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Review Hiithlv FEDERAL RESERVE BANK O ATLANTA F Volume X X IX Atlanta, Georgia, December 31, 1944 Sixth District in n d u s t r ia l and business activity and farm and nonfarm in in the Sixth District were maintained peak I come 1944. Though some indexes have declined near their levels in from wartime peaks, no substantial change in the overall situation has yet appeared. ►Consumption of cotton in District textile mills reached its peak as early in the war period as the autumn of 1942. Dur ing 1944 consumption in Alabama, Georgia, and Tennessee mills averaged something more than 50 per cent higher than the prewar levels of 1935-39. The year’s peak was reached in February at 168, based on 1935-39 as 100, and the year’s low of 147 was recorded in July. Coal production in Alabama and Tennessee rose sub stantially in the first half of the year and during May and June was almost twice as large as in the five prewar years 1935-39. Since June, however, production has been falling and in November was at 163 per cent of the prewar average. Despite significant new discoveries of petroleum reserves in Mississippi this year, production of crude petroleum has shown little increase. Throughout the year the index based on production figures in Mississippi and coastal Louisiana has remained in the neighborhood of 200 (1935-39= 100). Maintenance of industrial activity during 1944 at a more or less constant level in the District is reflected in the index of electric-power production, which fluctuated between 150 and 170 per cent of the 1935-39 average. Production of fuel generated electric power has increased more rapidly during the war than has hydroelectric power production. A marked decline in construction was recorded in the Dis trict. In December 1943, the construction contracts let amounted to 170 per cent of the prewar average. The index dropped almost 100 points the next month, never rose as high as 120 afterward, and in November stood at 68 per cent of the prewar level. ►Manufacturing employment in the District showed little change, another reflection of the relatively stable level of industrial activity during the year. The index throughout the year has approximated 160 per cent of the 1939 average, showing little seasonal fluctuation. The experience of the states in the District has varied somewhat, however. Manufacturing employment in Florida has declined slightly during the year but is still far above the District Average. Number 12 1 9 4 4 Manufacturing employment in Alabama has maintained its large wartime gains, with the state index remaining near 190 per cent of prewar. Tennessee employment in manufacturing industry has been between 135 and 140 per cent greater than the 1939 figure, the state’s index remaining below that of the other states of the District throughout 1944. Employment in Mississippi industries has experienced the largest percentage fluctuations in the District, falling by about 10 index points between December 1943 and June 1944 and then recovering this loss by September. Manufacturing employment in both Louisiana and Georgia showed little change over most of the year. ►The turnover of demand deposits in District banks was substantially below prewar levels throughout the year, with marked increases in the rate occurring during each of the year’s three war-loan drives. Debits to demand accounts were, of course, substantially above prewar levels, but the tre mendous increase during the war in the size of demand de posits has more than offset the increase in debits so that the rate of turnover is now only about two thirds of the prewar rate. The success of the price-stabilization program is reflected in the District cost-of-living index, which remained virtually unchanged throughout the year. The cost of living in the large cities of the District now averages about 30 per cent higher than prewar levels. Increased incomes, reflecting both increased manufactur ing employment over prewar levels and a substantial rise in farm income in the District, have resulted in a continuing rise in department-store sales during the year. On a seasonally adjusted basis, in the large cities of the District these sales were running about 25 per cent higher late in 1944 than at the end of 1943. ►The current high level of incomes in the District and the active state of business were also reflected in increases in the volume of debits to individual bank accounts during the year. In several cities of the District percentage increases in debits in 1944 over those of 1943 were of large magnitude despite the fact that the 1943 volume attained record levels. In Ala bama, Anniston banks reported debits to individual accounts in the first 11 months of 1944 up 29 per cent over the com parable period of 1943. Increases of from 4 to 8 per cent M 1 1 0 o n t h l y R e v ie w 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 t a f o r D e c e m b e r 1 9 4 4 were recorded in Montgomery, Mobile, Gadsden, Dothan, and Birmingham. Miami led Florida reporting centers with a 35 per cent increase in debits to individual accounts for the January 1-November 30 period. St. Petersburg registered an increase of 20 per cent, and Jacksonville, Pensacola, and Tampa reported increases approaching 10 per cent. Debits fell 5 per cent in Orlando. In Georgia, Elberton banks re ported debits to individual accounts 16 per cent greater than they reported in the first 11 months of 1943. Savannah, Albany, Valdosta, and Atlanta debits were up about 10 per cent. Smaller gains were recorded in Augusta, Brunswick, Columbus, Macon and Newnan. New Orleans was the only reporting center in the Sixth District portion of Louisiana to register an increase: 14 per cent. Debits to individual bank accounts in Baton Rouge and Lake Charles were unchanged from those of last year. In the Sixth District portion of Mississippi, Jackson recorded a 13 per cent gain in debits between January 1 and December 1 over debits for the similar period of 1943. Meridian and Hattiesburg had increases of 9 and 8 per cent respectively, but Vicksburg experienced a 2 per cent decline. Knoxville’s increase of 63 per cent was the largest in the District. The other two reporting centers in Sixth District