b a s is .

s to c k s , c o tto n c o n s u m p tio n ,
b e f u r n is h e d u p o n r e q u e s t .

The Federal Reserve Bank of Atlanta on December 18,
1942, welcomed the Bank of Auburn, Auburn, Alabama,
to membership in the Federal Reserve System.
The Bank of Auburn was organized and opened for
business on January 3, 1907, with a capital of $10,000.
This capital has been increased from the earnings of the
institution so that the bank now has capital and surplus
amounting to $90,000. Its deposits amount to about
$950,000, and its total assets to $1,065,000.
In active charge of the bank is Emil F. Wright, its
cashier. Other officers are S. L. Toomer, president, and
W. H. Sartin, assistant cashier. In addition to President
Toomer and Cashier Wright, the Board of Directors in­
cludes C. L. Hare, C. A. Jones, C. Felton Little, Emmett
Sizemore, and Dr. C. S. Yarbrough.

M

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for December 1942

bringing total employment to 52.8 million persons. Women
employed in nonagricultural establishments increased by 1.2
million. The number of men so employed decreased by

100,000.
The trend toward increased employment of women is indi­
cated by the recently announced plans for an aircraft modi­
fication plant in Birmingham. A modification plant makes
the necessary changes in new aircraft to adapt them to the
specific conditions in the parts of the world to which they
are assigned. The Birmingham plant, when completed, is ex­
pected to employ between 12,000 and 15,000 persons, of
whom 60 per cent are expected to be women. It is predicted
that the plant will begin modifying planes within the next
45 days, although permanent facilities will take 8 or 9 months
to be completed.
The increase in war activity in the District also is reflected
in the data on Federal civilian employment recently released.
From December 1939 to July of this year, total Federal em­
ployment in the entire United States, according to the Bureau
of Labor Statistics, increased by an estimated 158 per cent.
Employment in the Six States was estimated at approximately
224,000 in July, an increase from December 1939 of 186
per cent.
District shipyards continue to play an important part in
ship construction. The second Liberty ship to be built in Sa­
vannah was launched on December 7. Other launchings dur­
ing the month included 2 ships launched at Mobile and 5 at
New Orleans. The anniversary of Pearl Harbor was marked by
the launching in Tampa of 6 mine sweepers and a destroyer
tender. The Tampa yard, having already completed 11 naval
vessels, has been awarded a contract for 68 more.
SA L ES O F U N IT ED STA TES W A R S A V IN G S B O N D S IN TH E
S IX T H FED ER A L R ESERV E D IST R IC T
S a le s R e p o r t e d i n P e r io d N o v e m b e r 2 4 -D e c e m b e r 23, 1942
A t I s s u e P ric e
S e r ie s E
T O T A L ....................................
A la b a m a .................................
F lo r id a ......................................
G e o r g i a ...................................
L o u is ia n a * .............................
M is s is s ip p i* ...........................
T e n n e s s e e * ...........................

S e r ie s F a n d G
$15,482,554
2,687,095
2,322,255
4,222,149
3,650,108
1,278,624
1,322,323

135,133,188
6,844,931
6,540,994
8,255,156
6,110,419
2,518,650
4,863,038

T o ta l
$50,615,742
9,532,026
8,863,249
12,477,305
9,760,527
3,797,274
6,185,361

* T h e se f ig u r e s a p p l y o n ly to th a t p a r t o f th e s ta t e ly in g w ith in th e S ix th
F e d e r a l R e s e r v e D istric t.
SA LES O F U N ITED STA TES G O V ER N M EN T O B L IG A T IO N S IN TH E SIX TH
FED ER A L R ESER V E D IST R IC T D U R IN G TH E V IC T O R Y LO A N
C A M P A IG N N OV EM BER 30-D ECEM BER 23. 1942
( I n T h o u s a n d s o i D o lla rs)

P u rc h a se rs

C o m m e rc ia l
B a n k s ....................
T O T A L S ....................

