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Monthly F E D E R A L V o lu m e R E S E R V E A tla n ta , X X V III B A N K G e o r g ia , D e c e m b e r S u c c e e d in g B Review W ith a n k s v a r y w id e ly a m o n g th e m s e lv e s w ith r e s p e c t to th e ir d e s ir e to h a n d le s h o r t-te r m fa r m lo a n s a n d a ls o w ith r e 31, O F 1943 N um be r F a r m fa r m e r A T L A N T A a s to 12 L o a n s w here h is real fin a n c ia l a d v a n ta g e lie s . The p o s s e s s io n o f a c o s t a d v a n ta g e o v e r c o m p e tit o r s is n o t e n o u g h s p e c t to t h e ir s u c c e s s in o b t a in in g s u c h lo a n s . A t a tim e lik e in th e p r e se n t w h e n b e m a d e k n o w n to p o t e n tia l fa r m b o r r o w e r s . U n le s s p o t e n tia l v iv in g and p r iv a te b o r r o w in g is s h o w in g w hen banks in gen eral m a n y b a n k s th a t h a v e h e r e to fo r e are been s ig n s o f r e hungry fo r u n in te r e s te d lo a n s , in fa r m lo a n s m a y n o w b e d e s ir o u s o f e x p a n d in g th is c la s s o f b u s in e s s . S u ccess in o b ta in in g and s e r v ic in g fa rm lo a n s depend s u p o n a m u ltitu d e o f h ig h ly v a r ia b le fa c to r s . F r o m th e c o m p o s ite e x p e r ie n c e o f a n u m b e r o f b a n k s in th e S ix t h D is tr ic t th a t h a v e b e e n s u c c e s s f u l w ith fa rm lo a n s , it is p o s s ib le fa r m su ch su ccess: 1 . T o o b t a in a d e s ir a b le v o lu m e o f fa r m lo a n b u s in e s s , th e borrow ers cheaper fr o m h a p p e n s to s u c c e s s in know th e th a t banks th is e n t e r p r is e ; th e r a te a n d b e tr u e , th e y w ill c o m e to th e o v e r a ll th a n fr o m th e fa c t m u st co st th e of m on ey PCA, m o st lik e ly m i n d s t h e 4 1 /2 p e r c e n t P C A w hen is th is c o m p a r e in th e ir r a te w ith th e 6 p e r c e n t b a n k p la u s ib le c o n c lu s io n th a t th e P C A is th e c h e a p e r s o u r c e o f c r e d it. B ankers to s ta te s o m e p r in c ip le s a n d p r a c tic e s th a t h a v e c o n tr ib u te d to it s e lf to e n s u r e w ho have been m ost su c c e ssfu l in g e ttin g fa rm lo a n s m a k e it a p o in t to k e e p in c lo s e c o n ta c t w ith p o t e n t ia l fa rm b orrow ers, ca ses and c a llin g p o in tin g out upon to th e m th em a t th e ir th e fa r m s in a d v a n ta g e s of som e d e a lin g le n d i n g b a n k m u s t e s t a b lis h its n e t e f f e c t iv e in t e r e s t r a te s o n w ith th e b a n k . N e w s p a p e r a d v e r t is in g h a s a ls o b e e n u s e d in a c o m p e tit iv e b a s is . A fa r m b o r r o w e r is a p u r c h a s e r o f s o m e s o m e c a s e s to g o o d e ffe c t f o r th is sa m e p u r p o s e . T h e A m e r ic a n th in g th a t th e b a n k h a s to s e ll , a n d th e b a n k s e lls c r e d it a n d B a n k e r s A s s o c ia tio n s e r v ic e s . L ik e a n y s e n s ib le b u y e r , a fa r m e r w ill g e t h is c r e d it, v e r t is e m e n t s th a t p r e s e n t in a tt r a c tiv e f o r m o th e r th in g s b e in g e q u a l, fr o m b a n k s a r e a b le to r e n d e r a g r ic u ltu r e . A m o r e w id e s p r e a d u s e t h e a g e n c y o f f e r i n g it t o h i m o n th e c h e a p e s t te r m s . In o th e r w o r d s, lo a n s w ill te n d to b e of p la c e d o n a b a s is o f th e c o s t o f m o n e y u se d . a s s is ta n c e At p resen t, a p a rt fr o m th e c h ie f sou rce of sh o r t-te r m fa r m c r e d it, p r iv a te b a n k s , is th e P r o d u c t io n C r e d it A s s o c ia t io n s s e t u p w ith g o v e r n m e n ta l a s s is ta n c e in 1 9 3 3 . C o m p u ta tio n s o f th e c o st o f m o n e y on o f th e s e a s s o c ia tio n s s c a tte r e d sh o w a per ann um b a s is fr o m th r o u g h o u t th e S ix th th a t o n 9 0 -d a y lo a n s o f a ll s iz e s u p to a n d 11 D is tr ic t in c lu d in g $ 5 0 0 a b a n k h a v in g a 6 p e r c e n t n e t e ffe c t iv e r a te o f in t e r e s t c a n u n d e r s e ll th e P C A in e a c h o f t h e s e P C A te r r ito r ie s . O n 1 8 0 -d a y lo a n s , su c h a b a n k c a n u n d e r s e ll th e P C A u p to $ 5 0 0 in 1 0 P C A on lo a n s t e r r i t o r i e s ; o n l o a n s u p t o S i , 0 0 0 in n in e t e r r i t o r ie s ; o n lo a n s u p to $ 2 ,5 0 0 in tw o t e r r it o r ie s ; a n d o n lo a n s u p to $ 5 ,0 0 0 in o n e te r r ito r y . I n n o c a s e , o n lo a n s o f th is m a tu r ity , c a n th e P C A p e r c e n t b y m o r e th a n 6 / 1 0 u n d e r s e ll a b a n k c h a r g in g 6 o f 1 p e r c en t. O n lo a n s h a v in g th is p u b lic ity in th is h a s p r e p a r e d a s e r ie s o f n e w s p a p e r a d m a te r ia l u n d o u b te d ly p rocess o f e d u c a tin g th e s e r v ic e s th a t w o u ld be of fa rm ers in su ch great ad v a n t a g e s a s th e b a n k h a s f o r th e m . 3. F o r a b a n k to s u c c e e d in g e t t in g fa r m lo a n s , it m u s t b e p repared to a d a p t its lo a n s to f it t h e needs of lo c a l a g r i c u l t u r e . S u c h “ t a i l o r i n g ” i n v o l v e s , f ir s t o f a l l , t h e a m o u n t o f th e lo a n . e n a b le A h im fa rm er to m u st b e carry h is assu red of o p e r a tio n s s u ffic ie n t c r e d it to to th e m ost p r o fit a b le p o in t . A s o n e b a n k o ffic e r e x p la in e d : “ W e b a n k e r s h a v e a l w a y s m a d e th e m is ta k e o f le n d in g th e fa r m e r to o lit t le to d o h im th e m o s t g o o d . S u c h d r ib le t s a r e d is s ip a t e d w ith o u t e v e r b u ild in g up th e f a r m e r ’s b u s i n e s s to th e p o in t w h e r e it is p r o fit a b le .” O n th e o th e r h a n d , a fa r m e r s h o u ld n o t b e e n c o u r a g e d to borrow m ore h im s e lf w ith m on ey th a n a bu rd en he a c tu a lly n e e d s , th u s s a d d lin g o f in te r e st c h a r g e s th a t m a y e a t u p a m a tu r ity o f a y e a r , su c h a b a n k c a n u n d e r s e ll th e P C A o n h is $ 2 5 0 lo a n s in fo u r P C A t e r r ito r ie s , a n d o n $ 5 0 0 lo a n s in tw o b e th e b e st s o lu tio n . te r r ito r ie s . a s s u r e th e b o r r o w e r o f s u ffic ie n t c r e d it to c a r r y o u t h is o p e r v a n ta g e, T h is On but a ll la r g e r never a n a ly s is by lo a n s m ore w o u ld seem th e PCA has th a n 9 /1 0 of to in d ic a te 1 th e co st per c e n t. ad p r o fits . T h e e s t a b lis h m e n t of U n d e r th is a tio n s , a n d th e b o r r o w e r c a n a draw tim e th a t b a n k s th a t c a n k e e p th e ir n e t e ffe c tiv e fu n d s a n d th u s w ill in t e r e s t r a te s th e to 6 per cen t h a v e a tim e he of c r e d it s e e m s to a g a in s t th e c o m m it m e n t fr o m dow n to lin e a r r a n g e m e n t th e b a n k c a n tim e as he a c tu a lly needs p a y in te r e s t o n ly a c tu a lly u ses th e fo r m on ey. c o s t a d v a n ta g e o v e r th e ir c h ie f c o m p e tit o r s , T h e fit tin g o f fa r m lo a n s to a c tu a l n e e d s t h e P C A ’s , o n t h e g r e a t m a j o r i t y o f s h o r t a ls o in v o lv e s th e tim in g o f th e lo a n s . T h e te r m bank in g fa r m lo a n s . agency has a d v a n ta g e it s e lf to th e bank 2. T o E ven th e is r a r e ly sw ay th e is be w hen co st if ever p la c in g d e te r m in e d su c c e ssfu l lo a n s , th e le n d in g bank to in th e c o m p e t a d v a n ta g e , th e s u ffic ie n t o f th e lo a n have its c o m m it m e n t to in th e s e a s o n th e to e n a b le h im to p la n h is o p e r a t io n s w i s e l y a n d if w ith a f e e lin g o f s e c u r ity . M o r e o v e r , s in c e d if fe r e n t ty p e s o f a g r ic u ltu r e h a v e d iffe r e n t fa r m m u st e d u c a te th e m ake by it . o b ta in in g s h o u ld fa r m e r e a r ly e n o u g h p r o d u c tio n lo a n s s h o u ld c y c le s , be th e m a d e to m a t u r ity c o in c id e of as th e fa r M 9 0 o n t h l y o f th e F e d e ra l R e s e rv e B a n k o f A t la n ta f o r D e c e m b e r 1943 R e v ie w a s p o s s i b l e w i t h t h e b o r r o w e r ’s p r o d u c t i o n c y c l e . W h e n s u c h o f th e lo a n p r o g r a m . E v en w h e n a lo a n m u st b e r e fu s e d fo r tim in g is n o t a d v is a b le , th e b o r r o w e r m u st b e a s su r e d o f r e one n e w a ls o f h is n o t e w ith th e m in im u m w o u ld -b