Tennessee, Nash ville and Chattanooga, registered small increases of less than 5 per cent. N aval Stores Stocks Decline The naval-stores industry in the District has been handi capped by severe labor shortages during 1944. The result is that, despite favorable prices, the production of naval stores this year is the smallest in decades. During the first six months of the current naval-stores year, April 1 to October 1, were produced 159,000 barrels (50 gallons) of gum tur pentine and 110,000 barrels of wood turpentine. In the similar period of 1943 about the same amount of wood turpentine was produced, 112,000 barrels, but production of gum turpentine was substantially higher, 186,000 barrels. The carry-over on April 1 was slightly larger than it was on the same day last year, but consumption was much larger in the spring and summer this year and, as a result, the carry over on September 30, 1944, was only 258,000 barrels, com pared with 315,000 on September 30 a year ago. On April 1, 1943, stocks of rosin in the United States totaled 1,284,000 drums (520 pounds net), but the carry over on April 1, 1944, was only 795,000 drums. Production of wood rosin from April 1 to October 1, 1944, declined 39,000 barrels, compared with the same six months in 1943, and production of gum rosin was less by 76,000 barrels. Cur rent consumption of rosin, including exports, for which separate figures are not available, declined from 1,009,000 drums in the spring and summer of 1943 to 862,000 drums in the similar period of 1944. Nevertheless, stocks of rosin of the lighter grades are virtually exhausted and the total carry-over on September 30, 1944, was only 662,000 drums, compared with 1,119,000 on September 30, 1943. The production of gum turpentine and rosin is a seasonal industry. About 65 per cent of the 1943-44 production was achieved between April 1 and October 1. Indications are that the season is being terminated somewhat earlier this year, so that the reduced carry-over at the end of the summer this year will undoubtedly be further reduced by the spring of 1945. ►In the District’s large lumber industry, shortages of labor, gasoline, heavy-duty tires, and trucks have seriously handi capped the production drive. In the first year or so of the war, lumber was looked upon as a plentiful material that could serve in many ways as a substitute for scarce metals. By the end of 1944, however, the lumber situation had be come critical while aluminum and magnesium programs were being cut back and the supply of steel was easier. The short age of lumber results not only from production difficulties in the woods, complicated by an early winter, but also from ever-rising military demands. Reconstruction of wrecked port facilities in Europe and the ever-increasing demand for lumber for packaging materiel for shipment abroad have brought about critical shortages of Southern pine and hard woods, and virtually no cypress has been available for civilian use in many months. There is little prospect of im provement in this situation until one of the wars reaches its end. ►The citrus industry in Florida has been enjoying unparal leled prosperity. In the current season, early freezes and the October hurricane have damaged the crop but, even so, production this season will far exceed the prewar average. Prices are higher than they were in prewar years and, all in all, the prospects of the Florida citrus industry for 1945 are excellent. Early vegetables in Florida also have been damaged by the hurricane and by freezes, but some replanting has been done. The demand is almost certain to remain good, with prices firm, in 1945 so that the truck farmers will enjoy another prosperous season. Tobacco growers of the District had an other good year in 1944 and seem likely to repeat this suc cess in 1945. Cotton Yield Increases Cotton growers in Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee have produced a crop of cotton this year amounting to 5,037,000 bales, according to the last monthly estimate made by the United States Department of Agriculture on the basis of conditions on December 1. The crop in these six states is apparently 1,003,000 bales, or 17 per cent, larger than was expected at the time of the first estimate of the season, August 1, and is 144,000 bales larger than the 1943 production in these states. This year’s crop is smaller than that of last year by 4 per cent in Georgia, 15 per cent in Louisiana, and 25 per cent in Florida, a small cotton-growing state. Alabama, however, produced 5 per cent more cotton than it did in 1943, Missis sippi 9 per cent more, and Tennessee 16 per cent more. Har vested acreage was less in each of the six states than it was in 1943. For the six states combined the decrease was 10 per cent, while for the individual states the reductions were 6 per cent for Tennessee and Mississippi, 10 per cent for Louisiana, 12 per cent for Alabama, 16 per cent for Georgia, and 23 per cent for Florida. Per acre yields, however, were larger than those of a year ago, except in Louisiana, the increase for the six stiates averaging 8.2 per cent. The yield in Louisiana was 6 per cent less than it was in 1943, but increases in the other five states ranged up to 24 per cent, in Tennessee. The Georgia yield is reported to be the highest ever attained in the state, but the harvested acreage is the smallest in 73 years. The indicated yield in Alabama is also the highest on record in that state M o n t h l y R e v ie w 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 t a f o r D e c e m b e r 1 9 4 4 R e c o n n a is s a n c e Sixth District Statistics for Novem 1 4 com ber 9 4 pared with N ovem 1 4 ber 9 3 PEB CENT DECBEASE W' PEB CENT INCREASE Department S.on, Sales Department iilf ili Stocks F u n u tu iiiiiin iiiig iy iiiii Petroleum |jf|j§j§£uction Cotton HHnsumption Gasoline Ta^jijfjbllections Bank M i l M em ^r Bank Loan* Member Bank la^ lm enta Demand n AnjmilillMIHilliliili ^ n fm i1 nnfm T rrn m flnfnnm n m 40 30 20 10 0 1 0 20 30 4 0 — 56 pounds larger than the 1943 yield, and 114 pounds greater than the 1933-42 average. In Mississippi, this year’s yield is the largest of any of the Sixth District states and 125 pounds greater than the 10-year average for Mississippi. The yield in