%%
C e rtific a te s

1% %
B onds

2 V2%
B onds

T ax
N o te s

$ 91,944
9108,336
$23,374
$23,081
31,743
33,931
$23,374
$23,081
$123,687
$142,267
G R A N D T D TA L........... ........... $321,3 26

S a v in g s
B onds
S e rie s
F and G

$8,917
$8,917

U n ite d S ta t e s T r e a s u r y B ills , T e n d e r s a n d A llo tm e n ts i n t h e S ix th F e d e r a l
R e s e r v e D is tr ic t D e c e m b e r 2 - D e c e m b e r 23, 1942
T r e a s u r y B ills
D a te d
D e c e m b e r 2, 1942.......................................................
D e c e m b e r 9, 1942.......................................................
D e c e m b e r 16, 1942.......................................................
D e c e m b e r 23, 1 9 4 2 . . . . ..............................................




T e n d ers

A llo tm e n ts

$19,863,000
12.039.000
10.383.000
10.692.000

$6,860,000
4.512.000
5.737.000
5.959.000

8 9

SIX T H D IST R IC T BA NK IN G STA TISTIC S
C O N D IT IO N O F 20 M EM BER BANKS IN SELEC TED C ITIE S
( I n T h o u s a n d s o i D o lla rs)

D e c . 16.
1942
L o a n s a n d I n v e s tm e n ts —
T o t a l.............................................. 1,118,416
L o a n s— T o ta l.................................
350,458
C o m m e rc ia l, in d u s tr i a l,
a n d a g r i c u lt u r a l l o a n s . . .
213,177
O p e n m a rk e t p a p e r ................
6,909
L o a n s to b r o k e r s a n d
d e a le r s in s e c u r i t i e s .........
3,629
O th e r lo a n s fo r p u r c h a s i n g
a n d c a rry in g s e c u r itie s ..
7,208
R e a l e s ta te l o a n s ....................
27,059
L o a n s to b a n k s ........................
1,857
O th e r l o a n s .................................
90,619
I n v e s tm e n ts — T o t a l....................
767,958
U. S. d ir e c t o b l i g a t i o n s . . . .
606,178
O b lig a tio n s g u a r a n t e e d
b y U. S .....................................
46,820
O th e r s e c u r i t i e s ......................
114,960
R e s e r v e w ith F R B a n k ...........
292,848
C a s h in v a u l t .................................
22.62G
B a la n c e s w ith d o m e s tic
205,392
782,779
D e m a n d d e p o s it s — a d j u s t e d .
200,452
T im e d e p o s i t s ...............................
89,876
U . S. G o v 't d e p o s i t s ..................
D e p o s its of d o m e s tic b a n k s . . 482,372
B o r r o w in g s ...................................

N o v . 18.
1942

P e rC e n tC h a n g e
D e c . 16.1942
iro m
D e c . 17. N o v . 18. D e c . 17.
1942
1941
1941

1,088,314
350,466

821,911
427,093

+

3
0

+ 36
— 18

208,801
6,806

223,411
6,986

+
+

2
2

—
—

3,252

6,786

+

12

— 47

1
1
36
5
4
5

— 43
— 27
— 7
— 34
+ 95
+ 175
— 27
+
5
+ 49
+ 24

7,291
27,458
1,368
95,490
737,848
579,895

12,651
37,073
1,990
138,196
394,818
220.768

46,354
111,599
256,603
21,730

64,495
109,555
196,047
18,304

1
+
3
+
-t- 14
4
+

187,862
762,110
203,117
45,294
465,892

243,328
558,187
194,166
57,490
404,252
50

+
+

—

+
+
+

9
3
1
98
4

—

+
+

5
1

—
+
+
+
+

16
40
3
56
19

D EB ITS T O IN D IV ID U A L BA NK A C C O U N T S
( I n T h o u s a n d s o i D o lla rs )
P er C ent C hange
N o v . 1942 fro m

N ov.
1942

O c t.
1942

N ov.
1941

ALABAM A
A n n is to n * ___
B irm in g h a m .
D o th a n ...........
G a d s d e n * ___
M o b ile .............
M o n tg o m e r y .