e p r o d u c tio n c y c le d itio n s , to is covered. U nder o f d iffic u lty u n til h is norm al e c o n o m ic p ress fo r r e p a y m e n t o n a n o te o f to o con sh ort m a t u r i t y m a y f o r c e t h e s a l e o f t h e f a r m e r ’s c r o p o r l i v e s t o c k a t an u n p r o fita b le tim e . G iv e n a lit tle m o r e tim e , th e c ir c u m s t a n c e s , th u s r u n m a k in g h im in c r e a s in g h is p r o fit and in th e lo n g a s o u n d e r r is k f o r th e b a n k . or a ssu re h is a n o th er, borrow er a d v is e h im fa r m e r m ig h t b e a b le to m a r k e t h is p r o d u c t u n d e r m o r e a d v a n ta g e o u s reason as to h o w h im th a t p o s itio n th e e x a c t ly banker why s h o u ld th e lo a n lo a n w ill be fo r th c o m in g as soon as E n c o u r a g in g fa r m e r s to u se , a n d h e lp in g th e m to under s ta n d , fin a n c ia l s ta te m e n ts is o f g r e a t a s s is ta n c e to th e fa r m e r a s w e ll a s to th e b a n k . T h e u s e o f fin a n c ia l s ta te m e n ts h e lp s th e fa r m e r to a n a ly z e h is o p e r a tio n s , a n d th u s to p la n m o r e and to in c r e a s e on th e lif e t im e o c c u p a tio n th a t p r e se n ts a n e e d fo r c r e d it y e a r a fte r m ore y e a r . T h e v a g a r ie s o f th e w e a th e r a n d flu c tu a tio n s in b u s in e s s c r e d it th a t a p o t e n tia l b o r r o w e r m a y c o n d itio n s s e r io u s ly th e refu sed , j u s t if ie s it. bank. T he bank, o b ta in in g fa r m to be th e im p e d im e n t m a y b e r e m o v e d , a n d th e a c o n tin u o u s a n d d e p e n d a b le s o u r c e o f c r e d it. F a r m in g is a 4 . T o s u c c e e d in e x p la in m u st lo a n s , th e b a n k m u st b e a f f e c t t h e f a r m e r ’s a b i l i t y to in te llig e n tly r e a d ily A t som e r e p a y th e d e te r m in e th e of fr o m year b a n k s it h a s b e e n h im s e lf of th e fin a n c ia l to lo a n year th e s a fe ly be fo u n d d e s ir a b le a c c e s s ib le to to th e sta te m e n ts, m a y am ount fo r fa r m e r s of g r a n te d . th e lo a n w h o le , o r p e r h a p s e v e n a la r g e p a r t o f a lo a n , in s o m e y e a r s , o ffic e r to a n d th e s e u n c e r ta in t ie s m u st b e p r o v id e d f o r in lo a n a r r a n g e s id e o f r e g u la r b a n k in g h o u r s . It is n o t a lw a y s p o s s ib le fo r a t tim e s o u t a fa r m e r to c o m e to to w n a n d tr a n s a c t h is b u s in e s s w ith th e m en ts. I f a fa r m e r e n c o u n ter s a b a d y e a r b ec a u se beyond h is c o n tr o l a n d is u n a b le b a n k m u st b e p r e p a r ed to e x p e c ts to h o ld th e to je o p a r d iz e d by pay o f c o n d itio n s o ff h is lo a n , f a r m e r ’s b u s i n e s s . T h e th e fa c t th a t h e carry a fa r m e r over th e th a t h a s s o m e o n e s u ffic ie n t ly q u a lif ie d a n d s u ffic ie n t ly in t e r fr o m not be u n fa v o r a b le bad years n a tu r a lly e n ta ils s u c c e s s f u l in d e a lin g w ith fa r m e r s a r e th o s e th a t h a v e s h o w e d sou rces e s te d in d e v e lo p in g fa r m lo a n b u s in e s s is in a p a r t ic u la r ly a d v a n ta g eo u s s itu a tio n . I n th e ca se o f one bank in th e S ix t h D is t r ic t , it is a m e m b e r o f th e b o a r d w h o is s u f f ic ie n t ly in t e r to th e b a n k . T h e b a n k s th a t h a v e b e e n m o s t th e m s e lv e s d e p e n d a b le lo a n v o lu m e ta k e s tim e a n d a n f a r m e r ’s a b i l i t y c o n d itio n s in th e p r e c e d in g y e a r . s o m e h a r d s h ip T h e b u ild in g u p o f a fa r m th e in t im a te k n o w le d g e o f lo c a l a g r ic u lt u r a l p r o b le m s . T h e b a n k o n e y e a r s h o u ld su ffe r e d b a n k d u r in g th e h o u r s w h e n th e b a n k is o p e n . i f it fin a n c e th e s u c c e e d in g c r o p to fin a n c e th e m a k in g o f a c r o p in To m ake sa fe ty b a s is o f c r e d it. T h e e ste d to d e v o te th e g r e a te r p a r t o f h is tim e to v is it in g fa r m ers, a d v is in g w ith th em , and s h o w in g th e m how th e bank m a y se r v e th em . r e s p o n s ib ility 7. T h e b a n k th a t m a k e s a s u c c e s s o f its fa r m lo a n b u s in e s s fo r o ffe r in g a d e p e n d a b le s o u r c e o f c r e d it m u st b e r e c o g n iz e d u s u a lly h a s a k e e n a p p r e c ia tio n o f th e fu n d a m e n ta l r e la tio n e v e n th o u g h , a s o n e b a n k p r e s id e n t p u t it, “ w e h a v e to s w e a t th a t e x is ts b e tw e e n b lo o d T h e r e is a r e a liz a tio n to d o it.” 5 . T o b e s u c c e s s fu l in o b t a in in g fa r m lo a n s , a b a n k s h o u ld a bank and its s u r r o u n d in g th a t th e b a n k is n o t a n in its e lf b u t a m e a n s to o th e r e n d s ; th a t it e x is t s p r im a r ily to s e r v e d is p la y a w illin g n e s s to c a r r y th e s m a ll fa r m e r a s w e ll a s th e its la r g e fa r m e r , a n d th e s m a ll lo a n c o m m u n ity p r o s p e r s . T h e s u c c e s s fu l b a n k e r in a s w e ll a s th e la r g e lo a n . c o m m u n ity . end c o m m u n ity ; and th a t th e bank p rosp ers m ost w h en th e a rural com T h e o v e r h e a d e x p e n s e in m a k in g a lo a n v a r ie s in v e r s e ly w ith m u n ity , t h e r e fo r e , is its t h e f a r m e r ’s w e l f a r e a s h e i s i n t e r m s o f t h e b a n k ’s w e l f a r e ; s iz e , a n d , th e r e fo r e , th e r e is a str o n g te m p ta tio n fo r a u s u a lly th in k in g as m u ch in te r m s of b a n k to k e e p th e n u m b e r o f its fa r m lo a n s s m a ll a n d to k e e p in th e e n d , th e w e lf a r e o f e a c h is s e r v e d , f o r t h e y a r e in t e r th e a v e r a g e d e p e n d e n t. s iz e o f su ch lo a n s as la r g e a s p o s s ib le . B anks th a t h a v e f o ll o w e d th is p r a c tic e in th e p a s t, h o w e v e r , r e p o r t th a t th e ir lo s s e s o n fa r m lo a n s w e r e g r e a te r th e n th a n th e y O ne bank fa r m e r s o ffic e r e x p r e s s e d around here are th is a tt itu d e poor. T hey by need s a y in g , “ T h e m any th in g s . I a r e n o w w h e n t h e y a r e s e e k in g a la r g e v o lu m e o f lo a n s w ith w o u ld lik e to g o a n d s h o w th e m h o w th e ir s itu a t io n m ig h t b e a s m a lle r a v e r a g e s iz e . i m p r o v e d , a n d s h o w t h e m h o w t h e b a n k c a n h e l p t h e m d o it . T h e fa c t o r o f s a f e t y in a la r g e v o lu m e o f s m a ll lo a n s is U n f o r t u n a t e l y , I h a v e n ’t t h e t i m e t o d o t h i s j u s t n o w , b u t a s s a id b y o n e b a n k p r e s id e n t to o ffs e t to a c o n s id e r a b le d e g r e e s o o n a s I h a v e , I ’m g o i n g t o d o i t . ” W h e n t h e b a n k e r a c t u a l l y th e a d d ed A overh ead e x p e n s e o f s e r v ic in g th e s m a lle r lo a n s . w illin g n e s s to ta k e s m a ll a s w e ll a s la r g e lo a n s is a ls o a g o o d -w ill enhan ce fa c to r th e of no b a n k ’s m ean p r o p o r tio n s r e p u ta t io n fo r fo r it h e lp fu ln e s s serves am ong to th e fa r m e r s o f th e c o m m u n ity . lo a n s , th e b a n k m u st m a k e a s e r io u s e ffo r t to s e r v e fa r m e r s a n d fa r m in g in te r e s ts . A n o ffic e r o r s o m e r e p r e s e n t a t iv e o f th e b a n k s h o u ld m a k e it a p r a c tic e to b e p r e s e n t a t m e e tin g s o f n e ig h b o r h o o d fa r m e r s. s h o u ld ta k e part in th e d is c u s s io n of fa r m p r o b le m s a n d in g e n e r a l d is p la y a n in t e llig e n t in t e r e s t in th e w e lf a r e fo r th e b a n k T h e b a n k s h o u ld g iv e p e r s o n a l a tt e n tio n to th e p r o b le m s o f to fa r m e r s. N o t e v e r y bank, o f co u rse, d o es d oes a great m an y o f th e m . M o r e o v e r , th e b a n k s th a t h a v e r e a l ly w o r k e d a t th e ir fa r m lo a n b u s in e s s s e e m s id e r fa r m s a fe s t k in d fa r m lo a n s ,” s a id p le a s e d w ith th e r e s u lt s . “ W e c o n one bank p r e s id e n t, “ th e o f lo a n s w e m a k e .” T h e fa c t th a t th e b est to tu n ity a n d , b y s u p e r v is io n sh o r t-te r m and d e te r b a n k s fr o m o b lig a tio n c r e d it. to and r e s u lt s o f th e p a st m a y h a v e lo a n s in d is f a v o r w ith s o