Tennessee this year has been exceeded only twice before in that state. At the middle of December the 10-market average price for spot middling 15/16-inch cotton was 21.60 cents per pound, up somewhat over the previous week, and 1.85 cents higher than it was at the corresponding time a year earlier. Accord ing to the War Food Administration, spot prices for middling 15/16-inch cotton for the second week in December averaged 55 points under the December purchase price of the Com modity Credit Corporation, which was 22.11 cents per pound. Current sales are in larger volume than they were a year ago, owing possibly to the later harvesting this year, but farmers are not offering freely at present market prices. The storage situation is reported to be improving over much of the belt, making it possible for additional quantities of cot* ton to enter the Government loan-and-purchase programs. Loans were reported on 1944-crop cotton for the season through December 9, amounting to 1,380,400 bales, com pared with 2,346,300 bales through the corresponding week last year. CCC purchases through December 12 totaled 537,400 bales. Shipyards Active From the standpoint of employment, shipbuilding is the major new wartime industry of the District. This industry continued to operate near its peak in 1944. In the first 11 months of the year, all United States shipyards delivered 1,532 ships, aggregating 15 million deadweight tons. Of these, 337 were built in Sixth District yards. Between January 1 and December 1, the Alabama Drydock and Shipbuilding Company at Mobile delivered 40 tankers. The other yard at Mobile, Gulf Shipbuilding Company, built five C -2 cargo ships and two C-type cargo vessels. The J. A. Jones Construction Company yard at Panama City, Florida, has delivered 29 Liberty ships, 15 EC-2 cargo ships, and 1 special-type vessel. The St. Johns River Ship 111 building Company at Jacksonville built 28 Liberty ships and 18 E C -2 cargo ships in the first I I months of this year. The other major Florida shipyard, McCloskey and Company at Tampa, built 20 concrete vessels during the same period; 15 of these were cargo ships and 5 were barges. Up to December 1 the J. A. Jones Construction Company at Brunswick, Georgia, had delivered 27 Liberty ships and 19 E C -2 cargo ships. The Southeastern Shipbuilding Cor poration of Savannah delivered 24 Liberty ships and 16 EC-2 cargoes. Seven concrete barges were delivered by the Mac* Evoy Shipbuilding Corporation, also of Savannah. The Delta Shipbuilding Company at New Orleans com pleted 31 Liberty ships, 5 emergency tankers, and 23 EC -2 cargo vessels between January 1 and December 1. Pendleton Shipyards, Inc., of New Orleans delivered four coastal cargo ships in the same period, and Avondale-Marine Ways, Inc., of Westwego, Louisiana, delivered six vessels of this type. The Ingalls Shipbuilding Corporation at Pascagoula, Mis sissippi, delivered 17 vessels in the first 11 months of 1944. Of these, 6 were coastal cargo ships, 4 were C -3 cargo ships, 3 were C-type cargo ships, 3 were military types, and 1 was a special job. The 12 District shipyards together completed 139 Liberty ships, 91 E C -2 cargo ships, 40 tankers, 16 coastal cargo ves sels, 15 concrete cargo vessels, 12 concrete barges, 5 each of the emergency tankers, C -2 cargoes, and C-type cargoes, 4 C-3 cargoes, 3 military type vessels, and 2 special types. Labor Supply Improves Important labor-market areas are placed in four categories by the War Manpower Commission. Group I includes areas in which acute labor shortages that will endanger essential production exist or are anticipated. Group I I areas are those in which there are labor shortages that may endanger es sential production or areas that are approaching a balanced demand-and-supply situation. In Group II I areas, the labor supply substantially balances the demand so far as essential production is concerned or a moderate labor surplus currently exists or is anticipated. Those labor-market areas in which there is a substantial labor surplus or in which such a surplus is expected to develop are classified as Group IV. On December 1, 1944, six areas in the Sixth District were classified in Group I : Columbus, Macon, and Savannah, Georgia; Mobile, Alabama; Knoxville, Tennessee; and Pascagoula, Mississippi. A year earlier 10 areas in the Dis trict were so classified. Besides Columbus, Macon, Knoxville, Mobile, and Pascagoula, these included Pensacola, Panama City, and Jacksonville, Florida; Biloxi-Gulfport, Mississippi; and Brunswick, Georgia. Savannah, now classified in Group I, was in Group II on December 1, 1943. On December 1, 1944, Biloxi-Gulfport; Brunswick and Rome, Georgia; Jacksonville, Panama City, Pensacola, and Tampa, Florida; Vicksburg and Jackson, Mississippi; New Orleans and Shreveport, Louisiana, were in Group II. A year earlier Atlanta, Augusta, and Savannah, Georgia; Jack son, Mississippi; Lakeland, Orlando, and Tampa, Florida; Florence, Talladega, and Tuscaloosa, Alabama; New Or leans and Lake Charles, Louisiana, were in Group II. Key war-production areas in Groups II I and IV, that is, areas in which there is sufficient labor available, on December 1, 1944, included Anniston, Birmingham, Florence, Gadsden, Huntsville, Talladega, Tuscaloosa, and Decatur, Alabama; 112 M o n t h l y R e v ie w 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 t a f o r D e c e m b e r 1 9 4 4 S ix th D is t r ic t S t a t is t ic s WHOLESALE SALES AND INVENTORIES— NOVEMBER 1 4 94 Automotive Su p p lie s. C lo th in g ......................... Shoes and O ther Fo o tw ea r................... D rugs and S u n d rie s.. D ry G o o d s..................... F re sh Fru its and V e g e tab le s............... Farm S u p p lie s............ C on fectio nery.............. G ro ce rie s— F u ll Line W h o le sa le rs............ G ro ce rie s— Sp ecialty Lin e W h o le sa le rs.. B e e r................................. Hardw are— G en eral H ard w a re................... H ardware— Industrial S u p p lie s..................... M achinery Equipment and S u p p lie s............. Paper a n a Its Products..................... Tobacco and Its P roducts..................... M iscellaneous............... T O T A L ..................... SALES Percent change Percent change Nov. 19 4 Irom 4, Nov. 19 4 irom 4, N oi o. Oct. Nov. N oi Oct. Nov. o. 94 Firms 1 4 94 14 9 3 Firms 1 4 14 93 1 3 1 0 + 5 + 3 + 15 + 16 3 —1 5 — 5 — 1 3 + 5 — 1 3 9 — 4 + 8 + 9 4 + 7 + 18 1 0 —2 3 + 2 5 3 6 35 — 8 + 8 — 15 + 17 — 4 — + 0 8 4 — — 3 5 14 — — 19 4 16 + 13 — 11 5 4 + 11 + 21 + + 5 — 1 + 17 + 12 — 6 + 3 + 1 — 12 — 3 5 + 9 4 — 11 — + 2 17 io 7 4 + 4 11 9 145 + 8 + 0 9 — 2 4- 16 — 6 — 3 + 4 — 12 + 4 3 16 66 DEBITS TO INDIVIDUAL BANK ACCOUNTS (In Thousands oi Dollars) Per Cent Change N ov. Oct. N ov. 14 93 14 94 14 94 Area Oct. 1 4 N 1 4 9 4 ov. 9 3 ALABAM A 1 ,7 9 48 1 ,5 9 84 1 ,6 9 89 Anniston.............. 16 ,5 6 63 13 8 9 ,0 6 19 2 8 ,7 1 Birmingham......... 8,694 1 ,1 8 09 9,2 1 6 Dothan................ 1 ,5 0 00 1 ,1 3 21 1 ,0 9 20 Gadsden.............. 10 3 3 ,7 5 13 0 2 ,3 1 13 7 1 ,9 8 42,460 4 ,7 1 20 43,505 M ontgom ery......... FLORIDA 14 6 7 ,5 3 16 8 6 ,6 6 17 9 5 ,6 8 lacksonville......... 11 ,9 9 06 18 3 0 ,9 4 11 1 0 ,4 3 M iami.................. 14 0 5 ,6 5 14 ,0 9 50 16 9 2 ,8 1 .Greater Miami*..... 2 6,925 23,402 21,767 Orlando............... 2 3,394 22,954 22,003 Pensacola............ 25,709 22,405 20,648 St. Petersburg....... 80,259 6 ,2 1 96 74,425 Tampa................. GEORGIA 12 0 ,7 7 Albany................ 11 9 ,0 2 10 0 ,9 5 48 6 8,51 Atlanta................ 492,164 442,369 34,030 Augusta............... 35,286 3 0,278 1 ,8 7 43 16 1 ,7 9 Brunswick............ 1 ,0 0 31 36,465 Columbus............ 34,409 32 53 ,7 2,09 5 27 ,4 1 Elberton.............. 16 ,8 7 4 1,909 M acon................ 46,366 40,500 5,805 Newnan............... 5,318 4,486 8 3,828 8 ,0 1 60 84,724 Savannah............ 7,079 6,905 7,275 Valdosta.............. LOUISIANA 4 ,1 1 21 Baton Rouge........ 42,154 38,347 1 ,4 9 64 Lake Charles........ 1 ,8 3 50 21,447 451,758 New Orleans........ 4 50,468 402,776 MISSISSIPPI Hattiesburg.......... 1 ,8 4 64 1 ,5 1 31 .1 ,3 9 12 Jackson............... 52,877 50,000 48,738 Meridian.............. 1 ,6 4 72 1 ,5 9 82 1 ,3 4 54 Vicksburg............ 2 3,406 23,598 20,865 TENNESSEE Chattanooga........ 87,334 83 33 ,5 86,845 Knoxville.............. 11 9 1 ,7 3 19 1 0 ,2 8 8 ,8 0 62 Nashville.............. 13 2 7 ,2 8 14 5 7 ,6 6 16 9 7 ,8 7 SIXTH DISTRICT 3 Cities............... 2,564,991 2,519,119 2,339,653 2 UNITED STATES 3 4 Cities.............. 77,706,000 73,861,000 65,025,000 3 * N t included in totals o Lakeland, Miami, and Orlando, Florida; Augusta and At lanta, Georgia; Baton Rouge and Lake Charles, Louisiana; and Chattanooga, Kingsport-Bristol, and Nashville, Tennes see. A year earlier about the same number of District labormarket areas had relatively easy labor-supply situations. ^Banking figures are, perhaps, the best overall measure of the District business situation in 1944. Between December 20, 1943, and December 20, 1944, the reserve deposits of mem ber banks in the Sixth District increased by 19 per cent and totaled 625 million dollars on the latter date. Circulation of Federal Reserve notes issued by the Atlanta Bank increased by 35 per cent over the same 12 months, reaching 1,269 mil lion dollars on December 20, 1944. The weekly reporting member banks in the Sixth District recorded an increase of 12 per cent in demand deposits (ad justed) between mid-December 1943 and mid-December 1944, and their time deposits increased 30 per cent. The total loans outstanding remained virtually unchanged, but invest ments increased 21 per cent over the year, owing chiefly to an increase in the banks’ holdings of direct obligations of the United States Treasury. + — + — 2 9 6 2 +2 6 + 1 6 + 7 + 1 5 + 1 5 — 1 + + + + + + + 1 1 2 7 1 5 2 1 5 1 6 + + + + + + + 5 9 2 2 2 4 6 2 5 8 + 1 7 1 — 4 + 1 4 + 6 —1 5 —1 0 + 9 — 3 + 3 + 1 5 + io + 1 2 —1 1 + 1 1 + 1 2 + 3 +2 9 — 1 — 3 — 0 + 4 + o + io —2 3 + 1 2 +2 5 — 5 — 5 — 1 + + + + — + 5 + 2 1 + 1 +3 8 — 2 + 2 + 1 0 — 5 +1 4 — 4 9 3 1 5 1 2 Postwar Planning A* considerable amount of interest in postwar planning is evident in the District, and during the year both official and unofficial groups have devoted a great deal of attention to the postwar economic problems that are already taking shape. In Mississippi the 1944 legislature established an Agri cultural and Industrial Board, reviving the state-sponsored industrialization program of 1936-40. Under the chairman ship of the governor, the board began operation effective July 1 with 20 directors. The board plans to encourage the location in Mississippi of industrial plants that will process the state’s raw materials. The Georgia State Agricultural and Industrial Board has had an active year. Ten postwar-plan ning meetings have been held by the Georgia board in various points over the state as the first step in a five-year program for the encouragement of industrialization. The board is planning to pay particular attention to the problems of the smaller communities of the state where there is as yet no industrial activity. Private firms have also in some instances announced post war plans. The Southern Bell Telephone and Telegraph Company, for example, has announced that the extension of rural service is to be one of its major postwar aims when ma terials again become available. Also, the Florida Power and Light Company has made public announcement of plans for the postwar construction of a $1,500,000 power plant in Sara sota. The new plant will have a generating capacity six times larger than Sarasota’s present power consumption, for the company foresees a tremendous postwar expansion in Florida’s west-coast area. An interesting private program begun in 1944 is that of Cason Callaway who has sponsored the formation of 100 private farming corporations in Georgia. Each corporation is composed of seven stockholders who have each invested $1,000. These corporations plan to buy land and spend several years building up the soil before engaging in com mercial farming operations. The purpose of the plan is pri marily to demonstrate the possibilities of profitable, diversi fied farming in Georgia on soil that has been properly de veloped for greater fertility. M o n t h l y R e v ie w 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 t a f o r D e c e m b e r 1 9 4 4 C u rre n t B a n k in g S ix th D is tr ic t I n d e x e s E v e n ts close of this year, the Federal Reserve System had . 