13,423
149,310
6,777
10,547
102,964
38,180

17,566
173,647
7,772
10,531

150,457
5,409

— 24
— 14
— 13

68,064
34,592

— ii

F L O R ID A
J a c k s o n v ille ...........
M ia m i.........................
O r la n d o * ..................
P e n s a c o l a ................
S t. P e t e r s b u r g * . . .
T a m p a ........................

128,353
65,121
15,305
18,295
13,570
55,958

130,803
68,940
14,383
17,729
13,329
56,674

104,680
58,936

G E O R G IA
A lb a n y ___
A tla n ta ----A u g u s ta ...
B ru n s w ic k .
C o lu m b u s .
E lb e r to n ...
M a c o n .........
N e w n a n . ..
S a v a n n a h ..
V a l d o s t a . ..

9,360
322,632
31,431
8,882
32,539
1,953
35,383
4,140
62,696
5,732

9,275
33,740
9,157
36,793
2,454
38,264
4,612
65,821
6,195

8,599
311,715
33,139
3,535
26,594
1,501
27,878
3,244
38,746
7,070

LO U ISIA N A
B a to n R o u g e * .
L a k e C h a r le s * .
N ew O r le a n s ..

37,177
[11,500]
341t960

41,057
14,414
368,335

268,137

102,888
43,020

368,531

12,949
37,985

O c t. 1942 N o v . 1941

—
—
+
+
+

—

+

” i
25

+ '5 i
+ 10

2
6
6
3
2
1

+
+

+
1
— 12
—
7
—
3
— 12
— 20
—
8
— 10
—
5
—
7

+
+
—
+
+
+
+
+
+
—

9
4
5
151
22
30
62
28
62
19

+

28

—

23
10
ee e

+

41

+ '4 7

9

—

20
7

M IS S IS S IP P I
H a tt ie s b u r g .
J a c k s o n .........
M e r id ia n ----V ic k s b u r g ..

10,844
66,449
14,815
16,458

13,864
71,760
16,447
19,132

9,931
37,531
17,501
10,795

— 22
— 7
— 10
— 14

+
9
+ 77
— 15
+ 54

T E N N ESSEE
C h a t ta n o o g a .
K n o x v ille ----N a s h v ille ___

74,967
43,368
144,372

85,750
47,318
159,664

59,774
39,308
118,481

— 13
— 8
— 10

+
+
+

25
10
22

SIX T H D IST R IC T
26 C it ie s .............

1,894,461

1,958,585

1,496,551

—

3

+

27

U N IT ED STA TES
274 C it ie s ...........