m e b a n k s s h o u ld n o t n o w w o r k o u t w ith th e fa r m e r s o m e r a tio n a l r e p a y m e n t p r o g r a m , su c c e ssfu l a ll o f th e s e th in g s , b u t e a c h o f th e m th e in d iv id u a l fa r m e r . I n c a s e o f d e fa u lt th e b a n k e r s h o u ld in th e f u lf illin g S ix t h D is tr ic t b a n k s th a t h a v e b e e n p a r tic u la r ly s u c c e s s fu l in le n d a llo w e d a d v ic e , g u id e h im f o r th e fa r m in g c o m m u n ity . in j u d ic io u s le n d in g a t s o m e t im e in o f th e f a r m in g c o m m u n ity . and and T h e se , th e n , a r e s o m e o f th e p r a c tic e s o b s e r v e d b y in g 6 . T o b e s u c c e s s f u l w ith fa r m He k n o w s a g r ic u ltu r a l p r o b le m s , s u c h a n a tt itu d e s p e lls s u c c e s s b o th put be a c c e p tin g th e ir p r e se n t o p p o r ser v e th e needs o f th e fa r m e r fo r M o n t h l y R e v ie w o f th e F e d e ra l R e s e rv e B a n k o f A tla n ta f o r D e c e m b e r 1943 T h e T h e year 1943 b rou gh t new tiv ity , tr a d e , a n d fa r m serve D is tr ic t. In D is tr ic t h ig h in th e S itu a tio n le v e ls o f in d u s tr ia l a c in c o m e to th e S ix th a s s is tin g B u s in e s s 9 1 fin a n c in g v o lu m e o f b u s in e s s , th e n o te c ir c u la tio n of F ederal R e th is record 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 in c r e a s e d b y 7 2 p e r c e n t. I n m illio n s o f d o l l a r s , t h i s B a n k ’s c i r c u l a t i o n on D ecem b er 2 2 w as 939 c o m p a r e d w ith 5 4 7 a y e a r a g o , 2 7 9 tw o y e a r s a g o , a n d 1 9 6 th r e e y e a r s a g o . R e t a il d is t r ib u t io n o f m e r c h a n d is e , r e fle c te d in s a le s fig u r e s o f 8 0 d e p a r tm e n t s to r e s lo c a te d th r o u g h o u t th e D is tr ic t th a t r e p o r t r e g u la r ly to th is B a n k , h a s b e e n a t a le v e l h ig h e r th a n e v e r b e fo r e , n o tw ith s ta n d in g s h o r ta g e s in ite m s a n d th e c o m p le te a b s e n c e fr o m th e m o r e d u r a b le c o m m o d itie s . A in s a le s m a y b e a tt r ib u te d to r e fle c ts a n in c r e a s e in s u p p lie s o f som e in v e n to r ie s o f s o m e o f s m a ll p a r t o f th e in c r e a se h ig h e r p r ic e s , b u t m o s t o f it p h y s ic a l v o lu m e . I n N o v e m b e r , d e p a r tm e n t sto r e s a le s in c r e a se d 8 p e r c e n t o v e r O c to b e r a n d w e r e 3 3 p e r c en t g r e a te r th a n in N o v e m b e r 1 9 4 2 . T h e N o v e m b e r in d e x e s ta b lis h e s a n e w h ig h r e c o r d fo r th a t m o n th a n d is , in fa c t, h ig h e r th a n it h a s e v e r b e e n in a n y m o n th o f th e 2 4 y e a r s in c lu d e d in th e s e r ie s w ith th e s in g le e x c e p tio n o f D e c e m b e r 1 9 4 2 . D u r in g e a c h m o n th o f 1 9 4 3 th e in d e x h a s b e e n h ig h e r th a n it h a d b e e n b e fo r e in th e c o r r e s p o n d i n g m o n t h o f a n y y e a r . T h e y e a r ’s s a l e s t h r o u g h N o v e m ber w ere 30 p e r c e n t g r e a te r th a n in th e sam e p e r io d la s t y e a r . A m o n g D is t r ic t c itie s , J a c k s o n v ille le a d s w ith a g a in o f 4 1 p e r c e n t, T a m p a f o ll o w s c lo s e ly w ith a n in c r e a s e o f 4 0 p e r c e n t, a n d o th e r c itie s r e p o r t th e s e g a in s o v e r 1 9 4 2 : M a c o n , 3 7 p e r c e n t; N a s h v ille , 3 6 p e r c e n t; A tla n ta , 3 5 p e r c e n t; B a to n R o u g e , 3 4 p e r c e n t; K n o x v ille , 3 2 p e r c e n t; M o n tg o m e r y , 2 9 p e r c e n t ; M ia m i, 2 7 p e r c e n t ; N e w O r le a n s a n d J a c k s o n , 2 5 per c e n t; C h a tta n o o g a , 2 4 per c en t; and B ir m in g h a m , 19 p e r c en t. D e p a r tm e n t s to r e s a d d e d to th e ir in v e n t o r ie s s u b s t a n t ia lly in 1 9 4 1 a n d m o s t o f 1 9 4 2 . S to c k s d e c lin e d d u r in g th e fir s t h a lf o f 1 9 4 3 a n d w e r e c o n s id e r a b ly s m a lle r in d o lla r v a lu e th a n in th e c o r r e s p o n d in g p a r t o f 1 9 4 2 , b u t s in c e J u ly th e y h a v e b e e n s lig h t l y la r g e r th a n in th e la tte r m o n th s o f 1 9 4 2 . W e e k ly s a le s r e p o r ts fr o m a s m a lle r n u m b e r o f s to r e s in d ic a te th a t in e a r ly D e c e m b e r , s a le s w e r e a b o u t 2 2 p e r c e n t a b o v e la s t y e a r . It a p p e a r s th a t D e c e m b e r s a le s w ill prove t o h a v e b e e n o n l y a b o u t 3 0 p e r c e n t a b o v e N o v e m b e r ’s , c o n fir m in g th e b e lie f th a t th is year a s u b s ta n t ia l part o f th e h o lid a y b u y in g th a t u s u a lly f a ll s in D e c e m b e r w a s m o v e d u p to O c to b e r a n d N o v e m b e r . W h o le s a le d is t r ib u t io n h a s in r e c e n t m o n th s b e e n s o m e w h a t a b o v e l a s t y e a r ’s l e v e l s . W h o l e s a l e r s ’ i n v e n t o r i e s a r e s m a l l e r th a n th e y w e re a y e a r a g o . D is t r ic t fa r m e r s a s a g r o u p h a v e r e c e iv e d la r g e r c a sh in c o m e s th is y e a r th a n e v e r b e fo r e . T h is is p a r t ly d u e to h ig h e r p r ic e s , and in part p e a n u ts, so y b e a n s, a n d to g r e a tly som e in c r e a s e d o th er p r o d u c tio n of c r o p s . E s tim a te s b y th e U n it e d S ta te s D e p a r tm e n t o f A g r ic u ltu r e in d ic a te th a t in th e fir s t n in e m o n t h s o f t h is y e a r c a s h fa r m in c o m e in th e s ix sta te s th a t lie w h o lly o r p a r tly in th is D is tr ic t a m o u n te d to n in e t e e n y e a r s . T h e F lo r id a in c r e a s e o f 4 9 p e r c e n t o v e r la s t y e a r le a d s th e D is tr ic t . T h e g a in in in c o m e fr o m c r o p m a r k e t in g s w a s la r g e s t in F lo r id a , w h e r e th e in c r e a se w a s 5 1 per c e n t, w h ile G e o r g ia h a d th e la r g e s t in c r e a s e in in c o m e fr o m liv e s to c k a n d liv e s to c k p r o d u c ts, 5 4 p e r c e n t, f o llo w e d c lo s e ly b y A la b a m a w ith a n in c r e a s e o f 5 3 p e r c e n t. C o tto n p r o d u c t io n M is s is s ip p i, and in A la b a m a , T en n essee, G e o r g ia , a c c o r d in g to th e L o u is ia n a , la s t m o n th ly c r o p r e p o r t f o r th is s e a s o n b y th e D e p a r tm e n t o f A g r ic u ltu r e , a m o u n te d to 4 .9 m illio n b a le s , a d e c r e a s e o f 2 p e r c e n t fr o m la s t year. In th e co u n try as a w h o le th e c o tto n crop w as s m a lle r b y a lit t le m o r e th a n 1 0 p e r c e n t. I n c r e a s e d p r o d u c tio n w a s r e p o r te d in A la b a m a a n d L o u is ia n a , b u t in G e o r g ia , M is s is s ip p i, a n d T e n n e sse e th e crop w a s s o m e w h a t s m a lle r th a n in 1 9 4 2 . T h e corn about 4 crop in th e D is tr ic t S ta te s s e e m s to p e r c e n t s m a lle r th a n th a t p r o d u c e d h ave been la s t y e a r , b u t p e a n u ts in c r e a se d 4 3 p e r c e n t o v e r th e la r g e 1 9 4 2 c r o p , p o ta to e s 2 1 p e r c e n t, s w e e t p o ta to e s 3 2 p e r c e n t, a n d to b a c c o 1 0 p e r c e n t. A la b a m a , F lo r id a , a n d G e o r g ia p r o d u c e d m o r e c o r n th is y e a r th a n la s t, b u t o u t p u t d e c lin e d s lig h t l y in L o u is ia n a a n d M is s is s ip p i a n d 1 5 p e r c e n t i n T e n n e s s e e . G e o r g i a f in d F lo r id a in c r e a s e d p e a n u t p r o d u c t io n m o r e th a n 5 0 p e r c e n t; A la b a m a , 3 1 p e r c e n t; w h ile L o u is ia n a a n d M is s is s ip p i h a d s m a lle r g a in s . T h e th a n 1942 in F lo r id a b u t in c r e a s e s p o ta to crop a re rep o rted is s lig h tly fo r th e s m a lle r o th e r fiv e s ta te s, a n d m o r e s w e e t p o t a to e s a n d to b a c c o h a v e b e e n r a is e d in a ll p r o d u c in g s ta te s in th e D is tr ic t . The 1943 b lo o m is e x p e c t e d t o p r o d u c e a s lig h t l y la r g e r c r o p o f o r a n g e s in F lo r id a th is s e a s o n th a n la s t— 3 8 .5 m illio n b o x e s a g a in s t 3 7 .2 m illio n f o r g r a p e fr u it is 2 4 .5 m illio n l a s t s e a s o n . T h e c u r r e n t^ e s t i m a t e m il lio n b o x e s a s c o m p a r e d w ith 2 7 .3 la s t s e a s o n . C o tto n m ill a c tiv it y in th is D is tr ic t h a s b e e n o n a s o m e 9 7 7 .7 m illio n d o lla