316 member banks in the Sixth District. The number thus was the same as that at the beginning of the year, but several changes of one kind or another took place during the intervening 12 months. Two entirely new banks were admitted to membership. These new banks were the Gulf National Bank of Gulfport, Gulfport, Mississippi, which opened for business on August 7, and the Florida National Bank at Coral Gables, Coral Gables, Florida, whose admission on December 28 is noted below. Three state member banks became national banks. The American Bank and Trust Company of New Orleans on January 4 became the National American Bank of New Or leans; the Brunswick Bank and Trust Company of Bruns wick, Georgia, on May 5 became the American National Bank of Brunswick; and the Commercial Bank and Trust Com pany of Knoxville, Tennessee, on June 5 became the Com mercial National Bank. These conversions, of course, did not affect the total number of member banks in the District, be cause the banks were already members under state charters. Two nonmember state banks relinquished their state char ters during the year and obtained national charters, and they thus became new members of the Federal Reserve System. The first of these conversions was that of the Security Bank ing Company of Alexandria, Louisiana, which became the Security National Bank of Alexandria on May 31. The sec ond conversion was that of the Attalla Bank into the First National Bank of Attalla, Alabama, on November 1. Three nonmember state banks were admitted into member ship during the year. The Progressive Industrial Bank, New Orleans, Louisiana, was admitted on January 28; the Farm ers and Merchants Bank, Mount Pleasant, Tennessee, on July 18; and the Middle Tennessee Bank, Columbia, Tennessee, on August 28. Two national banks of the District went into voluntary liquidation. The first of these was the First National Bank of Milledgeville, Milledgeville, Georgia, which announced its voluntary liquidation on October 26. The second was the Lineville National Bank, Lineville, Alabama, which an nounced its voluntary liquidation on December 12. Five state banks voluntarily withdrew from membership during the year. These were the Bank of Millen, Millen, Georgia; the Bank of Soperton, Soperton, Georgia; the Bank of Commerce, Clayton, Alabama; the Bank of Canton, Can ton, Georgia; and the Blackshear Bank, Blackshear, Georgia. These banks all withdrew from membership in order to charge exchange on incoming cash letters. ►In summary, therefore, changes for the year in System membership in the Sixth District included seven additions and seven withdrawals. The additions to membership were represented by two organizations of national banks, two con versions of nonmember banks to national banks, and three admissions of state banks. The losses of membership were represented by two voluntary liquidations and five withdraw als of state banks. The number of member banks in the Sixth Federal Reserve District, using year-end figures, reached its highest point in 1922 when there were* 536 member banks out of a total of 2,045 banks in the District. Since that time the number has A DISTRICT.......... Atlanta........... Baton Rouge... Birmingham--Chattanooga... Jackson.......... Jacksonville--Knoxville....... M acon........... M iami............ Montgomery... Nashville........ New Orleans... Tampa........... DEPARTM ENT STORE SALES* Adjusted** Unadjusted N ov. Oct. Nov. Nov. Oct. N ov. 14 94 14 93 14 94 14 94 14 94 14 93 29 6 20 6 20 2 35 1 23 7 27 5 37 2 27 5 21 8 38 4 26 8 24 7 28 8 27 3 36 0 26 3 29 7 20 5 27 6 26 2 23 2 38 0 24 5 22 5 28 6 29 4 25 2 30 0 23 6 21 5 24 6 27 5 22 1 29 4 30 1 25 8 37 7 29 9 32 1 49 0 33 5 35 2 31 4 29 3 36 6 27 5 38 1 39 2 24 5 22 3 23 9 27 6 28 5 25 7 22 4 16 9 29 1 21 5 20 8 15 9 22 0 24 3 27 6 25 6 30 1 20 8 23 7 23 4 32 3 26 6 33 0 28 8 24 0 22 8 27 3 22 4 28 4 25 5 27 9 24 5 39 4 20 9 30 0 25 9 DISTRICT.......... Birmingham_ _ Montgomery.. Nashville........ New Orleans... DEPARTM ENT STORE STOCKS Adjusted** Unadjusted Nov. Oct. Nov. Oct. N ov. Nov. 14 94 14 94 14 93 14 94 14 94 14 93 17 7 18 9 12 6 24 0 17 8 22 2 24 6 27 9 27 5 20 2 31 0 25 : 5 17 4 13 3 11 3 16 5 15 6 14 5 20 1 12 9 21 3 27 2 18 9 24 2 34 0 247 27 8 24 8 30 3 39 4 13 4 19 0 12 5 11 6 10 4 15 3 t th e 1 1 3 COTTON CONSUM PTION* Nov. Oct. N ov. 14 94 14 93 14 94 TOTAL.............. 1 0 6 11 5 18 6 14 7 Alabama........ 13 6 18 5 Georgia......... 11 5 18 6 11 6 19 2 Tennessee..... 17 3 10 4 COAL PRODUCTION* N ov. Oct. Nov. 14 94 14 94 14 93 13 6 18 5 13 4 11 7 12 5 16 6 i46 i27 19 3 MANUFACTURING EMPLOYMENT*** September August 14 94 14 94 12 6 18 5r SIX STATES............................... 11 9 18 r 8 14 7 18 6r 16 4r 17 4 17 7 17 r 1 Louisiana................................ 11 5r 16 5 Mississippi.............................. 10 4 13 r 7 Tennessee.............................. DISTRICT.......... Residential..... Alabama........ Georgia......... Louisiana....... Mississippi..... Tennessee..... CONSTRUCTION CONTRACTS Nov. Oct. Nov. 94 14 93 1944.. 1 4 7 2 10 1 6 8 7 6 9 8 4 0 16 1 65r 8 2 9 9 8 0 17 0 7 2 16 2 6 0 6 4 12 3 15 4 3 6 4 8 7 8 1 1 8 2 3 12 4 5 8 5 1 COST OF LIVING Oct. Sept. Oct. 14 94 14 93 94 14 ALL ITEMS.. 1 1 2 3 13f‘ 1 9 Food....... 1 3 4 15 4 15 4 Clothing... 1 9 3 13 3 19 3 Rent........ 1 4 1 14 1 14 1 Fuel, elec tricity, and ice.. 1 9 18 0 0 19 0 H e fur om 14 2 nishings. 1 9 3 19 3 Miscel 10 2 laneous. . 1 6 16 2 2 CRUDE PETROLEUM PRODUCTION IN COASTAL LOUISIANA AN D MISSISSIPPI* Nov. Oct. N ov. 14 94 14 93 94 14 Unadjusted.. 2 5 12 9 0 22 0 Adjusted**... 2 2 0 23 0 10 9 September 14 93 19 5 12 9 18 7 13 4 11 6 16 4 11 4 GASOLINE TAX COLLECTIONS*** Nov. Nov. Oct. 14 94 14 93 14 94 9 7 14 0 9 6 11 1 8 8 9 8 16 0 17 0 10 2 19 0 8 8 13 0 17 0 8 7 9 1 14 0 7 8 8 8 11 0 15 0 14 2 ELECTRIC POWER PRODUCTION* Oct. Sept. Oct. 94 14 93 14 94 14 SIX STATES.. 2 3 6 22 5 20 7 Hydro generated. 2 2 1 18 9 26 0 Fuel 32 2 generated. 3 1 3 33 5 ANNUAL RATE OF TURNOVER OF DEM AND DEPOSITS Nov. Oct. Nov. 93 14 94 14 94 14 Unadjusted.. 16 .7 1 .1 1 .1 6 8 7 Adjusted**... 1 .8 1 .2 1 .L 5 6 Index**....... 