50,673,000

55,057,000

45,076,000

—

8

+

12

[E s tim a te d ]
*N ot in c lu d e d in to ta ls

9 0

M

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for December 1942

Southern Tim ber Resources
The war is speeding up the pace of development of timber
technology, and the new industrial uses of timber have great
implications for the economic future of the Sixth Federal
Reserve District. In the postwar world, undoubtedly, many
new uses for timber products will materialize as a result of
technological advances growing out of wartime searches for
new materials. Trees will, of course, continue to furnish the
traditional construction materials. In addition, there will
probably be an enormous expansion in the use of trees as a
source of fiber and industrial chemicals, since trees are a very
prolific and hence renewable source of cellulose and lignin.
A vast new field of timber products is developing in chemi­
cal laboratories. Likely to grow to important proportions is
the utilization of trees in the manufacture of plastic flow
materials.
Outstanding among announced wartime innovations in wood
technology is compregnated wood, originally developed in
Germany and greatly improved by the Forest Products Lab­
oratory at Madison, Wisconsin. Wood is first treated with
resin and then compressed into a material that is particularly
durable, unscratchable, and of great strength. It is of value
in war production technology because it makes possible,
among other things, the molding of airplane propellers. Its
peacetime uses will be legion.
The more traditional uses of timber, particularly in the
construction industry, have been much improved in recent
years. Plywood and other special types of wooden construc­
tion materials have been developed with the aid of special
glues. Furthermore, the science of engineering in wood has
been reviving. For one thing, the development of laminated
wood has made possible construction of large beam-like
wooden trusses adapted to the support of roofs across con­
siderable distance without intermediate support of any kind.
One great economic advantage of laminated wood is that it
does not necessarily have to utilize prime-stand timber.
Sixth District timber is doing many special jobs in the war
effort. Tidewater red cypress, for example, being decay re­
sistant, is being used in decking on naval vessels and in other
maritime construction. Because it is, more than any other
wood, impervious to chemical solutions, it is being used as
a container in smokeless powder plants. Hundreds of the
Navy’s coastal mine sweepers are built of southern oak. Oars
are made of southern white ash. Appalachian hard maple is
widely used for work benches in airplane factories and am­
munition plants. Appalachian hickory pallets expedite the
handling of sheet metal and armor plate. Southern dogwood
supplies the textile loom shuttles and spindles needed in pro­
ducing uniforms, tents, and other textile requirements of the
armed services.
►In recent years there has been a very rapid expansion of
cellulose extraction from wood pulp, particularly in the Sixth
Federal Reserve District. The value of pulp and paper mill
output in the lower South for 1941 amounted to $130 million.
These plants employed some 60,000 men on a year-round
basis and produced more than one fourth of all the pulp
ground in the United States during that year. The expansion
of the wood pulp industry is indicated by the fact that,
whereas in earlier years all cellulose used in the manufacture




of artificial fibers such as rayon came from cotton, wood pulp
now provides roughly 75 per cent of the cellulose used in
the manufacture of rayon in the United States.
In 1941, according to Forest Service estimates, 558,000
standard cords of pulp wood were produced in Alabama,
783.000 in Florida, 770,000 in Georgia, 779,000 in Louisiana,
735.000 in Mississippi, and 195,000 in Tennessee. This pulp
wood sold at the mills for an average price of $6 per cord,
or a total of $22.9 million.
For the past few years the enormous construction programs
made necessary by the war effort have boosted lumber output
to capacity. Table 1 pictures the situation in the Six States
in 1941.
From the earliest days of white settlement in this region,
forests have been valued as the source of turpentine, rosin,
and the other naval stores. Naval stores production and re­
ceipts from the sale of naval stores products have declined
seriously in recent years. Net cash returns to producers at
stills for the total naval stores crop, according to Gamble’s
International Naval Stores Yearbook, amounted to only $16,540.000 in the first war crop year—that ending March 31,
1940. This is only about one fourth of the net cash returns
realized in the crop year ending March 31, 1921. As the war
has continued and many of the traditional export markets for
southern naval stores have remained lost to producers, the
output of these products has continued to decline. In the past
year the production of naval stores has been hampered also
by a shortage of labor and by weather difficulties.
Gum naval stores production in the year ending March 31,
1942, was substantially below that of the previous 12-month
period. It is estimated that 285,000 casks of spirits turpentine
and 990,000 barrels of rosin were produced (primarily in
Georgia and Florida) in that year. In the current crop year
ending March 31, 1943, indications are that production in
spirits turpentine will total 300,000 casks and that 1 million
barrels of rosin will be produced. The trade expects that out­
put in the year ending March 31, 1944, will be the smallest
in any similar period since 1865.
► Forests cover more than half of the land area in the six
states that lie wholly or partly within the Sixth Federal Re­
serve District. Tables 2 and 3 classify the forest resources of
the District by states, with respect to both acreage and volume.
Of the grand total of 203 billion board feet of sawtimber
in the Six States, 55 per cent is in industrial ownership, 42
per cent is owned in connection with farms, and only 3 per
cent is in public ownership, including national forests, na­
tional parks and monuments, state, county, and municipal for­
ests. In addition to the above sawtimber volume, the Six States
had a volume in cordwood size, standing timber, of approxi­
mately 375 million cords in 1938. Of this, approximately 110
million cords was in pine suitable for pulping, another 125
million cords was in poplar, cottonwood, gums, and other
species suitable for pulping, and 140 million cords of non­
pulping hardwoods was available for fuelwood or to grow
into future sawtimber trees.
While the total forested area of the Sixth Federal Reserve