r s . T h is is a g a in o f 3 3 p e r c e n t o v e r in w h a t lo w e r le v e l th is p a s t y e a r th a n in c o m e r e c e iv e d it is M a y th e d a ily r a te o f c o n s u m p t io n o f c o tto n b y th e m il ls in la r g e r th a n th e tw e lv e -m o n th t o t a ls f o r fo u r t e e n o f th e p a s t A la b a m a , G e o r g ia , a n d T e n n e s s e e h a s b e e n le s s th a n i t w a s in in th e c o r r e s p o n d in g part o f 1942, and 1 9 4 2 . B e g in n in g in 9 2 M o n t h l y R e v ie w o f th e F e d e ra l R e s e rv e B a n k o f A t la n ta f o r D e c e m b e r 1943 S ix th D is tr ic t S ta tis tic s th e fir s t f o u r m o n t h s o f th e y e a r a n d f o r th e e le v e n m o n th s , J a n u a r y th r o u g h N o v e m b e r , th e d e c lin e fr o m been RESERVES AND RELATED ITEMS O F n e a r ly w a s n e a r ly about (In T h o u sa n d s of D o llars) to D e p o sits of B anks A B C D E F G Total 5 18 38 65 62 31 41 260 0 57 101 2,298 7,986 31,290 623,309 665,041 B alan ces D u e From O th e r B anks 533 3,663 12,057 31,874 58,915 48,840 278,730 434,612 W ar L oan A ctu al D ep o sits R eserv es 8 867 3,347 11,751 27,158 40,851 333,761 417,743 c en t. The 1942 to ta l la s t y e a r h a s of 3 .9 m illio n 1 0 p e r c e n t la r g e r th a n d o u b le th e to ta l fo r 1938. th e to ta l fo r The d e c lin e 1941 th is and year is a ttr ib u te d in s o m e q u a r te r s to a c o n t in u in g lo s s o f la b o r a n d For re s e rv e city b a n k s fig u res a re a v e r a g e s of s e v e n -d a y p e rio d e n d in g D e ce m b e r 3, 1943; for c o u n try b a n k s th e y a re a v e ra g e s of fifteen-day p e rio d e n d in g N ovem ber 30, 1943. No. oi Banks per b a le s u se d b y th e m ills in th e s e th r e e s ta te s w a s a r e c o r d . It SELECTED SIXTH DISTRICT MEMBER BANKS G roup* 6 244 1,752 5,204 16,624 32,651 39,092 388,900 484,467 P e r C en t A ctual to R eq u ire d 226 165 135 143 125 120 112 115 d if fic u lt ie s C o n s tr u c tio n fr o m som e ca ses of a c tiv ity has o p e r a tin g p r o fita b ly on an p r ic e c e ilin g s . d e c lin e d s u b s ta n tia lly in 1943 th e r e c o r d le v e l o f la s t y e a r . T h e d o lla r v a lu e o f c o n tr a c ts a w a r d e d in th e fir s t e le v e n m o n th s o f t h is y e a r i s d o w n 3 6 p e r c e n t in c o m p a r is o n w ith th a t p a r t o f 1 9 4 2 a n d , e x c e p t in g o n e v e r y la r g e c o n tr a c t le t in T e n n e ss e e in A u g u s t, th e to ta l s h o w s a d e c r e a s e o f 5 8 p e r c e n t. In 1 9 4 2 , to ta l a w a r d s in th is D is tr ic t a m o u n te d to m o r e th a n a b illio n d o lla r s , w ith r e s id e n tia l c o n tr a c ts a c c o u n tin g f o r a b o u t 2 1 5 m illio n d o lla r s a n d in d u s tr ia l a n d o th e r a w a r d s a m o u n tin g t o 846 m illio n d o lla r s . S o lo n g a s w a r tim e r e s tr ic tio n s o n p r iv a te c o n s tr u c tio n ‘ G ro u p A : 1942 a v e r a g e d e p o sits u p to $250,000; G ro u p B : $250,000 to $500,000; G ro u p C : $500,000 to $1,000,000; G ro u p D : • $1,000,000 to $2,000;000; G ro u p E : $2,000,000 to $5,000,000; G ro u p F : $5,000,000 to $10,000,000; G ro u p G : o v e r $10,000,000. in o v e r tim e b a s is u n d e r e x is t in g a r e in d u s tr ia l e ffe c t, fu r th e r p la n ts p le te d . The and d e c lin e s em ergency e v en tu a l liftin g m ay be h o u s in g of th e e x p e cted p r o je c ts as are r e s tr ic tio n s in com w ill un d o u b te d ly b r in g a g r e a t a m o u n t o f p r iv a te b u ild in g th a t is b e in g h e ld b a c k u n til th e e n d o f th e w a r . E le c tr ic p o w e r p r o d u c tio n in th e s ix s ta te s o f th is D is tr ic t h a s b e e n in c r e a s in g c o n s ta n tly f o r m a n y y e a r s . In 1 9 2 0 th e r e w ere DEBITS TO INDIVIDUAL BANK ACCOUNTS produ ced have N ov. 1943 A rea O ct. 1943 N ov. 1942 in th ese sta te s fo r p u b lic u se a lit tle m ore th a n 2 b il lio n k ilo w a tt h o u r s o f c u r r e n t. S in c e th a t tim e th e r e (In T h o u sa n d s of D ollars) P e r C en t C h a n g e Nov. 1943 from O ct. 1943 Nov. 1942 14,789 166,536 8,694 10,500 113,978 42,701 15,082 178,423 10,003 10,669 113,135 40,493 13,423 149,310 6,777 10,547 102,964 38,180 — 2 — 7 — 13 — 2 + 1 + 5 + + + — + + 10 12 28 0 11 12 FLORIDA J a c k so n v ille ............. M iam i......................... O rla n d o ..................... P e n s a c o la ................... St. P e te r s b u r g ........ T a m p a ......................... 166,686 101,413 21,767 22,003 20,648 74,425 151,279 96,177 23,175 21,646 18,284 73,072 128,353 65,121 15,305 18,295 13,570 55,958 + 10 + 5 — 6 + 2 + 13 + 2 + + + + + + 30 56 42 20 52 33 GEORG IA A lb a n y ....................... A tla n ta ....................... A u g u s ta ..................... B ru n sw ick ................. C o lu m b u s ................. E lb e rto n ..................... M ac o n ......................... N e w n a n ..................... S a v a n n a h ................... V a ld o sta ..................... 11,092 442,369 30,278 16,719 32,753 1,867 40,500 4,486 84,724 7,275 10,159 468,591 38,184 16,697 35,182 2,245 41,571 4,927 77,466 7,159 9,360 368,511 31,431 8,882 32,539 1,953 35,383 4,140 62,696 5,732 + 9 — 6 — 21 + o — 7 — 17 — 3 — 9 + 9 + 2 + + — + + — + + + + 19 20 4 88 1 4 14 8 35 27 LOUISIANA B aton R o u g e ............. Lake C h a r le s ........... N ew O rle a n s ............ 38,347 21,447 402,776 38,761 20,579 406,731 37,177 14,888 341,960 — 1 + 4 — 1 + 3 + 44 + 18 M ISSISSIPPI H a ttie s b u rg ............... Jac k so n ....................... M erid ia n ..................... V ic k sb u rg ................. 11,329 48,738 15,344 20,865 12,606 50,472 16,523 26,813 10,844 66,449 14,815 16,458 — 10 — 3 — 7 — 22 o n ly th r e e y e a r s th a t fa ile d to record in c r e a s e s b illio n s . T h is y e a r p r o d u c tio n th r o u g h O c to b e r h a s b e e n 1 8 per ALABAMA A n n is to n ..................... B irm in g h am .............. D o th a n ....................... G a d s d e n ..................... M o b ile ., ................... M o n tg o m e ry ............. been o v e r t h e y e a r b e f o r e , a n d f o r 1 9 4 2 t h e t o t a l w a s a b o u t 1 7 .7 cen t g r ea ter th a n in th e sam e part of a lm o s t e q u a ls th e t o t a l f o r th e e n tir e y e a r S teel m ill r ep o rted a c tiv ity w e e k ly by in th e th e la s t B ir m in g h a m -G a d s d e n Iro n A ge, w as at year and 1942. or area, above as r a te d c a p a c it y d u r in g m o s t o f 1 9 4 3 . I n th e la tt e r h a l f o f O c to b e r a n d e a r ly N o v e m b e r it w a s lo w e r b e c a u s e o f th e c o a l s tr ik e , but by a g a in th e m id d le of N ovem ber c a p a c ity o p e r a tio n s w ere r ep o rted . D e m a n d d e p o s i t s ( a d j u s t e d ) a t t h e D i s t r i c t ’s w e e k l y r e p o r t in g m e m b e r b a n k s h a v e b e e n in c r e a s in g e a c h w e e k s in c e e a r ly O c to b e r . T hey d ropp ed fr o m 1 ,0 8 5 m illio n d o lla r s on A u g u s t 1 8 to 8 9 7 m il lio n d o lla r s o n O c to b e r 6 , b u t h a d r is e n b y D e c e m b e r 2 2 to 9 8 4 m il lio n d o lla r s . T h is c o m p a r e s w ith 9 2 7 m illio n d o lla r s o n J u n e 3 0 , a n d is 2 7 p e r c e n t a b o v e th e c o r r e s p o n d in g d a te a y e a r a g o . T im e d e p o s it s in c r e a s e d a t a le s s r a p id r a te , fr o m 2 2 5 m illio n d o lla r s a t m id y e a r to 2 4 7 m illio n d o lla r s o n D e c e m b e r 2 2 , 2 4 p e r c e n t a b o v e la s t D e cem b er. G overnm ent b a la n c e s at th ese banks w ere draw n d o w n t o 1 0 8 m illio n d o lla r s e a r ly in S e p te m b e r , b u t b y th e m id d le o f O c to b e r th e y h a d in c r e a s e d to 3 5 5 m illio n d o lla r s a s a r e s u lt o f th e T h ir d W a r L o a n D r iv e . B y D e c e m b e r 2 2 , TENNESSEE C h a tta n o o g a ............. K n oxville................... N ash v ille ................... 86,845 80,862 176,897 84,470 80,055 168,093 74,967 43,368 144,372 SIXTH DISTRICT 32 C itie s ..................... 