60.9 62.7 66.2 *Daily average basis **Adjusted for seasonal variation ***1939 m onthly average=100; other indexes, 1935-39=100 r=Revised 1 1 4 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 rve B a n k S ix th D is t r ic t S t a t is t ic s INSTALM ENT CASH LOANS Num ber Reporting Lender Federal Credit Unions............... State Credit Unions................... Industrial Banking Companies..... Personal Finance Companies....... Commercial Banks..................... 4 3 2 5 4 2 5 0 3 4 Per Cent Change Oct. 1 4 to Nov. 1 4 94 94 Outstandings Volume + 3 + 1 —3 +5 5 +3 + 1 +2 + o +3 + 0 RETAIL FURNITURE STORE OPERATIONS Item Total Sales................................. Cash Sales................................. Instalment and Other Credit Sales.. Accounts Receivable, end of m onth. Collections during m onth.............. Inventories, end of month.. .......... N ber um o f Stores 18 0 9 7 9 7 15 0 15 0 8 3 Per Cent Change N ovem 1 4 , from ber 9 4 93 Oct. 1 4 9 4 Nov. 1 4 +2 9 + 1 +2 9 — 0 +3 2 + 6 + 4 — 1 + 1 1 —1 1 — 9 CONDITION OF FEDERAL RESERVE BANK OF ATLANTA (In Thousands oi 'Dollars) Item U. S. securities, direct and guaranteed.................. Total bills and securities. M ber bank reserve em Foreign bank deposits..... Total reserves.................. Per Cent change Dec. 20, 19 4 irom 4, Dec. 20, Nov. 22, Dec. 22, 2 14 94 14 94 14 9 3 Nov. 2 Dec. 2 2 14 94 14 93 4,000 4,903 22 — 4 —9 2 2 2 0 2 3 96 2 9 2 1 563,554 + 3 7,47 +7 2 4 ,5 1 96 4 947,437 567,776 + 2 7,49 +7 0 9,20 +3 5 1,269,030 1,237,949 93 2 + 3 +2 2 605,936 511,609 + 3 62 8 5,12 3 30,020 21,334 81,276 + 4 1 —6 —2 4 36,817 38,936 48,618 + 6 3,55 1 3,628 — 3 — 5 3,432 53 695,398 669,757 64 ,1 1 + 4 + 8 7 ,1 1 955,800 946,356 9 4 0 + 1 — 2 CONDITION OF 2 M BER BANKS IN SELECTED CITIES 0 EM (In Thousands o Dollars) f Item Per cerit change 4 3 9 4 from 5 Dec. 1 , N 1 , Dec. 1 . Doc. 1 , 3 ov. 5 ov. 5 14 9 3 N 1 . Dec. 1 , 5 14 94 14 94 14 94 14 93 Loans and Investm ents— Total........................... 1,792,022 Loans— Total................... 361,015 Commercial, industrial 1 ,1 1 and agricultural loans.. 2 1 7 Loans to brokers and 6,954 dealers in securities.... Other loans for pur chasing and carrying securities.................. 51 48 ,7 Real estate loans........... 23 9 ,8 1 2 8 ,27 Loans to banks.............. 64 73 ,9 Other loans.................. ,431,007 Investments— Total........... 1 ,2 9 1 U. S. direct obligations... 1 8 ,1 1 Obligations guaranteed by U. S.................... 1 ,4 1 90 Other securities............ 1 2 9 2 ,4 5 Reserve with F. R. Bank.... 323,950 Cash in vault.................. 29,880 Balances with dom estic 20 banks.......................... 17 ,0 0 Dem deposits—adjusted 1,125,804 and Tim deposits.................. 320,239 e U. S. Gov't deposits.......... 244,939 Deposits of dom estic banks. 528,720 Borrowings..................... 1,7 2 0 1,545,459 1 ,3 1 54 3 27,042 36 ,5 1 + io 201,019 216,489 + 5 58 ,3 1 9,867 + 2 9 + 1 6 1 — 2 —3 0 29 85 ,8 2 3,447 1,0 2 0 66 08 ,3 1,385,259 1,241,829 1 ,4 2 90 14 2 2 ,0 8 333,677 2 7,256 13 4 4 ,8 3 1,156,107 318,614 10 7 3 ,1 7 510,609 3,000 +8 1 —1 7 + .107 —1 9 +2 1 +2 7 —6 0 + 8 + 1 4 + 1 3 + 1 3 + 1 2 +3 0 +2 6 + 1 2 28 73 ,5 28,799 10 ,1 3 80,710 1,179,918 1,017,722 48,792 11 ,4 4 31 28 8 4,96 26,386 15 ,9 9 16 1,00 86 8,9 2 45,999 14 4 9 ,7 0 471,510 3,000 +7 3 +1 7 2 — 2 + 3 + 4 — 0 — 1 — 3 + io +2 0 — 3 + 1 +8 8 + 4 o f A t la n t a f o r D e c e m b e r 1 9 4 4 gradually declined, but the number of nonmember banks has declined even more. Thus at the close of 1933 the low point in membership, the member banks numbered 309 out of a total of 1,055. Member banks had risen from 26.2 per cent of the total at the end of 1922 to 29.3 per cent at the close of 1933. Numbering 315 on June 30, 1944, the district member banks were 30 per cent of the total, the highest proportion ever reached since the organization of the Federal Reserve Bank of Atlanta in 1914. Lake Worth Bank Increases Capital The First National Bank in Lake Worth, Lake Worth, Florida, increased its capital stock, effective December 15, from $50,000 to $200,000. Of this increase, $50,000 repre sented the sale of additional shares at par and $ 100,000 a stock dividend. Under the new capitalization the shares of stock have a par value of $10 each and the number of shares outstanding is 20,000. The bank was first organized in 1936. Wiley R. Reynolds is chairman of the board, Roy E. Garnett is president, and John A. Boardman, Robert E. Conn, and R. S. Erskine are vice presidents. Directors of the bank are: W. E. Arnold, H. H. Bassett, R. E. Conn, R. S. Erskine, R. E. Garnett, Annette H. Reynolds, Wiley R. Reynolds, Wiley R. Reynolds, Jr., and Bert Winters. Lake Worth had a 1940 population of 7,408. It is located in Palm Beach County seven miles south of West Palm Beach. In normal times, the business life of the city is based largely upon the tourist trade. New Member Bank Organized The Florida National Bank at Coral Gables, Coral Gables, Florida, opened for business on December 28, 1944. The bank has a capital of $100,000 and a surplus of $25,000. Officers of the bank are: George A. Chatfield, president; R. C. Brown, vice president and cashier; and William C. Swain, assistant cashier. Serving as directors of the bank are: George A. Chatfield, L. A. Usina, R. C. Brown, Ernest J. C. Doll, J. Lamar Paxson, Oscar E. Dooly, Jr., and H. E. Moredock, Sr. Coral Gables, with a 1940 population of 8,294, is a part of Greater Miami. It adjoins Miami on the west and south. Founded during the real-estate boom of the 1920’s, the city has a distinctive character, largely the result of restrictions that require buildings in the business area to conform to the Mediterranean style of architecture. — Election of Directors Frank H. Neely, chairman of the Board of the Federal Reserve Bank of Atlanta, announced on November 29 that George J. White, president of the First National Bank of Mount Dora, Mount Dora, Florida, had been re-elected by member banks in Group 3 as a Class A director of the Fed eral Reserve Bank of Atlanta, and that Ernest T. George, president of the Seaboard Refining Company, Ltd., New Or leans, Louisiana, had been re-elected by the member banks in Group 1 as a Class B director. Each was chosen for a term of three years, beginning January 1, 1945. Chairman