M

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for December 1942

District is large, only 14 per cent of the commercial forest
land in the Six States bears old growth saw timber. Some 19
per cent of the total commercial forest land in the area was
classified by the Southern Forest Survey as poor to nonre­
stocking. Table 4 shows the condition of commercial forest
land in the Six States in some detail.
In Alabama, 53 per cent of the total forest area is in pine,
and 19 per cent is in mixed pines and hardwoods. While pines
predominate in Alabama forests, a very substantial amount of
hardwood is also available. According to the recent Southern
Forest Survey, 17 per cent of Alabama forest land is covered
by upland hardwoods, and 11 per cent by a mixture of bot­
tomland hardwood and cypress.
In Georgia, two thirds of the total forest area is in pines
and an additional 13 per cent is in pine and hardwood mixed.
Some 1 per cent of the total forest area of the state is in cy­
press, and the remaining forest area (20 per cent) is predom­
inately in hardwoods.
In Florida, 25 per cent of the forest area totaling 21,693,0 0 0 acres, has been classified as “clear-cut” and “fire killed.”
Only 15 per cent of the old growth trees remain in Florida,
while the largest part of the forest area—60 per cent—bears
second growth timber. Old growth timber covers only 13 per
cent and 12 per cent of the total forest areas of Alabama and
Georgia, respectively.
In Louisiana 53 per cent of the forest area is covered by
hardwood. A mixture of pine and hardwood covers 14 per
cent of the forest area, with the remainder, or 33 per cent, in
pine.
Central and southwest Mississippi contain 6,026,400 acres
of forest. Of this area, 13 per cent is in old growth timber and
8 6 per cent is in second growth timber, with only 1 per cent
classified as “clear cut.” Southeastern Mississippi, which orig­
inally was the heart of the longleaf pine belt, has 72 per cent
of its forest area of 4,790,000 acres in pine, 9 per cent in pinehardwoods, and 19 per cent in upland and bottomland hard­
woods.
► Prior to the war, manufacturing industries dependent upon
forests for raw materials had reached substantial proportions
in the Sixth Federal Reserve District. Table 5 summarizes for
each of the Six States the wage earners, wages paid, and value
of products manufactured in 1937 in those industries depend­
ent upon forest products for raw materials. When the pros­
pective uses of timber in industry are taken into account and
added to the existing uses in the Six States, it is readily ap­
parent that the wealth, present and future, of southern forests
can prove a major factor in this region’s economic develop­
ment. The salient fact is that forests constitute the greatest
renewable resources because, of all forms of plant life, trees
are the most efficient converters of solar energy known to
science.

TABLE 1
NUMBER O F MILLS REPORTING, LUMBER PRODUCED. VALUE PER M B M
AT MTT T.fi AND ESTIMATED VALUE IN THE SIXTH
FEDERAL RESERVE DISTRICT, 1941




L um ber
V a lu e a t
P ro d u c e d
M ills p e r
(M illio n B d . F t . )_______M B M

N o . M ills
S ta te ________R e p o r tin g

E s tim a te d
T o ta l V a lu e
a t M ills
( T h o u s a n d D o lla rs)

A la b a m a ...........
F lo r id a ...............
G e o r g i a .............
L o u i s i a n a .........
M is s is s ip p i___
T e n n e s s e e ___

1,643
311
1,389
408
1,070
1,796

1,802
652
1,526
1,143
1,419
715

$23.10
38.73
22.34
33.54
25.68
26.78

$41,634
25,260
34,086
38,333
36,443
19,137

S ix S t a t e s .........