2,339,653 2,358,722 1,943,728 — 27 + 4 + 27 + + + 3 1 5 + 16 + 86 + 23 — 1 + 20 th e y h a d d e c lin e d to 1 8 9 m illio n d o lla r s , b u t w e r e s t ill a lm o s t tw ic e a s la r g e a s a t th e s a m e tim e la s t y e a r . T o ta l lo a n s a n d in v e s tm e n ts a t th e s e s a m e b a n k s r e a c h e d a new peak on O c to b e r 2 0 of 1 ,6 1 2 m illio n d o lla r s , s in c e w h ic h tim e th e to t a l h a s d e c lin e d s o m e w h a t. D u r in g th e T h ir d W a r L o a n D r iv e la s t a u tu m n , lo a n s fo r th e p u r p o s e o f p u r UNITED STATES 334 C itie s ................... 65,025,000 c h a s in g th ese 66,270,000 53,773,000 — 2 + 21 or c a r r y in g s e c u r itie s lo a n s h a v e s in c e h a lf. O n th e d e c lin e d o th e r h a n d , lo a n s in c r e a se d s u b s ta n tia lly , and by c o n s id e r a b ly m o r e th a n fo r c o m m e r c ia l, in d u s tr ia l, M o n t h l y o f th e F e d e ra l R e s e rv e B a n k o f A tla n ta f o r D e c e m b e r 1943 R e v ie w a n d a g r ic u ltu r a l p u r p o s e s h a v e in c r e a se d d o lla r s a t th e m id y e a r to 2 1 9 m il lio n 22 w hen th e y w ere o n ly s lig h tly fr o m 171 d o lla r s o n la r g e r th a n m illio n D ecem b er on th e sam e G overnm ent s e c u r itie s in th e p o r tfo lio s of th ese banks h a v e t o t a le d a r o u n d a b il lio n d o lla r s m o s t o f th e tim e s in c e J u n e, a n d o n D e ce m b er 2 2 w ere 9 9 8 m illio n d o lla r s , la r g e r h as, of e n tir e naval co u rse, been sto r es b e lt w as sta te , f e l l to 18 b la n k e te d w ith d egrees and a g ood tu r p e n tin e a r e a w a s b la n k e te d w ith fr e e z in g p a r t o f th e sn o w . F o r a ll p u r p o s e s th e c u r r e n t n a v a l s to r e s c r o p is n o w p r a c tic a l fin is h e d a n d m a r k e tin g s in J a n u a r y a n d F e b r u a r y w ill b e e v e n le s s th a n re In corres r o s in T h e a lm o s t c o n s ta n t r is e in th e v o lu m e o f d e p o s its in years th e w e a th e r . T h e te m p e r a tu r e in G e o r g ia , th e c h ie f n a v a l s to r e s a n t ic ip a te d . b y 5 9 p e r c e n t th a n a y e a r e a r lie r . cen t e n d e d e a r ly th is y e a r , h o w e v e r , w h e n in D e c e m b e r v ir t u a lly p r o d u c in g W e d n e s d a y la s t y e a r . 9 3 a c c o m p a n ie d by a D ecem b er, s iz e fo r s u b s ta n t ia l pap er ad van ces m a k in g w ere in c e ilin g announced. on e a r lie r p o n d in g r is e in th e a m o u n t o f r e s e r v e s th a t th e b a n k s a r e r e c e ilin g s w e r e e s ta b lis h e d q u ir e d b y la w to k e e p w ith th e F e d e r a l R e se r v e B a n k . S in c e p r ic e o f r o s in a n d , a s a r e s u lt, th e p r o d u c t io n o f p a p e r s iz e N ovem ber h a d b e c o m e u n p r o fita b le . T h e a d v a n c e s in D is tr ic t 1 , 1 9 4 1 , m e m b e r b a n k s in A tla n ta , N ew O r le a n s , N a s h v ille , a n d S a v a n n a h ) r e se r v e c itie s B ir m in g h a m , (in th is J a c k s o n v ille , a r e r e q u ir e d to m a in ta in w ith th e F e d e r a l R e s e r v e B a n k a r e s e r v e a m o u n tin g to 2 0 p e r c e n t o f th e ir n e t d e m a n d d e p o s its a n d 6 p o s its . M e m b e r b a n k s in p e r c e n t o f th e ir tim e d e o th e r p la c e s , c la s s ifie d a s co u n try r o s in s iz e lib e r a lly w ill in e n a b le It is e s tim a te d in th e a llo c a t io n and 6 per cen t of th e ir tim e m an, d e p o s its . In Janu ary 1 9 4 1 , to ta l r e q u ir e d reserves of a ll m em b er b a n k s in th is D is tr ic t a m o u n te d to a p p r o x im a t e ly 1 7 5 m illio n are w oods w ar “ a m m u n it io n s h ip p in g u a r y t h is y e a r , r e q u ir e d r e s e r v e s a v e r a g e d 3 9 0 m il lio n d o lla r s la n d in g c r a f t.” th is D is tr ic t h a v e th o se r e q u ir e d r o s in m ore p r o d u c t io n per cen t o f th e to ta l pro p in e a n d th e h a r d w o o d s s p e c if ie d o r d e r s w ill b e a ffe c te d . C h ie f w a r u s e s o f c o n s tr u c tio n , in b oxes, a llo c a tio n and order c ra tes. The M -3 6 4 — o a k , hard h ic k o r y ,' and m a t e r ia ls ordnan ce b oxes; ov ersea s; arm y dunnage tr u c k lu m b e r b o d ie s and fo r naval F o r s o m e tim e th e d e m a n d f o r tid e w a te r r e d c y p r e s s h a s a n d b y N o v e m b e r h a d r is e n to 4 3 2 m il lio n d o lla r s . la r g e r th a n buy y e a r ’s y e llo w b ir c h , h a r d m a p le , r o c k e lm , a n d b e e c h — a r e u s e d f o r d o lla r s . A y e a r la t e r r e q u ir e d r e s e r v e s h a d r is e n to 2 5 3 m i l A c tu a lly , m e m b e r b a n k s in c o m in g c e ilin g p r ic e s o n p in e , a s r e p o r te d b y th e S o u th e r n L u m b e r in c lu d e d lio n d o lla r s — a n in c r e a s e o f a p p r o x im a t e ly o n e -h a lf. In J a n r e s e r v e s c o n s is te n tly th e th a t a b o u t 5 0 d u c t io n o f s o u th e r n y e llo w s o u th e r n y e llo w d e p o s its fo r to th e o f pap er. th e ir dem an d rec e n t a d v a n c e s in m a n u fa c tu r e r s p r e p a r a tio n b a n k s , a r e r e q u ir e d to m a in t a in a r e s e r v e o f 1 4 p e r c e n t o f net b e fo r e th e p r ic e s The m a in ta in e d been by g r e a t u s e f u ln e s s in m a r itim e c o n s tr u c tio n b e c a u s e la w . In in excess of th e a v a ila b le s u p p lie s . T h is w ood of i t s of is w a te r S e p t e m b e r 1 9 4 1 , t h is e x c e s s o f a c tu a l r e s e r v e s o v e r r e q u ir e d r e s is ta n t p r o p e r tie s . A t th e p r e se n t tim e , in c h -b o a r d c y p r e s s r e s e r v e s e x c e e d e d 1 0 0 m illio n d o lla r s . A g a in , fr o m D e c e m b e r is th e m o s t u r g e n tly n e e d e d a n d in c h -b o a r d s c u r r e n t ly b e in g 1942 100 m a d e a r e g o in g to th e N a v y a n d M a r in e C o r p s. In la r g e p a r t, m illio n d o lla r le v e l. In J a n u a r y 1 9 4 3 th e y a m o u n te d to 1 1 7 th e c o n tin u in g s h o r ta g e o f c y p r e s s is d u e to th e in a b ilit y to m illio n d o lla r s , th e th ro u g h M ay 1943, excess la r g e s t reserves ever exceed ed recorded, and in th e A p r il to procure a d d itio n a l la b o r in th e w ood s. At J a c k s o n v ille , 1 1 5 m il lio n d o lla r s . I n r e c e n t m o n th s , w h ile r e s e r v e r e q u ir e c y p r e s s s to c k s a r e p r o b a b ly m e n ts h a v e c o n tin u e d to r is e , a c tu a l r e s e r v e s h a v e b e e n s o m e p r e s e n t c e n tu r y w ith m il l in v e n t o r ie s v ir t u a l ly e x h a u s te d . I n w h a t s m a lle r th a n in th e e a r ly m o n th s o f th e y e a r , a n d th e th e N e w O r le a n s a r e a th e r e is a g r e a t d e m a n d fr o m s h ip y a r d s excess fo r th e h e a v ie r th ic k n e s s e s o f c y p r e s s a n d b a c k lo g s a r e e x tr e m e ly la r g e . averaged 68 m illio n d o lla r s in N ovem ber. C ir c u la tio n o f n o te s is s u e d b y th e F e d e r a l R e se r v e B a n k o f A tla n ta c o n tin u e s to e x p a n d . I n lo w e r th a n a t a n y tim e in th e 1 9 4 1 , c ir c u la t io n in c r e a s e d 8 3 m il lio n d o lla r s ; in 1 9 4 2 , it r o s e 2 6 8 m il lio n d o lla r s ; a n d in th e J a n u a ry -N o v em b er fu r th e r by about 367 p e r io d m illio n of th is d o lla r s . year, On it in c r e a s e d D ecem b er 22 w a s 7 2 p e r c e n t la r g e r th a n a y e a r e a r lie r a n d n e a r ly th r e e and o n e - h a lf tim e s w h a t it w a s tw o years R e c o n n a is s a n c e it Sixth D istrict S tatistics lo r N ovem ber 1943 c o m p a re d w ith N ovem ber 1942 a g o , a t th e tim e PER CENT DECREASE In S ix th N ovem ber, d e b its to in d iv id u a l bank a c co u n ts in th e F e d e r a l R e se r v e D is tr ic t w e r e a t a b o u t th e s a m e le v e l a s in O c to b e r . D e b its w e r e , h o w e v e r , 2 0 p e r c e n t h ig h e r th a n in N ovem ber o f w ith an 1 9 4 2 . T h is r a te o f in c r e a s e in c r e a s e of 21 per c e n t in th e c o m p a r e s w e ll U n ite d S ta te s a s a w h o le . B r u n s w ic k , G e o r g ia , a s h ip b u ild in g c e n te r , s h o w e d th e la r g e s t in c r e a s e in N ovem ber 1942 d e b its to in d iv id u a l b a n k to N o v e m b e r 1943, 88 T e n n e s s e e , a n o th e r w a r in d u s tr y w ith an in c r e a s e c lin e r e g iste r e d of in 86 th e per S ix t h The D is tr ic t IIIIIIIBiM M IIIIIIIIIIIIIIIIIIM ^ ■ ■ ► o n ly w as a c lo s e secon d im p o r t a n t th a t de o f Jack son , M is s is s ip p i, w h e r e d e b it s in N o v e m b e r w e r e 2 7 p e r c e n t le s s th a n a y e a r e a r lie r . O r d in a r ily , th e w in te r m o n th s b r in g a p r o d u c t io n o f a b o u t 5 per c e n t o f th e to ta l n a v a l sto r es crop . T h e season w as “ ■nption Gasolin|||||]|Djc Collections Bank 111111111111111 Member B ||||y |9ans Member Demand D e p f||||lB il||||B t a c co u n ts fr o m p e r c e n t. K n o x v ille , c e n te r , ra n c en t. PER CENT INCREASE Department |iiin iiH l|I|!