Neely in December also announced the appoint ment of a director for each of the four branches of the Fed eral Reserve Banjc of Atlanta. Reappointed to new three-year M o n t h l y R e v ie w o f t h e F e d e r a l R e s e rv e B a n k o f A t la n t a f o r D e c e m b e r 1 9 4 4 terms were: Gordon D. Palmer, president, First National Bank of Tuscaloosa, Tuscaloosa, Alabama, to serve as direc tor of the Birmingham Branch; J. L. Dart, president, Florida National Bank of Jacksonville, Jacksonville, Florida, to serve as a director of the Jacksonville Branch; B. L. Sadler, presi dent, First National Bank in Harriman, Harriman, Tennessee, to serve as director of the Nashville Branch; and J. F. Mc Rae, president, Merchants National Bank of Mobile, Mobile, Alabama, to serve as a director of the New Orleans Branch. Reappointed to seiVe Tor another one-year term as a mem ber of the Federal Reserve Advisory Council for the Sixth Federal Reserve District was Keehn W. Berry, president of the Whitney National Bank of New Orleans, New Orleans, Louisiana. The Board of Governors of the Federal Reserve System also announced in December its appointments of directors for the Federal Reserve Bank of Atlanta. Reappointed for another three-year term as a Class C director was Frank H. Neely, executive vice president and secretary of Rich’s, Inc., Atlanta, Georgia. Mr. Neely was also designated by the Board of Governors to serve for 1945 as chairman of the Board of Directors and as Federal Reserve Agent of the Federal Reserve Bank of Atlanta. Reappointed to the board of directors of the Birmingham Branch was Donald Comer; of the Jacksonville Branch, Walter J. Matherly; and of the Nashville Branch, Clyde B. Austin. Each of these branch directors was appointed for a three-year term beginning January 1, 1945. Mr. Comer is chairman of the board of the Avondale Mills, Birmingham, Alabama; Mr. Matherly is Dean of the College of Business Administration at the University of Florida, Gainesville. CLASSIFICATION OF M BER BANKS IN THE SIXTH FEDERAL EM RESERVE DISTRICT AS OF DECEMBER 31, 1 4 94 State Alabama.................................... Florida...................................... Georgia..................................... Louisiana.................................. Mississippi................................. Tennessee................................. TOTAL.................................... National Banks State Banka 67 55 47 22 14 59 264 17 5 12 7 3 8 52 Total 84 60 59 29 17 67 316 TOTAL DEPOSITS OF SIXTH DISTRICT M BER BANKS, JUNE 30. 1944 EM (In Thousands of Dollars) State Alabama................ Florida.................. Georgia................. Louisiana............... Mississippi.............. Tennessee.............. TOTAL............... N em Banks onm ber M ber Banks em Cent Cent Deposits PerTotal Deposits PerTotal of of 750,456 1,026,145 1,062,172 728,773 192,123 737,798 4,497,467 84 76 81 82 57 80 79 137,678 316,211 253,146 154,758 144,827 185,032 1,191,652 16 24 19 18 43 20 21 Total 888,134 1,342,356 1,315,318 883,531 336,950 922,830 5,689,119 MEM AND NONM BER SIXTH DISTRICT BANKS, TUN 30,1944 BER EM E State Alabama................ Florida.................. Georgia................ Louisiana............... Mississippi.............. Tennessee.............. TOTAL................ M ber Banks em N em Banka onm ber Cent um Cent N ber PerTotal N ber PerTotal um of of 83 60 62 29 16 65 315 38 35 21 35 17 33 30 134 113 231 55 79 130 742 62 65 79 65 83 67 70 Total 217 173 293 84 95 195 1,057 1 1 5 Florida; and Mr. Austin is president of the Austin Company, Inc., Greeneville, Tennessee. Additions to Par List The J. C. Jacobs Banking Company, Inc., of Scottsbdro, Alabama, will be added to the Federal Reserve Bank Par List on January 1, 1945. Effective on that date, the bank will remit to the Birmingham Branch of the Federal Reserve Bank of Atlanta at par for checks drawn upon it by its depositors. Officers of the bank are: H. G. Jacobs, president; E. P. Jacobs, vice president; R. A. Jacobs, cashier; and J. C. Jacobs II and Rachel Gold, assistant cashiers. The Bank has a capi tal of $50,000, surplus and profits of $72,000, and deposits in excess of $ 1,000,000. Scottsboro, a town of 2,834 in 1940, is located in Jackson County, which is in the northeastern corner of the state, ad joining Tennessee and Georgia. Its business life is based pri marily on the trade of farmers located in the surrounding area. Another bank that is to go on the Federal Reserve Par List on January 1, 1945 is the Hiwassee Bank of Charleston, Ten nessee. This bank will thus become one upon which checks will be received by Federal Reserve Banks for collection and credit. The routing of such checks will be through the Nash ville branch of the Federal Reserve Bank of Atlanta. This bank was founded in 1906, and currently it has a capital of $40,000 and surplus and undivided profits of $25,000. E. A. Edwards is chairman of the board of directors, J. E. Quisenberry is president and cashier, J. H. Epperson is vice president, Mrs. Mae Dillard is assistant cashier, and Charles S. Mayfield is counsel. In addition to Messrs. .Ed wards, Epperson, and Quisenberry, the board of directors in cludes C. C. Hambright, W. H. Moore, N. R. Wilson, and Wood Wilson. Charleston in 1940 had a population of 586. It is situated in Bradley County about 40 miles to the northeast of Chat tanooga. Conversion of State Bank to National Bank Effective January 2, 1945, the Commercial Bank of Cedartown will be converted into the Commercial National Bank, Cedartown, Georgia. Officers of the bank are Carden C. Bunn, chairman 6f the board of directors, Roy N. Emmet, Sr., pres ident, W. K. Holmes, vice president, George D. Collins, cash ier, and H. J. Hedgepeth, assistant cashier. Serving with Mr. Bunn on the board are Mr. Emmet and Mr. Holmes. The re maining members of the board are Robert Campbell, Marcus M. Cornelius, S. S. Horton, J. A. Morton, Henry A. Stewart, and Glenn T. York. This bank dates from 1889. It now has a capital of $140,000 and surplus and profits of $100,000. Operating under a national charter, the Commercial National Bank will automatically become a member of the Federal Reserve System. The addition of this bank will raise the total number of member banks in the Sixth Federal Re serve District to 317. Cedartown had a population of 9,025 in 1940. It is the county seat of Polk County and is located near the Alabama line about 60 miles northwest of Atlanta. In addition to be ing a trading center for a rich agricultural area, Cedartown has a number of industrial plants manufacturing cotton duck, tire cord, and wearing apparel. Located near by, as well, are five iron-ore surface mines. 