6,617

7,257

$26.86

$194,893

S o u r c e : D iv is io n o f S ta te a n d P r iv a te F o r e s tr y , R e g io n 8, U .S . F o r e s t S e rv ic e .

TABLE 2
FOREST AREA O F THE SIXTH FEDERAL RESERVE DISTRICT
T o ta l F o r e s t A r e a
Per C ent
A cres
T o ta l L a n d

T o ta l L a n d
A r e a S (Atere s )
ta c

C o m m e rc ia l
P er C ent
T o ta l F o r e s t

A cres

32,818,560
35,111,040
37,695,360
29,061,760
29,671,680
26,679,680

18,877,700
23,478,100
21,432,500
16,211,200
15,873,100
12,821,000

57.5
66.9
56.9
55.8
53.5
48.1

18,837,000
21,852,000
21,035,000
16,185,000
15,859,000
12,555,000

99.8
93.1
98.1
99.8
99.9
97.9

S ix S t a t e s .. . 191,038,080

108,693,600

56.8

106,323,000

97.8

A la b a m a ___ .
F lo r id a ......... .
G e o r g i a ___ .
L o u i s i a n a . ...
M is s is s ip p i. .
T e n n e s s e e ..

S o u r c e : N a tio n a l R e s o u r c e s P la n n in g B o a rd ,

The Southern Forests, p. 36.

TABLE 3
ESTIMATED SAWTIMBER VOLUMES IN MILLIONS O F BOARD FEET,
LUMBER TALLY, 1938, IN THE SIXTH FEDERAL RESERVE DISTRICT
S ta te

P in e*
.
..
..
.
..
.

H a rd w o o d

C y p ress

T o tal

S ix S ta te s

25,304
13,987
32,270
15,474
16,124
3,100

12,902
5,562
12,400
25,606
19,023
13,550

285
3,873
1,129
1,343
785
330

38,491
23,422
45,799
42/423
35,932
16,950

. 106,259

L o u is ia n a ..
M is s is s ip p i.
T e n n essee .

89,043

7,715

203,017

* I n c lu d e s s m a ll a m o u n t of o th e r s o ftw o o d s .
S o u r c e : D iv is io n of S ta te a n d P r iv a te F o r e s tr y , R e g io n 8, U .S. F o r e s t S e rv ic e .

TABLE 4
CONDITION O F COMMERCIAL FOREST LAND IN THE SIXTH FEDERAL
RESERVE DISTRICT, 1936 AND LATER
(In T h o u sa n d s of A cres)

S ta te
A la b a m a ..
F lo r id a . . . .
G e o r g i a . ..
L o u isia n a .
M is s is s ip p i
T e n n essee .

O ld
G r o w th
S aw
T im b e r
A rea %

S econd
G r o w th
S aw
T im b e r
A rea %

C o rd w ood
A rea %

F a ir
R e s to c k in g
A re a %

P o o r to
N o n -R e ­
s to c k in g
A rea %

2,498
3,318
2,755
3,342
1,884
471

7,676
3,802
8,812
6,712
6,441
2,668

3,827
2,713
3,557
2,047
3,115
6,277

2,923
2,471
2,549
1,370
1,985
2,511

1,913
9,548
3,362
2,714
2,434
628

13
15
13
21
12
4

S ix S ta te s . 14,268 14

41
18
42
41
40
21

36,111 34

20
12
17
12
20
50

21,536 20

S o u r c e : N a tio n a l R e s o u r c e s P la n n in g B o a rd ,

16
11
12
9
13
20

13,809 13

10
44
16
17
15
5

20,599 19

T o ta l
A rea %
18,837
21,852
21,035
16,185
15,859
12,555

100
100
100
100
100
100

:106,323 100

The Southern Forests,

p . 37.