||n g i|| Department B>re Stocks Fum ituijlllKes th e U n ite d S ta te s e n te r e d th e w a r . , _________________ 40 30 20 10 0 10 20 ~f~ 30 40 M 9 4 o n t h l y o f th e F e d e ra l R e s e rv e B a n k o f A t la n ta f o r D e c e m b e r 1943 R e v ie w S ix th D is tr ic t S ta tis tic s R e v is io n DEPARTMENT STORE SALES o f th e S ix th D e p a r tm e n t S to r e D is tr ic t S a le s I n d e x SIXTH FEDERAL RESERVE DISTRICT P e rc e n ta g e oi Total D istrict S ales C ity a n d S ta te A s a p a r t o f a g e n e r a l r e v is io n o f th e d e p a r tm e n t s to r e s a le s in d e x e s prepared by th e F ederal R eserv e S y ste m , th e In B ase P erio d 1935 - 1939 In 1943 (e stim a ted ) A labam a B irm in g h am .......................................................... M o n tg o m e ry ........................................................ R em ain d er of s ta t e ............................................ 7.4 1.8 6.2 7.2 1.6 5.7 F lo rid a Ja c k so n v ille .......................................................... M iam i...................................................................... T a m p a .................................................................... R em ainder of s ta t e ............................................ 3.8 7.4 3.1 5.6 4.9 6.3 3.9 4.7 G e o rg ia A tla n ta .................................................................. M aco n .................................................................... R em ainder of s ta t e ............................................ 12.7 1.8 8.0 12.9 1.9 9.7 Louisiana B aton R o u g e ........................................................ N ew O rle a n s ........................................................ R em ainder of state 1........................................... 2.4 13.7 3.5 2.5 12.4 3.7 in d e p e n d e n t d e p a r tm e n t s to r e s , c h a in d e p a r tm e n t s to r e s , a n d 2.6 4.1 sto r e s in th e s a m p le a c c o u n te d fo r a b o u t 6 7 p e r c e n t o f to ta l M ississip p i Ja c k so n .................................................................. R em ain d er of state 1........................................... T e n n e sse e C h a tta n o o g a ........................................................ N a sh v ille .............................................................. K noxville.............................................................. R em ainder of state 1............................................ T otal D istric t............................................................ S ix th D is tr ic t in d e x of d e p a r tm en t sto r e s a le s has been b r o a d ly r e v is e d . T h e n e w in d e x w ill b e u s e d a lo n g w ith c o m p a r a b le in d e x e s fo r th e o th e r F e d e r a l R e s e r v e D is tr ic ts . I n a d d itio n to th e D is tr ic t in d e x , s e p a r a te in d e x e s fo r 1 3 c itie s h a v e b e e n r e v ise d 2.7 2.9 w ill b e p u b lis h e d a n d c u r r e n t fig u r e s fo r th e s e c itie s r e g u la r ly . T h u s , in d ic a to r s o f d e p a r tm e n t sto r e s a le s fo r p a r ts o f th e D is tr ic t, a s w e ll a s fo r th e D is tr ic t a s a w h o le , w ill c o n tin u e to b e a v a ila b le c u r r e n t ly . T h e r e v ise d in d e x F ed era l R eserv e o f d e p a r tm e n t s to r e s a le s in th e S ix th D is tr ic t is c u r r e n tly 3.2 4.4 4.3 4.0 100.0 100.0 on d a ta fo r 80 r e t a il o u t le t s o f th e la r g e m a il-o r d e r c o m p a n ie s . C a ta lo g s a le s by la r g e m a il-o r d e r h o u s e s d e p a r tm e n t sto r e s a le s in are th e C e n su s r e p o r t fo r th a t y e a r ; 3.4 4.2 4.6 4.8 b ased s to r e s sc a tte r e d th r o u g h o u t th e D is tr ic t. T h e s a m p le in c lu d e s th e in d e x sh ow ed n o t in c lu d e d . D is tr ic t as In 1 9 3 9 , th e m easu red m o reo v er, fr o m by 1929 to th e 1939 th e s a m e m o v e m e n t th a t C e n su s d a ta d id b e tw e e n th e s e tw o y e a r s . B e n c h -m a r k d a ta s u b s e q u e n t to 1 9 3 9 a r e n o t a v a ila b le , b u t it is b e lie v e d th a t th e s a m p le h a s c o n tin u e d to b e r e p r e s e n ta tiv e o f d e p a r tm e n t s to r e s a le s in th is in c lu d in g o n ly th a t p a rt of th e state th a t lie s in th e Sixth F e d e ra l R eserv e D istrict. r e g io n . T h e r e v is e d S ix th D is tr ic t in d e x , lik e th e p r e v io u s o n e , is c o m p u te d b y c o m b in in g th e 1 3 s e p a r a te c ity in d e x e s a n d th e “ o th e r s ta te ” in d e x e s f o r e a c h o f th e s ix s ta te s in th e D is tr ic t INSTALMENT CASH LOANS L en d er N u m b er R ep o rtin g F e d e ra l C re d it U n io n s....................... S tate C re d it U n io n s........................... In d u stria l B anking C o m p a n ie s . . . . P e rso n a l F in a n c e C o m p a n ie s ........ C om m ercial B a n k s............................. 46 27 43 55 34 in to P er C en t C h an g e O cto b er 1943 to N o v em b er 1943 V olum e — — + + — O u tstan d in g s 8 5 3 7 1 — — + + — 2 4 2 7 3 a t o t a l D is t r ic t fig u r e . C o m b in a t io n done on th e b a s is of th e o f th e s e in d e x e s is r e la tio n s h ip s in d ic a te d by 1939 C e n su s d a ta o n d e p a r tm e n t sto r e s a le s . T h e w e ig h ts a s s ig n e d to th e v a r io u s s e r ie s m a k in g u p th e D is t r ic t in d e x a r e s h o w n in th e a c c o m p a n y in g ta b le a n d th e m e th o d o f c o m p u tin g th e m is d is c u s s e d p o r ta n ce p e r io d b e lo w . T h e s e w e ig h ts in d ic a te th e r e la tiv e o f s a le s a s b e tw e e n th e v a r io u s s e r ie s in (1 9 3 5 -1 9 3 9 in c lu s iv e ) . It s h o u ld im th e b a se b e n o ted , h o w ev er, th a t s in c e th a t tim e s a le s h a v e in c r e a s e d fa s te r in s o m e c itie s BET AIL FURNITURE STORE OPERATIONS Item of S to res Total S a le s ................................................ C a s h S a le s ................................................. In sta lm e n t a n d O th e r C re d it S a l e s . . A ccoun ts R ec e iv a b le, e n d of m o nth. C o llectio n s d u rin g m o n th ................... In v e n to ries, e n d of m o n th ................... 102 89 89 100 100 73 th a n P er C en t C h an g e N ov. 1943 from O c to b e r 1943 N o v em ber 1942 + + + — — — in o th er s; c o n s e q u e n tly , th e r e la tiv e im p o r t a n c e of v a r io u s c itie s h a s c h a n g e d c o n s id e r a b ly . T h is is in d ic a te d in c o lu m n 2 of th e ta b le , w h ic h sh ow s c o r r e s p o n d in g fig u r e s fo r th e y e a r 1 9 4 3 . I n d e x e s fo r th e 1 3 c itie s a n d th e 6 “ o th e r s ta te ” g r o u p in g s 3 7 3 2 1 1 + 24 — 30 — 16 — 29 w e re c o m p u te d in th e f o ll o w i n g m an ner: 1 . T o ta l m o n th ly s a le s o f r e p o r tin g s to r e s in e a c h a r e a w e r e o b t a in e d T h ese by s u m m in g m o n th ly to ta ls th e fig u r e s w ere th en fo r a ll d iv id e d sto r es by in c lu d e d . th e n u m b e r of tr a d in g d a y s in th e m o n th to o b t a in d a il y a v e r a g e s a le s . S u n SALES O F UNITED STATES SAVINGS BONDS d ays, N ov em b er 24-D ecem ber 23, 1943 (In T h o u san d s oi D ollars) A rea DISTRICT........................................ A la b am a .......................................... F lo rid a .............................................. G e o rg ia ............................................ L o u isian a* ..................................... M ississip p i* ................................... T e n n e ss e e * ..................................... Y e a r ’s D ay, In d ep en d en ce D ay, Labor D ay, d a y s . A n in v e s tig a tio n s h o w e d th a t, in g e n e r a l, S a tu r d a y h a d S eries E S eries F a n d G Total 35,199 6,870 7,288 8,571 6,323 2,728 3,419 7,142 1,108 1,650 2,042 867 451 1,024 42,341 7,978 8,938 10,613 7,190 3,179 4,443 ‘ T h ese fig u res a p p ly o n ly to th a t p a rt of the s ta te ly in g w i th in th e Sixth F e d e ra l R eserv e D istrict. T enn e ss e e fig u res dc n o t in c lu d e Po st O ffice sale s. N ew T h a n k s g iv in g , a n d C h r is tm a s w e r e c o n s id e r e d a s n o n t r a d in g no s p e c ia l im p o r ta n c e as a tr a d in g day; c o n s e q u e n tly , no s p e c ia l a llo w a n c e w a s m a d e in th e c o m p u ta tio n o f th e n u m b e r o f tr a d in g d a y s in m o n th s h a v in g fiv e S a tu r d a y s , a lth o u g h th is is n e c e s s a r y in m a n y p a r ts o f th e c o u n t r y w h e r e a n u n u s u a lly la r g e p r o p o r tio n of th e w e e k ’s s a le s are m ade on S a tu rd a y . 2 . T h e d a ily a v e r a g e s a le s w e r e c o n v e r te d to in d e x n u m b e r s b y d iv id in g e a c h b y th e d a ily a v e r a g e s a le s d u r in g th e b a s e M o n t h l y R e v ie w o f th e F e d e ra l R e s e rv e B a n k o f A tla n ta f o r D e c e m b e r 1943 S ix th D is tric t I n d e x e s p e r io d , 1 9 3 5 -3 9 . W h e r e n e c e s s a r y , th is b a s e w a s a d ju s te d fo r c h a n g e s in th e n u m b e r o f r e p o r tin g s to r e s a s f o llo w s : DEPARTMENT STORE SALES* W h e n a d e p a r tm e n t s to r e p r e v io u s ly in b u s in e s s b e g a n r e U n a d ju ste d p o r t in g it s s a le s t o th e A t la n t a B a n k , th e b a s e w a s in c r e a s e d b y th e p e r c e n t a g e w h ic h th e s a le s o f th e n e w r e p o r t in g s to r e in th e fir s t r e p o r t in g y e a r w e r e t o th e t o t a l s a le s o f th e o ld s a m p le in th a t y e a r . I n th e fu tu r e , s a le s d a ta fo r a n e w re p o r t in g s to r e o f th is t y p e w ill b e in c lu d e d in th e in d e x e s a t o n c e i f a n n u a l s a le s fig u r e s c a n b e o b t a in e d f o r th e p r e v io u s y e a r . I f n o t , th e s to r e w ill b e in c lu d e d in th e s a m p le a s s o o n a s it is b e lie v e d th a t s u ffic ie n t d a ta a r e a v a ila b le to m a k e a p r o p e r a d ju stm e n t in th e b a se . W hen a r e p o r tin g sto r e d is c o n tin u e d r e p o r tin g but re m a in e d in b u s in e s s , th e b a s e w a s d e c r e a s e d b y th e p e r c e n ta g e w h ic h th e s a le s o f th a t sto r e b o r e to th e to ta l s a le s DISTRICT............ A tlanta.............. Baton R o u g e .. Birmingham. . . C h a ttan ooga.. la c k so n ............ la c k s o n v ille ... K noxville.......... M acon.............. M iami................ M ontgom ery... N ash ville.......... N ew O r le a n s.. Tampa.............. o f th e W h e n a n e w r e p o r t in g s to r e w a s n o t p r e v io u s ly in b u s in e s s a n d i f th e c o v e r a g e o f th e s a m p le in th e a r e a w a s s u c h a s to m a k e it lik e ly th a t s a le s o f th e n e w s to r e w e r e e ith e r n e w d e p a r tm e n t s to r e s a le s o r r e s u lt e d in a d e c lin e in th e s a le s o f th e o th e r r e p o r tin g s to r e s in th e a r e a , s a le s o f th is s to r e w e r e in c lu d e d in th e c u r r e n t r e p o r t in g s a m p le a n d n o a d ju s tm e n ts th e b a se . I f th e c o v e r a g e o f th e A d ju re d * * * Nov. 1943 O ct. 1943 Nov. 1942 N ov. 1943 O ct. 1943 Nov. 1942 257 274 250 252 251 249 325 257 267 219 234 266 237 300 233 234 244 227 226 244 300 226 240 170 220 246 223 281 208 205 202 212 198 212 245 179 228 172 189 211 192 249 220 258 236 218 225 212 299 239 232 196 202 243 204 254 222 230 207 202 213 220 265 218 225 211 211 233 216 289 178 193 191 185 177 181 225 166 198 154 165 197 165 210 DEPARTMENT STORE STOCKS A djusted* k s a m p le in th e la s t y e a r f o r w h ic h it s r e p o r ts w e r e o b ta in e d . w e r e m a d e in 9 5 DISTRICT............ A tlanta.............. Birmingham. .. M ontgom ery. .. N ash ville.......... N ew Orleans. . s a m p le w a s Oct. 1943 Nov. 1942 Nov. 1943 O ct. 1943 Nov. 1942 162 220 131 192 247 109 181r 229 146 200r 263 129 158 196 146 167 192 154 186 255 154 224 287 140 202 269 164 227r 301 145 182 226 173 194 223 174 MANUFACTURING EMPLOYMENT*** s u c h a s to m a k e th is p r o c e d u r e im p r o p e r , i.e ., i f th e c o v e r a g e w a s q u ite in c o m p le te , a n a d ju s tm e n t in th e b a s e w a s m a d e in a c c o r d a n c e w ith t h e b e s t e s t im a te o f th e s ta tis tic ia n . 3. S e a s o n a l a d ju stm e n t fa c to r s fo r th e 1 3 c ity in d e x e s a n d fo r th e D is tr ic t in d e x w e r e c o m p u te d in a c c o r d a n c e w ith th e proced u re u sed g e n e r a lly th ro u g h o u t th e F ederal R eserv e S y s te m . T h is p r o c e d u r e w a s d e s c r ib e d in th e F e d e r a l R e se r v e SIX STATES............................................. A labam a................................................. Florida................................................... G eorgia.................................................. Louisiana............................................... M ississip pi........................................... T en n e sse e............................................. B u lle tin f o r J u n e 1 9 4 0 . A n a d d itio n a l s p e c ia l a d ju stm e n t w a s a c c o u n t c h a n g e s in th e d a te o f E a ster . T h e u n a d ju ste d in d e x e s w e r e th e n d iv id e d b y th e a p p r o p r ia t e s e a s o n a l a d j u s t m e n t fa c to r s in o r d e r to o b t a in s e a s o n a lly a d j u s t e d in d e x e s . A s m e n t io n e d a b o v e , th e D is tr ic t in d e x w as o b ta in e d by TOTAL................... A labam a............ G eorgia............ T en n e sse e ........ c o m b in in g th e se p a r a te c ity a n d “ o th e r s ta te ” in d e x e s o n th e b a s is in o f w e ig h ts v a r io u s p a r ts r e fle c tin g th e o f th e r e la tiv e D is tr ic t in im p o r ta n c e th e w e ig h t s w e r e d e r iv e d in th e f o ll o w i n g b ase of T h ese m an ner: A s p e c ia l ta b u la tio n o f d e p a r tm e n t sto r e s a le s d a ta a s r e p o r te d in th e 1 9 3 9 C e n su s o f B u s in e s s w a s p r e p a r e d f o r th e Federal R e se r v e S y ste m la tio n sh ow ed m a jo r c it ie s w ith in s a le s by each by th e C en su s F ederal B u r e a u . T h is R eserv e D is tr ic ts D is tr ic t , e x c lu d in g s a le s ta b u and by by m a il S e p t. 1943 O ct. 1942 161 194 179 145 166 150 143 159 192 178 143 161 146 141 149 193 125 137 151 133 138 COAL PRODUCTION* Nov. 1943 Oct. 1943 Nov. 1942 Nov, 1943 O ct. 1943 Nov. 1942 168 173 168 140 164 173 163 137 190 197' 189 165 143 152 108 91 167 171 i27 133 152 CONSTRUCTION CONTRACTS s a le s p e r io d . O ct. 1943 COTTON CONSUMPTION* n e c e s s a r y fo r th e m o n th s o f M a r c h a n d A p r il in o r d e r to ta k e in to U n a d ju ste d Nov. 1943 DISTRICT............ R esidential. . . . O thers............... Alabam a............ Florida.............. G eorgia............ L ouisiana.......... M ississippi. .. . T en n e sse e ........ Nov. 1943 O ct. 1943 Nov. 1942 109 95 116 79 126 145 36 8 141 103r 105r 102 217 121 97 53 47 53 480 388 524 1267 136 554 350 1574 175 GASOLINE TAX COLLECTIONS*** Nov. 1943 O ct. 1943 N ov. 1942 98 92 106 104 78 88 101 105 124 101 81 92 94 91 99 126 79 93 111 116 131 o r d e r h o u s e s b u t in c lu d in g s a le s ta x e s s o th a t th e d a ta w o u ld b e c o m p a r a b le w ith th o s e c o lle c t e d w e e k ly a n d m o n th ly by COST O F LIVING th e F e d e r a l R e se r v e S y s te m . B e fo r e th e s e d a ta c o u ld b e u s e d a s th e b a s is f o r d e te r m in in g th e r e la tiv e im p o r t a n c e 19 c o m p o n e n t s e r ie s , s o th a t in c o m b in in g th e m tr ic t t o t a l e a c h c o u ld be accorded its p r o p e r o f th e in to a D is r e p r e s e n ta tio n in th e in d e x , o n e a d ju stm e n t w a s n e c e s s a r y . S in c e th e in d e x e s are on a 1 9 3 5 -3 9 c o m b in e th e m b a se , th e h a d to d a ta to b e co n v erted be to u sed as w e ig h ts to a v e r a g e a n n u a l s a le s f o r th e 1 9 3 5 - 3 9 p e r io d . T h is w a s d o n e b y d iv id in g th e 1 9 3 9 C en su s fig u r e fo r each area by th e c o r r e s p o n d in g a n n u a l in d e x n u m b e r . T h e r e s u lt in g fig u r e s w e r e th e n 1939 u sed to c o m p u te th e p e r c e n ta g e d is tr ib u tio n o f S ix th D is tr ic t s a le s in th e b ase p e r io d , and th ese p ercen ta g es w ere u sed Oct. 1943 Nov. 1942 128 144 134 114 128 145 134 114 121 133 127 113 108 108 105 123 123 121 120 120 113 CRUDE PETROLEUM PRODUCTION IN COASTAL LOUISIANA AND MISSISSIPPI* as w e ig h ts th r o u g h o u t th e p e r io d c o v e r e d b y th e in d e x a n d w ill b e u s e d in c a r r y in g th e in d e x fo r w a r d . ALL ITEMS. . F o o d .......... C lothing. . R ent.......... Fuel, e le c tricity, and ic e . . Home fur nishings . M iscel laneous. ELECTRIC POW ER PRODUCTION* Nov. 1943 U nadjusted. . A djusted**. . Nov. 1943 O ct. 1943 Nov. 1942 192 189 195r 195 176 174 SIX STATES. Hydro generated. Fu el generated . O ct. 1943 S ept. 1943 O ct. 1942 246 250 216 191 208 199 318 306 238 ANNUAL RATE O F TURNOVER O F DEMAND DEPOSITS Unadjusted. . A d ju sted **.. Index**........ Nov. 1943 O ct. 1943 Nov. 1942 18.1 17.1 66.2 18.8 18.6 71.9r 21.3 20.1 77.7 *Daily average b a sis. ‘ ‘ Adjusted for s e a s o n a l v ariatio n . ***1939 monthly a v e ra g e = 100; o th e r in d exes, 1935-39 = 100. r = R evised. 96 M o n t h l y T h e I N a tio n a l n d u s t r i a l a c t iv it y w a s m a in ta in e d a t a h ig h v e m b e r a n d th e e a r ly s a le s d u r in g th e o f th e F e d e r a l R e s e rv e B a n k o f A t la n ta f o r D e c e m b e r 1943 R e v ie w B u s in e s s le v e l in N o p a r t o f D e c e m b e r . V a lu e o f r e t a il C h r is tm a s b u y in g season has been la r g e r S itu a tio n e n d o f O c to b e r w a s r e p o r te d to b e 9 a year ago and it is e s t im a te d I n d u s tr ia l p r o d u c t io n in N o v e m b e r w a s a t 2 4 7 p e r c e n t o f th e u s u a l s e a s o n a l m o v e m e n t, s to c k s d e c lin e d in N o v e m b e r . F r e ig h t c a r lo a d in g s w e r e t h a n l a s t y e a r ’s r e c o r d s a l e s . p e r c e n t s m a lle r th a n th a t, c o n tr a r y to N ovem ber and in th e m a in ta in e d fir s t h a l f of v o lu m e in D e c e m b e r . L o a d in g s in la r g e of th e 1 9 3 5 - 1 9 3 9 a v e r a g e , th e s a m e a s in O c to b e r a n d 2 p o in ts c o a l d u r in g th e fo u r w e e k s e n d in g D e c e m b e r 1 1 w e r e a t th e h i g h e r t h a n i n S e p t e m b e r a c c o r d i n g t o t h e B o a r d ’s s e a s o n a l l y h ig h e s t r a te in a d j u s t e d in d e x . F u r th e r in c r e a s e s in m u n itio n s p r o d u c t io n in fir s t N o v e m b e r w e r e o ffse t in th e to ta l in d e x b y s m a lle r o u tp u t o f w e r e in u n u s u a lly la r g e v o lu m e fo r th is tim e o f y e a r . c o a l a n d s te e l. of m a n y y e a rs, fo llo w in g N ovem ber. S h ip m e n ts a sh arp of g r a in G r a in p r ic e s c o n t in u e d to a d v a n c e f r o m T h e r e d u c tio n in s te e l o u t p u t fr o m w a s s m a ll a n d h a lf r e fle c te d p a r t ly a th e h ig h d e c lin e in O c to b e r r a te w a r o rd ers fo r s o m e ty p e s o f s te e l p r o d u c ts . A c t iv it y in th e m a c h in e r y a n d m id -D e c e m b e r and reached le v e ls drop and in m id -N o v e m b e r to m ore th a n o n e -fo u r th h ig h e r th a n a y e a r a g o . W h o le s a le p r ic e s o f o th e r fa r m fo o d p ro d u cts sh o w ed th e liv e s to c k and lit t le c h a n g e , w h ile p r ic e s o f v a r io u s tr a n s p o r ta tio n e q u ip m e n t in d u s tr ie s c o n tin u e d to r is e in N o in d u s tr ia l c o m m o d itie s , in c lu d in g c o a l, w e r e in c r e a s e d s o m e v e m b e r . T h e B o a r d ’s m a c h i n e r y i n d e x , w h i c h h a d b e e n s t a b l e w h a t. fr o m A p r il to A u g u st, a d v a n ce d 5 per c e n t in th e p ast 3 T h e c o st o f liv in g , w h ic h h a d in c r e a s e d .4 p e r c e n t in O c m o n th s a s a r e s u lt o f in c r e a s e s in o u tp u t o f e le c t r ic a l e q u ip to b e r , m e n t a n d o th e r m a c h in e r y , w h ic h in c lu d e s a ir c r a f t e n g in e s . B u r e a u o f L a b o r S ta tis tic s in d e x . T o ta l o u tp u t o f n o n d u r a b le g o o d s in N o v e m b e r c o n tin u e d d e c lin e d .2 per c e n t in N o v e m b e r , a c c o r d in g to th e E x c e s s r e s e r v e s a t a l l m e m b e r b a n k s flu c t u a te d a r o u n d o n e a t th e le v e l o f r e c e n t m o n th s . A c tiv ity in w o o le n m ills s h o w e d b illio n lit t le c h a n g e a s in c r e a s e d a v e r a g e le v e l s lig h t ly b e lo w th a t w h ic h p r e v a ile d d u r in g th e s u ltin g o ffse t fr o m th e red uced liftin g o u tp u t p r o d u c tio n o f c iv ilia n fa b r ic s , r e o f r e s tr ic tio n s o n th e u s e o f w o o l, of m ilita r y fa b r ic s . P r o d u c tio n d o lla r s in N o v e m b e r a n d D e c e m b e r , m a in ta in in g a n p r e v io u s m o n th . D u r in g th e fiv e w e e k s e n d in g D e c e m b e r 2 2 , of r e s e r v e fu n d s w e r e a b s o r b e d b y a p r e h o lid a y r is e in m o n e y le v e l. in c ir c u la t io n o f a b o u t 8 0 0 m il lio n d o lla r s , a n d r e q u ir e d r e F e d e r a lly in s p e c te d m e a t p r o d u c tio n in N o v e m b e r w a s o n e - s e r v e s c o n tin u e d to in c r e a s e a s T r e a s u r y e x p e n d itu r e s tr a n s fo u r th fe r re d fu n d s fr o m m a n u fa c tu r e d fo o d la r g e r N ovem ber m o n th C oal th a n a d e c lin e d la s t p e tr o le u m p ro d u cts year to year. a c o n tin u e d ago. le v e l O u tp u t a h ig h N e w s p r in t c o n s u m p tio n 15 in at p e r c e n t b e lo w th e rubb er r e fin in g in d u s tr ie s c o n tin u e d p r o d u c tio n in c r e a s e d s h a r p ly to in in th e sam e p r o d u cts and la tte r part of N o v e m b e r b u t fo r th e m o n th a s a w h o le b itu m in o u s c o a l o u t put w as dow n 9 per cen t fr o m O c to b e r and in c r e a s e o f 1 .7 b i l l i o n d o lla r s in G o v e r n m e n t s e c u r ity h o ld in g s a t th e R e se r v e B a n k s. A d d itio n s to T r e a s u r y b i l l h o ld in c r e a s e . th e G o v e r n m e n t a c c o u n ts to p r iv a te d e p o s its . N e e d e d r e se rv e s w e re s u p p lie d to m e m b er b a n k s th r o u g h a n a n th r a c ite 19 in g s a c co u n te d c e r tific a te D u r in g fo r th e h o ld in g s a ls o N ovem ber and la r g e s t rose part of th e in c r e a s e s , th e fir s t h a l f o f D e c e m b e r , lo a n s p e r c e n t. I n th e e a r ly p a r t o f D e c e m b e r o u tp u t o f b itu m in o u s a n d in v e s tm e n ts a t r e p o r tin g m e m b e r b a n k s in c o a l w a s a t th e h ig h e s t r a te in m a n y y e a r s . c itie s d e c lin e d N o tw ith s ta n d in g a p a r tm e n t s to r e s a le s g r e a te r th a n th e red u ced in s e le c tio n N ovem ber la r g e v o lu m e w ere o f s a le s of m e r c h a n d is e , about in 10 per N ovem ber de cen t 1942, in g b y 6 .2 5 by b illio n a r o u n d 2 .5 in but s u b s ta n tia lly . b illio n 101 le a d in g d o lla r s , a fte r in c r e a s S e p te m b e r a n d O c to b e r . H o ld in g s o f a ll ty p e s o f G o v e r n m e n t s e c u r itie s d e c r e a s e d . B ill h o ld in g s , m a in ly b ecau se o f s a le s to th e R eserv e B a n k s, s h o w e d th e a n d in t h e fir s t th r e e w e e k s o f D e c e m b e r s a le s w e r e a b o u t th e la r g e s t d e c lin e . L o a n s f o r p u r c h a s in g o r c a r r y in g s e c u r itie s s a m e a s a y e a r a g o . V a lu e o f d e p a r tm e n t s to r e sto c k s a t th e c o n tin u e d to d e c lin e o v e r th e p e r io d . (This page was written by the staff of the Board of Governors of the Federal Reserve System ) MEMBER BANK RESERVES AND RELATED ITEMS, MEMBER BANKS IN LEADING CITIES INCOME PAYMENTS TO INDIVIDUALS W e d n e s d a y f ig u r e s , la te st s h o w n a r e lo r D e c e m b e r 18, 1943. D em an d d e p o sits (a d ju s te d ) e x c lu d e U . S. G ov ern m e n t a n d in te rb a n k d e p o sits a n d co llectio n item s. G o v e rn m e n t se c u ritie s in c lu d e d ire c t a n d g u a ra n te e d is su e s . W e d n e s d a y fig u re s, la te st s h o w n a re ior D e ce m b e r 18, 1943. B ased o n D e p a rtm e n t o l C om m erce e stim ate s. W a g e s a n d s a la rie s in c lu d e m ilitary p a y . M onth ly fig u re s ra is e d to a n n u a l ra te s , la te s t s h o w n a re lo r O c to b e r 1943. 1943 1939
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