1 1 6 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 fo r D ecem ber 1944 The National Business Situation O u t p u t at factories and m in es show ed little change from O ctober to N ovem b er. R etail trade exp an d ed further to new -record lev els. Industrial Production In dustrial output in N o vem b er and the ea rly part o f D e cem ber w as m ain tain ed at a p p ro x im a tely the sam e lev e l that had p revailed d u rin g the p rev io u s fo u r m onths. P rod u ction o f d u rab le g o o d s d eclin ed slig h tly in N ovem b er, w h ile output o f other m an ufactu red go o d s, e sp e c ia lly w ar su p p lies, in creased som ew hat further, and m in eral p rod u ction w as m ain tained in large volu m e. O utput o f critica l w ar eq u ip m en t w as larger in N ovem b er than in O ctober but w as still b ehind sch ed u le, accord in g to the W ar P rod u ction Board. A ctiv ity in the d u ra b le-g o o d s in d u stries, p a rticu la rly m a ch in ery, transportation eq u ip m en t, and lum ber, con tin u ed to be lim ited in part b y m an p ow er sh ortages. E m p loym en t in the transp ortation-equ ip m en t in d u stries has d eclin ed by about one fifth during th e p ast 12 m onths, but to tal output o f a ir craft, sh ip s, and com bat and m otor v e h icles has d eclin ed by a m uch sm a ller am ount o w in g to greater efficiency. In m ost non d u rab le-g o o d s in d u stries, p rod u ction w as so m e w hat greater in N ovem b er than in the p reviou s m onth. A c tiv ity at e x p lo siv e and sm all-arm s am m u n ition p lan ts in creased, reflecting en la rg ed w ar-p rod u ction sch ed u les, and outp ut in m ost other b ranches o f the ch em ical in du stry a lso exp an d ed , reach in g le v e ls ab ove th ose o f a year ago. P ro d u c tion in the p etroleum -refin in g and rubber in d u stries, ch ie fly fo r w ar uses, in creased som ew hat in N ovem b er. O utput o f m anufactured fo o d s show ed less d eclin e than is usu al fo r th is season and w as as la rg e as in N o vem b er 1 943. In th e te x tile ind ustry, ou tp u t at w o o len and w orsted m ills continu ed to advance in O ctober fro m the reduced lev el o f op eration s p rev a ilin g d u rin g the sum m er. C otton con su m p tio n in N ovem ber w as above O ctober and rayon d eliv eries w ere at a new record lev e l. M ineral p roduction w as m ain tain ed in N ovem b er. Coal ou t put w as on e fifth larger than in N ovem b er 1 9 4 3 , w hen o p er ation s w ere sh arp ly reduced b y a w ork sto p p a g e. In th e early part o f D ecem b er, h ow ever, c o a l p ro d u ctio n w as n early 10 per cent less than in the sam e p erio d la st year. V a lu e o f d ep artm ent-store sa le s in N ov em b er w as 14 per cent ab ove th e e x c e p tio n a lly h ig h le v e l la st year, about the sam e year-to-year in crea se w h ich p rev a ile d in the previou s fou r m onths. In th e first h a lf o f D ecem b er, sa le s w ere about 20 per cen t larger th an la st year. A ll F ed eral R eserve d is tricts have sh ow n la rg e in crea ses over la st year in pre-Christm as sa les. R ailro a d fr eig h t ca rlo a d in g s, a d ju sted fo r sea son al changes, were m ain tain ed at a h ig h le v e l in N o v em b er and the first tw o w eeks o f D ecem b er. S h ip m en ts o f m ost cla sses o f freigh t, how ever, w ere not q u ite as great as the e x ce p tio n a lly large m ovem ent o f freig h t d u rin g th e sam e p erio d la st year. Bank Credit B an k in g d ev elo p m en ts d u rin g th e fo u r w eek s en ded D ecem ber 13 w ere la rg e ly determ in ed b y th e S ix th W ar L oan D rive. G overnm ent d ep o sits at w eek ly rep o rtin g b an k s in 101 cities in creased b y a p p r o x im a tely 8 b illio n d o lla r s w h ile adjusted dem and d ep o sits o f in d iv id u a ls and b u sin ess w ere drawn dow n about 2 .6 b illio n s in p aym en t fo r secu rities purchased. T h e rep ortin g banks added 3 .7 b illio n d o lla r s to th eir h o ld in g s o f G overnm ent secu rities and in creased their loan s by 1.7 b illio n . A s a resu lt o f the tra n sfer o f d ep o sits o f in d iv id u a ls and b u sin esses to w ar-loan accou n ts, reserves required b y m em ber banks d eclin ed about 7 0 0 m illio n d o lla r s fro m the b egin n in g o f the drive th rou gh m id -D ecem b er. In ad d itio n , reserve fu n d s w ere su p p lie d to th e b a n k in g system th rou gh th e p urchase by the F ed eral R eserve B anks o f 6 4 0 m illio n d o lla rs o f G overn m ent secu rities. T h ese a d d itio n a l reserves w ere used in part to reduce m em ber-bank b o rro w in g s at the R eserve B anks, w hich had risen to n ea rly 6 0 0 m illio n d o lla r s in th e latter part o f N ovem b er, an d to m eet th e dem and fo r currency. T h is d e m and, th ou gh slack en ed som ew h at b y th e W ar L oan D rive, am ounted to 4 5 0 m illio n d o lla r s fo r th e fo u r w eeks ended D ecem b er 13. E xcess reserves in creased b y 3 0 0 m illio n d o l lars, p r in c ip a lly at cou n try banks. ( This page was written by the staff of the Board of Governors of the Federal Reserve System) INDUSTRIAL PRODUCTION Federal Reserve indexes. Groups are ex pressed in terms of points in the total index. Monthly figures, latest shown are for November. GOVERNMENT SECU RITY HOLDINGS OF BANKS IN LEADING C IT IE S MEMBER BANKS IN LEADIN 6 C IT IE S Excludes guaranteed securities. Data not available prior to February 8, 1939; cer tificates first reported on April 15, 1942. W ednesday figures, latest shown are for December 13, 1944. Demand deposits (adjusted) exclude U .S . Governm ent and interbank deposits and collection items. Governm ent securities include direct and guaranteed issues. W ednesday figures, latest shown are for December 13, 1944.