TABLE 5
EMPLOYMENT, W AGES, AND VALUE O F PRODUCTS IN FOREST INDUS­
TRIES IN THE SIXTH FEDERAL RESERVE DISTRICT — 1937

S ta te
In th e p r e p a r a tio n of th is a r tic le m u c h h e lp fu l in fo rm a tio n w a s r e c e iv e d from
M r. C . F . E v a n s , A s s is ta n t R e g io n a l F o r e s te r , U. S. F o r e s t S e r v ic e , A tla n ta ,
G e o r g ia ; C a p t a in I. F . E ld r e d g e , R e g io n a l S u r v e y D ire c to r, S o u th e r n F o r e s t
E x p e r im e n t S ta tio n , N e w O r le a n s , L o u is ia n a ; M r. C a r l S tr a u s s , A tla n ta
R e g io n a l O ffice, U . S. F o r e s t S e rv ic e ; M r. E. G . W ie s e h u e g e l , C h ie f, F o re s t
R e s o u r c e s D iv is io n , F o r e s tr y R e la tio n s D e p a r tm e n t, T e n n e s s e e V a lle y A u th o r ­
ity , N o rris , T e n n e s s e e ; a n d M r. B ru c e W e d g e , P la n n in g T e c h n ic ia n , A tla n ta
F ie ld O ffice, N a tio n a l R e s o u r c e s P la n n in g B o a rd .

9 1

A l a b a m a . .. . . .
F lo r id a . . . . . . . .
G e o rg ia . . . . . . .
L o u is ia n a .. . . .
M is siss ip p i . . . .
T en nessee. . . .
S ix S ta te s . . .
S o u r c e : 1937

W a g e E arn ers
P er C ent
o f T o ta l
M a n u fa c ­
N um bei
tu rin g

W a g e s P a id
Per C ent
o f T o tal
M a n u fa c A m ount
tu r i n g

V a lu e of P r o d u c ts
Per C ent
o f T o ta l
M a n u fa c ­
A m ount
tu r i n g

20,089
21,159
19,414
29,494
25,346
30,245

16.6
40.6
12.1
38.7
55.0
22.3

$9,613,794
11,882,445
9,330,080
21,068,859
15,185,988
25,841,209

10.0
32.5
8.4
34.9
57.5
227

$43,714,927
53,315,582
63,371,540
115,931,517
80,456,517
129,027,573

7.6
24.5
8.9
19.9
42.1
18.2

145,747

30.9

$92,922,375

27.7

$485,817,656

20.0

Census of Manufactures, Part

I.

M o n t h ly R eview of the Federal Reserve B a n k of Atlanta for December 1942

9 2

The N ational Business S ituation
(Prepared by the Board of Governors of the Federal Reserve System)
Aggregate industrial production in November was maintained
close to the October level, reflecting a continued growth of
output in war industries and a seasonal decline in production
of civilian goods. Distribution of commodities to consumers
rose further in November and the first half of December, re­
ducing somewhat the large volume of stocks on hand. Retail
food prices continued to advance.
Production: Maintenance of industrial production in Novem­
ber when the seasonal tendency is downward was reflected in
a rise of the Board’s seasonally adjusted index from 189 to
191 per cent of the 1935-1939 average. This rise was largely
accounted for by a further advance in output of durable man­
ufactures. Nondurable manufactures declined seasonally,
while output of minerals showed less than the usual seasonal
decrease. In all groups of products the proportion of output
for war purposes was considerably larger than a year ago.
The increase reported for durable manufactures from Octo­
ber to November was in finished munitions and industrial
equipment for new plants which will be completed in large
number over the next few months. Steel production, at 98 per
cent of capacity in November and the first three weeks of De­
cember, was down slightly from the October peak, but the
reduction appeared temporary as the scrap supply situation
had been relieved and as further progress was being made on
construction of additional iron and steel capacity. Supplies
of iron ore on hand are regarded as sufficient for operations
at capacity until movement of ore down the lakes is resumed
in the spring. Shipments from Upper Lake ports this year
totaled 92 million tons, and were 15 per cent above the record
established in 1941.
At cotton textile mills activity was maintained at a high
level in November and at shoe factories production declined
less than is usual at this season. Output of manufactured
foodstuffs showed a seasonal decline.
Commodity Prices: Grain prices advanced from the middle
of November to the middle of December, while most other
wholesale commodity prices showed little change.
Retail food prices increased further by 1 per cent in the
five weeks ending November 17 to a level 16 per cent higher
than in November 1941. Prices of such fresh foods as are

uncontrolled—fruits, vegetables, and fish—showed the larg­
est advances from October to November, but price increases
in controlled items contributed about two-fifths of the total
rise.
Bank Credit: During the period of large-scale Treasury
financing in December, total excess reserves of member banks
were generally above $2.5 billion. Substantial purchases of
Government securities for the Federal Reserve System offset
the effect of drains on reserves by the continued heavy cur­
rency outflow and further increases in required reserves re­
sulting from a rapid growth in bank deposits.
Reserve Bank holdings of Government securities showed
an increase of $850 million in the four weeks and reached
a total of $5.5 billion on December 16.
At reporting member banks in 101 leading cities holdings
of United States Government securities increased by $800
million in the four weeks ending December 9. Treasury bills
accounted for practically the entire increase, with almost twothirds of the amount going to New York City banks. In the
week ending December 16, bond holdings rose sharply as
banks received their allotments of the new 1% per cent
bonds subscribed on November 30-December 2; allotments
of this issue to all banks totaled $2 billion, representing 85
per cent of subscriptions.
Total loans showed little change over the four weeks end­
ing December 9. Commercial loans declined by $200 million,
with about half the decline at New York City banks, while
loans to brokers and dealers increased over the period, re­
flecting largely advances made to security dealers in New
York in connection with the Victory Fund drive.
Payments by bank depositors for new Government security
issues resulted in a decline of adjusted demand deposits and
a rise of U. S. Government deposits to $5.8 billion in midDecember, the largest total on record.
United States G overnm ent Security Prices: P rices ot
United States Government securities have been steady in the
past three weeks following an adjustment in the latter part of
November when the Treasury announced the drive to sell $9
billion of securities in December. Long-term taxable bonds
are selling on a 2.36 per cent yield basis on the average and
long partially tax-exempt bonds on a 2.09 per cent basis.

DP RMN S OE S LS AD S OK
EAT E T T R AE N T C S

C S O L IN
OT F IV G

MME BN RS R E ADRL TDITM
E BR AK EE VS N EAE E S
F COS UIN RS R F NS
AT R S G E E V U D
---------M B R BN
E E AK
M
RS R E B L NE
E E V AA CS

■

r
j
C C UT
IRUA

RAU Y C S
ESR A
AODP S S
N E OIT

wv A J
80

IMME
E BR
E OIT
PS S

1936 1937 1938 1939 1940

B u r e a u o f L a b o r S ta t is tic s ' i n d e x e s , 1935-39 a v e r ­
a g e = 100. F if te e n th of m o n th f ig u r e s . L a st m o n th
in e a c h c a le n d a r q u a r t e r t h r o u g h S e p te m b e r 1940,
m o n th ly th e r e a f te r . L a te s t f ig u r e s s h o w n a r e for
N o v e m b e r 1942.




__ .

14 1942
91
F e d e r a l R esesrve m o n th ly in d e x e s of v a l u e o f s a le s
a n d s to c k s , a d j u s t e d fo r s e a s o n a l v a r ia tio n , 1923-25
a v e r a g e = 100. L a te s t f ig u r e s h o w n fo r s to c k s is
O c to b e r 1942; fo r s a le s , N o v e m b e r 1942.

W e d n e s d a y f i g u r e s . L a t e s t f i g u r e s s h o w n a r e fo r
D e c e m b e r 9 , 1942.